Dubai: The Dubai-based interior fitouts company Depa saw 2020 revenues drop to Dh599.7 million, from Dh998.9 million a year ago, with COVID-19 led disruptions being the main cause.
Depa was also impacted by the insolvency proceedings at UAE’s biggest construction company Arabtec, with which it had a longstanding project relationship. The company's overall project backlog is Dh1.50 billion, while current net debt (excluding restricted cash) is at Dh52.1 million.
“Depa has responded, undertaking a strategic review and implementing the resultant transformation programme,” said Kevin Lewis, CEO of the Nasdaq Dubai listed entity. “This transformation programme has seen the group reduce its fixed cost base by more than Dh160 million; in addition to commencing a number of non-core asset disposals, including its highly successful Vedder business in Germany.
“The end result of Depa’s transformation programme will be a more flexible cost base better suited to the prevailing market environment and an improved liquidity position.”
Chairman. "Accordingly, the Group’s management will continue to work on increasing the flexibility of its internal operating structure to best match the conditions of its external operating environment.
"To address the challenges that Depa is facing, in early 2021, the board undertook its own restructure to facilitate more effective support of the CEO and his management team during these difficult times.”