Sosandar Share Discussion Threads

[drdre] 18/10/2022 09:47

Really good discussion on the cash situation. Good to hear all views.

[aleman] 18/10/2022 09:32

Last year, pre-working cap operating cashflow was -£890k at the interims and +£23k at the finals. That's -£890k in H1 and +£913k in H2. This year is going to be something like zero and £2m. Despite the business growing strongly, H1 does not generate enough cash to fund the autumn stockbuild so the company must use its cash balances to manage seasonality. The bigger drop this H1 is just a sign the business is growing and will see a bigger cash return in H2.

[tom218] 18/10/2022 09:09

Ah thanks. Got it now.

[tom218] 18/10/2022 09:02

Registered for presentation, nothing back with link or instructions. Anybody else pros or success?

[eezymunny] 18/10/2022 08:54

It was "all about the growth" at BOO and SOS. Both have collapsed. Both have huge revenues.

Cash flow is King. Never forget it IMVHO.

[someuwin] 18/10/2022 08:50

It's all about the growth! Confirmation today that by April next year they will have done £42.8m. And seeing as they've just done £20.9 in H1, I think that 42.8 could be closer to £50m by year end.

[eezymunny] 18/10/2022 08:32

People have been saying cash flow will improve for years. For example:

"Rathean - 03 Jul 2019 - 07:29:31 - 1761 of 3415 Sosandar - SOS
Better than expected results, over 3 million in the bank and solid metrics. Cost per customer remains high and returns on industry average but growth story continues with over 4 million turnover, reduced annual loss and a chance of becoming cash flow positive before another fund raise all imo dyor ofc."

No disrespect to that poster, but SOS have continued to burn cash and raise funds since then. Having lots of third party outlets that all require stock just increases the problem, does it not?

SOS has a chance, I guess, but this is such a competitive space I suspect it´ll be a damp squib in the end...

[forethought] 18/10/2022 08:23

Very good. Well done. However, can see a cash raise coming here in order to maintain the going.

[bg23] 18/10/2022 08:22

very impressive.

I agree with DrDre, sensible logistics management raising stock availability whilst maintaining a suitable cash buffer.

I continue to be impressed by the management of the company.

[drdre] 18/10/2022 08:12

The cash position was reduced by £2.8m "reflecting planned earlier delivery of Autumn stock than the prior year to facilitate deliveries into third party partners. In addition, the Company is starting to import more via lower cost sea freight which accelerates use of cash".

This just seems like sensible logistics planning to me. They also still have £4.2m in hand. I get that it would be preferable to see cash increase but I'd prefer the company to ensure they can maximise revenue at this stage rather than conserve cash. The growth profile, if maintained, will take care of cash flow IMV.

[elsa7878] 18/10/2022 07:59

As they broaden their third party distribution they have to invest in more stock. Q4 is when they should see the cash profile improve.

[eezymunny] 18/10/2022 07:55

Still burning through a terrifying amount of cash IMO, as the range broadens and third party channels increase. When´s the next fund raise?

BOO/ASC have shown us the future for on-line fashion methinks. They look positively cheap vs SOS (if you look at price/sales).

Mug spike and retrace today?

[aleman] 18/10/2022 07:49

The market is clearly difficult yet they are trading in line with FY forecasts, which they understand to be:

Note: The Board believes that consensus market expectations for the year ending 31 March 2023 are revenues of £42.8m, EBITDA of £2.2m and PBT of £2.0m.

[elsa7878] 18/10/2022 07:46

Early autumn trading has been very positive with particular success in key growth areas of outerwear, knitwear and partywear.

Very encouraging.

[drdre] 18/10/2022 07:11

It doesn't get much better than that. Outperforming and a great forward looking update.

[dafad] 18/10/2022 07:06

Sounds pos

[someuwin] 18/10/2022 07:05

Excellent update.

[nobilis] 18/10/2022 07:03

Profit = 1 jam tart

Basically stands on street corner and gives frocks away at cost

[aleman] 11/10/2022 09:29

There should be a full range of works parties this Christmas and I reckon all the working from home will make them more popular than ever. It should be good for fashion sales.

[elsa7878] 10/10/2022 20:43

Web traffic report. September up on August
United Kingdom.
Category Rank. Fashion and Apparel
#123
UP 6
Total Visits
780K up 8.4% on August.

FWIW

[aleman] 10/10/2022 07:28

QUIZ sales marginally ahead of the board's expectations at +37% so it's not all gloom out there.

[w13ken] 07/10/2022 14:51

Not long to wait - Trading update Tue 18th October. Confident that we'll climb from here and I'll top up if we go to 14p again.

[someuwin] 07/10/2022 08:35

Good update at Superdry (SDRY). Some read across for SOS...

-- Return to profitability with adjusted profit before tax of GBP21.9m (FY21: loss of GBP(12.6)m).

-- Spring/Summer223 sell-through up 16%pts year-on-year, driven by performance in dresses and shirts.

-- Statutory profit before tax of GBP17.9m (FY21: loss of GBP(36.7)m).

-- Encouraging start to FY23, particularly Autumn/Winter trading.

"Superdry is a premium, affordable, brand, which should mean we are well-positioned as customers think more carefully about their purchases."

[bg23] 06/10/2022 15:00

under promise, over deliver.

I think the management are more than aware of the potential pitfalls and are more than capable of meeting their targets whilst forecasting and delivering decent growth in a tight market environment.

A growth company moving to consistently positive EBITDA trading at 75% or forecast T/O - Happy to be invested and add