Member Info for Moneymunch

Lol...wait for deal news ffs!!!...:-)

Lol Tony and Eddie , the resident pessimists who only make appearance when the sp drops....ha ha ha :-)

Ps Tony, due to the lack of buying volume, the sp is dropping on small sell trades from the weak and impatient , this will change big time when deal news arrives.....and I'm happy to hold for the inevitable re-rate and transformational upside to follow thereafter as Bagir benefits from Ruyi's direction and influence....those invested will be very well rewarded. :-)

Lol Tony, those selling will wish they hadn't when deal news arrives, and buy that 1m now at this bargain low. Gl :-)

Ps I'm surprised you've got any left to sell??? :-)

This will be a lot higher when deal update arrives, tick tock.....:-)

The Ruyi effect:-)

In November 2017 Shandong Ruyi paid HK$2.2bn (£213.5m) for a controlling stake in menswear group Trinity, which retails and wholesales high-end menswear brands including Kent & Curwen, Gieves & Hawkes and Cerruti 1881.

FASHION

Trinity blooms under Shandong Ruyi

Retail Asia

28/08/2018

AsiaInternationalTrinity

Menswear retailer Trinity has announced double-digit same-store sales growth in its first half year.

The period coincides with Shandong Ruyi International Fashion Industry Investment Holding taking a controlling interest in the group last April.

Https://www.retailnews.asia/trinity-blooms-under-shandong-ruyi

North America drives increase in sales at Sandro-owner SMCP

PARIS, Oct 30 (Reuters)

- SMCP, the company behind French fashion brands Sandro, Maje and Claudie Pierlot, posted a 14 percent rise in third-quarter sales, with the Americas overtaking Asia as its biggest driver of growth, and kept its forecasts for more growth.

Sales rose to 247.7 million euros ($282 million), said SMCP, which is controlled by China’s Shandong Ruyi.

The group - which sits in the so-called “affordable luxury” retail segment with dresses fetching around 300 euros - has been expanding overseas by opening new stores, including in North America and Canada.

Sales at constant currencies increased nearly 42 percent in the Americas against a favourable comparison base, while Asia grew 31 percent, a slowdown from the near 48 percent notched up in the previous three months after a bumper start to the year.

SMCP CEO Daniel Lalonde said sales trends in China remained healthy, adding he had not seen any knock-on effects on consumer spending from a trade war between Washington and Beijing.

“We’ve just opened stores in our 25th city in this market and we’re in the process of building up our network and brand awareness,” Lalonde told journalists.

Cheers arghhh, Bagir's medium and long term prospects with Ruyi on board will be transformational for all concerned and will no doubt propel Bagir into the big time as the US market is expanded and the Chinese markets are opened, but near term, confirmation of Chinese regulatory approval and the receipt of the full $16.5m cash will see Bagir's sp re-rate significantly imho as Bagir embarks on its one way trajectory from small cap tiddler to mid cap leading player. Gl ;-)

ps One day closer to transformational deal news, expected "shortly"......end of month or start of month would be timely??? ;-)

21/9/18

The Directors believe that the investment by Shandong Ruyi, which will be targeted directly at expediting the development and expanding the manufacturing facility in Ethiopia, will significantly accelerate the timetable for the operational potential in Ethiopia to be realized, enabling the facility to attract and compete for major apparel manufacturing contracts from large international retailers which generate a level of return acceptable to Bagir. After the Shandong Ruyi investment into Bagir closes a strategic partnership will be formed between the Company and Shandong Ruyi. The Directors believe that Shandong Ruyi, as a result of its significant international textile and retail investments, is well positioned to provide the Group with significant new commercial opportunities, especially in the fields of fabric design and development, and technical innovation.

The Directors also believe that the strategic partnership with Shandong Ruyi will increase the Company's own profile and reputation which should, in turn, increase customer interest in the Group and, in particular, its Ethiopian manufacturing facility. Shandong Ruyi has committed to evaluate ways in which it can provide additional operational support to Bagir. The Directors believe that the knowledge and expertise of Shandong Ruyi and the directors it proposes will join our Board will improve the Group's operations and trading performance.

Operational review

The Group continues to evolve its recovery plan, which commenced in 2016, comprising a cost reduction strategy and an operational strategy. The Group continues to make good progress reducing operating costs across the business. As announced on 20 November 2017, following a review, the Group identified opportunities to reduce the Group's overall operational cost base by approximately $2 million on an annualised basis. This programme was anticipated to be implemented in full during 2018.

Following further review of the Group's operations the Company has identified further scope to increase the cost reduction programme further to approximately $5.0 million of annualised cost savings in total. This is to be achieved by reducing the number of production sites from 6 to 5, increasing the focus on the Group's largest market, the USA, together with a range of further rationalisation initiatives. The expanded cost reduction programme has commenced and is expected to complete by the end of the first quarter of 2019.

The Group is focused on its three core manufacturing geographies in Vietnam, Egypt and Ethiopia. These three manufacturing facilities, in particular Ethiopia, over the medium-longer term, give the Group a competitive advantage in the production of textiles for export to the EU and US. This competitive advantage is centered on the facilities benefiting from duty free status for sales into the EU and US (except Vietnam), highly competitive production costs and local government support for the textile industry. The Company intends to reduce the number of third party production sites in Vietnam from three to two, it will continue to manufacture from its wholly owned site in Ethiopia and from its 50:50 joint venture and subcontractor in Egypt.

The Company signed a lease extension in August 2018 for the building and its facilities for the Group's 50:50 joint venture manufacturing facility in Egypt, from May 2020 to July 2022. The Company has also signed a sub-contracting agreement with its Egypt joint venture partner, for additional production capacity in the Egypt joint venture partner's wholly owned Egyptian manufacturing site, locking in capacity and production costs for 500 suits and 200 trousers per working day from 2019 until July 2022. These developments will ensure the Group's ability to fulfill volume orders from the USA from this duty free country, at competitive prices, supporting the USA market growth strategy.

The site in Ethiopia which the Group now owns in its entirety is considered by the Directors to be fundamental to the future growth prospects of the Group. The Ethiopian facility produces suit trousers, with a current production rate of approximately 2,500 trousers per day, which is expected to grow to 3,200 trousers per day by the end of the year.

The USA is the Company's largest market and the Company will increase its focus on the USA where the average transaction size is larger.

"If you hold shares in a share dealing account, and purchased them before the ex-dividend date, then you will be eligible to receive any dividend paid on or after the forecast pay date. The amount for which you are eligible will be credited to your account as a cash balance, and will appear on your ledger as such."

Nice one Absolute.......it's going to be BIG!!! ;-)

Dividend Policy



The Board intends to adopt a progressive dividend policy to reflect the expectation of future cash flow generation and the long-term earnings potential of the Company.



Based on the above expectations, the Directors intend that the Company will (in accordance with the provisions of the Companies Law) pay dividends annually, made up of an interim dividend and a final dividend to be announced at the time of the interim and final results in approximate proportions of one third and two thirds, respectively, of the total annual dividend.

The Board may revise the Company’s dividend policy from time to time in line with the actual results of the Company.



Under the terms of the Debt Agreement with Bank Leumi and Discount Bank, the Company has that, except with the consent of Bank Leumi and Discount Bank, the aggregate amount of dividends which it will distribute in relation to any particular financial year will not exceed 55 per cent. of the annual net profits, save that the figure in relation to the financial year ended 31 December 2014 shall not exceed 70 per cent. (instead of 55 per cent.).

http://www.bagir.com/html/Rule_Shareholder.html

I think the majority of shares are now tightly held, we had a run of traders pre EGM and a sell off thereafter when it was realised that Chinese regulatory approval was needed before payment etc....they're not going to re-rate the sp until that happens, and the perceived delay has encouraged a few to sell ( presumably at a loss) as they look for instant gratification elsewhere...hence the current bargain low......deal confirmation could drop at anytime and I'll be surprised if the traders aren't back in volume to take advantage soon enough ....when the deal lands....the sp will re-rate and those holding will do well. Gl :-)

Lol Eddie , it's less than a year...the strategic partnership was first announced 20/11/17....and shareholder approval was confirmed 13 trading days ago....if you've waited that long than surely you can wait a while longer instead continually taking your investment down....Ho Ho Ho.....Gl :-)

Ps the transformational deal and receipt of $16.5m cash has never been closer and I'm more than excited in anticipation of Rns confirmation....Tick Tock:-)

Wait for deal.....Cash is King, and Ruyi is the Emporer.....Bagir's fortunes will rise accordingly along with the sp....Gl....Excitement building:-))))

News close imho....end of the month or start of the month would be timely. Gl :-)

All good things........:-)

CEO Eran Itzhak 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. [This will] support 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.”

The timeline is "shortly " and so anytime now, and those that are holding in anticipation are the ones that will be rewarded and not those that are selling at this current low on a 20% spread......if there was a fixed timeline to the deal, then punters would be piling in now and then would very likely sell on the news, and so I'm happy to hold and wait for the sudden and significant re-rate on confirmation. Gla holders Tick Tock:-)

The smart Money who are expecting confirmation of the Transformational Ruyi deal and the receipt of $16.5m "shortly "..Tick Tock:-)

Bagir's current sales revenues are c $50m a year, and the following highlights the previous 6 months revenues as well as the potential significant increase in US sales and profit as production is ramped up at the duty free Ethiopian factory , Bagir also have factories in Vietnam and Egypt......the Chinese market could be bigger again with Ruyi on board. Gla :-)

Bagir in H1 loss, is upbeat for US growth after Shandong Ruyi investment

21 September 2018

London-listed tailoring specialist Bagir Group on Friday reported lower revenues for the six months to June 30 and said that it swung to a loss as higher production costs hit its bottom line.

Its revenues dropped to US$24.8 million, in line with management expectations, from $28.1 million. Its adjusted Ebitda loss was $1.7 million, after it made a profit of $1.1 million a year earlier. Meanwhile, the gross margin of 6.7% plunged from 16.4% a year earlier.

But the company is working hard to improve its operations and, apart from its recently-announced plan to sell a majority stake to Shandong Ruyi for $16.5 million, it has “identified and commenced a rationalisation of operations, focusing on fewer production sites and a reduction in the operational cost base,” that should save $5 million a year.

CEO Eran Itzhak 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. [This will] support 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.”

But what exactly happened in H1? The company “had a positive sales performance in line with management's expectations.” But the group “has continued to experience operational delays and increased production costs which have reduced profitability and gross margin,” it said.

Looking ahead, it expects “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.” 

It’s now waiting for shareholder approval of the Shandong Ruyi takeover at an Extraordinary General Meeting on October 9 and said “the investment, combined with the reorganised 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.”

Almost, and all bodes well for a bounce tomorrow and certainly silenced the pessimists......Gla holders......Transformational deal news coming. :-)