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19 Jun 2019 | 09:36

Bagir reports 'strong' start to year, grants Shandong Ruyi more time to acquire 53.7% stake

Tailoring company Bagir reported 'strong' start the year despite the ongoing challenging backdrop for retailers and also said it had granted Shandong Ruyi more time to acquire a 53.7% in the company for $16.5m.

The company had agreed to a further extend f the unconditional completion date of the acquisition to 31 March 2020 after it was persuaded by Shandong Ruyi's intention to complete the transaction and commitment to provide valuable operational support to the company on the run up to the extended completion date and as previously agreed. Shandong Ruyi also reconfirmed its committed to provide suit jacket manufacturing equipment, by the end of September 2019, the company said.

The company also provided an update on its performance during the first five months of the year, with sales rising to $27.0m from $21.8m a year earlier. It had an order backlog of $26.2m, with another three months during which the company can secure orders for completion in the current year.

The company's Ethiopian manufacturing site produced 3,000 trousers per day and was on track to increase output to 4,000 trousers per day by the end of 2019 through improving operational efficiency. 'Following face to face conversations we have been convinced of Ruyi's intentions which together with the valuable operational support being provided a further and final extension was agreed,' said CEO Eran Itzhak.

'The business is performing reasonably well in a tough market and while we have a good pipeline of new and backlog orders to focus the operating team on, there is no doubt this is a challenging period for major retailers and manufacturers.'

At 9:36am: (LON:BAGR) Bagir Group Ltd share price was -0.2p at 1.25p

Story provided by StockMarketWire.com
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