March 26 (Bloomberg) -- Depa Ltd., the interior contractor that fitted out the world’s tallest tower in Dubai, returned to profit in 2011 as it gained from luxury projects.
Net income attributable to shareholders was 54.3 million dirhams ($15 million) after a loss of 198.2 million dirhams a year earlier, the company said in a statement to Nasdaq Dubai today. Depa’s earnings in 2010 were affected by a claim related to Burj Khalifa contract in Dubai, the company said last year.
“Our strategy of executing luxury interiors around the world anchored the business through the more difficult years,” Chief Executive Officer Mohannad Sweid said in the statement. “This has helped us end 2011 in a stronger position than a year ago and marks 2011 as a turnaround year in which our revenues stabilized, our gross profit margins returned to historical norms and our backlog grew significantly.”
Contract order-book reached a record 3.8 billion dirhams at the end of last year, while revenue dropped to 1.74 billion dirhams from 1.81 billion dirhams a year earlier, the company said. Depa didn’t book any loss on impairment after setting aside 41 million dirhams in 2010.
The company, which operates in 20 countries, is looking at projects in the Middle East, Asia and Africa. “Although Depa does not expect to replenish the backlog at the same rate at which it will be executing it, the market does provide ample opportunity for further work,” it said.
Depa will provide quarterly financial reporting from now and will reduce “market guidance until the markets become more predictable,” it said.
Depa shares were unchanged at 45 cents in Nasdaq Dubai today. The stock has gained 7.1 percent this year.
To contact the reporter on this story: Shaji Mathew in Dubai at email@example.com
To contact the editor responsible for this story: Riad Hamade at firstname.lastname@example.org