The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

Join ShareProphets at less than 2p per article

> All the big AIM fraud exposés

> 300 articles and podcasts a month

> Hot share tips

> Original investigations by our experienced team

> No ads, no click-bait, no auto-play videos

Find out more

Sosandar – a loss on revenue of £0.9m, but continues to look set for take-off: STRONG BUY

By HotStockRockets | Friday 30 March 2018

Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Sosandar (SOS) has announced results for the nine months to 31st December 2017 – yes, they show a £2.1 million operating loss on revenue of £0.9 million, but remember its website only went live in September 2016 and momentum is very positive indeed…

The company saw opportunity with; “its inception was the result of the founders' combined 35 years' experience in the media and fashion industries where they identified an increasingly growing market of women who have graduated from other online high street brands and were now looking for affordable clothing with a premium, trend-led aesthetic but felt largely underserved”.

This is being proven - with the noted performance ahead of initial expectations and “momentum has continued into the first three months of this year… we are already seeing encouraging early spring trading”. The company is also financially well set; period-end cash (net) £5.3 million and total current assets of £6.3 million comparing to liabilities of £0.5 million.

Also noted is “economies of scale that come with increasing order quantities” – and all of the above means the broker forecast of sales reaching £1 million for the full-year to 31st March will clearly be well beaten and so, we continue to expect, will be the £3 million which was pencilled in for the new year about to start.  We continue to expect £4 million + and a better than breakeven bottom line. The next year brokers were looking for comfortably in excess of £5 million and those economies of scale to help into profitability. We expect £6.5 million + and way into seven figure profitability.

But we don’t expect to have to wait anywhere near that long in share price terms.

As this growth trajectory - particularly in this ‘hot’ sector - is proven and recognised, we expect significant share price progress from the current 12.5p, capitalising the company at sub £13.5 million. It is still to be properly shown as yet, but we can expect another trading update shortly after the year-end and then and thereafter the growth here should become ever clearer.

Valuing a business that will do sales of £4 million and breakeven at least in the year starting on Monday on EV of just £8 million is ludicrous. STRONG BUY.

This article first appeared on HotStockRockets - to catch another red hot share tip from the HotStockRockets team which went out Thursday late afternoon for just £5 click HERE

Filed under:

Never miss a story.

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on SOS


Comments are turned off for this article.

Site by Everywhen