Investor and Media Centre

Q3 2010 Trading Update

Oct 31 ,2010

Depa Limited (ticker DEPA) (‘Depa’ or ‘the Company’), one of the world’s leading interior contracting companies, today issues the following update for the third quarter ended 31 September 2010.

 

The Company continues to perform well, and trading during the third quarter was in line with previous guidance. Whilst year end revenue and profit expectations will be lower than 2009 (excluding the impact of the Burj Khalifa claim), the improving backlog, which now stands at AED 2.4bn*, suggests the Company will be well positioned for circa 20% growth in 2011 and 2012. 

Commenting on the results, Mr. Mohannad Sweid, CEO of Depa, said:   “We are now seeing the early signs of economic recovery across our core markets and this is evident in the build up of exciting projects moving into our backlog, including new territories like Yemen and Angola, and growth markets, like Abu Dhabi.   During the period, and in line with our diversification strategy, we also strengthened our presence in Asia increasing our ownership in Design Studio to 92%. This acquisition gives us a leading brand with which to expand into the fast growing Far East markets. We head into the fourth quarter with a more optimistic frame of mind for the coming few years.”

 

In the period, the Company won a number of significant mandates including the full fit out of the International Petroleum Investment Company’s new headquarters in Abu Dhabi and the refurbishment of several areas of Terminal 1 at the Abu Dhabi airport. 

 

Further afield, Depa’s subsidiary Mivan Depa, recently announced AED 100 million worth of new contracts including the refurbishment contract for the Aden Hotel in Sana’a, the first project Depa has won in Yemen. Depa will look to use this project as an entry point to win further projects in the Country.   

 

Depa also announced its second contract win in Angola in the third quarter undertaking the AED220m fit out and furniture, fixtures and equipment (FF&E) of a five-star hotel in the Angolan capital. Angola, and the greater Central-African region, is continuing to make significant economic reforms, and is recording strong economic growth, presenting a number of opportunities for Depa to explore. 

 

Top Backlog Projects List

 

 

Project Name

Country

Total Backlog

Confidential Hotel

Angola

219,643,948

PPM Conrad Hotel

UAE

197,162,132

Twin Tower Hotel

Qatar

120,717,027

Doha City Center

Qatar

107,806,308

IPIC Headquarters building AD

UAE

102,903,622

Tiara Palm Hotel

UAE

72,417,235

Abu Dhabi Stock Exchange

UAE

67,040,592

Dubai Metro - Green Line

UAE

65,627,299

Hamad Medical Corporation

Qatar

64,954,124

Ritz Carlton Millenia

Singapore

62,034,101

Confidential Project

UK

60,000,000

Cleveland Clinic

UAE

56,500,000

The Boulevard

Jordan

42,711,854

Grand Hyatt

Malaysia

40,000,000

Al Turki Business Park

Saudi Arabia

37,584,839

Mazagan Villa

Morocco

30,090,195

Ferrari Experience - Yas Island

UAE

29,573,466

Al Ghuriar City Expansion - Phase II

UAE

28,782,099

Capital Centro Abu Dhabi

UAE

26,738,431

ICHQ-Abu Dhabi

UAE

22,582,844

68m Yacht - Confidential Client

Germany

22,243,101

ITC Grand Chola Guest rooms and corridors

India

19,519,694

Medical research unit at Weil Conell Medical College

Qatar

15,466,308

Dhafir Development - Beach Tower for Mohamed Al Dhaheri

UAE

13,488,863

Retail experience- welcome pavilion

UAE

12,615,350

Aden Hotel - Phase 1

Yemen

12,260,404

M Y Swift 141'

UAE

12,204,862

90m Yacht - Confidential Client

Germany

11,391,594

 

The backlog figure of AED 2.4billion includes backlog for all Depa’s subsidiaries, however the list of projects does not include those of Design Studio due to client confidentiality.

 

- Ends -

 

For further inquiries, please contact:

 

 

Depa Limited

Noor Sweid

Managing Director, Strategy

Tel: +971 4 224 3800

strategy@depa.com

Brunswick Gulf Ltd

Rupert Young / Jade Mamarbachi

Tel: + 971 4 365 8260

ryoung@brunswickgroup.com / jmamarbachi@brunswickgroup.com

 

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 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 9,000 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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