Riyadh deal drives 2% revenue hike at Dubai's Depa in H1

Contracts wins in Saudi Arabia and the UAE for Depa Group's business units supported the firm's growth in the first half of this year

Depa Group's chief, Hamish Tyrwhitt, praised the company's backlog of work.
Depa Group's chief, Hamish Tyrwhitt, praised the company's backlog of work.

Depa Group's contract win for a prestigious Riyadh transport project bolstered its revenue growth during the first six months of 2018.

The fit-out company, a subsidiary of regional construction heavyweight Arabtec Holding, said its revenues increased by 2% year-on-year, rising from $227m (AED834.6m) in H1 2017 to $232m (AED852.2m) in H1 2018.

Its $4.7m (AED17.6m) year-on-year revenue growth was fueled by a number of factors, including contract wins in the Middle East.

READ: Dubai's Depa cancels London Stock Exchange listing

A strong focus on work in Gulf countries benefited Depa Group, as the firm reported a strong backlog valued at $514.6m (AED1.8bn), up 5% on its figures from 31 December, 2017.

Depa Interiors, one of the business units within Depa Group, won a fit-out contract for a "significant transport project" in Riyadh, which is valued at $21.7m (AED80m). 

Its Middle East-based unit Deco, focused on retail and commercial fit-outs, won work on luxury projects in the UAE.

This included fit-outs for French fashion house Chanel's store at Dubai Mall and the Gucci boutique at Mall of the Emirates. The business unit has also secured a commercial fit-out contract for a government client.

Depa Group said in a financial statement that it would focus on winning work that generates profit in core markets and delivers long-term shareholder value, backed by its already-solid pipeline of work.

Hamish Tyrwhitt, group chief executive officer of Arabtec Holding and Depa Group, said the firm would continue to push for greater efficiency and innovation to generate profit in the future.

"The group has announced several project awards in recent months, demonstrating the progress the group is making in building its backlog," he continued.

"These project wins with repeat clients are further testimony to the reputation and market-leading position that the group’s key business units command.

"The group continues to focus on driving efficiencies, productivity, and encouraging innovation and harmonisation across the group’s key business units, along with winning projects capable of generating a cash-backed profit in our addressable market. We are now well on the path to achieving our goal of maximising long-term sustainable shareholder value."

Trywhitt is one of the leaders who was featured in the 2018 Construction Week Power 100, ranked as the third most-influential person in the Middle East's built environment this year.

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