Sosandar : Full Year Results

A year of strong revenue growth, substantial reduction in EBITDA losses and a strong start to the new financial year with Q1 FY22 revenue up 256% YoY

Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce its financial results for the year ended 31 March 2021 and an update on trading for Q1 of the current financial year.

FY2021 Financial Highlights

• Revenue growth of 35% to £12.2m (FY2020: £9.03m), representing a strong performance in a volatile trading environment
• Stable gross margin of 48.0% (FY2020: 48.5%), despite the effective use of promotional activity during lockdown periods
• Narrowed EBITDA loss to £2.92m (FY2020: £7.66m) as a result of increasing scale, improved ROI on marketing and ongoing focus on cost management
• Year-end cash of £3.93m (FY2020: £5.33m) with low cash burn since July 2020 (£4.40m)

FY2021 Operational Highlights

• Diversification and continued expansion of product range, offering customers a broader choice of product for all occasions:
  • 60% increase in new styles
  • New categories of loungewear, active and leisure wear launched, now becoming a key part of the product range
• Successful expansion of casual and smart-casual clothing ranges with denim, knitwear and outerwear performing particularly well
• Successful launch with John Lewis, Next and Marks & Spencer
• Engaged and loyal customer base:
  • 40% increase in repeat orders to 189,703 (FY2020: 135,983)
  • Average order frequency improved by 23% to 2.08 (FY2020: 1.69)
• Strong conversion rate of 3.09% (FY2020: 2.67%) driven by the expanded range which is resonating well with customers
• Average order value (AOV) of £82.70 (FY2020: £97.14) due to the changes in the product mix with higher sales of lower value items such as loungewear, knitwear and activewear

Post-period Highlights:

• Q1 2022 was a record quarter for revenue with each month improving sequentially:
  • Revenue of £5.7m up 256% against Q1 FY21 (lockdown period last year)
  • Q1 increased 45% against Q4 driven by very strong sales of spring summer product from early in the season
• Number of orders tripled year on year with a record quarter for both new and repeat orders with cost of acquisition less than half of pre pandemic levels
  • Versus Q4 FY21, both new and repeat orders increased by 40%
• Active customers increased by 23% on Q4 FY21
• Increase in sales across all key categories with both casual and going out styles selling very quickly. Stand out winners have been dresses, tops, knitwear and denim
• Further expansion of the product range with Marks & Spencer, John Lewis and Next to support strong sales in all categories
• Successful fundraise of £5.43m (after expenses) completed May 2021, substantially oversubscribed and with support shown from both institutions and retail investors:
  • Proceeds provide the balance sheet flexibility to capitalise on opportunities available, specifically the significant potential to accelerate growth with third party retailers
  • Cash of £9.10m as at 30 June 2021
• Appointment of Steve Dilks to the Company's Board as Chief Financial Officer in May 2021

FY2021 KPIs

	Year ended 31 March 2021		Year ended 31 March 2020		Change
Sessions	8,922,789		8,032,355		+11%
Conversion rate	3.09%		2.67%		+42 bps
Number of orders	276,008		214,487		+28%
AOV	£82.70		£97.14		-15%
Active customers	135,381		131,095		+3%
Repeat order rate	2.08		1.69		+23%

Ali Hall and Julie Lavington, Co-CEOs commented:

'We are delighted to report a year of very strong growth and performance alongside considerable operational progress. We have continued to expand and further diversify our product range, using targeted spending to maximise ROI and demonstrated strong cash retention, resulting in a significant growth in revenue and reduction in EBITDA losses. The performance of our team over the last year has been truly exceptional and we are incredibly proud of what they have achieved.

Whilst there is wider uncertainty around the ongoing effects of the pandemic, we are incredibly optimistic about what the future holds for Sosandar. Following the fundraise in May, we now have the financial flexibility to allow us to accelerate growth with third parties. Alongside this, we delivered a record first quarter of trading in Q1 FY22 with strong sales in colourful dresses, tops and denim as our customers prepare for the summer months.

With a clear growth plan and numerous opportunities ahead of us, we are now well placed to accelerate towards profitability.'

Enquiries

Sosandar plc	www.sosandar.com
Julie Lavington / Ali Hall, Joint CEOs	c/o Alma PR
Steve Dilks, CFO
Singer Capital Markets Peter Steel / Kailey Aliyar / Hannah Woodley	[phone]
Alma PR Limited (Financial PR)	[phone]
Susie Hudson / Sam Modlin / Molly Gretton	[email protected]

This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ('UK MAR').

About Sosandar plc

Sosandar provide a one-stop online shop for style conscious women who have graduated from price led alternatives. We offer this underserved audience fashion forward, affordable, quality clothing to make them feel sexy, feminine and chic. The business sells predominantly own label exclusive product designed in-house.

Sosandar's offering includes a wide range of flattering woven dresses, a market-leading denim collection and knitwear. The Company has brand partnerships in place with Next, John Lewis and Marks & Spencer.

Sosandar's growth strategy is to build brand awareness and expand its customer base through developing exceptional products, providing a seamless customer experience and using impactful, lifestyle marketing activity. This is underpinned by combining innovation with data analysis, which drives successful product development and new customer targeting.

Sosandar was founded in 2016 and listed on AIM in 2017. More information is available at www.sosandar-ir.com