Dubai: Depa Limited, one of the world’s leading interior contracting companies, today issued a first quarter trading update for the period ended March 31 2014.

Depa reported a 3 per cent increase in group revenues to Dh461 million from Dh446 million in the first quarter of 2014. Gross profit grew 9 per cent to Dh62 million from Dh57 million over the same period and net profit after non-controlling interest was 27 per cent higher at Dh 14 million. The Company’s total assets reached Dh3.22 billion at the end of the first quarter of 2014 and its cash at bank was Dh 389 million.

“We are encouraged by the solid start to the year both financially and operationally,” said Hassan Ismaik, Chairman of Depa Limited. “We have posted a net profit and an increase in both group revenues and gross profits. 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, as we look forward to set a long-term plan that would help us maximise our group revenues, and create long-term value for our shareholders at the same time.”

On Depa’s financial position, Ismaik added: “We are in a strong financial position, especially following the cash inflow we received from our operations during 2013 and the first quarter of 2014, instead of relying on our financial resources, like what we did in 2012. We are now well-positioned to further strengthen our financial position by considering different financial solutions and capital restructurings.”

As of 31 March 2014, Depa’s backlog was Dh 2.52 billion, in line with the Dh2.53 billion announced at year end 2013 and down from Q1 2013’s Dh2.98 billion. Hospitality continues to remain the leading sector, increasing its value to 40.3 per cent over the last three months and now accounting for over Dh1 billion of backlog. Vedder signed up two new projects which has lifted the yacht segment to second place at 18.8 per cent with residential taking third at 17.9 per cent.

Prominent contracts

UAE has a total Backlog of Dh630 million, having improved by Dh330 million year-on-year and accounting for 25 per cent of regional segmentation. Meanwhile, Asia and Mena (ex–UAE) accounted for Dh706 million and Dh643 million respectively. Europe has gained significantly, Increasing to 19 per cent and taking its backlog to Dh466 million.

Four prominent contracts were signed during the first quarter of the year; two by Vedder and two in the GCC. Vedder, Depa’s German based luxury yacht company took on two new interior contracting projects. The first is a full turnkey project whilst the second is for significant parts of the luxury areas of a yacht interior project and is Vedder’s first interior project secured at Amels in the Netherlands. The contracts are collectively worth Dh129 million.

In Doha, an interior decorating contract worth Dh85 million was signed for a 16-floor government tower project. The scope of work includes the complete fit-out works, MEP, IT, AV system and furniture covering an 11,000 sq/m area. The project is due for completion in mid-2015. In Abu Dhabi, National Bank of Abu Dhabi (NBAD) agreed an interior fit-out and renovation works of 25 branches worth Dh62 million. The project will last until June 2015.