Bagir Group has won contracts with H&M and Haggar Clothing but it needs to win more to sustain and grow profitability.
The men’s clothing manufacturer reported a swing from a loss of $11.7m in 2015 to a profit of $9.9m in 2016, as revenues fell from $75.2m to $64.1m. The operating loss was substantially reduced. Cash used in operating activities was $60,000. However this is complicated by one-offs, including the restructuring of debt.
Bagir ended the year with net cash of $8.7m. Since then, Bagir has acquired the 50% of its Ethiopian manufacturing operation that it did not own for $1.9m with $600,000 of this payable immediately.
Last autumn, Bagir raised £6.4m at 3.5p a share. The share price has recovered to 4.5p.
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