TIDMSOS
RNS Number : 2755E
Sosandar PLC
03 July 2019
Date: 03 July 2019
On behalf of: Sosandar plc ('Sosandar' or 'the Company')
Embargoed until: 0700hrs
Sosandar plc
Full Year Results
Strong year-on-year growth in both revenue and margin
Sosandar PLC (AIM: SOS), the online women's fashion brand, is
pleased to announce its financial results for the year ended 31
March 2019.
Financial Highlights
-- Revenue increased 228% to GBP4.44m (2018: GBP1.36m)
-- Gross margin improved to 55.5% (2018: 49.4%)
-- Gross profit increased 268% to GBP2.44m (2018: GBP0.67m)
-- EBITDA loss reduced to GBP3.49m (2018: GBP6.00m loss)
-- Period-end cash balance of GBP3.64m
Operational highlights
-- Order growth of 224% to 102,967 orders
-- Conversion rate increased by 76bps to 2.92%
-- Customer database grew 95% to 105,756
-- Active customers increased by 185% to 62,214
-- Increased number of new styles by 106% vs prior year and
broadened size range
-- Facebook and Instagram followings increased by 72% and
208% respectively
-- Costs as a percentage of revenue significantly decreased
Performance against KPIs
YE 31 March 2019 YE 31 March 2018 Change
-------------------- ------------------ ------------------ ---------
Sessions 3,518,756 1,467,952 +140%
Conversion rate 2.92% 2.16% +76bps
Number of orders 102,967 31,732 +224%
Average Order
Value GBP103.19 GBP94.18 +10%
Returns 50% 44% +600bps
Active Customers 62,214 21,808 +185%
Repeat order
rate 1.66 1.45 +15%
-------------------- ------------------ ------------------ ---------
YE 31 March 2019 YE 31 March 2018 Change
-------------------- ------------------ ------------------ ---------
Customer database 105,756 54,196 +95%
-------------------- ------------------ ------------------ ---------
Ali Hall and Julie Lavington, Co-CEOs, commented:
"We are delighted to be reporting a year of exceptional growth
along with significant operational progress. We have expanded our
product range and invested in highly effective customer
acquisition, which together are driving ever growing repeat rates.
We continue to inspire and excite our customers and once we recruit
customers they are proving to be incredibly loyal and highly
engaged with the brand, which will fuel future growth for the
business.
"We are continuing to invest in the expansion of our product
range, most recently making investment into specialist areas of
footwear, accessories, knitwear and denim. Our social channels
continue to expand rapidly, and we have seen an ever-growing army
of high-profile celebrities wearing our clothes such as Amanda
Holden, Kelly Brook and Natalie Pinkham. We have also been featured
regularly in the national press from the Daily Telegraph to the
Daily Mail as well as being featured regularly on ITV. Brand
awareness continues to grow and most recently the fashion industry
bible, Drapers recognised the brand, awarding Sosandar the
prestigious accolade of Best New Online Business and Digital Team
of the Year. Recent investment into specialist design areas and new
factories will drive a larger product range going forward further
enhancing choice for existing customers to continue increasing
their frequency of purchase and broadening the appeal even further
for new customer acquisition.
"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."
Enquiries
Sosandar plc www.sosandar.com
Julie Lavington / Ali Hall, Joint c/o Alma PR
CEOs
Shore Capital
Patrick Castle / Mark Percy / James
Thomas +44 (0) 20 7408 4090
Alma PR Limited (Financial PR) +44 (0) 20 3405 0205
Rebecca Sanders-Hewett / Susie Hudson sosandar@almapr.co.uk
/ Sam Modlin
About Sosandar PLC
Sosandar is an online womenswear brand, specifically targeted at
a generation of women who have graduated from throwaway fashion and
are looking for quality, affordable clothing with a premium,
trend-led aesthetic. This is a section of the market that is
currently being underserved.
Sosandar was launched in September 2016. The Sosandar business
model is built around using trend-led, exclusive designs produced
in-house and then manufactured using a variety of global suppliers.
Sosandar caters for a growing market of fashion-conscious women,
while utilising an outsourced logistics provider that can support
its planned growth over the coming years.
Sosandar's founders are Ali Hall and Julie Lavington, who
previously launched and ran high street fashion magazine Look, as
editor and publishing director respectively. They have a combined
experience of over 35 years in the fashion industry, including in
the design, manufacture and sale of fashion ranges for some of the
UK's high street retailers, including Debenhams, Office, Oasis and
JD Williams.
More information is available at www.sosandar-ir.com
Chairman's Statement
The past year has been another period of rapid growth for
Sosandar, building on the strong foundations previously put in
place and taking us another step forward in our journey to become a
global one stop online destination for a new generation of fashion
forward women. The demand we see from our underserved market
continues to grow and underpins the brand's increasing
momentum.
It has been remarkable to see the change the Company has been
through over the last year. The team has grown significantly and
our capabilities across every aspect of the business have become
more sophisticated. It has been particularly striking this year to
see the business begin to achieve conversion rates and average
order sizes which compare favourably to well-established industry
peers, testament to the hard work the team has put in to build a
first-rate fashion business.
Alongside strong top line growth in our financials, we have
continued our focus on increasing efficiency. The entire Sosandar
team is motivated by the same ambition of long-term, sustainable
success, and we are proud to have achieved another year of
evolution towards that goal.
Corporate governance
The Board has committed to a corporate governance approach
commensurate with more mature businesses. Both Julie and Ali have
decades of experience in running and overseeing a large, dynamic
business, bringing discipline and a prudent financial approach to
day-to-day management.
As a Board, it is a priority to keep all our shareholders
up-to-date and engaged with progress and we are committed to
transparency in all our corporate communications. The aim to create
long-term success is front of mind and the Board believes it is
well aligned to the interests of our shareholders, and we would
like to thank them all for another year of support.
People
I would like to thank Ali, Julie and the rest of the Sosandar
team for all their hard work and dedication to building the brand
over the past year. Our growth means we have been able to make some
key hires that have resulted in the wider team benefitting from
added expertise and creativity, all of which reflected in our new
product ranges and high-quality marketing campaigns. The
enthusiastic and vibrant culture that Sosandar has built is
something of which the team should be extremely proud. It was
fantastic to see this recognised at the 2019 Drapers Digital Awards
where they won an incredible pair of awards for best new Online
Business and Digital Team of the Year.
Outlook
Going into the new financial year we are well placed to drive
further growth across all of our KPIs. Our customers demonstrate
amazing loyalty both via their shopping activity and continued
engagement via social channels. Growth is expected to be realised
through further investment into product - adding more SKUs and
investing in our product teams, whilst also continuing to invest in
marketing channels to acquire new customers. Sosandar has set out a
clear growth plan and we remain confident of delivering long term,
sustainable success.
Bill Murray
Date: 3 July 2019
Operating review
Sosandar is focused on creating chic and fashion - forward
products for a generation of women who are overlooked by existing
fashion brands, and this offers a significant untapped opportunity
- a demographic that spends GBP3.7bn on fashion per year.
Our typical customer has a high disposable income and is very
fashion conscious. She is looking for quality, affordable clothing
with a premium, trend-led aesthetic for all areas of her life.
Our strategy is to expand Sosandar's customer base and build our
brand awareness through developing exceptional products, providing
a seamless customer experience and continuing to expand our highly
successful online and offline marketing activity. This is
underpinned by combining our creativity with gathering and
analysing data on shopping habits, trends and customer preferences
to drive product development and effectively target new
customers.
Highlights
We are delighted to have achieved high levels of growth in our
KPIs. Revenues increased by 228%, driven by a variety of factors
including the continued success of our customer acquisition
activities across multiple channels, increased average order values
and a surge in repeat orders.
Gross margin also increased to 55% driven by economies of scale
achieved through increased order quantities and higher proportion
of sales from product sold at full price, successfully utilising
the outlet pages to sell older or less seasonally relevant stock
without impacting margin. We believe delivering improvements in
efficiency and the quality of the customer experience is vital to
prepare the business for future success.
Site visits increased by 140% year on year, and our customer
database increased by 95% to over 105,000. We were pleased to
deliver exceptional growth across both new and repeat orders, with
new customers increasing by 131% and repeat customers by 391%,
demonstrating the desirability of our products and increasing
engagement with the brand.
Customer acquisition
Marketing, combined with highly desirable product, are the
primary drivers behind Sosandar's growth and we operate a
multi-channel marketing strategy. We have built a highly-engaged
and growing community of Sosandar fans across social platforms
through carefully-targeted content generation and aspirational
lifestyle photography.
Particular channels of note are the Company's highly successful
direct mail brochures, Facebook and Instagram. The Sosandar
brochures have proven that the use of high-quality lifestyle
content is particularly valuable in driving high-converting
customers to the website. Facebook and Instagram followings have
increased by 72% and 208% respectively. The launch of Instagram
shopping in June 2018 has also helped to drive conversion; the
swipe to shop functionality enhances brand engagement and
capitalises on the growing number of influencers and celebrities
posting about Sosandar on Instagram.
The success of our paid-for marketing strategy has been
complemented by sustained high levels of PR-driven media coverage.
Management's expertise in this area has seen Sosandar featured
regularly on national TV, newspapers and magazines. Sosandar
clothing continues to be worn regularly by an ever-growing list of
celebrities and social influencers including Melanie Sykes, Kelly
Brook, Susanna Reid and Amanda Holden.
Our target demographic has continued to engage with the Sosandar
brand as we continue to capture a highly affluent customer
demographic. Our unique in-house designs are selling ahead of our
forecasts across all categories: dresses, skirts, trousers and
tops, outerwear, leather and footwear.
A core part of our strategy is to pursue an aggressive marketing
programme to drive customer acquisition, which has thus far proven
successful in building our customer database to over 105,000. With
a larger customer database, we can utilise data-led, personalised
communications to engage with both our existing customers and
target prospects who do not purchase immediately. It also provides
a platform to promote the Sosandar brand and our new products in a
cost-effective way, helping to improve longer-term marketing
efficiencies.
As more customers learn of Sosandar, we are continually learning
more about our customers; building our understanding of exactly
what they are looking for from a one-stop fashion destination. This
increased insight has led to a decreasing cost per customer
acquisition over the period, in line with previously reported
trends.
More product choice, same quality style
The rise of repeat orders and average order value size,
alongside positive feedback from customers, demonstrates that
Sosandar continues to produce excellent quality products across the
entire range. Sosandar aims to be at the forefront of trends with a
wide variety of styles and choice for all occasions, with high
demand for products across all categories.
Returns levels of 50% reflect the anticipated improvement in the
second half of the year from the 52% reported at interim results
reflecting the different product mix in Autumn/Winter. These levels
of returns are in line with the wider industry and are in line with
management's expectations.
Our test and repeat strategy continues to work well as we focus
on fast stock turn with new product launching constantly, helping
to minimise stock risk and allowing us to capitalise on
best-selling items in real time.
The product range, by number of intake styles, has been expanded
by 106%, with the addition of more choice within product types, and
new categories such as loungewear, accessories and denim.
Technology
As a relatively young e-commerce company, we are focusing on
implementing scalable and integrated technologies across the
business. We have had the benefit of building a mobile-first
platform and have not suffered from any legacy issues of
internally-developed systems, allowing us to fully exploit the
increasing use of mobile devices for e-retail.
We use technology and data to analyse sales and customer
behaviour to influence design decisions, product strategy,
marketing and customer service. Data analysis underpins our
creative excellence and we are continuing to invest in this area,
expanding data analytics resource in Sosandar.
Our technology strategy is to continue to invest across web and
digital platforms to enhance customer experiences and provide
frictionless online journeys, through in-depth analysis of customer
shopping habits.
People
As we continue to grow we have focused on building out the team
to ensure we are fully resourced to meet operational development.
Our product design, garment technology and data teams have all
expanded over the past year bringing a combination of increasing
creative and commercial e-commerce experience into the
business.
Our people are very important to us; they are a vital part of
what makes Sosandar a successful business. We recruit people who
are entrepreneurial and who are fully committed to our vision. We
consider ourselves to have an inclusive workplace where everyone is
fully engaged.
Outlook
Looking forward, there are exciting plans for extensive product
range expansion and new factory relationships to enhance choice for
our existing and new customers. We will also build on our
successful marketing activities by investing into new channels to
expand customer acquisition whilst leveraging the growing data and
content in the business to enrich communication strategies with our
already loyal customer base.
The expansion of repeat orders and increasing economies of scale
will drive efficiencies in the business and our unique offering and
market positioning puts us in a strong position to deliver
continued future growth.
With a clear growth plan, we are confident in the outlook for
the year and very excited about Sosandar's long term prospects.
FINANCIAL REVIEW
KPI's
Year ended 31 Year ended 31 Change
March 2019 GBP'000 March 2018 GBP'000
------------------- --------------------- --------------------- ---------
Revenue GBP4,440 GBP1,353 +228%
Gross Profit GBP2,465 GBP669 +268%
Gross Margin 55.5% 49.4% +607bps
Operating Loss* GBP(3,546) GBP(3,124) -13%
EBITDA* GBP(3,485) GBP(3,069) -13%
------------------- --------------------- --------------------- ---------
*excluding reverse costs
Year ended 31 Year ended 31 Change
March 2019 March 2018
------------------- --------------------- --------------------- ---------
Sessions 3,518,756 1,467,952 +140%
Conversion rate 2.92% 2.16% +76bps
Number of orders 102,967 31,732 +224%
AOV GBP103.19 GBP94.18 +10%
Active customers 62,214 21,808 +185%
Repeat order
rate 1.66 1.45 +15%
------------------- --------------------- --------------------- ---------
In the last 12 months Sosandar built on the momentum achieved in
the prior year to deliver growth of 228% with revenue of
GBP4.44m.
The revenue growth was achieved through improvements across all
KPIs. The increasing brand awareness and marketing activity helped
generate more visitors to the website as represented by session
growth of 140%. These visitors also bought increasing amount of
product with conversion rate up 76 basis points to 2.92% and
average order value up 10% to GBP103 representing the success of
investment into product range expansion and product imagery.
Returns for the year were 50%, split 52% for the first six
months and 48% for the second half of the year reflecting the
increased learnings in the business and investment into the garment
technology team.
Product design teams also expanded and there was continued
investment into customer acquisition. Enhanced product and more
efficient campaigns contributed to an increased customer base that
is purchasing more frequently with active customer base up 185% and
repeat order rate up 15%. This increasingly loyal customer base
provided a 391% increase in repeat orders which, along with
economies of scale that come with growth, are helping to drive cost
efficiencies with the 228% revenue growth delivered off only a 58%
increase in administrative expenses.
The growing brand awareness and demand for product is also
helping to drive margin improvements. Increased sell through and
buying efficiencies have combined to provide margin improvements
with gross margin of 55.5% up from 49.4% in the prior year and now
comparing favourably with much more established businesses with
higher order volumes.
Increased sell through has also benefited working capital with
revenue growth achieved from a 95% increase in stock, all of which
has been managed seamlessly by Clipper Logistics providing a truly
scalable solution, allowing the business to focus on continuing to
grow demand.
In order to ensure that the website continued to provide a
best-in-class customer experience, the business invested capital
during the year to transfer onto the Magento 2 platform, again
ensuring that the infrastructure is in place to allow for
unobstructed growth and easy implementation of any new e-commerce
advancements that come to market.
With a year end cash position of GBP3.64m the business will
continue to use these funds to invest in growth whilst working on
cost efficiencies in order to drive bottom line improvements.
Consolidated statement of income and other comprehensive income
For the year ended 31 March 2019
Year ended Year ended
31 March 31 March
2019 2018
Notes GBP'000 GBP'000
---------------------------------------------- ------- ------------ ------------
Revenue from contracts with customers 4,440 1,353
Operational costs (1,975) (684)
---------------------------------------------- ------- ------------ ------------
Gross profit 2,465 669
Administrative expenses (6,011) (3,793)
Deemed cost of reverse - (1,439)
Reverse acquisition cost - (1,493)
Operating (loss) 4 (3,546) (6,056)
Finance income 5 - -
---------------------------------------------- ------- ------------ ------------
Loss on ordinary activities before taxation (3,546) (6,056)
Tax on loss on ordinary activities 7 - -
---------------------------------------------- ------- ------------ ------------
Profit/(loss) for the year (3,546) (6,056)
Other Comprehensive income - -
Total Comprehensive loss for the year (3,546) (6,056)
---------------------------------------------- ------- ------------ ------------
Attributable to:
Equity holders of the parent (3,546) (6,056)
Group loss for the year (3,546) (6,056)
Total comprehensive loss for the year (3,546) (6,056)
Loss per share:
Loss per share - basic and diluted,
attributable to ordinary equity holders
of the parent (pence) 8 (3.19) (10.31)
Loss per share - basic and diluted,
from continuing operations (pence) 8 (3.19) (10.31)
---------------------------------------------- ------- ------------ ------------
Consolidated statement of financial position As at 31 March
2019
2019 2018
Notes GBP'000 GBP'000
--------------------------------------- ------- ---------- ----------
Assets
Non-current assets
Intangible assets 9 163 56
Property, plant and equipment 10 147 172
--------------------------------------- ------- ---------- ----------
Total non-current assets 310 228
--------------------------------------- ------- ---------- ----------
Current assets
Inventories 11 1,037 531
Trade and other receivables 14 366 478
Cash and cash equivalents 15 3,645 4,616
Total current assets 5,048 5,625
--------------------------------------- ------- ---------- ----------
Total assets 5,358 5,853
--------------------------------------- ------- ---------- ----------
Equity and liabilities
Equity
Share capital 16 116 107
Share premium 16 30,703 27,796
Capital redemption reserve 16 4,648 4,648
Other reserves 17 107 32
Reverse acquisition reserve 16 (19,596) (19,596)
Retained earnings 18 (11,600) (8,055)
--------------------------------------- ------- ---------- ----------
Equity attributable to owners of the
parent 4,378 4,932
Total equity 4,378 4,932
--------------------------------------- ------- ---------- ----------
Current liabilities
Trade and other payables 19 980 921
--------------------------------------- ------- ---------- ----------
Total current liabilities 980 921
--------------------------------------- ------- ---------- ----------
Total liabilities 980 921
--------------------------------------- ------- ---------- ----------
Total equity and liabilities 5,358 5,853
--------------------------------------- ------- ---------- ----------
The financial statements were approved and authorised for issue
by the Board of Directors on 3 July 2019 and were signed on its
behalf by:
_____________________
Julie Lavington
Director
Company Number: 05379931
Consolidated statement of cash flows For the Year ended 31 March
2019
Year ended Year ended
31 March 31 March
2019 2018
Notes GBP'000 GBP'000
------------------------------------------------ -------- ------------ ------------
Cash flows from operating activities
Group loss for the year (3,546) (6,056)
Share-based payments 17 76 582
Depreciation and amortisation 9 & 10 61 55
Reverse acquisition costs - 1,439
Working capital adjustments:
Change in inventories (506) (168)
Change in trade and other receivables 112 (445)
Change in trade and other payables 59 849
Net cash flow from operating activities (3,744) (3,744)
------------------------------------------------ -------- ------------ ------------
Cash flow from investing activities
Addition of property, plant and equipment,
and intangibles 9 & 10 (143) (18)
Acquisition, net of cash acquired - (1,938)
Net cash flow from investing activities (143) (1,956)
------------------------------------------------ -------- ------------ ------------
Cash flow from financing activities
Net proceeds from issue of equity instruments 16 2,916 9,978
------------------------------------------------ -------- ------------ ------------
Net cash flow from financing activities 2,916 9,978
------------------------------------------------ -------- ------------ ------------
Net change in cash and cash equivalents (971) 4,278
Cash and cash equivalents at beginning
of year 15 4,616 338
------------------------------------------------ -------- ------------ ------------
Cash and cash equivalents at end of
year 15 3,645 4,616
------------------------------------------------ -------- ------------ ------------
Consolidated statement of changes in equity For the YEAR ended
31 March 2019
Reverse
acquisition Share-based
reserve Capital payment
Share Share redemption Retained reserve
capital premium reserve earnings Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------- ---------- ---------- ------------- ------------- ----------- -------------- ---------
Sosandar Plc
Balance at 1
January
2017 4,651 12,268 - - (17,441) 610 88
Thread 35
retained
earnings
b/f - - - - (1,999) - (1,999)
Loss for the
year - - - - (6,056) - (6,056)
Transfer of
share-based
payment
reserve - - - - 610 (610) -
Loss for the
period to
acquisition - - - - (770) - (770)
Reverse
acquisition - - (19,596) - 17,601 - (1,995)
Share-based
payments 18 - - - - - 32 32
Issue of
share
capital 16 104 15,528 - - - - 15,632
Cancellation
of share
capital 16 (4,648) - - 4,648 - - -
--------------- ------- ---------- ---------- ------------- ------------- ----------- -------------- ---------
Balance at 31
March 2018 107 27,796 (19,596) 4,648 (8,055) 32 4,932
--------------- ------- ---------- ---------- ------------- ------------- ----------- -------------- ---------
Loss for the
year - - - - (3,546) - (3,546)
Shares-based
payments 18 - - - - - 76 76
Lapsed
options 1 (1) -
Issue of
share
capital 16 9 2,991 - - - - 3,000
Costs on
issue of
share
capital 16 - (84) - - - - (84)
Balance at 31
March 2019 116 30,703 (19,596) 4,648 (11,600) 107 4,378
--------------- ------- ---------- ---------- ------------- ------------- ----------- -------------- ---------
Share capital is the amount subscribed for shares at nominal
value.
Share premium represents the excess of the amount subscribed for
share capital over the nominal value of those shares net of share
issue expenses.
Share based payments reserve relate to the charge for
share-based payments in accordance with International Financial
Reporting Standard 2.
Retained earnings represent the cumulative loss of the Group
attributable to equity shareholders.
Reverse acquisition reserve relates to the effect on equity of
the reverse acquisition of Thread 35 Limited.
Capital redemption reserve represents the aggregate nominal
value of all the deferred shares repurchased and cancelled by the
Company. The reserve is non-distributable.
Company statement of financial position As at 31 March 2019
2019 2018
Notes GBP'000 GBP'000
----------------------------------- ------- ---------- ----------
Assets
Non-current assets
Investments 12 6,282 6,282
Loans to subsidiaries 13 7,094 -
Total non-current assets 13,376 6,282
----------------------------------- ------- ---------- ----------
Current assets
Trade and other receivables 14 8 2,989
Cash and cash equivalents 15 3,134 4,312
Total current assets 3,142 7,301
----------------------------------- ------- ---------- ----------
Total assets 16,518 13,583
----------------------------------- ------- ---------- ----------
Equity and liabilities
Equity
Share capital 16 116 107
Share premium 16 30,703 27,796
Other reserves 17 107 32
Capital reserves 4,648 4,648
Retained earnings - prior years 18 (19,206) (17,441)
Retained earnings - current year 18 115 (1,765)
----------------------------------- ------- ---------- ----------
Total equity 16,483 13,377
----------------------------------- ------- ---------- ----------
Current liabilities
Trade and other payables 19 35 206
Total current liabilities 35 206
----------------------------------- ------- ---------- ----------
Total liabilities 35 206
----------------------------------- ------- ---------- ----------
Total equity and liabilities 16,518 13,583
----------------------------------- ------- ---------- ----------
The financial statements were approved and authorised for issue
by the Board of Directors on 3 July 2019 and were signed on its
behalf by:
_____________________
Julie Lavington
Director
Company Number: 05379931
Company statement of cash flows For the YEAR ended 31 March
2019
2019 2018
Notes GBP'000 GBP'000
------------------------------------------------ ------- --------- ---------
Cash flows from operating activities
Profit/(loss) for the year 114 (2,375)
Impairment of investments and loans
to subsidiaries 12 - 100
Interest charged on intercompany loan 13 (293) -
Share-based payments 17 76 582
Working capital adjustments:
Change in trade and other receivables 14 146 (2,927)
Change in trade and other payables 19 (222) 68
Net cash flow from operating activities (179) (4,552)
------------------------------------------------ ------- --------- ---------
Cash flow from investing activities
Loans to subsidiary undertakings (3,966) -
Investment in subsidiary undertakings - (4,678)
Net proceeds for sale of subsidiaries 51 -
------------------------------------------------ ------- --------- ---------
Net cash flow from investing activities (3,915) (4,678)
------------------------------------------------ ------- --------- ---------
Cash flow from financing activities
Net proceeds from issue of equity instruments 16 2,916 13,478
Net cash flow from financing activities 2,916 13,478
------------------------------------------------ ------- --------- ---------
Net change in cash and cash equivalents (1,178) 4,248
Cash and cash equivalents at beginning
of year 15 4,312 64
------------------------------------------------ ------- --------- ---------
Cash and cash equivalents at end of
year 15 3,134 4,312
------------------------------------------------ ------- --------- ---------
Company statement of changes in equity For the YEAR ended 31
March 2019
Share-based Capital
Share Share payment redemption Retained
capital premium reserve reserve earnings Total
equity
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ------- ----------- ----------- --------------- -------------- ------------ ----------
Balance at 1 January
2017 4,651 12,268 610 - (17,441) 88
Loss and total
comprehensive
loss for the year - - - - (2,375) (2,375)
Transfer of
share-based
payment reserve - - (610) - 610 -
Issue of share capital 16 104 15,528 - - - 15,632
Cancellation of share
capital 16 (4,648) - - 4,648 - -
Shares-based payments 17 - - 32 - - 32
Balance at 31 March
2018 107 27,796 32 4,648 (19,206) 13,377
------------------------ ------- ----------- ----------- --------------- -------------- ------------ ----------
Profit for the year - - - - 114 114
Issue of share capital 16 9 2,991 - - - 3,000
Costs on issue of
share
capital 16 - (84) - - - (84)
Shares based payments 17 - - 76 - - 76
Lapsed options (1) 1 -
Balance at 31 March
2019 116 30,703 107 4,648 (19,091) 16,483
------------------------ ------- ----------- ----------- --------------- -------------- ------------ ----------
Share capital is the amount subscribed for shares at nominal
value.
Share premium represents the excess of the amount subscribed for
share capital over the nominal value of those shares net of share
issue expenses.
Share-based payments reserve relate to the charge for
share-based payments in accordance with International Financial
Reporting Standard 2.
Retained earnings represent the cumulative loss of the Company
attributable to the equity shareholders.
Capital redemption reserve represents the aggregate nominal
value of all the deferred shares repurchased and cancelled by the
Company. The reserve is non-distributable.
Notes to the consolidated financial statements
1 General information
Sosandar Plc (formerly Orogen Plc) (the 'Company') is a company
incorporated in England and Wales. Details of the registered
office, the officers and advisers to the Company are presented on
the Company Information page at the end of this report. The Company
is listed on the AIM market of the London Stock Exchange (ticker:
SOS).
The principal activity of the company in the year under review
was that of a clothing manufacturer and distributer via internet
and mail order.
2 Significant accounting policies
Basis of preparation
The consolidated financial statements consolidate those of the
Company and its subsidiaries (together the 'Group' or 'Sosandar').
The consolidated financial statements of the Group and the
individual financial statements of the Company are prepared in
accordance with applicable UK law and International Financial
Reporting Standards ('IFRS') as adopted by the European Union and
as applied in accordance with the provisions of the Companies Act
2006. The Directors consider that the financial information
presented in these Financial Statements represents fairly the
financial position, operations and cash flows for the year, in
conformity with IFRS.
Going Concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position,
are set out in Chairman's Statement on page 2. The financial
position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the financial statements and
associated notes. In addition, note 22 to the financial statements
includes the Group's objectives, policies and processes for
managing its capital; its financial risk management objectives;
details of its financial instruments; and its exposures to credit
risk and liquidity risk.
In order to assess the going concern of the Group, the Directors
have prepared cash flow and profit and loss forecasts for companies
within the Group. These cash flow and profit and loss forecasts
show the Group expect an increase in revenue based on the
assumptions set out in note 12 of the financial statements. This
will have sufficient headroom over available banking facilities.
Management continue to monitor costs and manage cashflows against
these forecasts.
The directors have reviewed the Group's profitability in the
four-year plans, the annual budgets and forecasts, including
assumptions concerning revenue growth, marketing spend, returns and
repeat customers and expenditure commitments and their impact on
cash flow. For further details also refer to note 12.
Based on their assessment of prospects and viability, the
directors confirm that they have a reasonable expectation that the
Group will be able to continue in operation and meet its
liabilities as they fall due for the foreseeable future.
Should the underlying assumptions of the working capital model
prove invalid or shareholder support was withdrawn and the Group be
unable to continue as a going concern it may be required to realise
its assets and discharge its liabilities other than in the normal
course of business and at amounts different to those stated in the
financial statements. The financial statements do not include any
adjustments relating to the recoverability and classifications of
recorded asset amounts or liabilities that may be necessary should
the Group and Company be unable to continue as a going concern.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the
financial statements.
Consolidation
The consolidated financial statements include the financial
statements of the Company and its subsidiaries and associated
undertakings. Thread 35 Limited has a reporting date of 31 March.
All the other subsidiaries have a reporting date of 31
December.
Subsidiaries are all entities over which Sosandar Plc has the
power to govern the financial and operating policies generally
accompanying a shareholding of more than one half of the voting
rights.
The existence and effect of potential voting rights that are
currently exercisable or convertible are
considered when assessing whether the Group controls another
entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Company. They are de-consolidated
from the date that control ceases.
In November 2017, Sosandar Plc ('Company') acquired the entire
issued share capital of Thread 35 Ltd ('legal subsidiary') for a
consideration of GBP6,281,618, satisfied by the issue of shares of
GBP1,603,422 and cash of GBP4,678,196. As the legal subsidiary is
reversed into the Company (the legal parent), which originally was
a publicly listed cash shell company, this transaction cannot be
considered a business combination, as the Company, the accounting
acquire, does not meet the definition of a business under IFRS 3
'Business Combinations'. However, the accounting for such capital
transaction should be treated as a share- based payment transaction
and therefore accounted for under IFRS 2 'Share-based payment'. Any
difference in the fair value of the shares deemed to have been
issued by the Thread 35 Ltd (accounting acquirer) and the fair
value of Sosandar Plc's (the accounting acquiree) identifiable net
assets represents a service received by the accounting
acquirer.
Although the consolidated financial information has been issued
in the name of Sosandar Plc, the legal parent, it represents in
substance continuation of the financial information of the legal
subsidiary.
The assets and liabilities of the legal subsidiary are
recognised and measured in the Group financial statements at the
pre-combination carrying amounts and not restated at fair
value.
The retained earnings and other reserves balances recognised in
the Group financial statements reflect the retained earnings and
other reserves balances of the legal subsidiary immediately before
the business combination and the results of the period from 1 April
2017 to the date of the business combination are those of the legal
subsidiary only.
The equity structure (share capital and share premium) appearing
in the Group financial statements reflects the equity structure of
Sosandar Plc, the legal parent. This includes the shares issued in
order to effect the business combination.
The difference between the aggregate deemed fair value of the
consideration paid and the identified assets and liabilities
acquired of Sosandar Plc is GBP1,438,608 and this amount was
charged to the income statement for the period ended 31 March
2018.
Functional and presentation currency
Items included in the financial statements of the Group are
measured using the currency of the primary economic environment in
which the entity operates (the functional currency). The financial
statements are presented in Pounds Sterling (GBP), which is the
Group's presentation currency and the Company's functional
currency.
Foreign currency transactions are translated into the functional
currency using exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at
year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income
statement.
The results and financial position of all Group entities (none
of which has the currency of a hyper-inflationary economy) that
have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
-- monetary assets and liabilities for each statement of
financial position presented are translated at the closing rate at
the date of that statement of financial position;
-- income and expenses for each income statement are translated
at average exchange rates (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are
translated at the rate on the dates of the transactions); and
-- all resulting exchange differences are recognised as a separate component of equity.
On consolidation, exchange differences arising from the
translation of the net investment in foreign operations, and of
borrowings and other currency instruments designated as hedges of
such investments, are taken to shareholders' equity. When a foreign
operation is partially disposed of or sold, exchange differences
that were recorded in equity are recognised in the income statement
as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition
of a foreign entity are treated as assets and liabilities of the
foreign entity and translated at the closing rate.
Changes in accounting policies and disclosures
a) New and amended standards adopted by the Group
The Group has applied any applicable new standards, amendments
to standards and interpretations that are mandatory for the
financial year beginning on or after 1 January 2018 including IFRS
9 and IFRS 15. However, none of them has a material impact on the
Group's Consolidated Financial Statements.
I. Impact of IFRS 15 - Revenue from contracts with customers
IFRS 15 is effective for annual reporting periods beginning on
or after 1 January 2018. Management have assessed the impact of the
adoption of IFRS 15 in detail and conclude that there is no
material impact on the Group's consolidated Financial Statements.
Further there was no impact on prior year revenue. The approach was
to undertake a detailed assessment of the core principles of IFRS
15 and confirmed that the existing revenue recognition policy for
each type of revenue was compliant.
II. Impact of IFRS 9 - Financial instruments
IFRS 9 replaced the classification and measurement models for
financial instruments contained in IAS 39 Financial
Instruments:
Recognition and Measurement and is effective for accounting
periods beginning on or after 1 January 2018. The main changes from
IAS 39 include the following:
-- financial assets are to be classified and measured based on
the business model for managing the financial and the cash flow
characteristics of the financial asset, either at fair value or
amortised cost
-- a financial asset or liability that would otherwise be at
amortised cost may only be designated as at fair value through
profit or loss if such a designation reduces an accounting
mismatch
The impairment model in IFRS 9 is based on the premise of
providing for expected losses. IFRS 9 requires that the same
impairment model apply to all of the following:
-- financial assets measured at amortised cost
-- financial assets mandatorily measured at fair value
through
other comprehensive income
-- financial guarantee contracts to which IFRS 9 is applied
-- lease receivables within the scope of IFRS 16 Leases
-- contract assets within the scope of IFRS 15 Revenue from
contracts with customers
The adoption of this standard has not had a significant impact
on the group
(b) New, amended standards, interpretations not adopted by the
Group
The following Adopted IFRSs have been issued but have not been
applied by the Group in these Financial Statements. The full impact
of their adoption has not yet been fully assessed; however,
management do not expect the changes to have a material effect on
the Financial Statements unless otherwise indicated:
-- Annual Improvements to IFRSs - 2015-2017 Cycle (1 January 2019)
-- Amendments to IAS 1 and IAS 8 - on definition of materiality (1 January 2019)
-- Amendments to IAS 19 - employees benefits plan amendments, curtailments or settlements
-- Amendments to IAS 28 on long term interests in associates and joint ventures
-- Amendments to IFRS 3 "Business combinations" on definition of a business
-- Amendments to IFRS 9, financial instruments on prepayment features with negative compensation
-- IFRIC Interpretation 22 Foreign Currency Transactions and
Advance Consideration (effective date to be confirmed)
-- Amendments to IAS 40 Investment Property (effective date to be confirmed)
-- IFRIC 23 Uncertainty over Income Tax Treatments (1 January 2019)
-- Amendments to IAS 28 Investments in Associates and Joint
Ventures (effective date to be confirmed)
-- IFRS 16 Leases (1 January 2019)
-- IFRS 17 Insurance contracts (1 January 2021)
IFRS 16 Leases:
The group will not be early adopting this standard which becomes
effective from 1 January 2019. The group will be taking advantage
of the practical expedient which allows the continuation of the
existing assessment as to whether a contract contains a lease for
all ongoing contracts entered into before 1 January 2019. The IFRS
16 definition of a lease will apply to all contracts entered into
after 1 January 2019. The modified retrospective approach will be
used, resulting in the cumulative effect of application on 1
January 2019 being recognised through an adjustment to opening
retained earnings.
A full assessment of the impact of the above has not been
performed. Whilst there is no change to the recognition of finance
leases, there may well be a material change to the group's assets
and liabilities due to the requirement to bring the group's
operating leases on balance sheet.
Critical accounting judgements and key sources of estimation
uncertainty
The preparation of Financial Statements in conformity with IFRS
requires management to make estimates and judgements that affect
the reported amounts of assets and liabilities as well as the
disclosure of contingent assets and liabilities at the year end and
the reported amounts of revenues and expenses during the reporting
period. Estimates and judgements are continually evaluated and are
based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances.
Inventories
Inventories are valued at the lower of cost and net realisable
value, on a weighted average cost basis. Net realisable value is
the estimated selling price in the ordinary course of the business
less applicable variable selling expenses. Cost of purchase
comprises the purchase price including import duties and other
taxes, transport and handling costs and other attributable costs,
less trade discounts.
A provision is made to write down any slow-moving or obsolete
inventory to net realisable value. The provision is GBP91k at 31
March 2019 (2018: GBP55k).
Contract liabilities - refund accruals
Accruals for sales returns are estimated on the basis of
historical returns and are recorded so as to allocate them to the
same period in which the original revenue is recorded. These
accruals are reviewed regularly and updated to reflect management's
latest best estimates, although actual returns could vary from
these estimates. The accrual for net refunds totalled GBP126k
(2018: GBP15k). A performance obligation is deemed for returns and
refunds. A 14 days return policy is noted for a full refund.
Calculation of share-based payment charges
The charge related to equity-settled transactions with employees
is measured by reference to the fair value of the equity
instruments at the date they are granted, using an appropriate
valuation model selected according to the terms and conditions of
the grant. Judgement is applied in determining the most appropriate
valuation model and in determining the inputs to the model.
Judgements are also applied in relation to estimations of the
number of options which are expected to vest, by reference to
historic leaver rates and expected outcomes under relevant
performance conditions. Please see note 17.
Depreciation of property, plant and equipment and amortisation
of other intangible assets
Depreciation and amortisation are provided to write down assets
to their residual values over their estimated useful lives. The
determination of these residual values and estimated lives, and any
change to the residual values or estimated lives, requires the
exercise of management judgement. Please see notes 9 and 10.
Principal accounting policies
The principal accounting policies are summarised below. They
have been consistently applied throughout the year covered by the
financial statements.
Revenue recognition
Revenue is recognised in according with the requirements of IFRS
15 'Revenue from Contracts with Customers'. The Company recognises
revenue to depict the transfer of promised goods and services to
customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or
services. This core principle is delivered in a five-step model
framework:
1. Identify the contract(s) with the customer;
2. Identify the performance obligations in the contract;
3. Determine the transaction price;
4. Allocate the transaction price to the performance obligations
in the contract; and
5. Recognise revenue when (or as) the entity satisfy a
performance obligation.
Revenue is recognised when control of the products have been
transferred to the customer. Control is considered to have
transferred once products have been received by the customer unless
shipping terms dictate any different. Revenues exclude intra-group
sales and value added taxes and represent net invoice value less
estimated rebates, returns and settlement discounts. The net
invoice value is measured by reference to the fair value of
consideration received or receivable by the Group for goods
supplied.
The practical expedient allowed under IFRS 15 para 122 has been
taken.
No breakdown of revenue can be made in tabular form as all sales
are UK and online, with similar risk profiles.
Business combinations
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the aggregate of
the consideration transferred, measured at acquisition date fair
value and the amount of any non-controlling interest in the
acquiree. In the consolidated financial statements, acquisition
costs incurred are expensed and included in general and
administrative expenses.
Intangible assets
Identifiable development expenditure is capitalised to the
extent that the technical, commercial and financial feasibility can
be demonstrated. Costs are capitalised where the expenditure will
bring future economic benefit to the company.
Amortisation is recognised so as to write off the cost or
valuation of assets less their residual values over their useful
economic lives.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less
subsequent accumulated depreciation and accumulated impairment
losses, if any. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or
recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item
will flow to the company and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to profit
or loss during the financial period in which they are incurred.
Depreciation on property, plant and equipment is calculated
using the straight-line method to write off their cost over their
estimated useful lives at the following annual rates:
Plant and Machinery 15% Straight line
Computer Equipment 33.33% Straight line
Fixture and Fittings 15% Reducing balance
Office Equipment 25% Reducing balance
Leasehold Improvements 20% Straight line
Equity
Equity instruments issued by the Company are recorded at the
value of the proceeds received, net of direct issue costs,
allocated between share capital and share premium.
Impairment of non-financial assets
At each statement of financial position date, the Company
reviews the carrying amounts of its investments to determine
whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in
order to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are independent
from other assets, the Company estimates the recoverable amount of
the cash-generating unit to which the asset belongs. An intangible
asset with an indefinite useful life is tested for impairment
annually and whenever there is an indication that the asset may be
impaired.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted. If
the recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount
of the asset (cash-generating unit) is reduced to its recoverable
amount. An impairment loss is recognised as an expense immediately,
unless the relevant asset is carried at a revalued amount, in which
case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years. A reversal of
an impairment loss is recognised as income immediately, unless the
relevant asset is carried at a revalued amount, in which case the
reversal of the impairment loss is treated as a revaluation
increase.
Leasing
Assets held under finance leases are initially recognised as
assets of the company at their fair value at the inception of the
lease or, if lower, at the present value of the minimum lease
payments. The corresponding liability to the lessor is included in
the statement of financial position as a finance lease obligation.
Lease payments are treated as a reduction of the lease obligation
on the remaining balance of the liability. Finance expenses are
recognised immediately in profit or loss, unless they are directly
attributable to qualifying assets, in which case they are
capitalised in accordance with the Group's general policy on
borrowing costs (see below). Contingent rentals are recognised as
expenses in the periods in which they are incurred.
Rental leases in which a significant portion of the risks and
rewards of ownership are retained by the
lessor are classified as operating leases. Payments made under
operating leases (net of any incentives received from the lessor)
are charged to the income statement. Rentals payable under
operating leases are charged against the statement of comprehensive
income on a straight-line basis over the lease term.
Taxation
Income tax
Income tax expense represents the sum of the tax currently
payable and deferred tax. The tax currently payable is based on
taxable profit for the year. Taxable profit differs from profit as
reported in the same income statement because it excludes items of
income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The
Group and Company's liability for current tax is calculated using
tax rates that have been enacted or substantively enacted by the
statement of financial position date.
Deferred tax
Deferred tax is recognised on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the statement of financial
position liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and
liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
The carrying amount of deferred tax is reviewed at each
statement of financial position date and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset
realised. Deferred tax is charged or credited to the income
statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt
with in equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group and Company intends to
settle its current tax assets and liabilities on a net basis.
Share-based compensation
The fair value of the employee and suppliers' services received
in exchange for the grant of the options is recognised as an
expense. The total amount to be expensed over the vesting year is
determined by reference to the fair value of the options granted,
excluding the impact of any non-market vesting conditions (for
example, profitability and sales growth targets). Non-market
vesting conditions are included in assumptions about the number of
options that are expected to vest. At each statement of financial
position date, the entity revises its estimates of the number of
options that are expected to
vest. It recognises the impact of the revision to original
estimates, if any, in the income statement, with a corresponding
adjustment to equity. The proceeds received net of any directly
attributable transaction costs are credited to share capital
(nominal value) and share premium when the options are
exercised.
The fair value of share-based payments recognised in the income
statement is measured by use of the Black Scholes model, which
takes into account conditions attached to the vesting and exercise
of the equity instruments. The expected life used in the model is
adjusted; based on management's best estimate, for the effects of
non-transferability, exercise restrictions and behavioural
considerations. The share price volatility percentage factor used
in the calculation is based on management's best estimate of future
share price behaviour and is selected based on past experience,
future expectations and benchmarked against peer companies in the
industry.
Investments
Investments in subsidiary companies are stated at cost less any
provision for impairment.
Investments are accounted for at cost unless there is evidence
of a permanent diminution in value, in which case they are written
down to their estimated realisable value. Any such provision,
together with any realised gains and losses, is included in the
statement of comprehensive income.
Impairment of investments
The impairment of the carrying value of the investment in
subsidiaries is calculated using forward-looking assumptions of
profit growth rates, discount rates and timeframe which require
management judgement and estimates that cannot be certain.
Provisions
Provisions are recognised when the Group and Company has a
present obligation as a result of a past event, and it is probable
that the Group and Company will be required to settle that
obligation. Provisions are measured at the Directors' best estimate
of the expenditure required to settle the obligation at the
statement of financial position date and are discounted to present
value where the effect is material.
Financial instruments
Non-derivative financial instruments comprise investments in
equity and debt securities, trade and other receivables, cash and
cash equivalents, loans and borrowings, and trade and other
payables. Non-derivative financial instruments are recognised
initially at fair value plus, for instruments not at fair value
through profit or loss, any directly attributable transactions
costs, except as described below. Subsequent to initial recognition
non-derivative financial instruments are measured as described
below.
A financial instrument is recognised when the Group becomes a
party to the contractual provisions of the instrument. Financial
assets are derecognised if the Group's contractual rights to the
cash flows from the financial assets expire or if the Group
transfers the financial assets to another party without retaining
control or substantially all risks and rewards of the asset.
Regular purchases and sales of financial assets are accounted for
at trade date, i.e. the date that the Group commits itself to
purchase or sell the asset. Financial liabilities are derecognised
if the Group's obligations specified in the contract expire or are
discharged or cancelled.
Fair values
The carrying amounts of the financial assets and liabilities
such as cash and cash equivalents, receivables and payables of the
Group and Company at the statement of financial position date
approximated their fair values, due to the relatively short-term
nature of these financial instruments.
Trade payables and other non-derivative financial
liabilities
Trade payables and other creditors are non-interest bearing and
are measured at cost.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on
call with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities
on the statement of financial position.
Trade and other receivables
Trade and other receivables are recognised initially at fair
value and subsequently measured at their cost when the contractual
right to receive cash or other financial assets from another entity
is established.
A provision for doubtful debts is made when there is objective
evidence that the Group will not be able to collect all amounts due
according to the original terms of the receivables. Significant
financial difficulties of the debtor, probability that the debtor
will enter bankruptcy or financial reorganisation and default or
delinquency in payments are considered indicators that a trade and
other receivables are impaired.
Financial assets and liabilities
The Group classifies its financial assets at inception into
three measurement categories; 'amortised cost', 'fair value through
other comprehensive income' ('FVOCI') and 'fair value through
profit and loss' ('FVTPL'). The Group classifies its financial
liabilities, other than financial guarantees and loan commitments,
as measured at amortised cost. Management determines the
classification of its investments at initial recognition. A
financial asset or financial liability is measured initially at
fair value. At inception transaction cost that are directly
attributable to its acquisition or issue, for an item not at fair
value through profit or loss, is added to the fair value of the
financial asset and deducted from the fair value of the financial
liability.
Amortised cost measurement
The amortised cost of a financial asset or financial liability
is the amount at which the financial asset or liability is measured
at initial recognition, minus principal payments, plus or minus the
cumulative amortisation using the effective interest method of any
difference between the initial amount recognised and maturity
amount, minus any reduction for impairment.
Fair value measurement
Fair value is the amount for which an asset could be exchanged,
or a liability settled, between knowledgeable, willing parties in
an arm's length transaction on the measurement date. The fair value
of assets and liabilities in active markets are based on current
bid and offer prices respectively. If the market is not active the
group establishes fair value by using appropriate valuation
techniques. These include the use of recent arm's length
transactions, reference to other instruments that are substantially
the same for which market observable prices exist, net present
value and discounted cash flow analysis.
Derecognition
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or where the
group has transferred substantially all of the risks and rewards of
ownership. In transaction in which the group neither retains nor
transfers substantially all the risks and rewards of ownership of a
financial asset and it retains control over the asset, the group
continues to recognise the asset to the extent of its continuing
involvement, determined by the extent to which it is exposed to
changes in the value of the transferred asset. There have not been
any instances where assets have only been partly derecognised. The
group derecognises a financial liability when its contractual
obligation are discharge, cancelled or expire.
Impairment losses from contracts with customers
The Group assesses at each financial position date whether there
is objective evidence that a financial asset or group of financial
assets is impaired. If there is objective experience (such as
significant financial difficulty of obligor, breach of contract, or
it becomes probable that debtor will enter bankruptcy), the asset
is tested for impairment. The amount of the loss is measured as the
difference between the asset's carrying amount and the present
value of the estimated future cash flows (excluding future expected
credit losses that have not been incurred) discounted at the
financial asset's original effective interest rate (that is, the
effective interest rate computed at initial recognition).The
carrying amount of the asset is reduced through use of an allowance
account. The amount of loss is recognised in the Statement of
Comprehensive Income.
3 Segmental information
In the opinion of the Directors, the Group has one class of
business, being that of a clothing manufacturer and distributer via
internet and mail order. The Group's primary reporting format is
determined by the geographical segment according to the location of
its establishments. There is currently only one geographic
reporting segment, which is the UK. All costs are derived from the
single segment.
4 Operating loss
2019 2018
GBP'000 GBP'000
------------------------------------------------------- ------------ ------------
Operating loss is stated after charging/(crediting):
Operating lease rentals 55 51
Auditors' remuneration
Audit fee - group and company 30 25
Non audit fees 13 3
Legal and other fees transactions 54 122
Foreign currency (gain)/loss 3 10
Deemed cost of reverse acquisition - 1,439
Reverse acquisition cost - 1,493
5 Finance income
2019 2018
GBP'000 GBP'000
------------------------ --------- ---------
Bank interest received - -
------------------------ --------- ---------
6 Employees
2019 2018
GBP'000 GBP'000
------------------------------------------------------- --------- ---------
Aggregate Directors' emoluments including consulting
fees 461 1,235
Wages and salaries 906 553
Social security costs 128 89
Pension costs 29 32
Share-based payments 76 582
------------------------------------------------------- --------- ---------
Total 1,600 2,491
------------------------------------------------------- --------- ---------
2019 2018
Directors 6 6
Staff 21 12
Total 27 18
------------ ------ ------
Directors' remuneration
Details of emoluments received by Directors of the Company for
the year ended 31 March 2019 are as follows:
2019 2019 2019 2018 2018 2018 2018
----------------- --------- ------------- --------- ----------- --------- ------------- -----------
Base Share-based Total Base Fee Share-based Total
Salary payment Salary Shares payment
----------------- --------- ------------- --------- ----------- --------- ------------- -----------
GBP GBP GBP GBP GBP GBP GBP
Alison Hall 144,418 31,443 175,861 118,800 - 34,397 153,197
Julie Lavington 144,418 31,443 175,861 118,800 - 34,397 153,197
Nicholas Mustoe 30,000 1,497 31,497 12,500 - 1,638 14,138
Bill Murray 30,000 1,497 31,497 32,500 - 1,638 34,138
Adam Reynolds 60,000 2,995 62,995 468,410 200,000 3,276 671,686
Mark Collingbourne 30,000 1,497 31,497 190,740 100,000 1,638 292,378
Steven Metcalfe - - - 293,100 200,000 3,276 496,376
Andrew Booth 22,500 - 22,550 - - - -
Total 461,336 70,372 531,708 1,234,850 500,000 80,260 1,815,111
--------------------- --------- ------------- --------- ----------- --------- ------------- -----------
7 Income tax benefit / (expense)
No corporation tax charge arises in the year ended 31 March 2019
and the year ended 31 March 2018. A reconciliation of the expected
tax benefit computed by applying the tax rate applicable in the
primary jurisdiction, the UK, to the loss before tax to the actual
tax credit is as follows:
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- --------- --------- --------- ---------
Loss on ordinary activities before
taxation (3,546) (6,056) 114 (2,375)
Tax at the UK corporation tax rate
of 19% (2018: 19%) (674) (1,151) 21 (451)
Expenses not deductible for tax purposes 16 557 5 380
Losses unutilised 658 594 - 71
Accelerated depreciation - - - -
Group relieved - - (26) -
Tax on loss on ordinary activities - - - -
------------------------------------------- --------- --------- --------- ---------
The Group has estimated tax losses of GBP10,400,000 (2018:
GBP2,000,000) to carry forward against future taxable profits. The
deferred tax asset on these tax losses at 17% amounts to
approximately GBP1,768,000 (2018: GBP380,000) and has not been
recognised due to the uncertainty of the recovery. Due to the
fundamental change in the Company's business following the exit of
the mineral exploration industry, tax losses carried forward may
not be fully available for use against the future profits of the
Group.
8 Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the year:
2019 2018
-------------------------------------------------- ------------- ------------
Loss after tax attributable to equity holders
of the parent (GBP'000) (3,546) (6,056)
Weighted average number of ordinary shares
in issue 111,104,042 58,770,354
Fully diluted average number of ordinary shares
in issue 111,104,042 58,770,354
-------------------------------------------------- ------------- ------------
Basic and diluted loss per share (pence) -
continuing operations (3.19) (10.31)
-------------------------------------------------- ------------- ------------
Basic and diluted loss per share (pence) (3.19) (10.31)
-------------------------------------------------- ------------- ------------
Where a loss is incurred the effect of outstanding share options
and warrants is considered anti-dilutive and is ignored for the
purpose of the loss per share calculation. The share options
outstanding as at 31 March 2019 totalled 20,400,000 (2018:
20,056,748) and are potentially dilutive.
9 Intangible assets - Group
Website Total
GBP'000 GBP'000
------------------------------- ----------- ---------
Cost
At 1 April 2017 56 56
Additions 4 4
At 31 March 2018 60 60
Amortisation
At 1 April 2017 1 1
Charge for the year 3 3
At 31 March 2018 4 4
Carrying value 31 March 2018 56 56
---------------------------------- ----------- ---------
Cost
At 1 April 2018 60 60
Additions 113 113
At 31 March 2019 173 173
Amortisation
At 1 April 2018 4 4
Charge for the year 6 6
At 31 March 2019 10 10
Carrying value 31 March 2019 163 163
---------------------------------- ----------- ---------
10 Property, plant and equipment - Group
Fixtures
Computer and fittings
Equipment equipment Total
GBP'000 GBP'000 GBP'000
------------------------------- ------------ --------------- ---------
Cost
At 1 April 2017 12 225 237
Additions 13 1 14
------------------------------- ------------ --------------- ---------
At 31 March 2018 25 226 251
Accumulated depreciation
At 1 April 2017 3 24 27
Charge for year 5 47 52
At 31 March 2018 8 71 79
------------------------------- ------------ --------------- ---------
Carrying value 31 March 2018 17 155 172
------------------------------- ------------ --------------- ---------
Cost
At 1 April 2018 25 226 251
Additions 24 6 30
------------------------------- ------------ --------------- ---------
At 31 March 2019 49 232 281
Accumulated depreciation
At 1 April 2018 8 71 79
Charge for year 10 45 55
At 31 March 2019 18 116 134
Carrying value 31 March 2019 31 116 147
------------------------------- ------------ --------------- ---------
11 Inventories - Group
2019 2018
GBP'000 GBP'000
-------- --------- ---------
Stock 1,037 531
-------- --------- ---------
The cost of inventories charged in the year as an expense
equated to GBP1,975k (2018: GBP665k).
12 Non-current assets
Investments in subsidiaries and associates:
Group Company
---------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------- ---------- ---------- --------- ---------
Cost at 1 April - - 15,618 15,618
Disposals during the year - - (9,336) -
Cost at 31 March -- -- 6,282 15,618
--------------------------------------- ---------- ---------- --------- ---------
Impairment at 1 April - - 9,336 9,236
Disposals during the year - - (9,336) -
Intercompany balance received during
the year - - - 77
Reclassed to current intercompany
debtor balance - - - 23
--------------------------------------- ---------- ---------- --------- ---------
Impairment at 31 March - - - 9,336
--------------------------------------- ---------- ---------- --------- ---------
Carrying value as at 31 March - - 6,282 6,282
--------------------------------------- ---------- ---------- --------- ---------
Investments in subsidiaries and associates:
Break down of carrying value of investment:
Group Company
---------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- --------- ---------
Thread 35 - - 6,282 6,282
Total non-current assets -- -- -6,282 6,282
--------------------------- ---------- ---------- --------- ---------
Investments are tested for impairment at the balance sheet date.
The recoverable amount of the investment in Thread 35 Ltd at 31
March 2019 was assessed on the basis of value in use. As this
exceeded carrying value no impairment loss was recognised.
The key assumptions in the calculation to access value in use
are the future revenues and the ability to generate future cash
flows. The most recent financial results and forecast approved by
management were for the next four years. The projected results were
discounted at a rate which is a prudent evaluation of the pre-tax
rate that reflects current market assessments of the time value of
money and the risks specific to the cash-generating unit.
The key assumptions used for the value in use calculation in
2019 were as follows:
%
Discount rate 8.5
Returns assumption
47
Repeats assumption
12
Units
Units per order 1.92
The Directors have made significant estimates on future revenues
and EBITDA growth over the next four years based on the budgeted
investment and expansion of our clothing and footwear ranges,
increased stocking levels and continued investment in marketing
channels to acquire new customers.
The Directors have performed a sensitivity analysis to assess
the impact of downside risk of the key assumptions underpinning the
projected results of the Group. The projections and associated
headroom used for the Group is sensitive to the EBITDA growth
assumptions that have been applied.
The subsidiaries of Sosandar Plc are as follows:
% Holding(1)
Subsidiary companies Holding Type of share % Holding(1)
Incorporation held 2019 2018
----------------------------- ------------------ ----------- ----------------- -------------- --------------
Ordinary
Thread 35(5) UK Direct shares 100 100
Ordinary
Medavinci Gold Limited(6) UK Direct shares 0 100
Ordinary
Emotion Fitness Limited(4) UK Direct shares 0 100
Ordinary
Orogen Gold Limited(6) Ireland Indirect Shares 0 100
Orogen Gold (Serbia) Ordinary
Limited(3) Ireland Indirect shares 0 100
Orogen Gold (Armenia) Ordinary
Limited(6) Ireland Indirect Shares 0 100
Ordinary
Georaid CJSC(2) Armenia Indirect Shares 0 80
(1) Percentage of share type held and overall voting rights.
(2) Disposed of in May 2018, net sale proceeds after costs
$117,500.
(3) Disposed of on 8 April 2018 for EUR1.
(4) Application made to strike off on 1st July 2018, no proceeds
or carrying value noted
(5) Thread 35 Limited is the trading entity.
(6) These are dormant entities, and these subsidiaries have been
wound up and dissolved and shown as discontinued operations in 2016
accounts, no proceeds or carrying value noted.
Medavinci Gold Limited
(MGL) GBP
Proceeds on disposal -
Carrying value of investment 1
Costs of disposal -
Profit / (loss) on disposal (1)
-----
Orogen Gold Limited ("OGL") GBP
Proceeds on disposal -
Carrying value of investment -
Costs of disposal (15,456)
Profit / (loss) on disposal (15,456)
----------
Georaid CJSC ("Georaid") GBP
Proceeds on disposal 107,845
Carrying value of investment -
Costs of disposal (40,907)
Profit / (loss) on disposal 66,938
----------
Orogen Gold (Serbia) Limited
("OGSL") GBP
Proceeds on disposal 1
Carrying value of investment -
Costs of disposal -
Profit / (loss) on disposal 1
-----
13 Loans to subsidiaries
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
-------------------- --------- --------- --------- ---------
Loan to subsidiary - - 7,094 -
-------------------- --------- --------- --------- ---------
The loan represents advancements to Thread 35 Limited and
includes GBP293k of interest charged in the year at a rate of 6%.
The loan is secured and fixed and floating charges. The floating
charges covers all the property or undertaking of the company.
14 Trade and other receivables
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ --------- --------- --------- ---------
VAT recoverable 25 257 8 154
Other receivables and prepayments 341 221 - -
Receivables from Group Companies - - - 2,835
------------------------------------ --------- --------- --------- ---------
Trade and other receivables 366 478 8 2,989
------------------------------------ --------- --------- --------- ---------
The Directors consider that the carrying amount of trade and
other receivables approximates their fair value.
15 Cash and cash equivalents
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- --------- --------- --------- ---------
Cash at bank 3,645 4,616 3,134 4,312
---------------------------- --------- --------- --------- ---------
Cash and cash equivalents 3,645 4,616 3,134 4,312
---------------------------- --------- --------- --------- ---------
16 Share capital and reserves
Details of ordinary shares issued are in the table below:
Ordinary shares (GBP0.01)
------------------------------------------------------------------------- ----------
Total Total
share share
Issue capital premium
Date price GBP'000 GBP'000
Details Number of shares GBP
-------------- -------------- ------------------ --------- ---------- ----------
At 31 Mar
2018 106,814,658 0.001 107 27,796
------------------------------ ------------------ --------- ---------- ----------
15 Oct 2018 Share Issue 9,375,000 0.001 9 2,907
-------------- -------------- ------------------ --------- ---------- ----------
At 31 Mar
2019 116,189,658 0.001 116 30,703
------------------------------ ------------------ --------- ---------- ----------
Group
Reverse
acquisition Share-based
reserve Capital payment
Share Share redemption Retained reserve
capital premium reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ----------- -------------- -------------- -------------- ------------ --------------- ---------
Balance at 31
March 2018 107 27,796 (19,596) 4,648 (8,055) 32 4,932
Loss for the
year - - - - (3,546) - (3,546)
Share-based
payments - - - - - 76 76
Lapsed
options - - - - 1 (1) -
Issue of
share
capital 9 2,991 - - - - 3,000
Costs on
issue
of share
capital - (84) - - - - (84)
Balance at 31
March 2019 116 30,703 (19,596) 4,648 (11,600) 107 4,378
--------------- ----------- -------------- -------------- -------------- ------------ --------------- ---------
Reserves
The following describes the nature and purpose of each reserve
within equity:
Share premium Amount subscribed for share capital in excess
of nominal value.
Share-based payment Cumulative fair value of share options and warrants
reserve granted and recognised as an expense in the
Income Statement.
Capital redemption Capital redemption reserve arises from the 100%
reserve acquisition of Thread 35 Limited in November
2017 whereby the excess of the fair value of
the issued ordinary share capital issued over
the nominal value of these shares is transferred
to this reserve in accordance with section 612
of the Companies Act 2006.
Reverse acquisition Effect on equity of the reverse acquisition
reserve of Thread 35 Limited
Retained earnings Retained earnings represents all other net gains
and losses and transactions with shareholders
(example dividends) not recognised elsewhere.
17 Share based payments
The Group has a share ownership compensation scheme for
Directors and senior employees of the Group. In accordance with the
provisions of the plan, Directors and senior employees may be
granted options to purchase ordinary shares in the Company.
Weighted
average
Number of share exercise
options price
---------------------- ----------------- -----------
Balance at 31 March
2018 20,024,748 15.1p
Issued during the
year 837,626 29.2p
Lapsed during the
year (462,374) 22.7p
Balance at 31 March
2019 20,400,000 15.5p
---------------------- ----------------- -----------
Exercisable at 31
March 6,604,125 15.1p
---------------------- ----------------- -----------
The fair value of equity-based share options granted is
estimated at the date of grant using the Black-Scholes pricing
model, taking into account the terms and conditions upon which the
options have been granted. The calculated fair value of share
options and warrants charged to the Group and Company financial
statements in the year is GBP76k (2018: GBP32k). During the prior
year the Company settled fees of GBP550,000 by way of issuing
shares to Directors and advisors.
The following are the inputs to the model for the options
granted during the prior year:
Share Options Share options
2019 2018
------------------------------- --------------- ---------------
Exercise price 29.1p 15.1p
Share price at date of grant 29.1p 15.1p
Risk-free rate 0.25% 0.25%
Volatility 25% 25%
Expected Life 10 years 10 Years
Fair Value 0.07 0.05
------------------------------- --------------- ---------------
18 Retained earnings
Group Company
--------------------- ----------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ ---------- --------- ---------- ----------
Opening balance (8,055) (1,999) (19,206) (17,441)
(Loss)/profit for the year (3,546) (6,056) 114 (2,375)
Transfer from share-based payment
reserve 1 - 1 610
Closing balance (11,600) (8,055) (19,091) (19,206)
------------------------------------ ---------- --------- ---------- ----------
In accordance with the provisions of the Companies Act 2006, the
Company has not presented a statement of profit or loss and other
comprehensive income. The Company's profit for the year was GBP114k
(2018: loss GBP2,375k).
19 Trade and other payables
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- --------- --------- ---------
Trade payables 579 491 - -
Accruals and deferred income 102 271 35 206
Other payables 173 144 - -
Contract liabilities 126 15 - -
Trade and other payables 980 921 35 206
------------------------------- --------- --------- --------- ---------
20 Operating lease commitments
Group Company
-------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- --------- ---------
Within one year 76 65 - -
Between one and five years 127 202 - -
Operating lease commitments 203 267 - -
------------------------------ --------- --------- --------- ---------
21 Related party transactions
During the year to 31 March 2019 the Group was charged GBP60,000
(2018 - GBP268,410) for services provided by Reyco Limited, a
company controlled by A Reynolds. There was no amount outstanding
at the balance sheet date.
During the year to 31 March 2019 the Group was charged GBP30,000
(2018 - GBP90,740) for services provided by Morrison Kingsley
Consultants Limited, a company controlled by M Collingbourne. There
was no amount outstanding at the balance sheet date.
During the year to 31 March 2019 the Group was charged GBP30,000
(2018 - GBP36,500) for services provided by Bill Murray and
Associates, a company controlled by B Murray. There was no amount
outstanding at the balance sheet date.
During the year to 31 March 2019 the Group was charged GBP30,000
(2018 - GBP13,900) for services provided by N Mustoe. There was no
amount outstanding at the balance sheet date.
During the year to 31 March 2019 the Group was charged GBP22,500
(2018 - GBPnil) for services provided by Skale Limited, a company
controlled by A Booth. There was no amount outstanding at the
balance sheet date.
At the balance sheet date, Julie Lavington owed Thread 35 Ltd
GBP1,200 (2018 - GBP1,200) for personal tax invoices paid for by
Thread 35 Ltd. This balance will be repaid within 9 months of the
year end.
At the balance sheet date, Alison Hall owed Thread 35 Ltd
GBP1,200 (2018 - GBP1,200) for personal tax invoices paid for by
Thread 35 Ltd. This balance will be repaid within 9 months of the
year end.
During the year to 31 March 2019, a management fee of GBP190,808
(2018 - GBP38,162) was received from Thread 35 Limited.
During the year to 31 March 2019, interest of GBP292,938 was
charged to Thread 35 Limited relating to the intercompany loan.
The Company's intercompany loan receivable balance at the
year-end was GBP7,093,954 from Thread 35 Limited (2018 -
GBP2,811,016).
22 Financial instruments - risk management
In common with all other businesses, the Group is exposed to
risks that arise from its use of financial instruments. This note
describes the Group's objectives, policies and processes for
managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented
throughout these financial statements.
There have been no substantive changes in the Group's exposure
to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure
them from previous periods unless otherwise stated in this
note.
General objectives, policies and processes
The Board has overall responsibility for the determination of
the Group's risk management objectives and policies and, whilst
retaining responsibility for them it has delegated the authority
for designing and operating processes that ensure the effective
implementation of the objectives and policies to the Group's
finance function. The Board receives regular updates from the
management team through which it reviews the effectiveness of the
processes put in place and the appropriateness of the objectives
and policies it sets. The overall objective of the Board is to set
policies that seek to reduce risk as far as possible without unduly
affecting the Group's competitiveness and flexibility. The
Company's operations expose it to some financial risks arising from
its use of financial instruments,
the most significant ones being cash flow interest rate risk,
foreign exchange risk, liquidity risk and capital risk. Further
details regarding these policies are set out below:
Cash flow interest rate risk
The Group is exposed to cash flow interest rate risk from its
deposits of cash and cash equivalents with banks. The cash balances
maintained by the Group are proactively managed in order to ensure
that attractive rates of interest are received for the available
funds but without affecting the working capital flexibility the
Group requires. The Group is not at present exposed to cash flow
interest rate risk on borrowings as it has no debt. No subsidiary
company of the Group is permitted to enter into any borrowing
facility or lease agreement without the prior consent of the
Company.
Foreign exchange risk
Foreign exchange risk may arise because the Group purchases
stock in currencies other than the functional currency.
The Group monitors the requirement for foreign currency on a
monthly basis. The Group will forward purchase the currency to fix
the cost of goods for stock. Once the cost of goods has been fixed
a final selling price can be derived.
The Group considers this policy minimises any unnecessary
foreign exchange exposure
Liquidity risk
Liquidity risk arises from the Group's management of working
capital; it is the risk that the Group will encounter difficulty in
meeting its financial obligations as they fall due. The principal
obligations of the Group arise in respect of committed expenditure
in respect of its stock purchases and design. The Group's policy is
to ensure that it will always have sufficient cash to allow it to
meet its obligations when they become due. To achieve this aim, it
seeks to maintain readily available cash balances (or agreed
facilities) to meet expected requirements and to raise new equity
finance if required for future development or expansion.
The Board receives cash flow projections on a monthly basis as
well as information on cash balances. The Board will not commit to
material expenditure in respect of its ongoing commitments prior to
being satisfied that sufficient funding is available to the Group
to finance the planned programmes. For cash and cash equivalents,
the Company only uses recognised banks with medium to high credit
ratings.
Capital risk
The Group's objectives when managing capital are to safeguard
the ability to continue as a going concern in order to provide
returns for shareholders and benefits to other stakeholders and to
maintain an optimal capital structure to reduce the cost of
capital.
23 Post balance sheet events
The Company had no post balance sheet events.
24 Contingent liabilities
The Company has no contingent liabilities.
25 Ultimate controlling party
There is no ultimate controlling party of the Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR RTMPTMBMMBJL
(END) Dow Jones Newswires
July 03, 2019 02:00 ET (06:00 GMT)
Sosandar (LSE:SOS)
Historical Stock Chart
From Apr 2024 to May 2024
Sosandar (LSE:SOS)
Historical Stock Chart
From May 2023 to May 2024