Sosandar (AIM:SOS) PLC has announced strong revenue growth and a swing to profit in the first half, with current trading in line with market expectations for the full year.
Net revenue came in at £20.9mln in the first six months to 30 September 2022, a surge of 72% compared with the same period the year before, the women’s fashion retailer said in a trading update.
Pre-tax profits amounted to £0.1mln, a "substantial" positive swing from the £1.08mln loss reported a year earlier and marking the second six-month period of positive pre-tax earnings after the company achieved a profit in the latter half of full-year 2022.
Sosandar (AIM:SOS) said its broad product range continues to drive strong growth with both new and repeat customers. In the first half, every single product category saw growth, with holiday and beach wear, formal tailoring and dresses performing “exceptionally well” throughout summer and into September, it said.
Early autumn trading has been “very positive” with particular success in key growth areas of outerwear, knitwear and partywear, the company noted.
Sosandar also announced a new third-party partnership with N Brown Group PLC (AIM:BWNG)'s JD Williams. The deal will further increase the brand's reach and deliver profitable growth, Sosandar said. The company already has third-party agreements with M&S, Next, John Lewis and the Very Group.
"We are extremely pleased to have delivered a strong performance in the first half of the financial year,” commented co-CEOs Ali Hall and Julie Lavington in a statement.
“Our well-planned and agile approach, together with our distinctive product range and effective communication strategy, has enabled us to deliver a significant increase in revenue, as well as a full period of profitability. This momentum has continued into the early weeks of the second half, with strong trading in October to date and tracking in line with our expectations," they added.
Noting that the challenging and volatile macroeconomic conditions currently make the short-term future difficult to predict, the co-CEOs said “we remain confident in our long-term strategy”.
“We have a clear strategy in place and a proven ability to execute our plan. This gives the board the confidence that the group will continue to make progress and deliver profitable growth in line with full-year market expectations," they concluded.
Analysts are currently forecasting revenues of £42.8mln and pre-tax profit of £2.0mln for the year to 31 March 2023, the company said.
Shares in Sosander rose 10.88% to 15.80p in mid-morning trade.