Sosandar on track to deliver FY profit

(Sharecast News) - Online women's fashion brand Sosandar said on Monday that it was on track to deliver a full-year profit thanks to a solid trading performance throughout that all-important Christmas period. Sosandar said Q3 revenues came to £12.2m, down slightly from the £14.3m reported at the same time a year earlier, but 50% stronger than its Q1 and Q2 performances.

The London-listed group stated gross margins improved year-on-year, from 58.3% to 64.7%, due to the company's planned reduction in promotional spending, resulting in a "continued positive swing" in pre-tax profit trajectory.

Net cash rose from £7.0m to £8.2m, allowing it to self-fund its planned store rollout, amongst other items. Sosandar also announced that it has signed two new lease agreements for stores in Bath and Harrogate.

Sosandar added that it was still on track to meet current market expectations for a full-year pre-tax profit of £1.0m, a marked improvement when compared to the prior year's £300,000 loss, despite operating in a "well-publicised challenging macro-environment".

As of 0925 GMT, Sosandar shares had rallied 12.0% to 7.0p.







Reporting by Iain Gilbert at Sharecast.com