Sosandar (SOS) H2 2026 earnings summary

Executive summary

• Revenue grew 14% year-over-year to £42.3 million, driven by strong own website and multi-channel expansion.

• Gross margin increased for the fourth consecutive year, reaching 64%, up from 62% last year.

• Adjusted profit before tax (PBT) was £0.4 million, up from £0.2 million in the prior year, with statutory PBT at break-even after impairment review.

• Net cash rose to £8.4 million, with zero debt and strong free cash flow generation.

• Q1 FY 2027 revenue up 22% year-over-year, indicating a strong start to the new financial year.

Financial highlights

• Total revenue: £42.3 million, up 14% year-over-year; gross profit up 17% to £27.0 million.

• Gross margin: 64%, up from 62% last year.

• Adjusted PBT: £0.4 million; statutory PBT: £0 (after non-cash impairment on store leases).

• Free cash flow: £2.9 million, aided by a £1.1 million reduction in inventory.

• Share buybacks totaled £1.8 million, with 24.8 million shares held in treasury.

Outlook and guidance

• Confident in achieving full-year targets for FY 2027, supported by a strong Q1 and robust gross margins.

• Focus remains on profitable growth, maintaining high margins, and disciplined capital allocation.

• Inventory expected to rise in FY 2027 to support revenue growth.

• Gross margin increased further to 65.2% in Q1 FY27.