{"id":37468,"date":"2016-12-08T22:33:39","date_gmt":"2016-12-08T15:33:39","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-appoints-pwc-to-review-financial-liabilities\/"},"modified":"2016-12-08T22:58:40","modified_gmt":"2016-12-08T15:58:40","slug":"drake-scull-appoints-pwc-to-review-financial-liabilities","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-appoints-pwc-to-review-financial-liabilities\/","title":{"rendered":"Drake & Scull appoints PwC to review financial liabilities"},"content":{"rendered":"


\nDrake & Scull International’s board of directors has agreed to the appointment of external consultants to advise on the state of its finances, which are weighed down by uncollected receivables.In a statement to the Dubai Financial Market on Thursday morning, the company said that its board had “approved appointing PricewaterhouseCoopers (PwC) as strategic and financial adviser to assist with examining the company’s capital structure and financial liabilities”.A spokesman said that the review is likely to conclude by the first quarter of next year. The contractor is considering divestments in non-core geographies to help relieve strain on its finances as it continues cost-cutting measures. The company posted a narrower quarterly loss attributable to its equity owners of Dh46.3 million in the three months to September as it trimmed costs and focused on high-margin business. Drake & Scull is facing cash flow issues due partly to the current tough operating environment for contractors, particularly in Saudi Arabia, but also as a result of the fact that it has a sizeable amount of uncollected receivables.Accounts for the nine months to September 30 show that it is owed about Dh1.16 billion from customers for work done on contracts where its customers have not approved payment. It also finished the period with a negative cash balance of Dh246m, with its auditor (also PwC) stating that if the company is not able to generate sufficient cash flows, it may not be able to meet its financial obligations. In a recent interview with The National, the company’s new chief executive, Wael Allan, said that the company is undertaking “a thorough evaluation of where we are”. “Obviously, we have some receivables that have been there for some time. We are assessing the viability of all of these aspects.”We’ve brought in specialists – good people that understand how construction is funded to assess and look at our business plan and the long term for our business.”When asked if it would need to raise more finance, Mr Allan said: “I can’t say that at the moment because our evaluation has not been completed.”That’s why we have the advisers. They are looking really thoroughly at our outgoings, what is predicted to come in, what is likely to collect and what is not. Based on that evaluation, by the end of this year we will be in a position to state that clearly to the market.”Mr Allan, who had previously been Middle East chief executive at building consultancy Arcadis before joining Drake & Scull in May, has sought to cut costs. The company’s ill-fated move into general contracting is being scaled back outside the UAE. In its core business of mechanical, electrical and plumbing (MEP) contracting, it is exiting markets such as India where it is not a significant player.”Our vision is to be within the top three providers of MEP,” he said. “Countries where we are not in the top three, we will withdraw.”Drake & Scull’s shares finished trading on the Dubai Financial Market 1.2 per cent lower on Thursday, at 50.8 fils.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Drake & Scull appoints PwC to review financial liabilities<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Drake & Scull International’s board of directors has agreed to the appointment of external consultants...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-37468","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9Kk","jetpack-related-posts":[{"id":37454,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-appoints-pwc-to-advise-on-its-financial-state\/","url_meta":{"origin":37468,"position":0},"title":"Drake & Scull appoints PwC to advise on its financial state","date":"December 8, 2016","format":false,"excerpt":"\r Drake & Scull International's board of directors has agreed to the appointment of external consultants to advise on the state of its finances, which are weighed down by uncollected receivables.In a statement to the Dubai Financial Market on Thursday morning, the company said that its board had \"approved appointing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":58502,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-and-drake-scull-make-progress-rebuilding-balance-sheets\/","url_meta":{"origin":37468,"position":1},"title":"Arabtec and Drake & Scull make progress rebuilding balance sheets","date":"June 20, 2017","format":false,"excerpt":"\r The UAE's two major listed contracting companies both announced that they had made progress with recapitalisation exercises aimed at rebuilding their balance sheets on Tuesday.Arabtec said that it had completed a Dh1.5 billion rights issue, which is the first step of its two-part recapitalisation programme. The company said that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":50237,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-breaches-terms-of-bank-loans\/","url_meta":{"origin":37468,"position":2},"title":"Drake & Scull breaches terms of bank loans","date":"March 30, 2017","format":false,"excerpt":"\r The contractor Drake & Scull International has breached covenant terms of its sukuk and other loans, according to the company's newly filed audited accounts. The company had a conditional waiver in place with its lenders, but according to the accounts statement filed on the Dubai Financial Market it was\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55023,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/provision-for-money-owed-weighs-on-drake-scull-international-first-quarter\/","url_meta":{"origin":37468,"position":3},"title":"Provision for money owed weighs on Drake & Scull International first quarter","date":"May 17, 2017","format":false,"excerpt":"\r Contractor Drake & Scull International (DSI) posted a Dh722.5 million loss in the first quarter as it made provisions against contract sums owed from customers.The company wrote down Dh572m in amounts due from customers on contract balances. It also declared a 23 per cent decline in year-on-year revenue during\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":58282,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/drake-scull-confident-on-debt-restructuring\/","url_meta":{"origin":37468,"position":4},"title":"Drake & Scull confident on debt restructuring","date":"June 19, 2017","format":false,"excerpt":"\r Drake & Scull International (DSI) will look to restructure its debt pile, which stood at Dh2.44 billion at the end of March, through the issue of a new sukuk or a syndicated loan, the company's acting chief financial officer Firas Kalthoum said on Sunday.Mr Kalthoum, whose appointment was announced\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23821,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-drake-scull-says-it-has-not-hired-adviser-to-seek-investment\/","url_meta":{"origin":37468,"position":5},"title":"Dubai's Drake & Scull says it has not hired adviser to seek investment","date":"August 24, 2016","format":false,"excerpt":"\r Dubai-listed builder Drake & Scull International has not hired a legal adviser to help to bring a strategic investor into the company, it said on Wednesday.\"The company denies the appointment of any legal adviser in connection with bringing in a strategic investor or issuance of mandatory convertible bonds,\" the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37468"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=37468"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37468\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=37468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=37468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=37468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}