Member Info for Moneymunch

Lol...so says simber the pessimist.....Canaccord has been off loading which no doubt has encouraged a few others to sell and discouraged buyers, hence the current bargain low sp......and has nothing to do with the perceived time frame for the turn around in the business....the business is already in a relatively healthy state with sales revenues of $50m, and with the cost cutting measures of $5m a year and the investment made to expand production at the duty free Ethiopian factory over the period , Bagir's next set of results will very likely show a significant rise in profits regardless of the Ruyi deal...in the meantime the market is waiting confirmation of the deal and receipt of the full $16.5m cash.....it's not guaranteed and it's not priced in......a sudden and significant re-rate on confirmation....sub 3p will be history imho, and with Ruyi on board and the cash in the bank, production and expansion of the Ethiopian factory will be accelerated and the huge Chinese market will be wide open to Bagir, this will be massive and double figures will arrive soon enough......Gla holders Tick Tock Boom!!! :-)

Let 'em sell pre-deal news...any uncertainty, concerns or nervousness now will most likely result in a greater positive impact when news of the deal and receipt of $16.5m cash is finally confirmed.....Gla :-)

Fingers crossed that Canaccord's discretionary client are going to xxxx off soon.....Gla :-)

A significant increase in sales revenues and profits coming Bagir's way...Gla Holders...and one more day closer to the transformational Ruyi deal. ;-)

Chairman's statement

During the first half of 2018, the Company had a positive sales performance in line with management's expectations. Sales have been positive yet the Group has continued to experience operational delays and increased production costs which have reduced profitability and gross margin. The development of the Ethiopia production capacity following the investment in new machinery in 2017, has contributed to increased costs in addition to subcontractorss costs during the transition period in Vietnam and Egypt where production has been moved to more competitive costing programs.

Looking ahead, the Group is undertaking a rationalisation of its operations, focusing on fewer production sites and a reduction in the Group's operational cost base. We expect an increased focus on the US market, due to the large order sizes and the existing competitive advantage of the Group's manufacturing locations as a result of being able to export goods into the US duty free. The Board expects that these measures, together with the operational cost savings identified in the announcement on 20 November 2017, will reduce the Group's operational cost base by approximately $5 million on an annualised basis.

As announced on 3 September 2018, the Company has posted a circular to its shareholders containing further details of the proposed investment of $16.5 million by Shandong Ruyi and notice to convene an Extraordinary General Meeting on 9 October 2018 at which the resolutions required to enact the investment will be tabled.

The investment, combined with the reorganized operations and production sites, should create a platform from which Bagir has the potential to become a significant player in our market of apparel manufacturing.

Lol Simber, simmer down, you're coming across as the resident deramper........ha ha ha ha ha....Sales revenues are everything, without them there is no profit, or ownership of factories or expansion and development or prospects and potential, all of which is exactly why Ruyi are committed to paying $16.5m cash for a 54% controlling stake in the business......in the meantime Bagir have invested heavily at all of their production sites as well as paying cash for full ownership of the duty free Ethiopian factory which has impacted profits, but along with their cost cutting measures to the tune of $5m per annum, it is expected that bottom line profits will improve significantly....in short they have invested profits to streamline and expand the business, and with Ruyi just about to enter proceedings, Bagir's next set of results should make excellent reading in indeed......and no doubt we can look forward to the next set of results thereafter for years to come as Ruyi develops and expands Bagir's sales revenues into the US and Europe and especially China.....it's going to be BIG!!! ;-)

" Shandong Ruyi investing $16.5 million into Bagir to support of the growth of the business in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir."

Eran Itzhak, CEO of Bagir, said:

"Alongside our trading performance which reflects the investment we have been making in expanding our Ethiopian production capacity, we have made significant progress since the year end with the strategic partnership with Shandong Ruyi, a global leader in textiles, which, subject to shareholder approval, will result in Shandong Ruyi investing $16.5 million into Bagir to support of the growth of the business in particular the expansion of the Ethiopian manufacturing site. This investment together with being in partnership with Shandong Ruyi will undoubtedly be transformative for Bagir."

Lol....nonsense....you need the sales revenues to realise the profit as well as paying for the running costs of the Company as well as 3 factories etc.....Bagir is a well established company and Ruyi will take it you the next level. Gla holders....One day closer to transformational deal news. :-)

Interim results

for the six months ended 30 June 2018

Bagir (AIM: BAGR), a designer, creator and provider of innovative tailoring is pleased to announce its results for the six months ended 30 June 2018.

H1 Highlights

· Revenues of $24.8m for the first half of 2018, in line with management expectations (H1 2017 $28.1m).

· Higher production costs in the first half of 2018, affected gross margin and profitability, attributed to the following:

o recruitment and training of new production line teams in Ethiopia as a result of the increase in production capacity following the investment in new machinery in 2017;

o training of the new teams has led to higher than typical anticipated raw material usage; and

o subcontractor's costs in Vietnam and Egypt have been higher during the transition period where production has been moved to more competitive costing programs.

· Adjusted EBITDA* loss of $(1.7) and gross margin of 6.7% in the first half of 2018 resulting from the above higher production costs, compared with adjusted EBITDA* of $1.1m and gross margin of 16.4% in H1 2017.

· Cash and cash equivalents at 30 June 2018 of $2.8m, which includes $1.65m received from Shandong Ruyi in the period as announced on 9 January 2018 ($2.6m and $7.1m at 31 December 2017 and 30 June 2017, respectively).

· Identified and commenced a rationalization of operations, focusing on fewer production sites and a reduction in the operational cost base, expecting these measures to enable total cost savings (including the savings announced on 20 November 2017) by approximately $5m on an annualized basis.

· The Company has posted a circular to its shareholders containing further details of the proposed $16.5 million investment (the "Proposed Investment") in the Company by Shandong Ruyi Fashion Investment Holding Co., Ltd. ("Shandong Ruyi") and notice to convene an Extraordinary General Meeting on 9 October at which the resolutions required to [enact] the Proposed Investment will be tabled.

* 'EBITDA' is a non-IFRS measure that the Company uses to measure its performance. It is defined as Earnings Before Interest, Taxation, Depreciation and Amortisation and non-cash share based compensation and excluding company share is lossesgains of affiliated companies. The Adjusted EBITDA figure excludes $0.2M other expenses in H1 2018 attributed to restructuring activities, and $1m one-off capital gain attributable to the acquisition in Ethiopia, net of other expenses.

Of course there are no guarantees Phil otherwise Bagir's sp could already be in double figures, and there lies the opportunity for significant returns from this current bargain low sp, the risk reward at this 11th hour is firmly in our favour imho.....Chinese regulatory approval apparently takes a month to two months for outbound M&A and Ruyi must have very close working relationships with all departments given their recent acquisition activity.....Ruyi's Chairman has been doing the rounds this week and has stated that a deal for $2 billion will be completed year end , and so news either way on Bagir's $16.5m cash deal must be very close. Gl ;-)

Generally , you only make big money on AIM if you pick the right stock through your own research and instincts etc especially if you invest at the bottom and the market cap is low.....you can also suffer the greatest losses if it doesn't go to plan, but Bagir is a long established business with annual sales of c $50m and Ruyi's $16.5m and 54% controlling stake will be transformational for Bagir's potential and prospects......they're not a high risk explorer hoping for a Gusher or loads of gold etc or a biotech hoping for great trial results or a company with a good idea but no sales revenues ( I've made loads and lost a bit on all of those) and so I see this as a very good risk reward opportunity for some serious upside with Ruyi on board....the only significant downside would be if the deal didn't happen but I'd be very surprised if Ruyi pulled out at this 11th hour.....be patient and hold firm and we will be rewarded in the coming weeks and months imho as Ruyi prepares Bagir for the global stage....Gla holders...On and Up!!! :-)

Lol.....we're nearly there now Eddie.....first one to see the sea.......:-)

Lol....Bagir's current annual sales revenues are $50m without Ruyi.....they have implemented cost cutting and saving measures at their Vietnam and Egyptian factories and have continued to develop and expand production at their 100% owned duty free Ethiopian factory, and so sales revenues and profits should make good reading on the next results in March , even without Ruyi's input......although of course the completion of the Ruyi deal is now imminent. Bagir will be in receipt if the full $16.5m and have one of the World's largest textile apparel manufactures pulling the strings and Bagir's sp will re-rate accordingly....new business and supply contracts will follow as operations are expanded and the huge Chinese market is opened up to Bagir.....this is going to be far bigger than many realise imho.....Ruyi will want to take Bagir forward and accelerate their business to ensure exponential returns on their investment. ...Those invested at this current bargain low sp will do very well indeed.....Gla holders...All good things....Tick Tock:-)

Ps Ruyi 's CEO told Bloomberg/Reuters on Monday that they expect to complete a $2 billion deal year end, and so one would imagine Bagir's $16.5m deal will be completed shortly. Gla :-)

12/11/18

Ruyi aims to complete its purchase of Invista’s Apparel & Advanced Textiles unit, which owns the rights to materials including Lycra and Coolmax fibers, by year-end, Qiu said. It’s paying more than $2 billion to buy the business from Invista, which is an arm of Koch Industries Inc., Bloomberg News reported last year.

If Canaccord's discretionary client is selling their holding then it's better that they sell pre-deal news , the question is of course, is how many more have they got to shift from the 11% that Canaccord holds for their clients....hopefully the discretionary client only holds a certain % of the 11% and therefore could be near enough done.....Gla holders:-)

Another 500k sell, presumably from Canaccord's discretionary client.....Grrrrrr.......Gla holders... Transformational deal news coming soon!!! :-)

Well we know news is due, although in the meantime we just need a few more buyers to tighten up the spread, and I reckon yesterday's 500k trade and the few 150k plus sells that followed put a dampener on proceedings as no doubt a few were concerned that Canaccord's discretionary client was still off loading......all in the mix now regardless, and when news drops the sp will re-rate accordingly. Gl.;-)

Ps the sp is still up c20% since Canaccord's 1st holdings Rns 31/10/18, their discretionary client has sold 7 to 8m shares , yet the sp has continued an upwards momentum from the chunky buys that have continued in anticipation of news.....the sp could have been well over 3p by now if it hadn't been for Canaccord's discretionary client ...any way perhaps this particular client of Canaccord's is done....and news is about to drop.....those holding will be well rewarded as Ruyi takes control. :-)

Lol....a Major transformational announcement is expected "shortly ".......and maybe a good sign that Ruyi's top brass have been promoting their global aspirations over the last few days.... Gla holders....Tick Tock:-)

Other than pricing, a number of factors can influence the size of the spread.

In general, the more people who are buying and selling a particular market, the tighter its spread.

If there are fewer participants, spreads tend to widen. 

Volatility, such as that brought about by major news or economic announcements, can cause large market movements that lead to increased spreads. This is to cover the increased risk of volatile markets.

Ruyi's direction and influence......Gla ;-)

Aquascutum: the shirt and knitwear license at Alea Fashion Industries

Di Gianluca Bolelli

November 13, 2018

Aquascutum, a historic British brand of men's and women's clothing and accessories, historically known for its trench coat and for the Scottish lining (club-check), has announced the signing of a license agreement, finalized with the group Italian Alea Fashion Industries SpA (AFI), for the production and distribution all over the world, excluding China, UK and Japan, of collections of shirts, sweaters and polo shirts, starting from the Fall-Winter 2019/20 season.

The moment of the signing between the CEO of AFI, Claudio Onofri, and Dajun Yang, the CEO of UII Brand International (Shandong Ruyi Group)

Alea Fashion Industries, born in 1952 and based in Savignano sul Rubicone (FC), boasts an important historical know-how in shirts; is owner of the brands Alea, G.V. Conte, Camiceria Malapietra and licensee of brands such as Ungaro, Michael Kors and Carlo Pignatelli, and closed 2017 with a turnover of about 14.7 million euro, substantially stable compared to the previous year.

The CEO of AFI, Claudio Onofri, in a statement said he was "proud" of this agreement, which he defined as "able to combine our expertise, rooted in particular in the shirting world, with the excellent and historical quality of a a prestigious brand like Aquascutum, a piece of history appreciated by customers all over the world ".

The distribution will take place in department stores and boutiques in Italy, United States, Canada, Russia, France, Germany. The agreement has a multi-year duration and was signed on November 8th at the Milan showroom of AFI.

The first collection that will result from the partnership will be presented in January 2019. AFI expects that, once the distribution is fully operational, the turnover of the Aquascutum license can reach a turnover of about 4 million euros a year.

aquascutum.com

Founded in 1851 in London by John Emary, the symbolic brand of the trench has dressed, in its 160 years of history, the most diverse celebrities, from Humphrey Bogart to the Queen Mother. Aquascutum was bought in 2017 by the Shandong Ruyi group for 117 million dollars (111.4 million euros) from the Hong Kong group YMG Trading, which in turn bought it in 2012 from the former boss of the British Fashion Council, Harold Tillman, who had bought it in September 2009 through his Broadwick group without being able to relaunch it.

In the last two years, the Shandong Ruyi group has been shopping in half the world, acquiring in its portfolio the French group SMCP (brands Sandro, Maje and Claudie Pierlot), the Apparel & Advanced Textiles unit of the US company Invista, head of the Lycra brand , the British Aquascutum and Gieves & Hawkes, and then the Israeli group Bagir, manufacturer and distributor of formal suits for men and the Swiss luxury accessories brand Bally, and finally a share of the Toky

and Ruyi mean business....Tick Tock BOOM!!! Gla ;-)

Shandong Ruyi to create a stable of “affordable luxury” brands to compete against LVMH

Wednesday, 14 November 2018

China's apparel group Shandong Ruyi is determined to present fierce competition to the world’s largest luxury goods group, LVMH. The Chinese fashion conglomerate’s strategy is targeting more global deals involving "affordable luxury" brands, aimed to establish the first high-end Chinese fashion empire.

Shandong Ruyi’s CEO, Qiu Yafu, told Reuters earlier this week that the company would focus on affordable luxury, where he sees growth even amid broader economic slowdown. He’s a seasoned apparel executive who has years of experience in the international luxury sector under his belt.

https://fashionunited.uk/news/business/shandong-ruyi-to-create-a-stable-of-affordable-luxury-brands-to-compete-against-lvmh/2018111439948

Any Italian translators??? ;-)

https://it.fashionnetwork.com/news/Aquascutum-la-licenza-di-camiceria-e-maglieria-ad-Alea-Fashion-Industries,1034694.html#.W-rkIOKYTIU