Dubai: Interior design form Depa saw a 44 per cent fall in its first-half net profits, from Dh27 million in 2014 to Dh15 million this year.

The Nasdaq Dubai-listed firm said the fall was due to costs revisions involving few major projects and additional costs incurred from delays. Gross Margin during the period was 10 per cent compared to 13 per cent in the first half of 2014

Over the same period its revenues dropped 4 per cent, from Dh877 million to Dh841 million. In a statement the firm attributed the decline to a lower backlog at the start of the year — the result, it said, of being highly selective when choosing projects.

Depa Group CEO Nadim Akhras said: “The first half of 2015 has witnessed Depa continue to implement its strategy of geographical diversification and operational consolidation, creating a secure base for sustainable long-term growth. We are encouraged by our performance in mature European and Far Eastern markets, as well as our progress in emerging and frontier markets in Africa and South Asia. Following several challenging years for the industry in our core UAE market, we are also cautiously optimistic about the recent pickup in fit-out activity, which we anticipate will continue in the second half of the year.

“While maintaining a cautious approach to signing new contracts, Depa’s Backlog increased during the first six months of 2015 as we won a number of high-quality projects across a range of geographies. Despite global economic issues that had a negative impact on several of our key markets, the work we have done to further streamline and diversify the business in recent years leaves Depa well positioned over the coming period.”

The firm’s total assets stood at Dh2,755 million on June 30, compared to Dh2,981 million on December 31 last year. Total liabilities at the end of the period decreased to Dh1,266 million from Dh1,492 million at the end of 2014. Total Equity decreased slightly from Dh1,490 million to Dh1,489 million due to currency exchange losses recorded on translation of foreign operations.

During the first six months of the year, Depa moved forward with its strategy of diversifying towards countries harbouring fast-growth and high-margin opportunities, while continuing to compete aggressively in core home markets. This included a retrenchment from markets such as Egypt and Jordan, and an increased business development focus on countries including Oman, Kuwait, Sri Lanka, Bangladesh, Angola, Nigeria and Kazakhstan, where governments and the private sector are investing heavily in infrastructure and hospitality projects.