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The Markets
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Sosandar expects wider loss, drops new year guidance

The fashion designer said it is "impossible" to predict the impact on the year beginning April

Sosandar PLC (LON:SOS) slumped as it expects a wider loss in the year to 31 March though it is “impossible” to predict the full impact of coronavirus thereafter.

The fashion designer estimates this month’s performance to be “well below” forecast, while the weeks from January to date saw revenue rocketing 203%.

READ: Sosandar ticks higher as it delivers record quarter, upgrades full-year forecasts

Full-year revenue is still expected to double to £9-9.3mln compared to the previous period, while net loss will widen to £6.5-6.8mln. Last year, underlying loss was £3mln.

Cash at year-end is expected to be £5mln.

The AIM-listed firm, which proposes comfortable but trendy garments, vowed to focus on cash preservation by reducing marketing and rejig its supply base.

"The company has reacted in a responsible fashion to trim its cost base given the volatility of current trading patterns, and similarly can focus back on the new customer acquisition as the economic outlook brightens," analysts at house broker Shore Capital said.

Shares slumped 36% to 7.22p on Wednesday at the opening bell.

--Adds analyst's comment--

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