News blog

Bagir Group Ltd

• BY: Andrew Hore |
• POSTED: 24/11/2014 |

Clothing supplier Bagir Group Ltd has completed the purchase of a 50% stake in an Ethiopian business than operates a garment factory.

The investment is $1.5m and most of this will be spend on investment in fixed assets. The factory makes trousers and formal shirts and generated revenues of $900,000 last year. Export production will start next year. Exports to the EU and US are duty free.

At 11.5p a share, Bagir is valued at £5.8m. Bagir raised £17.6m net at 56p a share when it joined Aim in April 2014. Bagir lost $2.37m on revenues of $48m in the first half of 2014. There was net debt of $8m at the end of June 2014.

The share price slumped after Marks & Spencer decided to reduce orders. Bagir intends to reduce costs.

Artemis and Hargreave Hale both increased their stakes in Bagir during the summer. 

Download the latest AIM Journal from http://www.hubinvest.com/ AIMPDFNovember2014_62