Menswear supplier Bagir moved back into the black, cut its overheads by 30% and cleared its bank debt last year, marking the successful completion of its turnaround.
The supplier posted EBITDA of $1.6m (£1.3m) for the year to 31 December 2016, up from a loss of $4.3m (£3.5m) in 2015.
Revenues fell 14.8% year on year to $64.1m (£52.7m) in 2016, in line with expectations following a reduction in orders from Marks & Spencer.
Gross margin increased to 16.4% from 11.6% in 2015, driven by a mix of cost efficiencies and higher margin sales. Overhead expenses were reduced by 30%.
During the year the business completed two successful private placings, raising a total of $10.3m (£8.4m), and agreed to clear its outstanding bank debt of $21m (£17.2m).
In February this year, the company acquired the remaining 50% of its Ethiopian manufacturing site for $1.9m (£1.6m).
Bagir said it remained focused on generating growth by expanding its customer base by securing high volume sales orders from big multiples; investing in its Ethiopian factory where labour and tax costs are low; and investing in innovative design.
Chief executive Eran Itzhak added: “For 2016, our target was to reverse the losses recorded in the previous year, strengthen our 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 proof now will be in our ability to win new high volume retail clients and the early signs are good having secured new contracts with H&M and Haggar Clothing Co, new recruited customers in both the US and the EU, and we are holding promising discussions with several further significant potential clients.”