LONDON (Alliance News) - Bagir Group Ltd Monday said it has now agreed revised banking covenants for 2014 after discussions with its banks, which were announced on May 15.
The formal wear tailoring company which listed on AIM in April, saw its valuation tumble by over half during May after warning that it had been hit by an unexpected reduction in orders from its largest customer and was talking with its lenders about getting a waiver on its banking covenants.
The company, which raised GBP20.0 million in its initial public offering on April 15, said it had experienced an unexpected reduction in the volume of purchase orders and a reduction in margins on retained revenue from its largest customer, mainly for the fourth quarter of year.
It said at the time that it expects revenue in 2014 to be about USD100 million to USD104 million and earnings before interest, tax, depreciation and amortisation to be USD4 million to USD6 million. Revenue was USD99.5 million and Ebitda was USD6.1 million in 2013.
"Accordingly, the company has commenced the process of obtaining a waiver from its debt providers regarding its banking covenants," it said during May.
Bagir shares were untraded at 24 pence on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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