Sosandar losses widen despite 'successful year' of revenue growth
Online women's fashion brand Sosandar said on Tuesday it had experienced a "successful year" of revenue growth followed by an "agile response" to the Covid-19 pandemic and strong current trading.
Sosandar revenues grew 103% in the year ended 31 March, hitting £9.03m, but the company's adjusted loss before interest, taxation, depreciation and amortisation widened 114% to £7.28m as gross margins narrowed 700 basis points to 48.5%.
Active customers grew 111% to 131,811, while web visits increased 128% to 8.03m and orders grew 108% to 214,487.
Looking at the first quarter of the new year, Sosandar reported year-on-year revenue growth of 54% and a reduction in operating costs of 71%, which helped drive a 69% improvement in its loss position.
The AIM-listed group also added that its strong first-quarter showing had continued during July - with revenue up 57% year-on-year, margins recovering to 55.5%, operating costs falling to 84% and net losses improving by 83%.
Co-chief executives Ali Hall and Julie Lavington said: "We're delighted to report another year of growth, and one in which we achieved a significant shift in terms of customer base and infrastructure, providing stronger foundations for continued future growth.
"We remain cautiously optimistic about the coming months and more excited than ever about the longer-term prospects for Sosandar."
As of 0940 BST, Sosandar shares were up 5.75% at 19.30p.