Sosandar Share Discussion Threads

[forethought] 20/12/2022 09:44

Trading update usually early Jan. Not far away now. More of the continuing positivity on the way I assume.

[daijavu] 15/12/2022 20:40

I'm not surprised that Sosandar customer are refusing to use Royal Mail. It has had a reputation as a thieves paradise for a very long time - several decades to my personal knowledge. I've just had a tracked delivery stolen by a Royal Mail employee and am chasing compensation. The cheeky blighter ripped open my package, stole my property from the box it was in, then stuffed the empty box back into the package. Royal Mail delivered the damaged package with a note of apology for the state it was in, with no mention of the theft.

[jackson83] 15/12/2022 14:37

will they need more cash within the next 24 months ? funding maybe / dilution

[tomps2] 15/12/2022 13:26

Sosandar (SOS) 2023 half year results presentation - December 2022

Ali Hall & Julie Lavington, Co-CEOs & Co-Founders, and Steve Dilks, CEO, present Sosandar’s interim results & trading update for the six months ending 30th September 2022.

Continued revenue growth of +72%, delivering the Company’s second six-month period of positive PBT. Momentum has continued into the second half of the financial year with record sales months in October and November, trading in line with market expectations for the full financial year.

Watch the video here:

Listen to the podcast here:

[someuwin] 15/12/2022 12:00

O/T Interesting to hear that they're going with an additional delivery company as a lot of customers don't wan to use Royal Mail.

I can relate to that. When buying online I'll always opt for the seller that isn't using RM. If they don't modernise, RM will die out. Something their striking union members don't seem to realise (or don't care about)

[apad] 15/12/2022 11:41

Sosandar song chorus:

....cosy coats and fancy frocks....

apad

[someuwin] 15/12/2022 11:29

Here it is...

Sosandar (SOS) 2023 half year results presentation - December 2022

[raleigh43] 15/12/2022 09:23

Ticking up steadily.
They seem to be doing everything right.

[base7] 14/12/2022 17:16

Very cold weather over the last week or two should also help convert winter stock into cash

[apad] 14/12/2022 17:00

I also liked their prudence regarding overseas sales, W13Ken. 3rd party and take your time. Plenty of UK growth opportunities.
The current FD inspires some confidence too.
They are all singing from the same hymn sheet, no hesitation or fluffing.
apad

[w13ken] 14/12/2022 16:50

Apad, spot on. I feel management are very optimistic that revenue targets will be beaten but are being prudent with "in line with expectations" comments. The profit target will be more of a stretch but will be significant if hit. Long-term hold for me...

[apad] 14/12/2022 15:24

SOS video
All much as expected and already communicated. Good introduction for newcomers.

This is the important news:
"Post-period Trading Highlights
Strong start to H2 FY23 with record sales months delivered in October and then November
Black Friday saw record number of visits to Sosandar.com and the strongest sales week on record for our third party partners, with margins increasing on H1 FY23
Products across all categories selling well, with fast-tracked categories including partywear, knitwear and outerwear particularly strong.
Net cash of £4.2m as at 30 Nov 2022.

apad

[w13ken] 14/12/2022 15:08

Thanks aleman, enjoying your SOS posts. £3m was invested in autumn and winter clothing and there is a sale on at the moment. They'll be looking to gather new customers for the Winter and the remainder of the year.

Also that video is from October's TU but the Results video should be out before the weekend.

[aleman] 14/12/2022 11:56

H2 sounds like being strong on margin and cashflow thanks to modest prices increases and early stockbuild at lower freight costs. £4.2m cash is seen as "a low ebb, representing the vast majority of autumn and winter stock already on our balance sheet". No end of season winter sale is planned at the moment. Presumably that means good sales and no discounting for now?

[someuwin] 13/12/2022 15:22

Missed the presentation - will have to wait for the recording.

[raleigh43] 13/12/2022 12:29

Agree. Great hour. Helps us understand better their goals.
Really useful.

[bg23] 13/12/2022 12:27

very impressive, clear and concise investor presentation by the management.

[base7] 13/12/2022 11:28

Niche player ,managed by founders with much skin in the game & forming partnerships with strong brands to reduce risk & increase revenues/profitability.It will be interesting too see how far their growth plans take them while ASOS & Boohoo ( & others) struggle

[raleigh43] 13/12/2022 10:54

Analyst presentations ending soon. share price ticks up and I expect they will buy into the story.

I have added significantly to my holding in the past 2 weeks and is my largest holding.
I will happily watch this story evolve to its successful future.

[aleman] 13/12/2022 10:42

raleigh43 - I tend to agree but allowances must be made for the two items that boosted admin costs - extra office space and partner comissions. They were a bit of a step up this year but should be less so as they become more a general part of the growth of the business. I suspect it's a bit of a one-off drag and the underlying operating cashflow numbers I highlighted earlier were very good.

The costs increased by 42% to GBP11.0m, including commissions retained by concession partners which increased to GBP2.4m in the period (H1 FY22 GBP1.1m), reflecting the growth in this channel.

[someuwin] 13/12/2022 10:34

Cheers Aleman - excellent post.

[raleigh43] 13/12/2022 10:34

I see the growth and I feel the next three years is bright, but I would be looking for higher number than you have above for the PBT growth. Why? Because of the repeat business from existing customers with no customer cost of acquisition for those sales. Ali and Julie stated that cost at 20 quid per client, roughly on an industry par.

[aleman] 13/12/2022 10:05

Right. H2 is peak sales. Peak months of October and November are already done and cash is in. It's their higher margins and success or failure to clear stock that cause H2 variance but they're already done. They'll now be looking at pricing NY Sales and a strong Oct/Nov should mean less discounting to clear. They say they are on track to meet £2m PTP. Cashflow backs this up. Massive stockbuild this year distorts the picture but adjust for working capital changes and you get a clearer picture.

Operating cashflow pre-working cap:

H1/22 -£890k H2/22 +£916k FY/22 +26k
H1/23 +£361k H2/23 ?

If growth comes through in H2 at a similar rate to H1 (£1.251m higher than 22) then H2 is +£2.167m and FY is £2.528m. Lease payments and D&A are only likely to be about £400k so £2m or so PTP seems probable. With good visibility of having the most important months done, the company say they are on track to meet the £2m forecast and the numbers seem to back that up.

They continue to trade in line as competitors have had problems. PTP forecast is :
2023 £2.1m
2024 £3.5m
2025 £5.7m

They look good value and should be worth buying the dips. I've topped up.

[raleigh43] 13/12/2022 09:31

Nice growth story.
More to come in the uk and then add in international expansion in time.

[montynj] 13/12/2022 09:29

Strange that stock is down, not up