Depa Trading UpdateJul 28 ,2008
Depa Ltd – Trading Statement
Dubai, 28 July 2008 - Depa Limited (ticker DEPA) (“DEPA” or “the Company”), the world’s largest interior contractor, issues the followingupdate ahead of the announcement of its interim results on 20 August 2008.
Depa confirms that it expects in excess of 50% growth in interim revenues and net profits compared to the same period last year and is also on target for 40% growth for the full year. Depa is experiencing strong sales growth, with project wins part of a clear strategy and investment and acquisition plans on track. The Company is also as planned successfully entering new markets such as Singapore, where Depa’s joint venture DDS Contracts & Interior Solutions Pte Ltd recently won an AED186.5m contract.
However, it should be noted that business is highly seasonal and usually less than a quarter of contract income is realised in the first half of the year, whilst a substantial portion of contract income is recognised in the last quarter of the year. This cyclicality in revenue recognition is a characteristic of the interior contracting sector as the end of the fiscal year is usually used as contract deadline by clients.
Depa and its subsidiaries have won a number of prestigious contracts and secured orders in the first half of the financial year. These include an AED 375m contract for the complete fit out of 13 Dubai Metro stations as well as most recently, an AED 800 million secured orders for complete fit out works for eight prestigious new four star and five star hotels across the UAE as well as a private palace located in Dubai.
Depa Ltd +971 4 224 3800
Noor El-Solh, Managing Director, Strategy
Brunswick Gulf Ltd +971 4 365 8260
Rupert Young / Azadeh Varzi
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 5 star hotels, high-end residential properties, retail outlets, yachts, as well as public sector amenities such as hospitals and airports. 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, 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 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 Mazagan Resort (Casablanca).