Sosandar PLC (LON:SOS) was looking sharp on Monday as a 53% jump in its first-half revenues sent the share price soaring.
The AIM-listed online fashion brand reported in a trading update that revenues for the six months ended 30 September will be £2.8mln, a 53% rise on the prior year, while post-period it had seen monthly net revenues surpass £1mln for the first time in October.
READ: Sosandar expects more than 400% surge in revenue, raises £3mln in share placing
Going forward, the company said it was planning to accelerate growth by investing more into its TV advertising, and as such marketing expenditure will be higher than initially planned for the current year.
However, this higher spending was predicted to “significantly enhance future growth” by growing the firm’s customer database and increasing purchase frequency from the company’s “loyal and highly engaged following”.
“We are seeing strong engagement from our ever-expanding base of loyal existing customers and this will continue to increase as our product range grows further. We are delighted with the success of our new advertising activity and the Board is confident that accelerating our future growth by increased investment in marketing (especially via TV) in this financial year is the right decision for our business”, said Sosandar’s joint chief executives, Ali Hall and Julie Lavington.
“With a widened product range offering, strong balance sheet, and a broadened, aggressive, and increasingly effective marketing strategy, we are confident about the full year", they added.
Sosandar’s house broker, Shore Capital, said that while the higher marketing spend for the year meant it would increase their operating loss forecasts, the company remained “firmly on track to reach breakeven” in its 2021 financial year.
In early trading, the company’s shares were 24% higher at 19.8p.