Sosandar (SOS) investor relations material

Financial performance and trading update

• Group revenue for the six months to September reached £18.7 million, up 15% year-on-year, with own website sales rising 28% and gross margin steady at 62.2%.

• Pre-tax loss was £1.1 million, in line with expectations, and net cash increased to £7.7 million as of 30 September 2025.

• Trading is on track to meet full-year expectations of £43.6 million revenue and £0.4 million profit before tax.

• Profitability is expected to be weighted towards the second half due to peak trading and higher margins.

• Cash balance typically troughs in September/October and peaks in November/December, with March expected to be slightly ahead of September.

Strategic initiatives and operational focus

• Focus remains on quality, trend-led products, disciplined pricing, and channel optimization, with no new store openings planned.

• Website traffic, conversion, and order volumes are all increasing, driven by both new and repeat customers.

• Shift away from price promotions has supported margin resilience and is expected to drive further expansion.

• Stores in market towns are nearing break-even, while those in shopping centres are slower to reach profitability.

• Store locations have boosted local online traffic and revenue, but not materially at the national level.

Partnerships and channel performance

• Third-party sales dipped due to less product in end-of-season sales, but this supported higher margins as more was sold at full price.

• Marks & Spencer sales were impacted by a cyber incident but have resumed, with stock levels increasing into Q3.

• New homeware range launched with Next, showing early positive results.

• Remains a top-selling brand with third-party partners, including NEXT.