Depa slips into $30m loss in H1
Dubai, September 4, 2012
Dubai-based Depa, a global leader in interior contracting, posted a loss of Dh110 million ($29.9 million) for the first half of the year as against a profit of Dh48 million during the same period in 2011.
Half-year profitability was impacted by issues on three projects most notably the termination of the Lindner Depa JV contract for the New Doha International Airport, Depa said on its website.
These projects and a squeeze on contract margins during the period resulted in the company recording the loss, it added.
The company’s revenues for the six months came in at Dh825 million, with all regional subsidiaries experiencing revenue growth, as compared with Dh749 million for the same period in 2011.
“Revenues have increased in H1 year on year and all our regional subsidiaries have experienced uplifts in revenue. We have signed over Dh940 million in new contracts over the last six months and we continue to have a strong backlog of projects on which we are working,” said Mohannad Sweid, CEO of Depa.
“Whilst specific contract issues have impacted these results; longer term, severe price competition and a reduction in client budgets as a result of the continuing global economic slow-down will have a direct impact on our margins and profits in 2012 and 2013.
“We believe difficulties are largely industry and macroeconomic related and expect to come out stronger and better positioned in future years.”
Total assets as at June 30 were Dh2.95 billion compared to Dh3.03 billion as at December 31, 2011. Total liabilities increased from Dh1.29 billion to Dh1.3 billion. - TradeArabia News Service