(MENAFN- Khaleej Times)Interior fit-out contractor Depa on Saturday declared net income of Dh15 million and a backlog of Dh2.3 billion for the first half of 2015.
Its net profit for the January to June period plunged by more than 44 per cent compared to Dh27 million in the same period last year. This resulted from cost revisions involving major projects and additional costs incurred from delays the Dubai-based company said in a statement. Gross margin during the period was 10 per cent compared to 13 per cent last year it added. The contractor's revenue during the first six months of 2015 reached Dh841 million four per cent lower than in the corresponding period of 2014. The slight decrease was due to a smaller backlog at the start of 2015. This was because Depa was careful in project selection. The backlog was replenished with a number of high quality contract wins in the first six months of 2015 and ended the period at approximately the same level as the corresponding period of 2014. Depa's total assets as at June 30 2015 stood at Dh2755 million compared to Dh2981 million as at December 31 2014. Total liabilities at the end of the period decreased to Dh1266 million as compared to Dh1492 million at the end of 2014. Total equity decreased slightly from Dh1490 million to Dh1489 million due to currency exchange losses recorded on translation of foreign operations. Nadim Akhras Depa's group chief executive officer (CEO) said: "The first half of 2015 has witnessed Depa continue to implement its strategy of geographical diversification and operational consolidation creating a secure base for sustainable long-term growth. We are encouraged by our performance in mature European and Far Eastern markets as well as our progress in emerging and frontier markets in Africa and South Asia. "Following several challenging years for the industry in our core UAE market we are also cautiously optimistic about the recent pick-up in fit-out activity which we anticipate will continue in the second half of the year." Depa signed new contracts in H1 2015 worth approximately Dh946 million a 64 per cent increase on the H1 2014 performance. Key drivers came from Dubai-based Depa Interiors signing contracts worth Dh348 million in the UAE Kuwait and Bangladesh; Germany-based luxury yacht interiors specialist Vedder securing five contracts totalling Dh279 million; and Design Studio Singapore's premier furniture manufacturer winning projects worth Dh175 million. Depa's backlog reached Dh2326 million as at June 30 2015 approximately 12 per cent higher than at the end of 2014. The increase was mainly due to a rebound in the Dubai market and continued contribution from the company's German and Asian operations. The hospitality sector now accounts for 57 per cent of Depa's backlog a 21 per cent increase in relative terms. Retail spaces and corporate offices have also increased their relative share and now account for six per cent of the backlog. -
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