Sosandar’s shares dropped 20% after the women’s fashion retailer downgraded its full-year revenue outlook, citing a cautious approach following a cyber incident at key partner Marks & Spencer.
The company now expects 18% revenue growth to £43.6 million for the current year, with profit before tax projected at £0.4 million.
The update follows a year in which Sosandar deliberately reduced promotional activity to improve margins, achieving a gross margin increase to 62.1% despite a revenue decline to £37.1 million for the 12 months to March 31.
Adjusted profit before tax turned positive at £0.2 million, compared with a loss the previous year, though audited results showed a small loss due to stock write-downs and one-off costs.
The company reported a 15% revenue rise in the first quarter of the current year, with its own website driving growth despite disruptions at M&S.
Sosandar is focusing on making its six new stores profitable before further expansion and remains cash generative with £8 million in cash.
The shares fell 1.61p to 6.39p.