Investor and Media Centre

Depa first quarter 2011 trading statement

May 4 ,2011

Dubai, UAE; 4 May 2011: Depa Limited (ticker DEPA) (‘Depa’ or the ‘Company’), one of world’s leading interior contracting companies, today issued a first quarter trading update for the period ended 31 March 2011.

 

The first three months of 2011 has seen Depa perform well, given the difficult trading environment. The Company’s high-quality backlog of new contracts increased to 2.3 billion as of end of March, up from AED2.2 billion at the end of 2010. In 2010, Depa's management increased efforts to ensure that new additions to the backlog were of high quality. This policy was carried into 2011 and Depa continued to be selective about clients, funding structure of projects it undertook, and other risk-related criteria. This strategic decision has lead to an improvement on quality as well as cash collection, receivables and project margin on current and future projects, which has had an impact on 2010 financial results, and will continue to improve future company financials. 

 

Commenting on the period, Mr. Mohannad Sweid, CEO of Depa, said: “We have made a solid start to 2011, consolidating our market leading position, and we are seeing signs of a return to more normal levels of quarterly revenues. We are emerging from our ‘recession year’ and are busy tendering for a large number of new contracts across the hospitality and infrastructure sectors. Today we are stronger and better positioned and expect 2011 to be an improved year where we return to profit levels within similar ranges to those prior to 2010.”

 

Diversification by geography and market sector remains central to Depa’s long held strategy. Over the period, Depa has signed a number of contracts which further reduce the Company’s dependence on any one country or market segment. For the period 1 January 2011 – 30 April 2011, Depa has been awarded new contracts worth over AED500 million.

 

Depa grew its presence in the Azerbaijan market in Q1 2011; signing a number of new contracts, including a AED121 million contract for the interior fit-out of the Baku Flame Towers project. The Flame Towers development will feature three high-rise buildings including the hotel, residential and office facilities ranging in height from 34 to 39 stories. The other contracts include the fit out of the new JW Marriott Hotel in Baku, worth AED41 million, and the Port Baku Towers Project, worth AED27million.

 

Meanwhile, Depa’s luxury yacht subsidiary, Vedder, has secured three new contracts in Germany and Austria, totalling AED42 million. These contracts have affirmed Depa’s position as one of the largest and leading yacht interior specialists in the world.

 

Elsewhere, Depa has successfully built on its position in the United Kingdom through a £2 million (AED12 million) furniture, fixtures & equipment (FF&E) contract for all 45-rooms and suites and the public areas at the 5* Raithwaite Hall Country Retreat in Yorkshire. Depa Group has previously worked on London-based hotel projects such as Grosvenor House, Four Seasons Canary Wharf, Le Méridien Waldorf and The Savoy.

 

In Depa’s home market of Dubai, the first quarter of this year has seen Depa sign a AED59 million contract for the fit out and FF&E for the Fairmont Palm Hotel & Resort. The five-star beachfront hotel is comprised of 381 rooms and suits, and is located on Dubai’s Palm Jumeirah development.

 

Top Backlog Projects List

The below table represents the top 90% of Depa’s total backlog

 

 

Project Details

Total Backlog (Dhs)

 

Project Name

Country

1

Intercontinental Hotel

Angola

213,703,398

2

PPM Conrad Hotel

UAE

144,423,084

3

Baku Flame Tower Project

Azerbaijan

121,275,000

4

Twin Tower Hotel

Qatar

120,942,000

5

IPIC Headquarters

UAE

92,705,527

6

Doha City Center

Qatar

85,569,972

7

Grand Hyatt Hotel 

Malaysia

75,927,760

8

Yasmeen Rotana

Syria

72,451,334

9

Topaz

Germany

69,263,742

10

Gardenia Rotana

Syria

67,860,255

11

Hamad  Medical Corporation

Qatar

64,593,705

12

Fairmont Palm Hotel & Resort

UAE

58,973,149

13

Cleveland Clinic

UAE

53,802,553

14

JW Marriott Hotel

Azerbaijan

39,962,114

15

The Boulevard Abdali & Penthouse

Jordan

39,152,667

16

Abu Dhabi Stock Exchange

UAE

32,753,784

17

Confidential

Singapore

32,572,376

18

ITC Chennai

India

30,627,938

19

Reflection @ KeppelBay

Singapore

29,503,705

20

Goodwood Residences

Singapore

27,519,540

21

Port Baku Tower

Azerbaijan

26,878,247

22

Capital Centro

UAE

23,510,361

23

The Minton

Singapore

22,947,612

24

Al Bahr Towers-

UAE

21,855,491

25

Al Ghuriar City Expansion

UAE

21,238,977

26

Grand Hyatt

Malaysia

21,162,778

27

Novotel Platinum

Thailand

20,676,043

28

Al TurkiBusinessPark

Saudi Arabia

18,981,463

29

Mazagan Villa

Morocco

18,374,516

30

Confidential

UAE

17,592,993

31

Interlace

Singapore

17,103,810

32

New DohaInternationalAirport

Qatar

14,836,575

33

Confidential

Singapore

14,152,285

34

Rihan Heights

UAE

14,079,959

35

Anderson 18

Singapore

13,968,112

36

Dhafir Development.

UAE

13,477,417

37

Confidential

Singapore

12,630,251

38

The Ritz Calton

India

12,054,220

39

Viva

Singapore

11,630,591

40

Ritz Carlton Millenia

Singapore

11,579,935

41

Dubai Metro - Green Line

UAE

11,358,844

42

5 Stones

Singapore

10,994,874

43

Confidential

Singapore

10,453,829

44

The Galleria Mall

Jordan

10,178,828

45

Centennia

Singapore

9,844,699

46

Confidential

Germany

9,399,570

47

M Y Swift 141m

UAE

9,313,906

48

Urbano Taksin

Thailand

9,202,557

49

Qatar National Convention Centre

Qatar

9,115,376

50

Confidential

Singapore

9,065,019

51

Confidential

Singapore

8,803,069

52

Parvis

Singapore

8,614,094

53

W Hotel

Thailand

8,571,517

54

Confidential

Qatar

7,820,302

55

Asia Square Tower One

Singapore

7,785,133

56

Confidential

Singapore

7,649,126

57

Raithwaite Hall Hotel.

UK

7,498,416

58

Marassi

Egypt

7,468,346

59

Caspian

Singapore

7,311,189

60

Silver III

Australia

7,180,523

61

Confidential

Singapore

7,091,878

62

Princes Noura University

Saudi Arabia

6,151,701

63

Ritz Carlton

Singapore

6,001,770

64

Confidential

Singapore

5,701,270

 

 

 

 

 

Total

 

2,024,891,074

 

---ENDS---

 

For further inquiries, please contact:

 

Depa Limited

Noor Sweid

Managing Director, Strategy

strategy@depa.com

Tel: +971 4 224 3800

 

Brunswick Gulf

Rupert Young / Jade Mamarbachi

ryoung@brunswickgroup.com / jmamarbachi@brunswickgroup.com

Tel: + 971 4 446 6270

 

 

 

ABOUT DEPA LIMITED

 

Depa Limited is a leading interior contracting company in the Middle East, North Africa and Southeast Asia regions. Operating principally in the luxury fit-out industry, its main areas of business cover luxury hotels, infrastructure and public sector amenities such as hospitals and airports, high-end residential properties, retail outlets, as well as yachts. Depa is listed on the NASDAQ Dubai (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, fixed joinery, panelling, wood-works, doors and frames;
  • Manufacturing : which comprises a network of factories and joineries which produce customized furniture, fixtures and equipment (FF&E);
  • 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 customized 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 Mazagan Resort (Casablanca).

CONTACT US

Depa Group, Vision Tower,
35th Floor, P.O. Box 56338,
Dubai, U.A.E.
T: +9714-446-2100
F: +9714-446-2102
info@depa.com

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