Profits soar by 494% at online fashion firm
Profits have soared by 494% at an online clothing business set up by two former fashion journalists.
Cheshire based Sosandar announced its interim results this morning.
Revenues increased 407% to £1.84m and gross margin improved nine per cent to 55%.
Gross profit increased 498% to £1.01m and there was an underlying EBITDA loss of £1.96m.
Orders increased by 446% to 43,979 and Facebook and Instagram followings foubled.
A successful share placing raised £3m and the firm achieved record sales in October.
Ali Hall and Julie Lavington, co-chief executives, said: “We are delighted to be reporting another period of significant financial and operational progress for the company as we have made steps forward across the business.
“We have set out a clear growth plan and are delivering on it. The exceptional growth in revenue, increased average order values and surge in repeat orders is evidence of how well we are engaging with an underserved market of women and testament to the quality and unique design of our products.
“It is pleasing that increasing sales have been matched by strong advances in efficiency throughout the business.
“Trading continues to be in line with management’s expectations and sales momentum has continued post period, with strong trading in the autumn across all product categories including partywear. September and October delivered consecutive record months for revenue, as well as orders, traffic and conversion rate.
“We are very excited by Sosandar’s long term prospects and look forward to the rest of the financial year with confidence.”
The firm was launched by Julie Lavington and Ali Hall – the founders of the fashion magazine Look.
The business is aimed at affluent, professional women who have moved away from cheaper alternatives and are looking for high quality clothing.
The clothes sold by Sosandar have already been by worn by high profile actresses, TV presenters, sports stars and social media influencers.
The company raised the £3m through a placing arranged by Shore Capital of 9,375,000 new ordinary shares.
