TIDMSOS
RNS Number : 4651L
Sosandar PLC
13 January 2021
Date: 13 January 2021
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Trading Update
A record quarter and continued substantial reduction in EBITDA
loss
Sosandar, the online women's fashion brand, is pleased to
provide the following trading update covering the three-month
period ended 31 December 2020.
The Company has delivered a record quarter for revenue and
number of orders along with a substantial improvement in EBITDA
versus the same period in the prior year.
Highlights:
-- Revenue of GBP3.98m, up 6% year on year (Q3 2019: GBP3.80m)
delivered with a GBP1.61m (66%) reduction in marketing spend
-- EBITDA loss reduced by c.60% compared to the same period in the prior year
-- Continued agility in responding to changing Covid
restrictions, pivoting from successful customer acquisition
strategy between September and November to pulling back on
marketing and trading the expanded customer database in December as
restrictions became more severe
-- December revenue was equal to revenue in September 2020,
significantly better than anticipated given pivot to minimal
marketing spend during the month (c.10% of December 2019 spend)
-- Continued improvement in returns, reducing to 46% (2019:
49%), reflecting the change in product mix
-- Strong sales with John Lewis and Next, with December being
the highest month to date reflecting continued expansion of the
product range
-- Net cash of GBP3.90m as at 31 December 2020, reflecting the
strong trading performance and continued careful cost
management
This record performance for a quarter, delivered against very
strong prior year comparatives, has been achieved despite the
challenging market backdrop and a significant reduction in
marketing spend. Utilising learnings from the previous year, the
Company has been able to maximise its return on investment from
marketing, successfully tailoring its approach in response to
further national restrictions, switching between carefully
controlled customer acquisition between September and November to
the preservation of cash and trading the database during
December.
The investment made during the year in expanding the product
range has been pivotal to the trading performance, with new ranges
resonating well with customers. Loungewear, knitwear, denim and
outerwear have traded particularly well. Further range development
is ongoing with a capsule range of activewear launched in January
2021 which is showing promising early results. Since the onset of
the Covid-19 pandemic, the Company has proven its agility by fast
tracking developments in its product range and adapting its style
of customer communication to reflect the evolving
circumstances.
Following growth in the customer database through autumn, the
Company is well placed to successfully navigate the next few
months, with the focus being mostly on engaging with existing
customers as well as prospects while the current lockdown measures
endure. The Company remains flexible in its approach; product
ranges for spring have been carefully planned with Covid-19
restrictions in mind and therefore focusing more on casual wear.
January trading has already started well, and knitwear, loungewear,
outerwear and denim all continue to perform very strongly.
Sosandar has a diversified and flexible supply base and does not
expect to see any significant impact from Brexit on its ability to
service its customers.
The Company has continued to demonstrate strong cash management,
with GBP3.90m available at 31 December 2020. This reflects the
strong trading performance during the period as well as the focus
on cost control whilst ensuring return on investment is
maximised.
Ali Hall and Julie Lavington, Co-CEOs commented:
"We are extremely pleased to report another period of record
performance, particularly given the significantly reduced marketing
spend and extremely strong comparatives achieved in the prior year.
It is testament to the relevance and quality of our product that we
have been able to deliver such a performance without the seasonal
strong sales of party dresses, and shows our ability to understand
and cater to our customers' needs.
The agile nature of our business has enabled us to adapt quickly
to the challenges and uncertainties within the retail sector. The
resilience that the business has shown both operationally and
financially demonstrates the strength of our business model and
relevance of our products and customer engagement across a large
end market.
Whilst the external environment continues to be uncertain, the
scale of our opportunity has not changed, and the results we have
delivered reaffirm our belief that there is significant further
demand for our products within our target market."
Enquiries
Sosandar plc www.sosandar.com
Julie Lavington / Ali Hall, Joint CEOs c/o Alma PR
Shore Capital (Nominated Adviser & Broker)
Patrick Castle / James Thomas / Michael McGloin
- Corporate Advisory
Fiona Conroy - Corporate Broking +44 (0) 20 7408 4090
Alma PR Limited (Financial PR) +44 (0) 20 3405 0205
Rebecca Sanders-Hewett / Susie Hudson / Sam sosandar@almapr.co.uk
Modlin
About Sosandar PLC
Sosandar is an online womenswear brand, specifically targeted at
a generation of women who have graduated from throwaway fashion and
are looking for quality, affordable clothing with a premium,
trend-led aesthetic. This is a section of the market that is
currently being underserved.
Sosandar was launched in September 2016. The Sosandar business
model is built around using trend-led, exclusive designs produced
in-house and then manufactured using a variety of global suppliers.
Sosandar caters for a growing market of fashion-conscious women,
while utilising an outsourced logistics provider that can support
its planned growth over the coming years.
Sosandar's founders are Ali Hall and Julie Lavington, who
previously launched and ran high street fashion magazine Look, as
editor and publishing director respectively. They have a combined
experience of over 35 years in the fashion industry.
More information is available at www.sosandar-ir.com
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