Sosandar (SOS) H1 2026 earnings summary

Executive summary

• Revenue grew 15% year-on-year in H1 to £18.7m, with own website revenue up 28% and gross margin maintained at 62.2%, reflecting a strong direct-to-consumer strategy.

• Loss before tax was £1.1m, impacted by a one-off M&S cyber incident and new store openings, but remains in line with expectations due to second half profitability weighting.

• Cash generative operations resulted in a net cash position of £7.7m at period end, increasing to £9.5m post-period, with no debt.

Financial highlights

• H1 revenue: £18.7m, up 15% year-on-year; own website revenue up 28%.

• Gross margin held at 62.2%, nearly 7 percentage points higher than two years ago.

• Loss before tax: £1.1m (vs. £0.7m prior year), mainly due to M&S cyber incident and store costs.

• Net assets: £17m at 30 September 2025; cash balance up £0.4m since March, with zero debt.

• Inventory reduced by £0.6m since March, reflecting strong sell-through and planned reduction.

Outlook and guidance

• Trading momentum continued into October and November, with resumed M&S trading and strong own website growth.

• H2 gross margin expected to rise over two percentage points to 67% year-on-year, aided by stronger sterling and improved contracted rates.

• Full-year trading in line with expectations, with H2 typically stronger in revenue and margin; FY26 revenue expected at £43.6m and profit before tax at £0.4m.