Dubai-based fit-out contractor Depa has registered a fall in its revenue for the first nine months which plunged to Dh1.18 billion ($321 million) from Dh1.39 billion ($378 million).

Announcing the results, Depa said its profit for the first nine months too witnessed a drop from Dh513 million ($140 million) to Dh347 million ($94 million).

Given the current challenging market conditions across the globe with low oil prices, geo-political uncertainty and a slowdown in Asia, the construction industry has been severely impacted, the fit-out company said in a statement.

Project delays are imminent resulting in increased costs to complete for many on-going projects in the upcoming quarters, it added.

In first nine months, the company was able to generate positive cash from operations of Dh84 million while reducing its bank borrowings significantly by Dh90 million, which resulted in improved net cash position of Dh179 million compared to Dh77 million at same time last year.

Following the departure of the Group CEO last month, Depa’s steering committee members have been actively involved in the company’s operations and are rolling out a number of new initiatives to further restructure the company to withstand the economic headwinds.

These include plans to rationalise some of its entities; whilst reducing the global workforce to ensure optimal utilisation of resources. This adaptation to market forces will allow for more flexibility and better position the company for long-term future growth, it stated.

Commenting on the results, the steering committee said: "Depa’s performance in the third quarter is reflective of challenging conditions in the wider market. We have taken a prudent approach across our projects and continue to implement measures to improve the efficiency of the business."

"At the same time, we were able to keep the backlog at satisfactory levels, signing new contracts in the UAE and elsewhere. We also see positive signs coming from Germany, where our mega yacht fit-out subsidiary, Vedder, prides itself with a full order book for 2015 and is well placed for continued growth," it added.

Despite the economic challenges in the third quarter of 2015, Depa managed to sign new contracts worth Dh279 million across different geographies, in line with the company’s diversification strategy.

With these new wins, its total value of projects for the first nine months soared to Dh1.22 billion.

"As of September 30, 2015, the Dubai group's backlog stood at Dh2.3 billion, compared to Dh2.1 billion at year end 2014, as Depa continued to be highly selective in signing new contracts," said the committee members.

This approach is reflected in the year-to-date revenue, which declined to Dh1.18 billion in first nine months of 2015 compared to Dh1.39 billion in the same period last year, they added.-TradeArabia News Service