Share Prices & Company Research

Market News

04 Apr 2019 | 08:48

Bagir reports wider losses as margins come under pressure

Bagir posted wider annual losses as costs of developing manufacturing facilities in Ethiopia dented margins. The company also warned challenging conditions would likely to continue in the current year.

For 2018, pre-tax losses widened to $5.78m from $2.91m a year earlier and revenue increased 10% to $56.4m. Revenue was driven by reflecting new client wins and increased purchase orders from certain existing customers. The costs associated with developing the company's manufacturing facilities in Ethiopia, together with the transitional costs of moving production to more cost competitive manufacturing programs in Vietnam and Egypt in H1, affected gross margin for 2018 which decreased to 9.8% compared to 15.0% in 2017. Sales in the three months ended 31 March 2019 were $16.3m, up from $11.2m a year earlier, and the company has an order backlog of $30.6m. '2018 was undoubtedly a strategically important year for the business with significant progress being made rationalising the business operations. Looking ahead for 2019, trading conditions are likely to be similar to those experienced in 2018, however the Board believes that Bagir is well placed given the operational cost base reduction completed in 2018 and its strong order backlog,' the company said. At 8:48am: (LON:BAGR) Bagir Group Ltd share price was +0.2p at 1.4p

Story provided by StockMarketWire.com
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.