Depa's H1 2015 net profit dips to $4m in Dubai
Depa said it is "cautiously optimistic" about prospects in its core UAE market following "several challenging years"
Dubai-based interior fit-out company Depa, which fitted out the Burj Khalifa, announced its net profit for the first half of 2015 totalled $4.08m (AED15m), down from $7.3m (AED27m) for the year-earlier period.
The company said the decrease resulted from costs revisions involving a few projects and additional costs incurred from delays.
It added that gross margin during the period was 10% this year, compared to 13% in H1 2014.
Depa said it is "cautiously optimistic" about prospects in its core UAE market following "several challenging years".
The company said in a statement that its total backlog of project is valued at $626.2m (AED2.3bn), while revenues fell slightly to $229m (AED841m), from $238.7m (AED877m) in H1 2014.
Nadim Akhras, Group CEO, Depa, said: “The first half of 2015 has witnessed Depa continue to implement its strategy of geographical diversification and operational consolidation, creating a secure base for sustainable long-term growth.
"Following several challenging years for the industry in our core UAE market, we are also cautiously optimistic about the recent pick-up in fit-out activity, which we anticipate will continue in the second half of the year.
“While maintaining a cautious approach to signing new contracts, Depa’s backlog increased during the first six months of 2015 as we won a number of high-quality projects across a range of geographies," Akhras continued.
"Despite global economic issues that had a negative impact on several of our key markets, the work we have done to further streamline and diversify the business in recent years leaves Depa well positioned over the coming period.”
The company added that it during the first six months of the year, it had continued to move into fast-growth and high-margin overseas markets, while continuing to compete aggressively in core home markets, Arabian Business reported.