Hong Kong-listed fashion retailer Bauhaus International anticipates a surge in profit for the last fiscal year thanks to enhanced operating efficiency.

The company’s board expects to record a net profit of HK$7 million to HK$10 million (US$892,000-$1.2 million) for the year ended March 31, compared to approximately HK$1.2 million in the prior year.

The results were primarily attributable to the reversal of impairment provision on the group’s right-of-use assets of HK$1.4 million, and the decrease in impairment provision on property, plant and equipment to HK$0.2 million due to the enhanced operating efficiency.

Management noted that the information was based on the preliminary assessment of unaudited management accounts. 

The group is finalising its annual financial results and expects to publish them by June 27.

Founded in 1991, Bauhaus specialises in denim and leather products and operates bands such as Salad, Nieeth and Muet across Hong Kong and Macau.