Sosandar (SOS) Trading Update summary

Strategic and financial progress

• Achieved a positive swing in margin and profit before tax, with PBT expected at not less than £0.5 million versus a loss of £0.3 million in FY24, reflecting a transition to a multi-channel model with new store openings.

• Revenue for FY 2025 reached £37.2 million, down from £46.3 million, due to a disciplined focus on full-price sales and reduced promotional activity.

• Gross margin improved to 62.5% from 57.6%, supporting a profitable year and the shift to a full-price, multi-channel retailer.

• Net cash position stands at £7.1 million after £1.2 million CapEx for store rollout.

• FY 2025 focused on sustainable, profitable, and cash-generative growth, with margin and PBT improvements now reflected in revenue momentum and a £10 million PBT target.

Operational achievements and store performance

• Six stores now open, with 60% of in-store purchases from new customers and Bath and Harrogate outperforming initial openings due to applied learnings.

• Website growth has returned, especially strong in regions with physical stores, indicating synergy between channels and increased online traffic.

• Store portfolio performing in line with expectations, driving brand awareness and customer acquisition.

• Third-party partnerships remain strong, with a new licensing agreement for a footwear range and a NEXT homeware range launching in autumn 2025.

• March and April sales were ahead of the prior year, indicating regained momentum.

Outlook and growth expectations

• Confident in achieving both profit and sales growth in FY 2026, with marketing spend set to increase and expectations for growth to build through the year.

• Board expects a return to sales growth in FY26 and reiterates confidence in meeting market expectations.

• Profitability remains a key focus, with margin gains expected to continue, though at a slower rate.

• Store rollout will continue based on prime location availability, with openings timed at the start of key seasons.

• Foundations in place for sustainable, profitable, and cash-generative growth toward a £10 million PBT target.