Women’s fashion e-tailer Sosandar said today (27 November) its first-half trading matched expectations, with its results underlining the company’s encouraging growth trajectory since its 2017 AIM listing.
As highlighted in October – but confirmed today in a pre-audited interim results statement – revenue for the six months to 30 September 2019 totalled £2.82 million, which was an increase of 53% year on year.
It also reported a gross margin of 54%, but an underlying EBITDA loss of £2.7 million reflecting the significant product and marketing costs put into growing the business. Cash balance for the period end was £6.9 million, following an oversubscribed placing of new shares in July.
Operationally, orders grew by 47% year on year to 64,709, while returns decreased to 49%, as previously reported.
Sosandar also revealed that its customer database grew by 76%, with active customers increasing by 70% off the back of multichannel marketing campaigns launched earlier in the year. The company has increased the number of clothing suppliers it uses by 153% to support an expansion in product lines.
Ali Hall and Julie Lavington, joint CEOs, commented: "We are delighted to be reporting on a period of significant progress for Sosandar.
“The investments that were made in the latter part of the second quarter have resulted in exceptional autumn trading.”
They added: “Our vision is to be a global one-stop online destination for our customers, and with a widened product range, strong balance sheet, and a broadened, aggressive, and increasingly effective marketing strategy, we are confident that [this financial year] will be an important next step in that journey.”
Monthly revenue exceeded £1 million for the first time in October, and Sosandar estimated today that November is on course to exceed that figure.
