Menswear supplier Bagir has reported positive EBITDA of $800,000 (£605,835) for the first half of 2016, up from a $400,000 (£302,917) loss for the same period last year, as the firm’s turnaround plan begins takes hold.
The business broke even on an operating level for the six months to June 30, up from an operating loss of $1.9m (£1.4m) for the first half of 2015.
Sales dropped 26% year on year to $33.5m (£25.3m) in line with expectations following the loss of Marks & Spencer, a major customer for the business.
Overhead expenses reduced by 30% over the six months.
Bagir has also raised $8.5m (£6.4m) by placing 183,236,754 new ordinary shares in the company, at a price of 3.5p per share.
The net proceeds of the fundraising, approximately $6.3m (£4.7m), will be used to repay the company’s lenders, Bank Leumi and Discount Bank, with the balance being used as working capital to support the group’s business operations.
Bagir chief executive Eran Itzhak told Drapers the progress made so far was a “revolution” for the business.
“The first step in the turnaround plan is now complete and the whole financial position of the company has changed. It’s a revolution for us. Our suppliers and customers are looking at the company in a different way and it opens new doors for us. We are rewriting the history of the company.”