Half Year 2026 Sosandar PLC Earnings Call Transcript
Key Points
- Sosandar PLC (LSE:SOS) achieved a 15% year-on-year revenue growth in the first half of the financial year, with their own website revenue increasing by 28%.
- The company maintained a robust gross margin of 62.2%, reflecting a focus on full-price sales and reduced promotional activity.
- Sosandar PLC ended the period with a strong cash balance of GBP7.7 million, which increased to GBP9.5 million by the end of the reporting period.
- The company has commenced a share buyback program, purchasing 5 million shares, demonstrating confidence in their financial position.
- Sosandar PLC's marketing strategy is yielding positive results, with new customer acquisition paying back on the first order and strong repeat customer engagement.
- The company reported a loss before tax of GBP1.1 million, up from a loss of GBP0.7 million in the same period last year.
- A cyber incident at M&S impacted revenue growth, although trading has now resumed.
- Owned retail stores are currently weighing on profitability, with some locations like Metrocentre and Cardiff performing below expectations.
- The increase in overhead costs, partly due to operating costs associated with new stores, impacted profitability.
- Despite strong growth in their own website, the overall blended gross margin remained flat, indicating potential margin pressure in other channels.
Good morning, and welcome to Sosandar Interim Results Presentation. Today, we are joined by Julie Lavington and Alison Hall, joint CEOs; and Steve Dilks, CFO. (Operator Instructions)
I will now hand over to Julie to begin the presentation.
Good morning, everyone, and thank you for joining us today. Today, we're talking about the results for the first half of the financial year from April to September. I'm going to start with a summary of the highlights, then we'll go through the half one detailed financial statements, the outlook for half two, and then we'll move on to talk more generally about the business when we're going to cover product and marketing, our own website, stores and third parties, and then we'll take your questions at the end.
So let's kick off with the highlights for half one. As we anticipated, we've returned to revenue growth, delivering a 15% increase year-on-year. Our own website is our top-performing channel, increasing by 28%,
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