Interim Results 2008: Net Profits up 75%Aug 20, 2008
- Net profit after minority interests up 75% at AED 55.6m (H1 2007: AED 31.8m) with strong financial performance driven by landmark projects wins
Contract income up 24.8% at AED 741.1m (H1 2007: 593.9m)
- Business outside the UAE making an increasing contribution to revenues – MENA contract income AED 150.5m (H1 2007: AED 65.5m) and Rest of World contract income AED 20.8m (no contribution H1 2007)
- Business is highly seasonal and usually between a quarter and a third of contract income is realised in the first half of the year
- Over AED 2.5 billion in contracted backlog (AED 1.6 billion Dec 07). Signed Letters of Understanding (‘LOUs’) with a total value of AED 1.2bn, of which 20% consists of Abu Dhabi business. Since the period end, a further AED 1billion in contracted backlog and a further AED2billion in LOU’s signed
- Entering new markets as planned. New Depa Design Studio joint venture in Singapore has established a strong foothold in the wider Asian interior fit-out market
- Increased holding in Jordan Wood Industries Company (JWICO), a Jordan-based wood manufacturing specialist, by 22% to 36.4% as part of clear vertical integration strategy of acquiring manufacturing and procurement businesses.
Commenting on the results Mr Mohannad Sweid, CEO of Depa, said:
“This is our first set of results since becoming a public company and we are delighted to report excellent profit growth across our business. We have an exceptionally high level of contracted backlog and have signed numerous prestigious contracts, especially in Abu Dhabi which has extensive growth ambitions. We continue to enter new markets as planned and have closed transactions in line with our geographical expansion plans. We see strong growth potential across our business for the rest of the year and into 2009.”
The full set of Interim Results can be found on Depa’s website: www.depa.com
* This includes the results of Depa United Group from 1 January 2008 to 31 March 2008 and, post IPO; Depa Limited from 1 April 2008 to 30 June 2008.
Depa Ltd+971 4 224 3800
Noor Sweid, Managing Director, Strategy
Brunswick Gulf Ltd+971 4 365 8260
Rupert Young / Azadeh Varzi
About Depa Limited:
Depa Limited is the largest interior contractor in the world. Operating principally in the luxury fit-out industry, its main areas of business cover hospitality, high-end residential properties, retail outlets, yachts, as well as public sector amenities such as airports, hospitals and transport systems. Depa is listed on the Dubai International Financial Exchange (ticker DEPA) and has Global Depositary Receipts on the regulated market for listed securities of the London Stock Exchange plc (ticker DEPA and DEPS).
The range of business activities performed by Depa comprises:
•Interior contracting: which focuses on luxury interior fit-out services, which include installation and finishing of floors, walls, ceilings and fixed joinery;
•Manufacturing: which comprises a network of factories and joineries which produce customised furniture, fixtures and equipment (FF&E) for Depa itself and the wider market;
•Procurement: which involves the procurement of supplies and materials from third parties to support and complement Depa’s interior contracting and manufacturing operations as well as third party procurement contracts for specific FF&E projects.
By integrating these services into a single package, Depa provides clients with comprehensive and customised interior contracting solutions.
With more than 8,000 employees worldwide, the company operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Syria, Libya, Morocco, India, Malaysia, Thailand, China, Singapore, UK, the Netherlands, and the United States. Through this network, Depa has successfully executed large and complex projects in over 16 countries including the Burj Al Arab Hotel (Dubai), Emirates Palace (Abu Dhabi), the Museum of Islamic Art (Doha), Four Seasons Hotels (Sharm El Sheikh & Mumbai) and Atlantis Resort (Marrakesh).
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