Arabtec Holding has reported first quarterly profit since 2014 following the restructuring measures introduced by its management.
The Dubai-listed construction firm reported $4.90 million (AED18m) in net profit for the first quarter of 2017 as against a loss of $12.53m (AED46m) recorded same period last year.
The profit ends its nine consecutive loss-making quarters, indicating the success of its turnaround policy.
Revenues rose by 11 percent year-on-year to reach $599.45m (AED2.2bn) compared to $544.95m (AED2bn) in first quarter 2016.
“While this is another step towards the turnaround of the group, there is still a lot more work to be done. This initial step reinforces our commitment to returning Arabtec to profitability and solidifies our strategic roadmap to achieving sustainability,” group chief executive officer Hamish Tyrwhitt said in statement to Dubai Financial Market.
He added the recapitalisation programme was laying the foundation to allow the group to build on its three stage plan.
“To optimise the delivery of our $4.63bn (AED17bn) backlog, we are making key operational improvements through embedding enterprise risk management and a performance-driven culture, which is already evident in the increase of our gross profit margin.
“Resolving legacy claims and collecting receivables is a key action in phase one which will be achieved through our ability to turn risk into opportunity.”
According to Tyrwhitt, vital elements of phase two – prepare - are already in progress, including maintaining a leaner organisation, with the company moving towards the implementation of phase three.
Earlier this week, the company said subscription for its $409 million (AED1.5bn) rights issue will open on May 15 and close on May 28.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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