Bagir Group's shares surge on trading performance turnaround

Bagir Group's shares are up more than a quarter after it delivered a turnaround in trading performance, cleared all bank debt, reduced its total cost base and invested in future growth.

The company posted a pre-tax income of $9.9m, from a loss of $11.7m. Bagir also noted a reduction in overhead expenses by about 30%.

It generated revenues of $64.1m for 2016, from $75.2m. This fall was mainly attributable to the reduction in sales from M&S and to shifting to sales net of fabric with a US customer.

"It is extremely pleasing to report on the turnaround we have achieved to date and the early signs we are seeing regarding the future potential of the group," said CEO Eran Itzhak.

Bagir's target for 2016 was to reverse the losses recorded in the previous year, strengthen its balance sheet, reduce costs and re-focus manufacturing on three tax and labour efficient sites.

"We have done this successfully and I believe we are now a stronger business than we were three years ago having been through such a rigorous process," the company added.

"The proof now will be in our ability to win new high volume retail clients and the early signs are good."

At 10:38 GMT, shares in AIM-quoted Bagir were up 25.81% to 4.88p each.