UK's Sosandar marks profit turnaround, strong margin gains in FY25

The profit before tax (PBT) is expected to be not less than £0.5 million, also a substantial positive swing from £0.7 million pre-tax loss in the first half (H1) of FY25.

Enhancing margins and profitability remained a key focus as the company advanced its transition into a full-price, multi-channel retailer. The significant improvement in gross margin compared to historical levels is now being consistently achieved, forming a strong foundation to drive sustainable, profitable, and cash-generative growth over the long term, aligned with the strategic goal of reaching £10 million profit after tax (PAT), Sosandar said in a press release.

The company reported strong net cash of £7.1 million (~$8.80 million) as of year-end, compared to £8.3 million on December 31, 2024. This follows a capital expenditure of £1.2 million allocated towards the rollout of its own store network.

In FY25, Sosandar opened its first six stores, including new locations in Bath and Harrogate in February. These sites were strategically chosen for their affluent and vibrant retail environments where Sosandar’s customer base is particularly strong. The brand received a warm welcome on the high street, with store sales performing in line with expectations.

Notably, around 60 per cent of in-store purchases were made by new customers, and a clear increase in traffic and conversion was observed on the brand’s own website in areas where the physical stores are located, added the release.

Having achieved its strategic objectives for the year, Sosandar believes it has reached an inflection point. The company anticipates a return to sales growth in FY26, with the board reaffirming its confidence in meeting market expectations for the new financial year. It also believes that the foundations are firmly in place to support sustainable, profitable, and cash-generative growth over the medium to long term.

Fibre2Fashion News Desk (SG)