The British clothing provider Sosandar PLC had to accept significant loss of sales in the 2024/25 financial year, but was able to achieve an input tax again. This emerges from preliminary key data that the company published on Wednesday. However, the results remained behind the previous expectations, which caused the share price to slip by almost 15 percent immediately.
Based on the available figures, the management expects sales of £ 37.2 million (43.4 million euros) to be made at the end of March. This corresponded to a decline of almost 20 percent compared to the previous year. The company justified the losses with the targeted restriction of discounts. Due to the unexpectedly weak demand in February, the annual turnover was below the previous target brand of 38.5 million British pounds.
Management sees “strong strategic progress”
In the course of the ongoing strategy, which is primarily aimed at increasing profitability, the clothing provider was able to increase his gross margin from 57.6 percent to 62.5 percent and return to the profit zone. In view of the present results, the management now expects a result before taxes (EBT) in the amount of at least £ 0.5 million, after an input tax loss of 0.3 million British pound had to be booked in the previous year. Previously, however, the company had given the prospect of an £ 1.0 million British pounds.
Although the results apparently missed expectations, the management emphasized the “strong strategic progress” over the past year and referred to the improvement of the margin and the result, reducing discounts and opening the first six of their own stores. The strategy is now becoming successful, especially since sales have recently experienced an upward trend again, the company said.