Depa, the Dubai-based interiors development company, has reported an increase in profits and a doubling of turnover for its Singapore division during the third quarter of this year after its acquisition of a rival earlier this year.
Last week, the contractor Arabtec bought a 24 per cent stake in Depa, the world's largest interior contractor.
In a statement today to Nasdaq Dubai, Depa said it was well positioned to establish itself in Asia and push into China after post-tax profits for Design Studio, its furniture manufacturer and fit-out specialist subsidiary, rose 6.3 per cent to Dh6.9 million (US$1.8m), while turnover increased 102 per cent to Dh118.6m.
Design Studio, which is also listed on the Singapore bourse, acquired associate company DDS in the first quarter of this year. DDS, which specialises in hospitality and commercial space in Singapore, Malaysia and Thailand, was originally set up as a joint venture between Depa and Design Studio in 2008, before Depa bought the Singapore firm in 2010 for Dh295m.
Design Studio's distribution division recorded turnover growth of 240 per cent compared with the same period the previous year, to Dh6.9m while its hospitality and commercial divisions reported revenue grew 228 per cent to Dh75m.
The residential property division recorded far lower revenue growth at just 9 per cent to Dh36.6m.
Design Studio said it was planning on increasing its sales and marketing activities in China, having opened a 40,000 square feet showroom and sales office in Dongguan, Guangdong province, this year.
"Today, our Asia strategy is paving the way for Depa to fully establish itself across the region, especially China," said Mohannad Sweid, the chief executive of Depa.
"With our comprehensive network and in-depth market expertise, we are highly enthusiastic about the growth potentials and synergies that the DDS acquisition can further generate.
"Design Studio has completed some of the most iconic brand names in Asia, such as Marina Bay Sands [in Singapore], and the company is well positioned to increase its share across all its divisions in 2013 and beyond."
Design Studio said its Malaysian subsidiary won an alteration and addition contract for the Hilton Hotel in Kuala Lumpur during the third quarter.