LONDON (Alliance News) - Formalwear tailoring company Bagir Group Ltd on Friday said it will take actions to restructure its board and cut costs and said its trading performance in the second half of 2015 will be significantly worse due to competitive pressures and the deferral of sales.
Bagir said its pretax losses in the first half to the end of June widened to USD3.2 million from USD2.4 million due to the problems it is facing, as its revenue fell to USD45.5 million from USD48.0 million. Its gross margin in the half was hit hard by the competitive markets, down to 14.5% from 17.4%.
Bagir said that despite the loss of a large portion of revenue from its previous largest customer, announced back in May 2014, it has managed to grow its revenue from other sources in the first half, both with new and existing customers. It has also made progress on cutting costs in the half, including through an upgrade of its IT systems.
But the group said it expects the second half of 2015 to be more difficult than the first, owing to a competitive market and the deferral of planned sales for 2015 into 2016. Owing to these issues, the group has expanded its restructuring programme to focus its core business on higher-valued-added products offering better margins.
The restructuring will mean Keith Hamill, its non-executive chairman, will leave the company on September 30, as will Non-Executive Director George Adams. Tessa Laws, currently an independent non-executive director, will become chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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