The share price of Bagir Group fell by almost 70 percent on Thursday, just five weeks after its IPO. The suit maker issued a profit warning which revealed that it largest customer (believed to be Marks and Spencer) has reduced its orders. In a statement, the company said:
“The company has experienced an unexpected reduction in the volume of purchase orders and a reduction in margins on retained revenue from its largest customer predominantly for the fourth quarter of the year. The company also notes that there can now be no certainty that the customer’s previous order patterns with the company will be sustained.
“Following these reductions in purchase orders, the company now expects revenue for the year ending 31 December 2014 to be approximately $100-104 million and EBITDA to be approximately $4-6 million. Accordingly, the company has commenced the process of obtaining a waiver from its debt providers regarding its banking covenants.”
It floated on the London Stock Exchange with a price of 56p per share, and now finds its share price at just under 20p per share.