26th Sep 2019 11:49
(Alliance News) - Shares in tailoring firm Bagir Group Ltd fell Thursday as it warned on challenging market conditions, despite the interim loss improving amid surging revenue.
Shares in Bagir were 11% lower at 0.67 pence in London on Thursday.
For the six months ended June, Bagir's pretax loss narrowed to USD1.1 million from USD3.6 million the year prior. This was after revenue rose 32% to USD32.8 million from USD24.8 million the year before.
"Despite the challenging retail and political backdrop, Bagir has succeeded in delivering improvements in all operational parameters," Chief Executive Micha Ronen said.
"We expect the market to continue to be challenging and we are in the process of taking all necessary steps to adjust our organization to the market conditions and to better leverage our advantages in the market."
Bagir does not currently pay a dividend.
"We have agreed a new date for completion of the transaction with Shandong Ruyi and we are collaborating together to support potentially one of their clients with a large production order from Vietnam," Ronen added.
In November 2017, Bagir announced a strategic partnership with Shandong Ruyi Technology Group Ltd which would see it invest USD16.5 million in Bagir and take a 54% stake in the firm.
"At the same time we are focused on developing the group on a standalone basis, operationally we see greater opportunities to exploit our innovative product ranges and to expand further into the tailored uniform market alongside the group's core business of manufacturing tailored garments to major apparel clients in the US and UK", Ronen continued.
By Ahren Lester; [email protected]
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