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Dubai-listed Depa sees 2017 net profit soar by 195% to $42m

Depa Limited's 2017 revenue rose by 4% to $490m from 2016’s $460m, while its backlog dropped by 7%, from $520m in 2016 to $490m in 2017

Hamish Tyrwhitt, group chief executive officer at Depa.
Hamish Tyrwhitt, group chief executive officer at Depa.

Dubai-listed interior solutions group, Depa Limited, has announced its financial results for the 2017 fiscal year, ending 31 December, 2017.

In a statement, the company revealed that its net profit for 2017 recorded a spike of 195%, climbing to $41.8m (AED153.6m) from $14.2m (AED52m) in 2016.

Meanwhile, the firm’s 2017 revenue rose by 4% to $490m (AED1.8bn) from 2016’s $460m (AED1.7bn).

READ: Depa to convert Nasdaq Dubai listing currency to UAE Dirhams

Its backlog, on the other hand, recorded a 7% drop, from $520m (AED1.9bn) in 2016 to $490m (AED1.8bn) in 2017.

Hamish Tyrwhitt, group chief executive officer, commented: “Depa has made strong progress in 2017. The Group’s success in 2017 has been driven by the execution of [a] clearly defined strategy, including the resolution of several major long-outstanding receivables underpinned by sound operational performance.

“On the back of progress made in 2017, the Group now moves its focus to achieving its longer-term strategic objectives of delivering consistent sustainable top and bottom line growth, cash backed profit and long-term shareholder value creation.”

VIDEO: CW Awards 2017's Lifetime Achiever Hamish Tyrwhitt

He added: “Throughout 2017, the Group has materially strengthened its balance sheet and further de-risked the business through receivable collection, implementing the Group’s risk management systems and embedding a culture of accountability. The Group-wide strategic review has also been completed with appropriate plans in place to dispose of non-core assets and ultimately, maximise shareholder value creation.”

According to Tyrwhitt, these actions has resulted in Depa paying “its first ordinary dividend since 2010 in September 2017”.

He continued: “This, together with the proposed final ordinary dividend, would bring the full year ordinary dividend to UAE 8.5 fils per share.  Depa is also proposing a special dividend of UAE 7.0 fils per share.”

The release of Depa's 2017 financial results follows the company's announcement that it has cancelled its listing on the London Stock Exchange (LSE).

Explaining its decision to cancel the listing, the company said: "Depa Limited delisted its GDRs because the volume of global depositary receipts traded on the LSE was negligible and did not, in Depa’s view, justify the related expenses of the listing."

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