Dogi, the bankrupt Spanish textiles firm, today (18 May) reported a EUR1.4m (US$1.7m) first-half loss, five times less than the EUR6.9m decline in the year-ago period, as its turnaround plan bore fruit.

In a statement, the company said the result shows the plan, which envisions heavy cost cutting efforts and redundancies, is working to restructure the Barcelona-based stretch-fibres maker.

Revenues fell to EUR17.3m from EUR23.4m because of slumping demand.

Dogi said weakening European textiles demand continued to hurt its business but improving rates in Asia and the restructuring plan helped boost the bottom line.

Business is tough in recession-hit Spain where demand remains weak, Dogi said, adding that it will launch a 50-day temporary redundancy programme to avoid any losses.

Dogi, which filed for bankruptcy last May, hopes to post a "slight" profit this year and to emerge from bankruptcy in "coming weeks", it said in a statement in April.