Sosandar’s FY21 results have been well-trailed with revenue growth of 35% to £12.2m and a reduction in EBITDA losses to £2.9m (PY: £7.7m). The accelerated growth seen in Q4’21 has continued into Q1’22, with sales increasing 256% YoY and the gross margin expanding 200bps QoQ. With restrictions easing, we envisage a continuation of growth in FY22 coupled with a reduction in EBITDA losses (breakeven in H2). May’s £5.8m (gross) ABB has provided the working capital to support a significant increase i
Companies: Sosandar Plc
SOS has successfully raised £5.43m (net) at 20p to accelerate growth and profitability. The raise is in response to a significant increase in demand from customers via 3rd Party (3P) platforms. Crucially, 3Ps have approached SOS for more stock depth and access to more of its product range, as styles have sold out quickly. Given the high level of ongoing demand, and end market conditions starting to return to normal (incl. going out), the rationale behind the raise is to ensure the group can fund
Sosandar is a fast growing fashion e-tailer, and brand awareness is surging. New product development and range expansion has led to positive reviews, celebrity endorsements and exciting 3P marketplace agreements. Crucially, it is now realising economies of scale and, after growth and margin strengthened in Q4, profitability is around the corner. We forecast an inflection to positive EBITDA within 12 months (FY23E £1.2m, 3.5% margin). This should be well received given previous downgrades. Our fa
The UK market showed a continued recovery in the first quarter albeit the indices are still well short of their all-time peaks, unlike many of their international peers. The FTSE 100 has risen by 1,186 points (21.4%) since the end of October and the FTSE 250 by 4,304 points (25.0%). The comparable performance since the start of the year is less spectacular- the FTSE 100 has risen by 253 points (3.9%) and the FTSE 250 has risen by 1,070 points (5.0%). The factors behind the sustained rally are fa
Companies: AMYT ARBB CEG BAG BVC BEG BONH BLVN BRSD CML CWK CRPR EYE ECHO FDM FAR FA/ GPH GSF HUW INSE JDG KAPE KP2 MACF MPAC MNZS NESF NBI OTMP OBD PREM QFI RUA SCS SEN SOS SUR TON TOU TXP TGL TCN UEM VLS WYN
In the last fortnight, we have surrendered some of the notable progress made over the last three months. That said, the optimism displayed by markets, driven by progress with vaccines and their rollout, persists. The recent direction of markets has been set by volatility in US markets, driven by specific retail market developments. Domestically, we have seen a broadly upbeat procession of results and trading updates/outlooks have, generally, been at least in line. The share price reactions have
Companies: AJIT ARW CEG BVC BAG BEG BON BWNG CLG CRPR EYE ECHO EPWN FDM FA/ GPH GNC HUW INSE KAPE KP2 MNZS NMCN NRR OBD PPC QFI ROL SAVE SCS SEN SOS SUR SNX TON TMG TGL TCN UEM VLS W7L WINK WYN
Pureplay womenswear lifestyle brand – Sosandar – has issued a trading statement for its financial year end 31 March 2020 and an update on current trading. The company responded quickly to the evolving Covid situation and has delivered solid revenue growth of 62% in April and May, despite a significant reduction in marketing expenditure. The net cash position at year end was £5.2m, which was reduced to £4.4m at the end of April as the creditor position from committed spend in March unwound. The c
Pure-play womenswear lifestyle brand – Sosandar - has provided a trading update highlighting the volatility of trading in the least week or so, as the Coronavirus has heavily impacted economic sentiment and consumer spending. In order to preserve cash, the company has taken the sensible decision to suspend all marketing campaigns and this will have the effect of a downgrade to our FY2020F revenue forecast to a range of £9.0m - £9.3m (from £10.1m previously). This leads to a net loss of £6.5m to
Pureplay womenswear brand Sosandar has successfully completed a £5.0m fundraising, following the granting of shareholder approval at the general meeting earlier this week. The proceeds provide the company with additional headroom to continue its sales growth trajectory as it invests in customer acquisition (including television advertising). They will also bolster the stock position for repeat orders from suppliers and grow the new product ranges e.g. jeans, beach, and swimwear. In our view, the
Pure-play womenswear lifestyle brand Sosandar has released an excellent Christmas trading statement for the three months to 31 December 2019 which shows continued momentum, with revenues soaring 136% yoy to £3.8m in Q3. The net revenue in the period significantly exceeded the revenue generated in H1 at £2.8m. In our view, Sosandar is top of the tree this Christmas and, despite its lower sales base, outperformed all other UK clothing retailers including Boohoo, Next, M&S and Quiz. Sosandar’s mark
Pure-play womenswear lifestyle brand Sosandar has released interim results for the six months to the end of September 2019, which show a significant acceleration in the top line growth. Revenues for the period came in at £2.82m, an increase of 53% year-on-year (yoy). The start to autumn has seen a further acceleration with net revenues (post returns) in October being in excess of £1 million. This strong momentum has continued into November, which is on course to exceed October’s revenues. Sosand
Pure-play womenswear lifestyle brand Sosandar has released a half year trading update, following the end of the first half period (six months to 30th September 2019), which gives additional detail to the September AGM trading statement. The first half trading update reassures us that the momentum in the business continues. Revenues for the period are expected to be £2.82m, an increase of 53% year-on-year (yoy). Q2 revenues grew 84% yoy and October revenues have exceeded £1m in a month for the fi
African Export-Import Bank a supranational financial institution whose purpose is to facilitate, promote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE.
DNEG Limited intends to apply for admission of its Shares
Companies: BMK IXI CER AUTG SCHO BRD ING SOS SSTY SUH
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sosandar Plc.
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Games Workshop’s (GAW’s) trading update indicates sales growth for Q122 (three months to 29 August 2021) is in line with management expectations. Management has highlighted pressure on freight costs and currency exchange rates given GAW’s high international exposure. The declared dividend of 25p per share brings the year-to-date total to 65p. Our forecasts for FY22 and FY23 are unchanged. Our DCF-based valuation remains £129 per share.
Companies: Games Workshop Group PLC
The publication of Boohoo Group’s Economic Impact Report, released yesterday, made clear its commitment to the UK, with plans to invest more than £500m over the next five years, creating 5,000 new UK jobs in the process. The report also detailed the Group’s material contribution to the UK economy, supporting more than 8,000 full time jobs and contributing more than £2bn to UK GDP since 2009. The investment signals both the quantum of the future growth opportunity and confidence in the Group’s pr
Companies: boohoo group Plc
Companies: Made.com Group PLC
Reckitt Q2/H1 21 numbers missed estimates. Q2 sales declined 1%, hurt by slowing Hygiene growth (+7.8%) and weaknesses in Health (-5.6%) and Nutrition (-9.7%). H1 sales were up 1.5%, driven by Hygiene (+18.1%). The adjusted operating profit margin (-290bp to 21.6%) was hurt by steep rise in input prices.
FY 21 guidance (0-2% growth, 40-90bp margin contraction) was re-iterated (ex-IFCN China incremental margin offset by cost inflation). We will cut our estimates to factor in the soft growth/marg
Companies: Reckitt Benckiser Group plc
Tandem Group plc is a leading provider of sports, leisure and mobility products in the UK, with a valuable collection of licenses (eg Disney, Warner Bros and Mattel) and its own brands. The group is aligned with key structural growth trends such as rising demand for e-mobility products (e-bikes and e-scooters), boosted by a desire for less polluting forms of transport. Trading on a T+2 Adj P/E of only 6.8x, we believe Tandem is significantly undervalued, and see upside of c64% to the current sha
Companies: Tandem Group plc
The interim results are in line with expectations. The group’s three-year rebuild strategy appears on track reflected in strong trading in the UK & Ireland (UK & I) and the positive benefits of the broadening of the product range. Our full-year forecast remains unchanged.
Companies: Eve Sleep PLC
US & German manufacturing PMI hits lowest readings since 2009, UK manufacturing PMI heads below 50, BorgWarner expects material financial impact from customer production halts
Companies: AVON CGS HAYD HEAD HILS JHD RNO SCPA TWD TRI ZTF SOM GHH
Updating forecasts following 2019 results
Companies: Trackwise Designs Plc
Semper Fortis Esports* recently announced its intention to IPO onto the Access Segment of the Aquis Stock Exchange Growth Market. Semper is a multi-operational Esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures. The company plans to raise £2.5m to develop their three core areas of establishing an esports team, forming partnerships with brands for sponsorship and B2B consultancy services. The Board are highly experienced in spor
Companies: BOKU RBGP MUL WATR GFIN MKA TIDE MNO INX TUNE
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
Today’s H1 update makes positive reading. Since the AGM update, strong trading continued into May and June and the Group exits H1 with a strong global order book. Overall, 34% y/y sales growth / 6% LFL (vs H1-19) is a highly impressive outcome against the backdrop of UK lockdown 3.0 and ongoing CV19 related global shipping and supply chain delays. All this reflects favourably on the strategic progress under the new leadership team and supportive of the double-digit sales / margin recovery thesis
Companies: Portmeirion Group PLC
Daimler’s management and board of directors have approved the spin-off of Daimler Truck as an independent company and will submit it to a vote to shareholders at an extraordinary shareholders meeting set for 1 October. The spin-off and listing is expected to take place before the end of 2021.
Companies: Daimler AG
SDG has signed a new licensing agreement in the US, its first in the market. While the first full year contribution with Williams Sonoma wont be until FY24, this agreement and others that are likely to be signed in the territory using its new partner there, could materially add to future earnings. The shares have performed well recently but se wee potential for further outperformance and maintain a BUY recommendation.
Companies: Sanderson Design Group PLC
Undoubtedly, renewable energy is a growth sector, albeit one where public subsidies are pivotal. Approximately 40% of UK electricity demand is now met by renewable energy, a figure that is set to rise further as coal-fired stations are decommissioned and nuclear power capacity, despite the Hinkley Point C project, falls.
Of the privatised electricity companies, SSE, by some way, is the key renewables player: it owns more than 3.8GW of renewables generation capacity. However, there are now
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