{"id":49720,"date":"2017-03-26T19:35:19","date_gmt":"2017-03-26T12:35:19","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/depa-weighs-up-unit-sales-in-review-as-ceo-considers-new-acquisitions\/"},"modified":"2017-03-26T23:50:04","modified_gmt":"2017-03-26T16:50:04","slug":"depa-weighs-up-unit-sales-in-review-as-ceo-considers-new-acquisitions","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/depa-weighs-up-unit-sales-in-review-as-ceo-considers-new-acquisitions\/","title":{"rendered":"Depa weighs up unit sales in review as CEO considers new acquisitions"},"content":{"rendered":"


\nDepa could sell some business units as part of a strategic review, its chief executive has revealed.But it could also involve acquisitions to help grow more profitable lines, according to chief executive Hamish Tyrwhitt.”Depa doesn’t need to sell anything,” he said. “We’re not a desperate seller to raise cash. We’re in the business of growing this business, not just selling its parts.”He said that a decision on which divisions of the company it would grow and what could be divested would be based on “where we believe shareholders are going to get the best and most sustainable returns”.”This is a strategic management company. Where do we add value? By determining where to allocate the resources on our balance sheet. If we pour fertilizer on something is it going to grow and yield better returns?”The contractor is responsible for the interiors of some of Dubai’s highest-profile buildings including Burj Khalifa and the W Hotel.Mr Tyrwhitt said the contractor had completed the first of a three-stage process to return the company to profitability and growth, which is similar to the one being undertaken at Arabtec, where he is also chief executive.”It’s rebuilding the foundations, putting in place the team, resolving legacies and just getting the ship in order. Now, at Depa, we’re entering into the phase where we’re moving to a performance culture, and part of that is forensically examining all of the components of the business to see how they contribute.” Depa yesterday reported a net profit of Dh45.5 million for 2016, which was a significant turnaround from the Dh265.5m loss declared in the same period a year earlier. Although turnover only grew by 5 per cent to Dh1.73bn (2015: Dh1.64bn), gross margin more than doubled to 19 per cent of sales. Cash generation also increased by 123 per cent to Dh278.1m.The company also reported a significant improvement on the collection of legacy debts, bringing in about Dh116m of contracts to arbitration. Mohammad Kamal, an analyst with Arqaam Capital, said that in the context of the ongoing restructuring, its 2016 numbers could largely be seen as positive. “Margins look to have rebounded strongly from a low base. ROE [return on equity)]still looks weak – around 5 per cent in 2018, but that is acceptable as the business is clawing back up to normalised margins and business volumes – something that they haven’t experienced in a number of years,” he said.He also highlighted the ompany’s efforts in cleaning up legacy rreceivables”The company has indicated that it has made strong progress and expects full resolution in 2017. I think we could infer that guidance has been reliable in recent quarters, given the step up in investor interaction, and that Depa’s targets for 2017 are achievable”.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Depa weighs up unit sales in review as CEO considers new acquisitions<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Depa could sell some business units as part of a strategic review, its chief executive...<\/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-49720","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-cVW","jetpack-related-posts":[{"id":49708,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/depa-reviews-business-units-as-it-returns-to-profit\/","url_meta":{"origin":49720,"position":0},"title":"Depa reviews business units as it returns to profit","date":"March 26, 2017","format":false,"excerpt":"\r Fit-out contractor Depa has begun a \"strategic review\" of the businesses it owns as it returns to the black.The company, which reported a turnaround in its fortunes on Sunday, reversing a Dh272.7 million loss in 2015 into a Dh52m profit in 2016, has said that a review of all\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":24312,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/depa-chief-executive-says-dubai-fit-out-contractors-restructuring-aimed-for-clearer-strategy\/","url_meta":{"origin":49720,"position":1},"title":"Depa chief executive says Dubai fit-out contractor's restructuring aimed for clearer strategy","date":"August 29, 2016","format":false,"excerpt":"\r The chief executive of Dubai fit-out contractor Depa has said its restructuring has been aimed at adopting a clearer strategic focus.Hamish Tyrwhitt, who was appointed as chief executive in April, has overseen the creation of six separate operating companies overseen by a new \"strategic management company\" that will set\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36150,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/depa-turns-a-profit-over-nine-months\/","url_meta":{"origin":49720,"position":2},"title":"Depa turns a profit over nine months","date":"November 27, 2016","format":false,"excerpt":"\r Depa, the Dubai-based interiors contractor that fitted out Burj Khalifa, said that it turned profitable in the first nine months of the year compared to the same period last year amid cost cuts. Net profit rose to Dh29 million in the first nine months compared to a loss of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36346,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-appoints-new-chief-executive\/","url_meta":{"origin":49720,"position":3},"title":"Arabtec appoints new chief executive","date":"November 29, 2016","format":false,"excerpt":"\r Arabtec has appointed the recently appointed Depa chief executive Hamish Tyrwhitt as its chief executive.In a statement to the DFM this morning, Dubai-listed Arabtec said that Mr Tyrwhitt had replaced the company's acting chief executive Saeed Al Mehairbi, who will remain an Arabtec board member.Arabtec said that as well\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54729,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/geographic-diversity-and-new-contracts-drive-depa-q1-profit\/","url_meta":{"origin":49720,"position":4},"title":"'Geographic diversity' and new contracts drive Depa Q1 profit","date":"May 14, 2017","format":false,"excerpt":"\r Dubai-listed interiors contractor Depa reported a jump in first-quarter profit as it secured new contracts. Net profit during the first three months jumped by 170 per cent to Dh23.5 million. Revenue grew by 15 per cent to Dh369.5m, year-on-year. The \"geographic diversity of the group\" helped drive growth last\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36372,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-appoints-hamish-tyrwhitt-as-new-chief-executive\/","url_meta":{"origin":49720,"position":5},"title":"Arabtec appoints Hamish Tyrwhitt as new chief executive","date":"November 29, 2016","format":false,"excerpt":"\r Arabtec has appointed as its chief executive Hamish Tyrwhitt, who was also recently made chief executive of Depa.In a statement to the DFM this morning, Dubai-listed Arabtec said that Mr Tyrwhitt had replaced the company's acting chief executive, Saeed Al Mehairbi, who will remain an Arabtec board member.Arabtec said\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\/49720"}],"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=49720"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49720\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=49720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=49720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=49720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}