Shares in Sosandar jumped by nearly 10% this morning as the online women’s brand reported a 387% jump to £1.35m in the year ending 31 March 2018.
The AIM-listed business, which was founded in September 2016, saw its gross profit rise by 532% to £660,000, giving a gross margin of 49.4%. EBITDA loss, however, hit £3.1m as the fledgling business continues to invest in customer acquisition, product imagery and people.
Sosandar, which targets women who have grown out of the fast fashion brands, was listed on AIM following a reverse takeover by AIM-listed cash shell Orogen Plc last November. That exercise led to a fundraise of £5.3m enabling it to increase its product range seven-fold.
During the year the business processed 31,732 orders (an increase of 353%) with an average order value of £94.18 (up from £87.22) and its customer database grew 695% to 54,196. Conversion rate was up 87bps to 2.16%.
Co-founders and co-CEOs Ali Hall and Julie Lavington, said they were “very pleased” with the progress made in the year, in particular the ability to make a greater variety of products available more quickly and the growth in the customer base.
“A key focus for the team has been building awareness of the brand and customer acquisition, and we are proud to report that through implementing a strategic campaign across a multitude of channels we have been able to substantially grow our customer database. Our products are what makes Sosandar unique, and our ‘test and repeat’ model has delivered well. We’ve also seen a growing conversion rate and average order value,” they said.
The momentum the business had reported in March had continued into the new financial year, they said, with quarter to June 18 revenue up 73% vs quarter to March 18.
“Our strategy is to continue to broaden the product range to give more choice to our customers, buy deeper and engage in a more diversified marketing strategy. We remain focused on data-driven efficiencies and digital investment to improve our customers’ journeys.
“We believe that the results to date demonstrate the considerable potential and opportunity in this underserved market and are testament to the brand’s growing momentum. Sosandar’s unique offering and market positioning puts us in a strong position to achieve another year of strong growth in 2018/19,” the pair added.