22nd Mar 2016 10:09
LONDON (Alliance News) - Bagir Group Ltd on Tuesday reported a wider pretax loss in 2015 following a reduction in orders from its largest customer, but said it is on track with its recovery plan to pick the business back up.
The formalwear tailor said its pretax loss in 2015 widened to USD11.7 million from USD3.2 million in 2014, as revenue fell to USD75.2 million from USD97.0 million.
Bagir said revenue was hit by a significant reduction in order levels from its largest customer, excluding which revenue would have risen by 17% in the UK.
The tailor listed on the AIM market in April 2014 and just weeks later said it had suffered a substantial loss of revenue from its largest customer due to a change in that customer's buying strategy. Bagir has never identified the customer, but at the time of its IPO, it had said its largest UK customer was Marks & Spencer Group PLC.
As a result of the decline in orders from the customer, Bagir has been undertaking a restructuring programme, which it said has so far reduced overhead expenses by 30%.
"There is still some way to go but the company has a clear strategy for re-establishing the business. The company's cost base has been restructured, the products are strong and demonstrating their appeal to new customers, and over the next few years we expect our Ethiopian factory to become an increasingly important factor in the coming months and years," Bagir said in a statement.
Shares in Bagir were untraded on Tuesday, last quoted at 4.75 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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