Depa issues first quarter trading update for the period ended 31 March 2013

In the first three months of the year, Depa saw an 18% rise in revenues to Dhs446m (Q1 2012: Dhs378m) from a diverse and solid backlog. Contract margins rose to 13% from 11% in the same period last year, supporting a 36% increase in contract profit to Dhs57m (Q1 2012: Dhs42m). Net profit before non-controlling interests was Dhs12m, a significant improvement on last year (Q1 2102: loss Dhs9M).

As of 31 March 2013, Depa's backlog stood at Dhs3bn. The Company signed Dhs324m of new contracts, enlarging its already strong backlog by 8%. Saudi Arabia dominates the backlog with 30% of the total value of projects, totalling approximately Dhs900m. These projects include the Mekkah Mosque Shamiya expansion (Dhs411m); King Abdullah Petroleum Studies and Research Centre (Dhs311m) and King Saud University (Dhs177m).

Europe now accounts for 14% of the total backlog, twice that of the previous year. This is principally due to a number of new contracts signed by Vedder, Depa's specialist yacht business. This includes a Dhs110m contract for the fit-out of a private yacht in Spain and two further yacht contracts worth Dhs125m collectively. In Asia, a Dhs30m contract was signed with the Mandarin Oriental in Malaysia whilst Singapore added four new projects worth a combined Dhs23m. This brings Singapore's total to 22 projects over Dhs10m and resulting in Asia having a total backlog of Dhs415m.

Depa's balance sheet remains strong with total assets at Dhs2.96bn (FY 2012: Dhs3.14bn). The decrease was primarily due to a reduction in cash and bank balances of Dhs50m due to loan repayments of Dhs30m and also due to a healthy drop in trade receivables and unbilled revenue during the quarter.

Mohannad Sweid, CEO of Depa Ltd, said: "We have seen a strong start to the year and are making good progress especially in our contracting business in the Gulf countries, most notably Saudi Arabia. Over the past few years we have positioned the business ready for a recovering market and we are seeing a rise in the number of projects for tender. It is early days and we remain cautious as to the projects we take on. Careful project selection has helped margins improve this quarter and we will continue to look for further margin improvement over time and get back to historical levels."

Backlog Projects List (only projects worth over Dhs10m are listed) as of 31 March 2013.