Sosandar shares were up 4% to 19.2p in late afternoon trading on Tuesday after the firm’s FY 2022 results exceeded market expectations, including a revenue spike of 142% to £29.5 million against £12.2 million the last year.
The fashion group mentioned an EBITDA improvement to a loss of £200,000 compared to a loss of £2.9 million in FY 2021, with every month in HY2 2022 recording profitability.
Sosandar highlighted an increase in gross margin to 56% from 48% year-on-year, reflecting a return to normal trading conditions after the impact of Covid-19.
The company confirmed net cash of £7 million on 31 March 2022 against £3.9 million the year before, on the back of its equity fundraise in May 2021, investment in stock and the fashion brand’s profits in HY2 2022.
Sosandar noted a total order rise of 84% to 508,000, along with a climb in active customers of 65% to 223,000 and a 10% uptick in average order frequency to 2.2 times per year.
The group reported a strong start to business in FY 2023 and highlighted momentum from demand for spring and summer fashion as a driver for its sales in Q1 this year.
“We are incredibly proud to be reporting another period of sustained growth for Sosandar. It is thanks to our well-planned approach, together with our entrepreneurial, agile culture that we have delivered a significant increase in revenue, as well as moving into month-on-month profitability,” said Sosandar co-CEOs Ali Hall and Julie Lavington.
“This is an important milestone for us, and having achieved it we are now better positioned than ever for further success. Notwithstanding the current macro-economic environment, trading in the new financial year has started very well, with a record quarter for sales and three further consecutive months of profitability.”
“With the arrival of spring and summer, we have seen our customers seek out a wide variety of product, in particular smart clothes for work, bright colours for holidays and investment pieces such as leather.”