Depa, a leading interior contracting solutions provider based in Dubai, UAE, has registered a net profit after non-controlling interest (NCI) of Dh15 million ($4.08 million) for the first quarter, up seven per cent compared to Dh14 million ($3.8 million) last year.

Announcing the results for the three-month period ended March 31, 2015, Depa said the growth in profit was achieved despite a slight five per cent drop in revenue which fell to Dh440 million ($120 million) from Dh461 million ($125 million) for the same period last year.

The fall in revenue was in line with the company’s focus on the bottom line, keeping gross margins stable at 13 per cent and increasing the profitability further, said the company in a statement.

The outstanding improvement in cash generation from operations is attributable to the timely certifications and aggressive collection of receivables, which has had a positive impact on the overall net cash position as well, it added.

Depa said the cash generated from operations tripled to Dh31 million ($8.4 million) in the first quarter from Dh10 million ($2.72 million) on the back of a solid performance from its subsidiaries such as Design Studio, Vedder and Deco Emirates.

Design Studio, a Singapore-based premier furniture manufacturer which was acquired by Depa, posted a Dh134 million ($36.4 million) revenue for the first quarter. Its net profit margin rose nine per cent and its backlog hit Dh621 million ($169 million).

Vedder, the Europe-based yacht interior contracting unit of Depa, saw its revenue soar to Dh97 million ($26.4 million) for the three-month period ended March 31, 2015. Its net profit margin witnessed a eight per cent growth, while the backlog was seen at Dh314 million ($85.5 million).

Deco Emirates too registered a solid jump in revenue which soared to Dh23 million ($6.26 million), it added.

According to Depa, the backlog has stabilised at around Dh2 billion ($544 million) and remains driven by the hospitality, yacht and residential sectors.

Overall, the Middle East and North Africa (Mena) contributed about half of the group’s backlog, while Asia increased its share by three per cent. However, Europe has seen a four per cent drop in its share year-on-year in relative terms.

Commenting on the results, Nadim Akhras, the Group CEO, said: "After an encouraging performance in FY2014, I am pleased to see Depa improve its bottom line further despite the challenges associated with the construction industries."

"The continued success of our subsidiaries Design Studio and Vedder keep on highlighting the value of a balanced portfolio in terms of geographies," he added.-TradeArabia News Service