Depa Q1 net profit surges 27pc
Dubai, May 17, 2014
Depa, a leading Dubai-based interior contracting company, has registered a 27 per cent jump in its net profit for the first quarter which rose to Dh14 million ($3.8 million) compared to Dh11 million last year.
Depa reported a three per cent increase in group revenues which hit Dh461 million compared to Dh446 million last year, while its gross profit rose nine per cent to Dh62 million compared to Dh57 million in 2013.
The company’s total assets reached Dh3.22 billion at the end of the first quarter compared to Dh3.21 billion and its cash at bank was Dh389 million, said the company in its statement.
As of March 31, 2014, Depa’s backlog was Dh2.52 billion, in line with the Dh2.53 billion announced at year end 2013 and down from last year’s Dh2.98 billion, it added.
Segmentally, hospitality continues to remain the leading sector, increasing its value to 40.3 per cent over the last three months and now accounting for over Dh1 billion of backlog.
Vedder signed up two new projects which has lifted the yacht segment to second place at 18.8 per cent (Dh475 million) with residential taking third at 17.9 per cent (Dh451 million).
The UAE has a total backlog of Dh630 million, having improved by Dh330 million year-on-year and accounting for 25 per cent of regional segmentation. Meanwhile, Asia and Mena (excluding the UAE) accounted for Dh706 million (28 per cent) and Dh643 million (25 per cent) of the deals respectively.
Europe has gained significantly, increasing to 19 per cent and taking its backlog to Dh466 million compared to last year's Dh407 million.
Commenting on the performance, chairman Hasan Ismaik said: "We are encouraged by the solid start to the year both financially and operationally. We have posted a net profit and an increase in both group revenues and gross profits."
"Our backlog has also been enhanced on the back of our recent strategic and operational restructuring and the efficiency it has had on our business and bottom line. We remain focused on delivering further restructuring initiatives in the coming period, as we look forward to set a long-term plan that would help us maximise our group revenues, and create long-term value for our shareholders at the same time," he added.
On Depa’s financial position, Ismaik said: “We are in a strong financial position, especially following the cash inflow we received from our operations during 2013 and the first quarter of 2014, instead of relying on our financial resources, like what we did in 2012. We are now well-positioned to further strengthen our financial position by considering different financial solutions and capital restructurings.”
Four prominent contracts were signed during the first quarter - two by Vedder, Depa’s German-based luxury yacht company, and two in the GCC.
Vedder took on two new interior contracting projects. The first is a full turnkey project whilst the second is for significant parts of the luxury areas of a yacht interior project and is Vedder’s first interior project secured at Amels in the Netherlands. The contracts are collectively worth Dh129 million, said the statement from the Dubai fitout firm.
In Doha, an interior decorating contract worth Dh85 million was signed for a 16-floor government tower project. The scope of work includes the complete fit-out works, MEP, IT, AV system and furniture covering an 11,000 sq/m area.
The project is due for completion in mid-2015. In Abu Dhabi, National Bank of Abu Dhabi (NBAD) agreed an interior fit-out and renovation works of 25 branches worth Dh62 million. The project will last until June 2015.-TradeArabia News Service