Sosandar Share Discussion Threads

[glavey] 25/5/2021 12:07

That should see them through until January with a bit of luck.

[dietcoke197] 25/5/2021 11:17

No discount either.

[bg23] 25/5/2021 10:25

I've only just seen that I missed a cash call!

A bit peeved, as I'd definitely have subscribed based on the reasoning for raising funds.

Its got to be a positive that the funds are going towards increased product requirement for third party sellers. I'm thinking that Autumn/winter turnover estimates will be ratcheted higher and the route to profitability being brought forward.

[johnyee 7] 24/5/2021 17:05

Wakey wakey

[montynj] 06/5/2021 09:23

Found support at 20p previous resistance

[pugugly] 21/4/2021 11:24

Personal Marker 22/23p - To watch list

[bg23] 15/4/2021 11:15

looking at the numbers Apad put out yesterday, Singer are looking for '22 revenue of £23m. based on a share price of £0.24 that's a market cap of approximately twice forecast sales.

q. I am not sure how that compares, but is it a realistic, low or high number when compared?

q. is it relevant at this stage of their development?

I remember Paul Scott was very keen on these some years ago. Is he still?

I'm happy to hold either way based on their growth and the story and whilst a competitive space, there's always room for a well managed efficient operator, which I think this is.

[apad] 15/4/2021 10:42

Sosandar has maintained its 20% rise. A lot of trades going through, so I guess there is quite a bit more interest in the company than I had assumed.

This rise has made it my fifth largest holding.

My new way of looking at the company is that management now has a choice between carrying on conservatively or raising money in the market to grow the company more. Given their achievements through difficult times in a competitive industry littered with failures I am happy to back them either way.

GLA

apad

[photon] 15/4/2021 06:21

we may be seeing the start of a repeat of the chart from summer 2018

[bg23] 14/4/2021 12:54

Strangely indifferent response yesterday, very keen today.

[apad] 14/4/2021 09:29

Year revenue Costs EBITDA
2020 9 17 -8
2021 12 15 -3

2022 estimates
apad 18 16 2
Scott 18 18 0
Singer 23 24 -1

This was the company's answer in the presentation.
- Plans for new Cash Raises, Equity and / or Debt?
"Since July last year they've burnt £400k, mentions N + 1 Singer forecasts, doesn't expect any raises of funds either by debt or equity. Not set in stone but they don't think to raise.”

Looks to me like the Scott forecast is sitting on the fence regarding expenditure, but the Singer forecast is assuming a cash raise.
However, there may be a political perspective - something for the company to announce that it has beaten.

If the M&S deal is as good as is promised they could get (well?) over a 50% revenue increase without a cash raise.
We are moving into peak season.

apad

[montynj] 14/4/2021 08:08

Great looking chart after breakout yesterday...Next target is 30p...I bought in

[apad] 13/4/2021 13:08

sdmbot thanks for publishing your notes.
I like their Q&A focus for future rns'.

I find the broker forecast amusing (missed the numbers while I was listening).
They are reporting a doubling of revenue and a flat EBITDA. The only way to explain this would be that they will ramp up their advertising again, but the tenor of the presentation suggests a more cautious continuation of their current processes. Email is the most effective promotion technique by far and Sosandar's emails are superb.

What's your opinion?

apad

[sdmbot] 13/4/2021 12:00

Webinar Notes:

hxxps://register.gotowebinar.com/register/6950446620928888848

FD Highlights:

- Revenue £12.2M ye March 2021 (up 35% comp with 2020) ebitda loss reduced by over 60% (I think last year loss was £4.6M - which implies a loss this year of ~ £1.8M)
- Gross Margin 48%
- Net cash as of 31st of March 2021 £3.9M
- Careful cost management and efficiency in particular marketing
- Good revenue from John Lewis and Next which has continued to improve
- So far so good revenue from M&S
- N + 1 Singer appointed NOMAD & Broker.
- Above today and starts research and anal cysts forecasts, repeated by the finance director in the call:
- Revenue for ye March 2022 of £23.0M ebitda loss of £1.4M
- Revenue for ye March 2023 of £34.5M ebitda profit of £1.2M
- Analyst forecasts not companies (but confusingly stated by the FD)

Questions
- Strong trading in April more for the summer (short sleeved dresses, beach-ware).
- Margins going forward? Feb & March, margin has increased (March GP Margin 54%) Thinks that will continue into the year
- Range Updates? Increased range and mix of products (more equitable!??) now in all categories except lingerie. Summer ranges are bigger than last year, and planning to sell well. 6 month lead time from planning to sales.
- 3rd party vs direct Sosandar sales? Currently 10% of sales from 3rd parties, aspirationally see that percent growing, (Next, M&S, John Lewis), see other intl. third parties for Intl Sales. 3rd party sales are immediately profitable.
- Intl Sales? Likely to be done through 3rd Parties as it is a cheaper way of marketing internationally. At least initially. Economics can be challenging need to register companies and sales tax entities etc. 3rd party Market places are a good way of testing the water.
- Current Marketing Strategies? From Sep-Dec 2020, then from Feb 2021: TV Ads, Brochures and Social mix between these channels work well + email to encourage existing customers and convert prospects.
- Plans for new Cash Raises, Equity and / or Debt? Since July last year they've burnt £400k, mentions N + 1 Singer forecasts doesn't expect any raises of funds either by debt or equity. Not set in stone but they don't think to raise. Mentions research tree.
- Return rate increase from 43%? Yes, but not to 50%, probably less. 43% was a blended average over the year, final quarter was less than that. Depends on category mix.
- Bricks and Mortar? Never say never, but probably not.
- Adversely affected by reopening of fashion shops? No, last year they weren't predicts that this year they won't be.

Closing remarks:
- Generally upbeat, difficult year, team have done very well, mentions Ali.
- Amazing what inveterate shoppers women are: buy clothes even when they have every reason not to, pride of the nation etc.
- Business in very strong position regardless of pandemic going into the future.

[ny boy] 13/4/2021 10:53

Glavey

No, I just have a love for NY

Bitcoin just powered through the old ATH, stay long Cryptos imo

[apad] 13/4/2021 10:40

No interest on the Bulletin Boards about Sosandar and very little traded. I'm a few bob up on my trade this morning.

I guess it needs a Paul Scott comment before it registers on PI radar and there is not enough free float to interest the institutions not on board from past placings.

My opinion is that EBITDA profitability is now a certainty in 2021 and they wont need to raise funds.
M&S sales are only just starting "The Company has just launched with Marks & Spencer, where the initial product range has been incredibly well received by the M&S customer with many styles selling out and being quickly replenished in the first week of trading."

apad

[glavey] 13/4/2021 08:46

Your location? Origin? Other?

(Just wonderin')

[ny boy] 13/4/2021 08:16

Glavey..New York!

I cashed in recently,as retail is open, people want to shop physically again. Instead, I have been accumulating many Cryptos, since start of the year and last year for BTC for strong growth, XRP,BNB,ETH, BTC, VET,ADA, DOGE etc They trade 24/7 & globally..it’s the future imo

[bg23] 13/4/2021 07:41

Pretty impressive. continued agility growing routes to market and sales. happy to stick with this

[montynj] 13/4/2021 07:36

They said in the update that THE EBITDA loss will be reduced by 60%....so work it out yourself

[glavey] 13/4/2021 07:21

Perhaps they feel investors can't stomach it.

[abarclay] 13/4/2021 07:05

Why not tell us what the loss is?

[thetrotsky] 29/3/2021 09:44

pillow, glavey et al, I expect 2021 LBITDA to be less than half of 2020 LBITDA at circa £2m (based on H1 2021 results and H2 2021 being marginally ahead of H2 2020 but with a significantly reduced marketing spend), but what does that prove? The fact that SOS is currently loss making and will more than likely need to do another fund raising once lockdown ends (so that it can increase its marketing spend, acquire new customers and increase sales with a view to reaching breakeven and beyond) are not news. So stop regurgitating the same old rubbish. If you want a discussion, let's have a discussion based on known facts, not numbers that you just pluck out of the air without any supporting information (I've asked you to substantiate your claims but it seems beyond you). SOS has shown that it can manage its limited cash resources throughout lockdown and, as such, has performed a lot better than might have been expected at the outset in March 2020. I'm sure that furlough payments and other government support have helped, but SOS is far from alone in that boat.