Tailoring firm Bagir Group Ltd (LON:BAGR) looked sharp after it kicked off its new fiscal year with a strong increase in sales.
The AIM-listed group said in an outlook statement that the first three months of its new fiscal year had seen a 46% uptick in sales to US$16.3mln along with a US$30.6mln order backlog.
READ: Bagir's share price scissored after it warns of higher production costs
The company also said that a deal with Chinese textiles giant Shandong Ruyi in February to provide new manufacturing equipment for its Ethiopian factory would “transform” the company and its ability to “compete and win major apparel manufacturing contracts from the world's largest retailers”.
Shandong Ruyi is the largest textiles manufacturer in China and makes clothing for brands such as Bally, Aquascutum, and Renown Inc.
The group also owns a 54% stake in Bagir, having invested around US$16.5mln in the company back in 2017.
READ: Bagir doubles as Chinese textile group takes majority stake
The bullish outlook lifted investor sentiment, with shares jumping 16.7% in early deals on Thursday to 1.4p.
For the company’s results for the year ended 31 December 2018, there was an adjusted EBITDA loss of US$1mln, wider than the US$600,000 loss the year before but in line with expectations. Revenues, meanwhile, had risen 10% in the year to US$56.4mln.