Depa Announces Full Year 2015 Financial ResultsApr 28 ,2016
DEPA ANNOUNCES FULL YEAR 2015 FINANCIAL RESULTS
28 April 2016; Dubai, UAE: Depa Limited [Nasdaq Dubai: DEPA; “the Company”/“the Group”], one of the world’s leading interior contracting solutions providers, today reported its financial results for the full year ending 31 December 2015.
LIQUIDITY AND CAPITAL RESOURCES
Mohamed Al Fahim, Chairman, Depa, said: “Echoing conditions across the wider industry, Depa’s revenues and profits were lower in 2015 on a year-on-year basis, primarily due to goodwill impairment charges and the need to take provisions on certain long outstanding receivables, as well as expenses relating to the ongoing streamlining of our operations.
“While 2015 was a testing time for the Company, divisions including Singapore-headquartered Design Studio Group and our Germany-based mega yacht fit-out subsidiary Vedder performed excellently. Meanwhile, in the Middle East, the accelerated consolidation of all business units under the single Depa Interiors brand created a platform to improve the bottom line by leveraging synergies and delivering better performance.
“As we reflect on a challenging year for the entire industry, with the macroeconomic outlook far from clear, Depa is realistic about the opportunities for growth in 2016. However, with our healthy backlog and stable balance sheet we view 2016 with quiet confidence and cautious optimism.”
Hamish Tyrwhitt, Group Chief Executive Officer of Depa, added: “Despite the economic headwinds, several of Depa’s core operational companies have performed well in 2015 delivering robust profits. This is testament to the enduring strength of our value proposition – which is all about quality.
“As a Group, significant progress was made over the last year in terms of improving efficiencies and strengthening the underlying business. Our focus in 2016 will be to continue taking the necessary steps to return Depa to a path of sustainable long-term growth and profitability.”
BACKLOG REMAINS STRONG AND STABLE
Despite challenging market conditions, Depa was able to keep its year-on-year backlog stable just above the AED 2 billion mark.
In FY2015, Depa completed a number of iconic projects that further enhanced its reputation for quality. The Company’s considerable involvement in Abu Dhabi’s new Presidential Palace, as well as KAPSARC in Riyadh and Sheikh Khalifa Bin Zayed Al Nahyan Hospital in Casablanca, showcased an unparalleled ability to realise complex and prestigious projects to an exceptionally high standard. Meanwhile, winning the Alef Residences and W Hotel Dubai on the Palm Jumeirah underscore Depa’s strength in the hospitality and serviced residential sectors.
UAE REMAINS NUMBER ONE MARKET
While Asia and Europe performed particularly well in FY2015, the United Arab Emirates remained Depa’s largest market, accounting for approximately 38% of its backlog. This was followed by Asia with 27% and Europe with 20%. Following the award of two new projects in New York City and the Bahamas, North America re-appeared in the geographic backlog split in 2015.
OUTLOOK: ROBUST PROJECT PIPELINE IN PLACE
Despite the current economic headwinds, Depa’s project pipeline remains robust. However, over the mid-term, the impact of low oil prices and potential downward pressure on sovereign spending means the Company will proceed with caution. Helping to navigate these choppy waters is a highly experienced new Group CEO, who has quickly set to work to retain Depa’s position as one of the world’s leading interior fit-out specialists.
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