Sosandar sets record for revenue in March
Sosandar (LON:SOS), the online women’s fashion brand, has this morning announced that its Q4 revenue is at £3.94m, up 63% from the year before, as part of its trading update for the financial year ended 31 March 2021.
Customer activity rose each month during the fourth quarter with record revenue recorded in March, a 66% increase compared to January, and a 163% rise compared to the previous year when lockdowns made an impact.
The AIM-listed company put its performance down to “increasing level of consumer optimism as lockdown restrictions start to lift”.
The Company expects to report revenue of £12.2m, up 35% year on year, with the EBITDA loss reduced by over 60%.
N+1 Singer evaluated the company’s performance and put forward a fair value estimate:
“With net cash and a market cap of only £39m, we find the investment case compelling, especially with a clear path to profitability now in sight. It currently trades on 1.6x EV/Sales to Mar’22 on conservative estimates (vs. 2 year average of 2.2x).”
“Herein lies the opportunity as EBITDA margin expands. Our fair value estimate of 32p is derived using a regression based EV/Sales multiple of 2.6x. We see scope for this to increase to 48p in the event strong top line growth is sustained, which seems plausible, and to c50-85p over 3 years in our bull case,” the note said.
Ali Hall and Julie Lavington, Co-CEOs Sosandar added their thoughts:
“In what has been a year that no one could have possibly predicted, we are delighted to have shown resilience and our entrepreneurial spirit, overcoming challenges to deliver a significant improvement in revenue and reduction in EBITDA losses, together with the further diversification of our product range.”
“The progress we are making reflects the scale of our opportunity and growing demand for our unique offering in the market. The recent purchasing trends that we have seen from our customers point to a period of increased activity and we believe that our extensive product range can cater to their needs.”
