Depa has announced a 27 per cent rise in first quarter profits, thanks to a burgeoning hospitality sector in the UAE and elsewhere.
The Dubai-based interiors specialist said net profit after controlling interest grew to Dh14 million for the first quarter of the year, compared with Dh11m a year earlier.
Depa’s revenues grew by 3 per cent year on year to Dh461m, although the company’s contract backlog at the end of March stood at Dh2.52 billion, down from Dh2.98bn at the end of March 2013.
The hospitality sector was responsible for the largest growth in order backlog during the quarter with 40.3 per cent, followed by Depa’s yacht-fitting subsidiary Vedder (18.7 per cent), followed in turn by its residential unit (17.9 per cent).
New contract highlights for the quarter included a Dh85m contract for the interior decoration of a 16-floor government tower project in Doha, and a Dh62m contract with National Bank of Abu Dhabi for the interior fit-out and renovation of 25 branches. Both contracts are forecast to last until the middle of next year.
Vedder was awarded two new interior contract projects during the quarter worth a combined total of Dh129m. The contracts consist of an undisclosed full turnkey project, and a kit-out for significant parts of the luxury areas of a yacht interior project, Vedder’s first interior project was secured at Amels in the Netherlands.
Despite rising revenues the company continues to face pressure on its bottom line; this month the company reported an annual loss of Dh143.5m for 2013, attributable to costs from project overruns, and significant impairments and provisions.
“We are encouraged by the solid start to the year both financially and operationally,” said Hasan Ismaik, Depa’s chairman. “Our backlog has also been enhanced on the back of our recent strategic and operational restructuring and the efficiency it has had on our business and bottom line. We remain focused on delivering further restructuring initiatives in the coming period.”
The company has undertaken a series of balance sheet cleaning exercises following the acquisition of a 24 per cent stake in the company by Arabtec in late 2012 for US$65.8m.
Depa’s shares, listed in US dollars on Nasdaq Dubai, closed last week at 64.1 cents. The shares are down 7 per cent since the start of the year.
jeverington@thenational.ae
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Company%20profile
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COMPANY%20PROFILE
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The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”