LONDON (Alliance News) - Bagir Group Ltd Tuesday said it expects full-year earnings to be at the lower end of guidance given in May, the latest setback for the formal clothing tailoring company.
Bagir had said that it expected earnings before interest, tax, depreciation, and amortisation to be in an approximate range of USD4.0 million to USD6.0 million, while it had expected a USD100.0 million to USD104.0 million range for revenue. Bagir's financial year follows the calendar year.
"While in line with the previous estimates, the company expects the full results to be at the lower end of these ranges," Bagir said in a statement on Tuesday.
Bagir, which is yet to publish interim earnings, also said that it expects results for the six months ended June 30 to show EBITDA of about USD1.6 million, a pretax loss of about USD2.0 million, and revenue of about USD48.0 million. It said that EBITDA and pretax loss exclude the USD300,000 in costs associated with its April initial public offering. Those costs are to be charged against earnings.
Bagir raised GBP20.0 million in its initial public offering. At the time, it had market capitalisation of a GBP28.1 million. However, just a month after its IPO the company was rocked by an unexpected reduction in orders from its largest customer. Bagir shares were Tuesday quoted down by a 22% on yesterday's close, at 9.4 pence, giving it a market capitalisation of approximately GBP4.72 million.
Net debt at the end of June was approximately USD9.0 million.