New business and a restructuring plan buoys profit
Dubai-based interiors contractor Depa says nine-month profit jumps more than fourfold
Depa, the Dubai-based interiors contractor that fitted out Burj Khalifa, said that its profit rose more than fourfold in the first nine months of the year on the back of new business and a restructuring plan that has helped the company turn the corner.
Net profit rose 343 per cent to Dh129.4 million from Dh29.4m in the same period last year. Revenue rose to Dh1.225 billion in the nine months ended September 30, up 3 per cent from last year when the company booked Dh1.186bn in revenues.
“Depa’s results for the year to date reflect the Group’s continued progress in executing our clearly defined business strategy, in conjunction with sound operational performance and management’s collection of long outstanding receivables," Hamish Tyrwhitt, Depa's chief executive.
"This has resulted in the group materially strengthening its balance sheet and further de-risking the business. Reflecting these positive results and in line with Depa’s objective to return long-term sustainable value to shareholders, this quarter Depa paid its first dividend since 2010."
The company said it had a number of sizeable projects in the pipeline which it may win and that it continues to make strong progress in project execution. Depa's Deco Group was awarded the fit-out of several high-end retail outlets in the new Dubai Mall extension. Deco Group is also undergoing a cost cutting exercise that will yield greater savings next year.
The company had been suffering financially amid the regional slowdown in the construction industry and has taken measures including job cuts to maintain profitability.
"The outlook remains the most positive it has been for some time," Mr Tyrwhitt said. "This positive outlook, along with Depa’s market leading positions and strong balance sheet, will allow Depa to take full advantage of both organic and inorganic growth opportunities.”