x Abu Dhabi, UAEWednesday 26 July 2017

Eshraq fails to build profit in Abu Dhabi, posting Dh1.2 million loss

Markets Update: Eshraq Properties' run of losses lengthens, as another quarter ends without any sales of properties.

Eshraq Properties has ended the year in the red as property sales again failed to materialise in the fourth quarter.

The property developer, which listed on the Abu Dhabi Securities Exchange (ADX) in September, reported full-year losses of Dh1.2 million.

Eshraq recorded no revenue from property handovers since July, when it converted into a public joint stock company. Eshraq's quarterly losses totalled Dh329,500.

The company did not provide comparative data for the previous year.

Eshraq has made no revenues and has recorded losses during every quarter since its listing, the first initial public offering completedon the ADX since the financial crisis which was not forced by regulatory requirements.

The company's only income during the year came from "sundry income" and interest earned on its deposits.

The developer announced a cash dividend of 6 fils per share.

Eshraq's stocks have fallen 35.2 per cent since their listing to 33 fils each.

The developer is owed trade receivables totalling Dh401m, which the company described in its financial statements as "rescheduled" and "past due at the reporting date… for which the company has not provided."

The amount in arrears, owed by "reputable GCC Nationals", are still considered recoverable. The total has fallen by 21.1 per cent since September.