Highlights
• Net profit after minority interests up 75% at Dhs55.6m (H1 2007: Dhs31.8m) with strong financial performance driven by landmark projects wins
• Contract income up 24.8% at Dhs741.1m (H1 2007: 593.9m)
• Business outside the UAE making an increasing contribution to revenues - MENA contract income Dhs150.5m (H1 2007: Dhs65.5m) and Rest of World contract income Dhs20.8m (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 Dhs2.5bn in contracted backlog (Dhs1.6 bn Dec 07). Signed Letters of Understanding ('LOUs') with a total value of Dhs 1.2bn, of which 20% consists of Abu Dhabi business. Since the period end, a further Dhs1bn in contracted backlog and a further Dhs2bn 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."
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Posted by Anne-Birte Stensgaard, Senior News Editor
