Drake & Scull recovers debts
Firm recovers over $13mn on completed projects through arbitration
Dubai-based contracting group Drake & Scull has recovered around $13.2mn (AED48.5mn) of the $36.8mn (AED135.5mn) that it was owed by clients through an arbitration process.
Notes to financial statements filed by the group this morning show that the efforts it embarked upon last year to recover debts worth $14.4mn (AED53mn), $9.8mn (AED36mn) and $11.2mn (AED41.3mn) on three contracts have at least been partially successful, with the clients agreeing to repay $6.5mn (AED24mn), $2.7mn (AED10mn) and $3.9mn (AED14.3mn) respectively.
Drake & Scull said that the remaining balances due on the contracts of $11.7mn (AED43mn), $7.1mn (AED26mn) and $7.4mn (AED27mn) respectively are still under arbitration, and that it hasn't made any provisions for write-offs against them.
The amounts all relate to contracts that have been completed and handed over to clients.
During the year, Drake & Scull reported a 47% increase in revenues to $1.3bn (AED4.9bn) while net profits increased by 61% to $50.4mn (AED185mn). Its backlog of projects also increased by 36% to $3.3bn (AED12bn).