Depa Returns to Profit After Luxury Project Gains
Depa Ltd. (DEPA), the interior contractor that fitted out the world’s tallest tower in Dubai, posted a full-year profit of 59 million dirhams ($16 million) as it gained from luxury interiors projects.
That compares with a loss of 206 million dirhams in 2010, the company said in a statement to Nasdaq Dubai today. Revenue dropped to 1.7 billion dirhams from 1.8 billion dirhams a year earlier, while contract orderbook reached a record 3.8 billion dirhams at the end of last year.
“Our strategy of executing luxury interiors around the world anchored the business through the more difficult years,” Chief Executive OfficerMohannad 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.”
The company, which operates in 20 countries, is looking at projects in the Middle East, Asia and Africa markets. “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, it said.
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