Dubai-headquartered interior solutions group, Depa Limited has announced that the end of 2016 saw its revenue register a 5% year-on-year growth.
According to the company, its revenue increased from $446.68m (AED1,640.6m) in 2015 to $471.10m (AED1,730.3m) by the close of last year.
Its gross profit, meanwhile, logged a 112% year-on-year growth. It went up by $46.67m (AED171.4m), from $41.57m (AED152.7m) in 2015 to $88.24m (AED324.1m) in 2016. Gross margin was higher at 19%, compared with 9% in 2015.
In a statement, Depa noted that all of its four key business units – Design Studio, Vedder, Deco Group, and Depa Interiors Group – demonstrated strong performances last year.
The company reportedly saw continued cash generation and a robust balance sheet in 2016, with a year-end net cash of $75.72m (AED278.1m).
With the release of its 2016 results, the group is proposing a reorganisation of its balance sheet and the enabling of dividend payments.
Hamish Tyrwhitt, group CEO of Depa, said: “The Board recognises the importance of dividends as a form of shareholder value creation. Accordingly, to enable the payment of dividends in the future, Depa is proposing to reorganise its balance sheet by offsetting a portion of its share premium account with its accumulated losses, subject to shareholder approval at its upcoming general meeting.
“Additionally, Depa has introduced a dividend policy to pay out 25% to 50% of yearly earnings. This improvement to the group’s balance sheet, together with the group’s focus on generating sustainable growth and cash-backed profit, should enable the group to commence paying dividends to its shareholders following its 2017 full-year results.”
Tyrwhitt further noted: “Depa’s 2016 audited results reflect a successful and sustainable year where we materially de-risked the business. The group as a whole continues to improve operationally, and the enhancements implemented throughout 2016 provide a strong platform for the group to build on in 2017.”
