Sosandar (SOS) H2 2025 earnings summary

Executive summary

• FY 2025 focused on strengthening foundations for profitable growth, reducing price promotions by over 90% and improving gross margin from 57.6% to 62.1% year-over-year.

• Revenue declined to GBP 37.1 million from GBP 46.3 million due to reduced promotions, but profitability improved with a narrowed loss before tax and adjusted profit before tax of GBP 0.2 million, excluding exceptional warehouse move costs.

• Strong cash position maintained, ending March 2025 with GBP 7.3 million and increasing to GBP 8 million by June 2025, despite self-funding store rollout.

• Multi-channel strategy advanced with own website, third-party partners, and first physical stores; first licensing agreement signed for homeware with Next.

Financial highlights

• Gross margin improved by 450 basis points to 62.1% in FY 2025, with a target to exceed 65%.

• Loss before tax narrowed to GBP 0.1 million (from GBP 0.3 million), with adjusted PBT at GBP 0.2 million after excluding exceptional costs.

• EBITDA improved by GBP 0.8 million, including GBP 0.3 million pre-opening costs for six new stores.

• Admin expenses reduced by 17%, reflecting lower variable costs and re-baselined marketing spend.

• Net assets at GBP 17.9 million and zero debt at year-end.

Outlook and guidance

• Q1 FY 2026 revenue up 15% year-on-year, with own website and margin both up 15% and 65% respectively.

• Revised FY 2026 guidance: revenue expected to grow 18% to GBP 43.6 million, with profit before tax of GBP 0.4 million, reflecting cautious outlook due to Marks & Spencer disruption and slower store profitability.

• Business expected to remain cash generative in FY 2026 and beyond.