Investor and Media Centre

Depa returns to profit in third quarter 2012

Nov 26 ,2012

-       11% increase in contract income year on year

-       Net profit of AED 3.4m in Q3 2012 compared to a loss of AED 16m in Q3 2011

-       New projects signed keep backlog running at near record levels

-       Asian subsidiary Design Studio records 24th consecutive quarter of profitability

 

Dubai, UAE; 27 November 2012: Depa Limited (ticker: DEPA) (‘Depa’ or the ‘Company’), one of the world’s largest interior contractors, today issues its third quarter results for the period 1 July to 30 September 2012 and its nine months results for the period ended 30 September 2012.

 

In the third quarter of the year, contract income was AED 420m, an increase of 11% compared to same period last year (Q3 2011: AED 377m) and relatively flat on the second quarter (Q2 2012: AED 447m). This solid revenue picture is due to the strong backlog of projects currently underway across many industry sectors especially hospitality, infrastructure, retail and yachts and across multiple geographies. Design Studio, the Asian business, has had a particularly strong period increasing its contract income by 102% to AED 118.65 million and recording a 24th consecutive quarter of profitability with net profit after tax of AED 6.9 million.

 

Overall, the Company recorded a small profit in the third quarter of AED 3.4m, an improvement on the loss of AED 16m in the same period last year.  This result is despite the seasonally weak profit contribution at this time of year, as well as a tougher competitive pricing environment which continues to squeeze margins as the recovery slowly emerges.

 

For the nine month period Depa has seen an increase of 11% in contract income to AED 1,245m (9M 2011: AED 1,126m) and a net loss of AED 107m (9M 2011: profit AED 32m). Whilst operating companies including Depa Interiors, Design Studio, Depa Design Studio, Vedder and Deco made strong contributions, the overall loss was primarily due to three specific contract-related project issues, the most significant being the termination of the Linder Depa JV contract at the New Doha International Airport which has been fully provided for. All three of these projects will be closed out by the year end.

 

The Company continues to have a backlog of projects at near long term record levels and has a very strong pipeline of future projects, especially in the GCC and South East Asia, which will be signed into the backlog in the coming months. Total backlog as at the 30 September 2012 was AED 2.57 billion (Q2 2012: AED 2.73 billion).

 

During the year Depa has won over AED 1,141 million of new projects including AED 339 million worth of projects in the third quarter such as the Regent Hotel in Abu Dhabi; 104 villas in Luanda (Angola); Le Meridien, CIMB and M-Suite in Kuala Lumpur and more recently the AED 93.5 million contract to undertake the supply and installation of interior decoration works for the Hilton Hotel in Abu Dhabi. Depa’s Design Studio Hospitality & Commercial division has on-going and completed projects for W and Westin hotels in Singapore whilst its Malaysia subsidiary secured an alteration and addition contract for Hilton Hotel in Kuala Lumpur.

 

Depa’s balance sheet remains strong with total assets of AED 3 billion as of 30 September 2012 (Q2 2012: AED 2.95 billion) and cash and bank balances of AED 267m (Q2 2012: AED 238m)

 

Commenting Mohannad Sweid, Chief Executive said: “The Company continues to perform well and we are seeing pleasing levels of new business in the GCC and South East Asia. Whilst our bottom line performance has been impacted by a small number of contract issues it would be wrong to let that mask the good work being undertaken across regional projects such as KAPSARC and King Saud University in Saudi Arabia, a hospital in Morocco, the hospitality projects in Malaysia, and the renewed confidence emerging across our end markets. We are starting to see real estate markets recover, especially in areas such as hospitality and retail where we have a strong focus. Whilst we expect contract margins to remain tight in the short term as the recovery emerges in patches and competition looks for market share, we have streamlined our business in recent years to position ourselves appropriately.”

 

 

Backlog Projects List (only projects worth over AED10m are listed)

 

S.N

Project Name

Country

Total Backlog

1

Singapore Projects Above 10 Million ( 21 Projects)*

Singapore

442,930,899

2

KAPSARC- King Abdullah Petroleum Studies & Research Center

Saudi Arabia

194,107,828

3

Morocco Hospital

Morocco

183,750,000

4

King Saud University

Saudi Arabia

180,378,543

5

Intercontinental Hotel

Angola

167,737,129

6

Twin Tower Hotel

Qatar

117,544,507

7

Al Forsan Sport Hotel

UAE

91,042,328

8

Accommodation Towers

Angola

88,877,761

9

Mumbai International Airport

India

76,607,451

10

Baku Flame Tower

Azerbaijan

76,508,464

11

Regent Emirate Pearl

UAE

66,281,386

12

Private Yacht

Germany

55,591,254

13

Private Yacht

Holland

49,717,950

14

Ramada Hotel

Qatar

48,179,557

15

Doha City Center

Qatar

40,181,705

16

Cleveland Clinic

UAE

39,535,102

17

Traders Hotel

Qatar

33,976,251

18

Private Yacht

Germany

33,668,039

19

PPM Conrad Hotel

UAE

22,403,260

20

Cairo Festival City

Egypt

21,984,201

21

Le Meridien Hotel

Malaysia

18,907,905

22

Traders Hotel

Malaysia

18,744,982

23

Ascott Hotel

Malaysia

17,236,904

24

Hamad Medical Hospital

Qatar

17,235,811

25

Ritz Carlton Hotel

India

17,016,069

26

CIMB

Malaysia

16,407,583

27

104 Villas Luanda

Angola

14,634,981

28

The Boulevard

Jordan

14,629,788

29

Private Yacht

Italy

13,710,374

30

Paris Appartment

France

10,822,811

31

M-Suite 

Malaysia

10,688,052

32

Urbano Taksin

Thailand

10,314,860

     

2,211,353,733

 

Singapore Projects Above 10 Million ( 21 Projects)*

   
 

Projects Over 50 Million ( 2 Projects)

   
 

Projects 30-50 Million ( 3 Projects)

   
 

Projects 20 - 30 Million ( 1 Projects)

   
 

Projects 15- 20 Million ( 4 Projects )

   
 

Projects 10 - 15 Million ( 11 Projects)

   

 

---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

depa@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 7,000 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, Morocco, India, Malaysia, Thailand, China, Singapore, UK, Germany, and the United States. Through this network, Depa has successfully executed large and complex projects in over 20 countries including the Emirates Palace Hotel (Abu Dhabi), Four Seasons Hotel (India), Grand Hyatt (Malaysia), Trump International Hotel (Las Vegas), Tokyo Midtown (Japan), Museum of Islamic Arts (Qatar), Baku Flame (Azerbaijan) and Marina Bay Sands (Singapore).

 

 For more information, please refer to the Financial Results section.

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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