Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
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If high street shops are closing at such an alarming rate, where are all the shoppers going? Just asking.
So what is bottom? 10p? 7p?
This co has to many sales. simple as that!
10 pence beckons and if they update to say they won’t hit targets because of ..say Brexit....then timber. At least they raised cash ...
Means they're on the right track. Nothing like a bit of competition. Maybe River Island will buy them one day.
With Q1 collapsing to 23% this is all that Sosander needs!
https://www.retailgazette.co.uk/blog/2019/07/river-island-launch-new-brand-attract-older-age-group/
River Island is launching a new womenswear brand called Harpenne, which will focus on appealing to an older age group.
The fashion retailer said the new brand, due to launch in September, will fill a “gap in the market”.
What a disaster!
what a disaster here
Is this the guy who doubled his £ with ASOS and sold up at 9p as he thought it was overpriced??? Word has it if he had some minerals and sold out at the top he would have pocketed himself £34 million - big ouch!
Its a fashion label with a tiny market as well putney.... This has a market in the 10s of thousands where as koovs has a market of 700 million Indians
What a shocker, I believe in his own words, he backed up the truck on this one, his largest holding.
The thing is, this company is now in the position Koovs was in a couple of years ago when it was scaling up growth. Paul Scott was heavily critical with Koovs which is now on the path to recovery with some heavyweight backers. Sosander is already going backwards with a cash call imminent.
The problem here is you can't expect management with little business acumen to turn this around. Running a fashion magazine is very different to creating a fashion label.
Any chartists have a view on a key trading levels?
Wasnt paul scott ramping the shlt out of this very limited market business??
The bloke has no shame.
The reality is that this share has been a disaster...and many bought here at 30p plus with PS so bullish.
I agree that it is now at a more realistic price.....nearly 70% down from the highs. Buy with news out of the way and fashion stocks getting beaten up here and in the US, are investors going to buy a stock that lost over £3.4 million? Yes this is a growth stock ....but it is also losing nearly 70K a week. battle at this level between the bulls and bears I think. I said 15p would be hit and here we are. A slow move to 12p or a rally to 20p? No idea.....
My opinion - obviously I'm biased, as I have a large long position here. Even so, I always try to think & act objectively, but unconscious bias can always creep in.
Trying to be even-handed, I'm not impressed with the growth rate slowing to only 23% year-on-year, but the explanations given by management do have credibility. If the weather had been warmer, and marketing spending higher, then the growth rate probably would have been 50-100%, instead of +23%. So on balance, I accept the explanations given. Although there has to be an element of doubt.
I feel that maybe the spring/summer range this year possibly didn't have the same impact as last year's? So there could be a mixed situation here - some external factors have had an impact, but possibly the product wasn't as good as it could have been too?
The repeat business statistic of +122% is very important, and that's the key driver of the business. The idea is that once a customer has been acquired, then the lifetime value could be enormous, as unlike say BooHoo or Asos, where customers have a fairly short lifespan, the Sosandar customer of 35 might still be buying Sosandar styles 20+ years later.
The share price has come down so much, that I feel the increased risk has already been factored into the valuation.
The tone of the conversation was very positive - management clearly do believe that they can hit the full year numbers. If they didn't believe that, then the forecasts would be lowered, but they're not being lowered. In the past, management have been straight with investors. Obviously they're putting their best foot forwards, as all companies do, but Sosandar has a history of beating forecasts on revenues - it had several upgrades last year. So I'm comfortable that management here know what they're doing.
For me, this has always been a long-term investment. On balance, I feel that the long-term picture is unchanged, and very positive. However, a soft Q1 certainly increases risk that full year numbers may not be achieved, despite management sounding very confident they can hit those numbers.
Therefore, I can understand why shorter term, or less committed shareholders, might feel that it's better to watch from the sidelines for now. There again, a £20m market cap, for the UK's fastest-growing pure play online fashion business, with enough cash for at least 12 months, is probably not going to be far from the lows. With the weather now improving, and marketing spend going back up again, it wouldn't surprise me if the next trading update sees an acceleration of the growth trend again.
Time will tell!
(comments on the detailed accounts to follow later)
Q2. Surely the company now has a mountain to climb, to achieve full year forecast of c.£9.5m revenues?
A2. There's a bigger marketing war chest for the autumn season now, due to holding back in the poor spring weather period. A big expansion of the range is planned for autumn, with new designers & buyers being used for new categories (e.g. denim, which is doing well), plus footwear, and accessories ranges will be greatly enhanced. New factories are coming on stream, lots going on with product, which is why they are confident about the rest of the year. Some Sosandar designs are becoming perennial sellers, e.g. the fit & flare dress - Julie noted that Charlotte on Good Morning is today wearing one of these from Sosandar.
All in all, the tone of the conversation was really upbeat, they feel targets are attainable, and there is no change to the full year expectations.
Q3. I've noticed more discounting on your website, will this hit margins?
A3. Management took a tactical decision to clear slow-moving lines earlier. The discounting on website only applies to certain lines, they haven't done any across-the-board discounting. Have to respond to competitor activity, if other retailers go into sale early, Sosandar has to follow suit to a certain extent.
Slightly dodging the question there, but if margins were significantly different to expectations, then the company would have to say so.
Q4. Will you need to do another placing, as the cash looks sets to run out in early 2020, based on current burn rate?
A4. I got a rather generic reply on this, something like, we keep funding requirements under review, etc.
Cash - my view is that there is clearly enough cash for the time being. It may need a top-up placing next year, in my opinion. If this is done from a position of strength, after a strong autumn season, then it's not a problem at all - similar to the last placing, which was dilution of under 10%, and the money was offered to Sosandar unsolicited, by two institutions that were keen to buy in, in size not available in the open market.
The worry is that, if Sosandar has a bad season in autumn/winter later this year, then it could be forced to dilute existing shareholders more, with another fundraising at a lower price.
Therefore, being realistic, I think there's probably an increased chance of the company needing a bit more cash next year.
Paul Scott's review on Stockopedia
(at the time of writing, I hold a long position in this share)
Full year results
Sosandar PLC (AIM: SOS), the online women's fashion brand, is pleased to announce its financial results for the year ended 31 March 2019.
I'll split this section into two parts - the detailed numbers for FY 03/2019 are largely academic, as we knew what to expect from the last trading update. So I'll come back to a detailed look at the numbers later.
Of more importance now is the outlook & current trading comments, which have spooked some investors (understandably). I contacted the company first thing, to ask about the outlook comments, which say;
"The new financial year has started strongly and in line with our expectations with June setting a new record for the number of units sold in a month.
Repeat orders for Q1 increased 122% year on year and Q1 has seen c.23% year on year revenue growth. This revenue growth has been achieved through strong repeat business with deliberately less emphasis on new customer acquisition as external factors resulted in a tougher acquisition environment.
Being an agile e-commerce business, we have been able to respond quickly to external forces, making the prudent strategic decision to hold back funds to invest for customer acquisition in future months where we expect to achieve a better return on marketing spend.
"With a clear growth plan, we are confident in the outlook for the year and very excited about Sosandar's long term prospects."
Here's a summary of my telecon with management this morning;
Q1. To my mind, it seems contradictory to say that the year (FY 03/2010) has "started strongly", and then to mention that Q1 sales are up only 23% (way below the 100%+ revenue growth forecast for the full year).
A1. The key number to focus on is the +122% repeat orders (from existing customers), which they are very pleased with. New customer acquisition spending was deliberately dialled down in April & May because the weather was awful (compared with blistering heat last year). They took the view that is was nonsensical to be spending the fixed marketing budget, trying to sell summer frocks, when it was cold & raining, which clearly makes sense. An example given is that the direct mail brochure for the start of June was held back, until the end of June, then sent out once the weather started improving.
Therefore management say the underlying performance, when adjusted for weather & reduced marketing spend, was as expected. They are not changing full year forecasts, and sound confident they can achieve it.
Big slowdown in growth in Q1, 23% yoy!
I was delighted to read the RNS this morning & was expecting a very positive start to the trading day. I then log back in to see it down 15%, so can only assume that everyone else was expecting much better than eg Gross profit up 268%
Sharp fall continues....a lot of expectations here and if the fall in traffic is correct then results could miss targets. Very competitive area. I have been bearish on these ....sold out at 40 and should have gone short.
I don’t know if this will break the 20p level but if it does the 15p level beckons
09 May 2019
Sosandar plc
("Sosandar" or the "Company")
Director/PDMR Shareholding
The Company has been informed that yesterday, Mr Mark Collingbourne, Finance Director, transferred 125,000 ordinary shares in the Company ("Ordinary Shares") at price of 26.75 pence per share from his personal account to his SIPP. Following this transfer, Mr Collingbourne's interest in the Company is unchanged.
You might be right as the data on SEMrush is terrible. A bounce rate of 75%, which it suggests would be crippling. After seeing that I am inclined to dismiss SEMrush
If you look at the data on SEMrush, it shows April and March traffic to be flat. I don't know which is more accurate. More likely both are useless for getting any reliable insight.
Anyone got any insight on why traffic reduced by 22% (similarweb.com) last month (April).
Sosandar are exhibiting at Mello2019 which may be worth attending hTTps://melloevents.com/event/
ShareSoc have a special discount for our full members to the Mello2019 show! So, if you are planning on going to the Mello event it may be worth joining us as a full member too here: hTTps://www.sharesoc.org/membership/full-membership/
You can save up to £60 on the £149 ticket if you join ShareSoc!