Sosandar Share Discussion Threads

[dancing piranha] 04/1/2022 18:05

13th Jan last year!

[azaman] 04/1/2022 10:45

Christmas trading update soon.

[thetrotsky] 17/12/2021 13:37

I'd agree that BOO and SOS have a totally different demographic.

Returns are impacting BOO but I think that, in part, is explained by their overseas supply chain issues. US sales were down 14% in a quarter that included Thanksgiving and Black Friday; I rather suspect US customers may have been returning goods after have sourced products from alternative suppliers. The story seems to be much the same in ROE and ROW. Thankfully SOS doesn't have overseas sales issues to worry about at the moment. I wouldn't be totally surpised to see ASOS having some similar issues to BOO.

As regards SOS, I think the more sanguine investors are choosing not to believe the "fairytale" that SOS can continue to avoid any major supply chain issues that have been affecting other etailers. SOS may have got its inventory in earlier and thus avoided a lot of the more recent issues but it now has to replenish its stock in the face of continued worldwide problems. Don't get me wrong; I think SOS has done well (and continue to be a long term holder) but until we're out of these general supply chain problems I remain cautious about SOS's ability to continue to avoid any major issues. It also seems probable that SOS will see higher return rates in December as people adapt their Xmas plans to meet Covid requirements.

[boonkoh] 16/12/2021 23:49

At least not as badly marked down as Quiz pm the Boohoo news.The key for me. Completely different demographic, Boohoo and Sosandar. So the returns behaviour of one does not necessarily reflect the returns behaviour of the other.Also, the Boohoo sizing and fit has gone through tremendous changes. They've Brough on so many new suppliers, many now in the far East instead of Leicester. Maybe they struggled with quality control on fit and sizing.

[w13ken] 16/12/2021 14:09

There's probably a perception that Sosandar was going to do well in the party season and that they will be affected as that season is scaled back.
I've got faith for the long term though so have seen this as a buying opportunity and topped up in my ISA at 27.92p this morning.

[nw99] 16/12/2021 11:46

Returns killing Boohoo

[dancing piranha] 16/12/2021 10:47

I reckon so!

Possibly people freeing up funds to buy BOO at current levels...

[bg23] 16/12/2021 09:00

Is this weakness a read across from Boohoo?

It seems strange if it is as Sosander stated they weren't seeing higher returns or supply chain issues in their recent update, two of the issues Boohoo highlighted today.

market sentiment can be a fickle thing !

[apad] 04/12/2021 16:19

Latest presentation has calmed some of my concerns.
In particular I am impressed with the FD (least said about the previous one the better).
He answered one of the questions by saying that a financial perspective was inappropriate and went outside his domain. How unusual is that!
apad

[givmesunshine] 03/12/2021 12:42

Picked up a few this morning - only because sold up some dead wood in new year clear out !!

[tomps2] 03/12/2021 10:11

Sosandar (SOS) interim results presentation - December 2021

Sosandar Co-CEOs & Co-Founders, Ali Hall and Julie Lavington and CFO, Steve Dilks present the financial results for the six months ended 30 September 2021 and give an update on current trading.

Watch the video here:

Or listen to the podcast here:

[serratia] 03/12/2021 00:22

Thanks GMS.

[serratia] 02/12/2021 21:32

Thanks for a reasoned debate. I half agree. At present they've spent money on acquiring customers. That spend has generated revenue but no profit. It's a spend in H1 and the profit will hopefully come from repeat orders that's where the spend benefits will arise. So the key indicator to watch is repeat ordering by active customers. There will be some ongoing costs with existing customers as they give them nudges/reminders but it won't be anywhere near new customer costs.
I can't remember my companies exact figures but it was something like 1 unit of cost to retain a customer, 2 units of cost to get a new customer and 5 units if you've upset one and lost them to get them back. We also had a saying sales are vanity profit's sanity. This was because sometimes salespeople hit their volume target and in their mind could nearly give stuff away to get new customers. I'd ask them if those customers will take a 30% price rise next year in your new targets.
I digress, perhaps it is ok to buy customers with zero overall margin but they'd better continue to repeat buy.

[givmesunshine] 02/12/2021 19:48

Serratia - I dont quite argee with your numbers - I think putting a Percentage against gross margin is irrellevant .. as it doesnt reflect sales growth ?

A big unknown is advertising.. Last year, when budgets were tight was inpressive as they actually manage to grow without adding many customers - which gives a picture of where this is going - it has very good retention and conversion. With that in mind - Im all for building revune at this stage, as it free for the future, if they can recoup the costs in there period as we are seeing now - very happy

See below (excuse the crude maths - just done those % in my head)

Gross Profit - Admin

2018

Gross profit 669
Administrative expenses (3,793)

= 500% of Gross Profit

2019

Gross profit 2,465
Administrative expenses (5,874)
=220% of Gross Profit

2020

Gross profit 4,381
Administrative expenses (11,662)
=260% of Gross Profit

2021

Gross Profit 5,844
Administrative Expenses (8,729)
=150% of Gross Profit

HI YE 2022

Gross profit 6,880
Administrative expenses (7,770)
=110%

[givmesunshine] 02/12/2021 16:16

SerratiaThey are clearly going for growth, but I do agree there should be more of a breakdown of Admin cost - it means nothing unless you can see the advertising spend - fixed over heads - cost of processing each sale etc, That's said the going for growth Strategy seems to be working very well if the ROI is coming back in the same period with a small loss / profit against advertising spend then and there's good retention then it's money we'll spent without Sicilian or loss-

[serratia] 02/12/2021 15:41

An issue that hasn't been aired is the admin/customer capture costs. In 2017 admin cost was 18% of the gross margin. 2018 41%, 2019 38%, 2020 67%. In H1 this rose to 89%. The net result is revenue H1 last year £4.3m, this year £12.2m. Operating loss last year £1.102m this year £1.077m. They added £7.9m revenue for £25k profit.
Their customer catch costs seem high in relation to profits.

[montynj] 02/12/2021 14:54

Still nothing from Paul Scott....probably he's no longer a holder

[daijavu] 02/12/2021 10:21

Is the chart showing a cup and handle or a 'W' or a head and shoulders?
Are there any chartists out there who can tell us?

I'm hoping it's one of the first two. It aught to be given the results.

[fxl5] 02/12/2021 09:55

This is now a high growth profitable company with stellar outlook, won't be long before market prices this accordinglyAstonished we are at current level after those results.

[w13ken] 01/12/2021 23:01

PI World normally take a couple of days to edit and upload so should be up by Friday. I caught most of it and I liked what I saw. 53,000 orders in October and more in November led to them being the first EBITDA positive months.

The third party trading through M&S, Next & John Lewis is going particularly well.

[givmesunshine] 01/12/2021 16:47

Was in meetings all day - I there a link to watch back?

[apad] 01/12/2021 14:07

Mmmm. I'm not so sure about the presentation.
It felt a little stale and I'm not sure about the response to the 'costs' question.
My question is - has SOS reached (is reaching) a plateau.
Sure, it's done exceptionally well and should become profitable.
But, where is it going?
Lots of competition and a cut throat environment.
Waving not drowning?
apad

[bg23] 01/12/2021 13:55

I did. Clear, concise and quite compelling.

Its quite obvious the management believe they are in the early stages of building a large scale entity and have, too date, only scratched the surface in respect to turnover, capacity and reach. there are thoughts towards international expansion, but i don't think they want to put the cart before the horse, much better to develop the home market across their own site and the resellers in the first instance.

it feels like a very cautious 0.1m ebitda positive H2 estimate from Singer....I'd hope for a further upgrade to expectations in a post xmas trading update.

I'd also be very interested to hear Paul's take on progress.