Depa booked a slight rise in first half earnings as the company embarked on a deep restructuring of its business.
The Nasdaq Dubai-listed interiors specialist has created a strategic management company and consolidated its divisions into six operating entities with a view to enabling its brands to reach their full potential.
Group operations will be handled from offices in Dubais Business Bay are but operational decisions will be taken within the six businesses Depa Interiors, Singapore-based Design Studio, Germany-based Vedder, retail specialist Deco Interiors, Lindner Middle East and procurement consultancy The Parker Company.
The group achieved net profit of AED 16m ($4.35mn) in the six months to 30 June compared to AED 15mn in the first half of 2015. Gross profit rose by 51% to AED 124mn despite an 8 percent drop in total revenue to AED 772mn from AED 841mn.
The decrease in the top line was down to a slowdown in two of key markets Singapore and KSA – but the impact was partially offset by its Dubai contracting operations which grew revenue threefold compared to the first half of 2015.
Depa secured 152 contracts worth AED 937mn in the first six months of this year, strengthening its order book by 5 percent to AED 2.2bn as compared to 31 December 2015.
While we expect the operating environment in the vast majority of our key markets to remain challenging and competitive for the remainder of the year, given the quality and strength of our existing backlog and addressable markets, we are cautiously optimistic about the future, Depa said in its financial statement.