Sosandar, a womenswear brand, has reported a 9% increase in revenue to £46.3 million for the year ending 31 March 2024, along with plans to open two new stores.
- Partywear, dresses, tailoring, and knitwear were key contributors to the revenue increase, despite a reported annual loss.
- The company recorded a £0.3 million loss for FY24 but saw improved profitability in the second half of the year.
- Strong cash generation in the latter half of 2024 resulted in a net cash position increase to £8.3 million.
- Looking ahead, Sosandar aims for sustainable growth in margins and profitability without prioritising revenue growth at the expense of these metrics.
Sosandar, a womenswear brand, has reported a substantial revenue increase of 9% to £46.3 million for the year ending 31 March 2024. This growth is attributed primarily to robust sales in partywear, dresses, tailoring, and knitwear. However, despite this positive revenue performance, the company posted a loss of £0.3 million for the full fiscal year.
The financial year 2024 showed a divide in results, with the first half recording a £1.3 million loss, contrasted by a £1.0 million profit before tax in the second half. Sosandar’s strategic focus on recovery was evident as it increased its gross margin to 57.6%, marking a 2.4% year-on-year improvement. Notably, strong cash generation saw the company’s net cash position improve by 8% year-on-year, reaching £8.3 million by the end of March 2024.
Looking ahead to the first quarter of FY25, Sosandar remains cautiously optimistic about maintaining its profit levels. The company has strategically decided against driving revenue growth at the expense of margins, instead aiming for steady financial health. Sosandar has highlighted a 670 basis points increase in gross margin to 63.4% as a critical factor expected to sustain pre-tax profit levels in line with expectations.
The brand has unveiled plans to open its first two physical stores in Marlow and Chelmsford, expected to commence operations in September. The Marlow store will be located on Marlow High Street, while the Chelmsford outlet will be on Bond Street. The decision to select these prime locations aligns with Sosandar’s disciplined approach to site selection, ensuring ‘right price, right location.’
Co-CEOs Ali Hall and Julie Lavington anticipate that these new stores will enhance the brand’s presence, stating, “Looking ahead, FY25 is focused primarily on delivering sustainable growth in our gross margin, pre-tax profit, cash generation and maintaining a strong balance sheet.” They remain confident that the new stores, alongside further third-party partnerships and online growth, will positively impact all sales channels.
Sosandar is strategically poised for future growth, balancing new store openings with a focus on maintaining strong financial metrics and sustainable growth.
