Sosandar (SOS) investor relations material

Executive summary

• H1 FY27 revenue rose 11% to £20.785m and gross margin expanded 290bps to 65.1%; adjusted loss before tax narrowed to £0.690m.

• Spring/Summer trading was strong, but prolonged warm weather delayed September Autumn purchases; October trading strengthened significantly.

• Multi-channel growth across own channels, stores and third-party partners supported wider reach and continued progress toward profitability.

Financial highlights

• Revenue was £20.785m versus £18.690m; gross profit increased 16% to £13.524m.

• Adjusted loss before tax improved to £0.690m from £1.090m; statutory loss before tax and net loss were both £0.604m.

• Operating costs rose 13% to £14.3m, including £0.9m higher volume-related partner commissions and increased marketing investment.

• Fixed overheads decreased £0.2m as efficiencies more than offset inflationary increases; the active customer database grew 6% to 203,000.

Outlook and guidance

• Trading strengthened significantly in October and remained in line with FY27 full-year market expectations; October revenue was up 30% versus September.

• October gross margin was 68.0% versus 67.2% a year earlier; profitability is seasonally weighted to H2, when higher revenue supports economies of scale.

• Similar H2 intake margin rates have been secured, supported by autumn costs and sterling-dollar forward contracts.

• Autumn/Winter inventory is considered appropriate for revenue expectations; carryover stock is normal and no distress discounting is anticipated.

• Investments in team, infrastructure and brand are intended to support scale and operating leverage, with profit expected to grow faster than revenue over time.