Abu Dhabi, UAE; 14 November 2012: Depa Limited (ticker: DEPA) announced its subsidiary, Design Studio (or the “Group”) - Singapore’s leading premier furniture manufacturer, product and interior fitting-out specialist, reported a 102% increase in Q3 2012 revenues to AED 118.65 million [S$40.8m] and recorded a 24th consecutive quarter of profitability with net profit after tax of AED 6.9 million [S$2.4 million] due to increased revenue arising from the acquisition of DDS Group earlier in the year.
Leading the revenue growth was the Distribution and Hospitality & Commercial divisions, both detailing triple digit growth. The former was up 240% to AED 6.9 million [S$2.4 million] and latter up 228% to AED 75 million [S$ 25.8 million]. The third segment, Residential Property, improved 9% to AED 36.6 million [S$12.6 million].
In the first nine months of the year, the Group also realised a 54% revenue increase to AED 310.5 million [S$ 106.8 million]. Backlog continues to remain strong and as of 30 September 2012 stood at AED 727 million [S$250.6million].
Mohannad Sweid, CEO of Depa Ltd, commented:
“Today, our Asia strategy is paving the way for Depa to fully establish itself across the region, especially China. With our comprehensive network and in-depth market expertise, we are highly enthusiastic about the growth potentials and synergies that the DDS acquisition can further generate. Design Studio has completed some of the most iconic brand names in Asia, such as Marina Bay Sands, and the company is well positioned to increase its share across all its divisions in 2013 and beyond.”
Bernard Lim, CEO of Design Studio added:
“Having established a strong brand name and solid track record of delivering products and projects that are synonymous with innovation and quality, we are today a partner of choice with reputable, brand-name developers and global hotel operators in Singapore and regionally. Our strong positioning has allowed us to secure new projects and strengthen our order book despite the continuing global economic uncertainties and challenging business conditions.”
Segmental Highlights
Following the strategic acquisition of DDS Group in March 2012, the Group revenue has steadily risen largely due to improvements in contribution from the Hospitality & Commercial and Distribution divisions.
The Hospitality & Commercial segment has recorded a series of on-going and completed projects such as W Singapore - Sentosa Cove, Singapore, Lanson Place Bukit Ceylon Serviced Residences in Kuala Lumpur, Malaysia, Traders Hotel Puteri Harbour, in Malaysia, ITE Central College at Ang Mo Kio, Singapore. Total revenues was up 22 8%, reaching AED 75 million [S$25.8 million] and for the first nine months of the year, contributing AED 215 million [S$74 million] to the Group’s overall revenue.
Residential Property segment has taken into account a string of on-going projects as well as successfully completed residential developments in Singapore such as Goodwood Residence, The Minton, The Interlace, The Estuary, Tree House and Hundred Trees . It also awarded three new residential projects namely Centrale 8, The Vision and The Luxurie . Third quarter revenue was up marginally to AED 36.6 million [S$ 12.6 million] but is down by 48% to AED 77.6 million [S$ 26.7m] over the first nine months of the year.
The Distribution division, which comprises the distributorship of SieMatic, the world’s leading German luxury kitchen brand for Singapore market has witnessed a 240% increment of revenues for Q3 to AED 6.9 million [S$2.4 million]. The nine months to date was also up 56%, contributing a total of AED 17 million [S$5.9m] with projects completion such as Scott Square and Anderson 18.
The manufacturing facility in China is in full operation and servicing orders secured for the local and export markets. Design Studio is planning on increasing its sales and marketing activities in China, having opened a 40,000 sq/f, three-storey showroom and sales office in Dongguan . In July, the Group participated in the 14th China (Guangzhou) International Building Decoration Fair, which provided a platform to identify suitable distribution partners seeking to leverage on the Design Studio brand to establish product show rooms in second and third tier cities across China. The showcase was well-received and the Group has since signed on a few distribution partners to extend its reach.
The Group’s Malaysia subsidiary secured an alteration and addition contract for Hilton Hotel in Kuala Lumpur; following similar wins for Le Meridien and The Ascott announced in Q2 2012.
---ENDS---
For further inquiries, please contact:
|
Depa Limited Noor Sweid Managing Director, Strategy Tel: +971 4 224 3800 |
Brunswick Gulf Ltd Jade Mamarbachi Tel: + 971 4 446 6270 |
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 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 corporate website: www.depa.com
