Corporate undertaker day | Valuation puzzle
News covered in our update here includes results from two of AIM's insolvency specialists who continue to wait for the much anticipated deluge of work, which has certainly been a while coming. Elsewhere, there were results from an online fashion retailer whose valuation continues to baffle us, while one of our Bonkers Bargain opportunities offered encouragement with its full year results.
Sosandar – revenue up but ....... Sosandar (AIM: SOS), the online fashion retailer, announced results for the six months ending 30 September 2022 and an update on current trading. While sales have once again risen sharply, up 72% to £21m, and they even managed to squeeze out a modest profit of £0.1m compared to the comparable period’s £1.1m loss, it’s surely still hard to justify a valuation of c£50m, especially compared to other members of the beaten-up online retail sector. The operating cash outflow was £2.5m as inventories climbed to £13.5m and free cash outflow of £2.8m resulted in period end…