Following the entry of Sherpa, Dogi exits the red

Spanish textile group Dogi left behind the red after earning a net profit of 14.5 million euros at the end of 2014, compared with a loss of 9.1 million recorded a year earlier.

"Efforts to restructure Dogi after the entry of Sherpa in the capital of the company are beginning to bear fruit in terms of results," the company said in a statement.

This substantial improvement was mainly due to the entry of Sherpa in the capital of the textile group. The investment partner has facilitated the recapitalisation plan for the firm, as well as an agreement to make peace with major creditors, as the company said last Friday in a filing to the Commission Nacional del Mercado de Valores (CNMV).

Sales fell by 8.7 percent from 40.5 million in 2013 to 36.9 million euros this year, although Dogi stressed that this drop in sales has not had a proportional impact on results due to the measures implemented to reduce costs and the methodology put in place to improve productivity.

The group recorded an operating loss of 2.6 million euros, compared with 2 million euros last year.

Dogi, optimistic about the future of its sales in Spain

Sales in its domestic market - Spain - were 14.4 million euros, behind the 15.4 million euros the company billed in 2013. "The operating result reflects extraordinary expenses totalling approximately 0.8 million euros relating to costs incurred by the company in connection with the restructuring and 1.1 million in compensation for staff," explained the company in relation to its performance in the Spanish market.

However, the directors of the company remain optimistic about the near future, noting that "it is important to reflect that the backlog in Dogi Spain has increased 16.4 percent over the previous year, which invites to think that this trend will be reinforced in the coming periods."

As for its future strategy, Dogi has shared his intention to create a large global textile group with the acquisition of new businesses in Europe and America. Notably, the US subsidiary of Dogi recorded positive EBITDA of 307,000 euros although sales fell to about 4 million.

Meanwhile, in Asia, Dogi is working to establish joint ventures with local partners.

The business of stretch fabrics based in Barcelona has stated that its main objectives to grow quickly are improving turnover, restore customer confidence, enhance R & D to develop new products and enter new segments, together with promoting a clear strategy of service / price for large distribution chains.