Depa issues first quarter trading update for the period ended March 31 2014
Depa Limited, one of the world’s leading interior contracting companies, issued a first quarter trading update for the period ended March 31 2014.
Depa reported a 3% increase in group revenues to AED 461 million (Q1 2013: AED 446m), with gross profit up 9% to AED 62 million (Q1 2013: AED 57m) and net profit after non-controlling interest was 27% higher at AED 14 million (Q1 2013: AED 11m). The Company’s total assets reached AED 3.22 billion at the end of Q1 2014 (Dec 2013: AED 3.21bn) and its cash at bank was AED 389 million (Dec 2013: AED 399m).
As of 31 March 2014, Depa’s backlog was AED 2.52 billion, in line with the AED 2.53 billion announced at year end 2013 and down from Q1 2013’s AED 2.98 billion. Segmentally, hospitality continues to remain the leading sector, increasing its value to 40.3% over the last three months and now accounting for over AED 1 billion of backlog. Vedder signed up two new projects which has lifted the yacht segment to second place at 18.8% (AED 475m) with residential taking third at 17.9% (AED 451m).
UAE has a total Backlog of AED 630 million,having improved by AED 330 million year-on-year (Q1 2013: AED 300m) and accounting for 25% of regional segmentation. Meanwhile, Asia and MENA (ex–UAE) accounted for AED 706 million (28%) and AED 643 million (25%) respectively. Europe has gained significantly, Increasing to 19% and taking its backlog to AED 466 million (Q1 2013: AED 407m).
Hasan Ismaik, Chairman of Depa Limited commented: “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.”
On Depa’s financial position, Mr Ismaik added: “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 of the year; two by Vedder and two in the GCC. Vedder, Depa’s German based luxury yacht company 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 AED 129 million.
In Doha, an interior decorating contract worth AED 85 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 AED 62 million. The project will last until June 2015.