Hamish Tyrwhitt, the chief executive of Arabtec, which has about Dh6 billion worth of trade and other receivables owed to it, expects the company to be “on top” of its risks as the builder pursues outstanding payments and prepares to raise Dh1.5bn in a rights issue as it seeks to wipe out accumulated losses.
Mr Tyrwhitt said on Wednesday he believes that the company now has a handle on its accounts, with regards to further deterioration in its balance sheet.
The company, whose audited accounts on Wednesday showed that it had written off last year Dh1.9bn worth of debt owed to it – a major contributor to a Dh3.4bn annual loss – still has about Dh6bn worth of trade and other receivables owed to it. Mr Tyrwhitt said he does not expect to have to announce significant further write-downs.
“I’ve spent a lot of time going through the business to really understand where the receivables are, where the work in hand is, what the state of the business is.
“Yes, things change and I don’t know if something catastrophic might happen to one of our clients but if I look at where the bulk of where our risks are, we’re on top of [them],” said Mr Tyrwhitt, who was appointed in November.
“Going forward, I can see more opportunities for improvement than I can see risks for further deterioration,” said Mr Tyrwhitt, who also serves as chief executive of fit-out company Depa.
“Once we get a few more people, which we need, once we continue to strengthen the way we do business, and once we get the Dh1.5bn injection so we have cash to pay our subcontractors and suppliers to work on rebuilding our reputation, I see us turning things very quickly around.”
The rights issue is the first step of a recapitalisation. The second step, involving a reduction of Arabtec’s share capital, will allow the company to reduce liabilities and wipe off accumulated losses of Dh4.6bn.
The company is planning to pursue more aggressively claims for outstanding debts owed, the bulk of which are in Saudi Arabia and the UAE.
“The Saudi receivables are spread over different projects and the issue there is very well known,” Mr Tyrwhitt said, referring to the Saudi government’s decision to halt payments for most of last year before recommencing them towards the end of the year – albeit seriously delayed.
“We’re putting the resources there to manage those issues one by one,” Mr Tyrwhitt said.
In the UAE, he said there were outstanding claims that stretched back for years, adding that a claim between Arabtec, the Belgium-based construction company Besix and Korea’s Samsung C&T joint venture that built Burj Khalifa has only recently been resolved.
The company also plans to revive its historic Dh1.4bn dispute over the construction of Dubai’s Meydan racecourse after the Dh2.8bn joint-venture contract was cancelled in December 2008. Its partner, the Malaysian builder WCT, took its claim to arbitration and won in 2015.
“Certainly with Meydan, that’s one of our largest legacy issues,” said Mr Tyrwhitt.
“The plan there is that we are going to pursue this. I’ve got a team that is working on that at the moment to ensure that we get to the client and start chasing this.
“For quite some time it was on hold for some reason. We will pursue it the same as our joint venture partner WCT [following its arbitration claim] pursued it.”
Allen Sandeep, the head of research at the Egypt-based investment bank Naeem Holding, said the issue around the collectibility of the remainder of Arabtec’s receivables is “critical”.
“In my opinion, there are still a lot of receivables outstanding on the balance and a question remains about what happens to those.
“If they can address that issue, and move ahead with no more surprise impairments, then it is going to be more positive.”
Arabtec on Wednesday said that it is pricing its rights issue at Dh1 per share, which is a premium of 14 per cent on the Dh0.86 closing price on Tuesday.
However, given the face value of its shares is Dh1, this is the lowest price under UAE law at which the issue could be set.
This recapitalisation has effectively been guaranteed by the company’s biggest shareholder, Aabar Investments, which holds a 36.11 per cent stake in Arabtec. It has agreed to take up all of its allocation in the rights issue, as well as subscribing to any shares that are not taken up by current shareholders.
Shareholders who decide against taking up their entitlement face a potential 24.5 per cent dilution of their holding.
mfahy@thenational.ae
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The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
COMPANY%20PROFILE
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The specs: 2018 Dodge Durango SRT
Price, base / as tested: Dh259,000
Engine: 6.4-litre V8
Power: 475hp @ 6,000rpm
Torque: 640Nm @ 4,300rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 7.7L / 100km
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. Top%2010%20most%20competitive%20economies
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THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
How to donate
Text the following numbers:
2289 - Dh10
6025 - Dh 20
2252 - Dh 50
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*numbers work for both Etisalat and du
A MINECRAFT MOVIE
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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The five pillars of Islam
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
SPEC%20SHEET
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More on animal trafficking
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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How to help
Call the hotline on 0502955999 or send "thenational" to the following numbers:
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