DEPA PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND REVIEW REPORT FOR SIX-MONTH PERIOD ENDED 30 JUNE 2025
DEPA PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND REVIEW REPORT FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025
CONTENTS
Condensed consolidated interim statement of profit or loss 3
Condensed consolidated interim statement of comprehensive income 4
Condensed consolidated interim statement of financial position 5
Condensed consolidated interim statement of changes in equity 6
Condensed consolidated interim statement of cash flows 7
Notes to the condensed consolidated interim financial statements 8 - 17
Report on review of condensed consolidated interim financial statements 18
AED million
30 June
2024
(Unaudited)
30 June
2025
(Unaudited)
Notes
Revenue | 700.5 | 623.0 | |
Expenses 3 | (616.0) | (604.9) | |
Net reversal of impairment on financial and contract assets 5, 8 | 13.8 | 36.1 | |
Share of loss from associates | - | (0.5) | |
Finance income | 2.5 | 2.1 | |
Finance costs | (4.8) | (2.5) | |
Finance costs - net | (2.3) | (0.4) | |
Profit before tax and zakat expense | 96.0 | 53.3 | |
Income tax and zakat expense | (11.7) | (7.0) | |
Profit for the period | 84.3 | 46.3 | |
Attributable to: | |||
Owners of Depa PLC | 84.3 | 46.3 | |
Earnings per share | |||
Basic and diluted earnings per share (UAE fils) | 6 | 3 | |
AED million
30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | |
Profit for the period | 84.3 | 46.3 |
Other comprehensive income Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations | 17.0 | (2.1) |
Total comprehensive income for the period | 101.3 | 44.2 |
Attributable to: Owners of Depa PLC | 101.3 | 44.2 |
AED million
Note | 30 June 2025 (Unaudited) | 31 December 2024 (Audited) |
ASSETS Cash and cash equivalents 4 | 322.5 | 305.6 |
Restricted cash 4 | 91.5 | 80.4 |
Trade and other receivables 5 | 379.5 | 432.1 |
Due from construction contract customers 8 | 196.8 | 132.7 |
Inventories | 34.8 | 28.2 |
Total current assets | 1,025.1 | 979.0 |
Contract retentions 5 | 116.3 | 82.9 |
Property, plant and equipment 11 | 153.9 | 88.9 |
Right-of-use assets | 37.7 | 39.0 |
Intangible assets | 7.0 | 7.1 |
Investment properties | 10.3 | 9.9 |
Investment in associates 7 | 10.8 | 11.7 |
Goodwill 6 | 32.3 | 32.3 |
Total non-current assets | 368.3 | 271.8 |
Total assets | 1,393.4 | 1,250.8 |
LIABILITIES Trade and other payables | 706.0 | 679.7 |
Current tax liabilities | 3.2 | 2.5 |
Total current liabilities | 709.2 | 682.2 |
Employees' end of service benefits | 58.2 | 55.4 |
Retentions | 5.8 | 4.0 |
Lease liabilities | 33.1 | 36.0 |
Deferred tax liabilities | 22.4 | 9.8 |
Total non-current liabilities | 119.5 | 105.2 |
Total liabilities | 828.7 | 787.4 |
Net assets | 564.7 | 463.4 |
EQUITY Share capital | 908.9 | 908.9 |
Share premium | 322.1 | 322.1 |
Treasury shares | (12.6) | (12.6) |
Statutory reserve | 60.0 | 60.0 |
Translation reserve | (10.9) | (27.9) |
Other reserve | (0.8) | (0.8) |
Accumulated losses | (698.3) | (782.6) |
Equity attributable to equity holders of Depa PLC | 568.4 | 467.1 |
Non-controlling interests | (3.7) | (3.7) |
Total equity | 564.7 | 463.4 |
The condensed consolidated interim financial statements were approved for issue by the Board of Directors on 28 August 2025 and signed on its behalf by
Nader Mardini
Group Chief Executive Officer (Interim) & Group Chief Financial Officer
DEPA PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
AED million
Share capital | Share premium | Treasury shares | Statutory reserve | Translation reserve | Other reserve | Accumulated losses | Attributable to owners of Depa PLC | Non- controlling interests | Total equity | |
At 1 January 2024 | 908.9 | 322.1 | (12.6) | 60.0 | (20.8) | 0.2 | (860.6) | 397.2 (3.7) | 393.5 | |
Profit for the period | - | - | - | - | - | - | 46.3 | 46.3 - | 46.3 | |
Other comprehensive loss | - | - | - | - | (2.1) | - | - | (2.1) - | (2.1) | |
Total comprehensive income | - | - | - | - | (2.1) | - | 46.3 | 44.2 - | 44.2 | |
At 30 June 2024 (Unaudited) | 908.9 | 322.1 | (12.6) | 60.0 | (22.9) | 0.2 | (814.3) | 441.4 | (3.7) | 437.7 |
At 31 December 2024 | 908.9 | 322.1 | (12.6) | 60.0 | (27.9) | (0.8) | (782.6) | 467.1 (3.7) | 463.4 | |
Profit for the period | - | - | - | - | - | - | 84.3 | 84.3 - | 84.3 | |
Other comprehensive income | - | - | - | - | 17.0 | - | - | 17.0 - | 17.0 | |
Total comprehensive income | - | - | - | - | 17.0 | - | 84.3 | 101.3 - | 101.3 | |
At 30 June 2025 (Unaudited) | 908.9 | 322.1 | (12.6) | 60.0 | (10.9) | (0.8) | (698.3) | 568.4 | (3.7) | 564.7 |
DEPA PLC AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
AED million
30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | |
Operating activities Profit before tax and zakat expense | 96.0 | 53.3 |
Adjustments for: | ||
Depreciation of property, plant and equipment | 8.5 | 8.2 |
Depreciation of right-of-use assets | 1.3 | 1.5 |
Amortisation of intangible assets | 0.4 | 0.4 |
Share of loss from associates | - | 0.5 |
Net reversal of financial and contract assets | (13.8) | (36.1) |
Fair value loss on investment properties | - | 2.8 |
Finance income | (2.5) | (2.1) |
Finance cost | 4.8 | 2.5 |
Provision for employees' end of service benefits | 2.9 | 2.0 |
Operating cash flows before payment of employees end of service benefits, taxes and changes in working capital | 97.6 | 33.0 |
Employees' end of service benefits paid | (0.2) | (0.3) |
Income tax paid | - | (4.1) |
Working capital changes: | ||
Trade and other receivables | 66.4 | (18.7) |
Inventories | (6.6) | (4.1) |
Due from construction contract customers | (64.1) | 17.1 |
Contract retentions | (33.4) | (14.7) |
Retentions | 1.8 | 5.1 |
Trade and other payables | 31.7 | 41.7 |
Restricted cash | (11.1) | (17.2) |
Net cash generated from operating activities | 82.1 | 37.8 |
Investing activities Purchase of property, plant and equipment | (73.5) | (6.7) |
Purchase of intangible assets | (0.3) | - |
Dividend received from associates | 0.9 | 0.7 |
Finance income received | 2.5 | 2.1 |
Net cash used in investing activities | (70.4) | (3.9) |
Financing activities Net movement in bank borrowings | - | (1.9) |
Principal element of lease payments | (3.0) | (2.5) |
Finance cost paid | (4.8) | (2.5) |
Net cash used in financing activities | (7.8) | (6.9) |
Net increase in cash and cash equivalents | 3.9 | 27.0 |
Exchange differences arising on translation of foreign operations | 13.0 | (3.2) |
Cash and cash equivalents at the beginning of the period | 305.6 | 244.8 |
Cash and cash equivalents at the end of the period | 322.5 | 268.6 |
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025
1 Corporate information
Depa PLC (the "Company"), formerly Depa Limited, is a company limited by shares and registered in accordance with Companies Law -DIFC Law No. 5 of 2018 ("Companies Law"). The Company was incorporated in United Arab Emirates on 25 February 2008. Depa PLC is the management company of Depa United Group P.J.S.C.
The Company and its subsidiaries (together referred to as the "Group") specialises in the luxury fit-out sector, focusing primarily on hospitality, commercial and residential property developments, and also includes the airport, retail, yacht, theming and specialist fit-out sectors. Additionally, the Group is a provider of manufactured products and procurement services, with a primary focus on customised furniture, fixtures and equipment, much of which is produced in its in-house facilities. These financial statements are condensed consolidated interim financial statements for the Group consisting of the Company and its subsidiaries. The ultimate parent and controlling party of the Group is Public Investment Fund, Kingdom of Saudi Arabia.
The Company's shares are listed on Nasdaq Dubai. The address of the Company's registered office is P.O. Box 56338, Dubai, United Arab Emirates.
Income tax expense is recognised during the six-month period ended 30 June 2025 on a best estimate of the weighted average annual income tax rate expected for the full financial year. Amounts accrued for income tax expense may have to be adjusted if the estimate of the annual income tax rate changes.
Management performed an assessment of the OECD Pillar Two model rules and concluded that it does not fall within the scope. The Group will continue to assess the requirements.
2 Basis of preparation
The material accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those of the previous financial year except for the change in policy for segment reporting as disclosed in Note 12. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Statement of compliance and accounting convention
These condensed consolidated interim financial statements for the six-month period ended 30 June 2025 have been prepared in accordance with International Accounting Standard 'IAS 34 Interim Financial Reporting'.
The condensed consolidated interim financial statements have been prepared under the historical cost basis, except for investment properties which have been measured at fair value.
The condensed consolidated interim financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2024 and any public announcements made by the Group during the interim reporting period.
These condensed consolidated interim financial statements have been reviewed, not audited. The comparative information for the condensed consolidated interim statement of financial position is based on the audited financial statements as at 31 December 2024. The comparative information for condensed consolidated interim statement of comprehensive income for the six-month period ended 30 June 2025 is based on the unaudited condensed consolidated interim financial statements.
In addition, results for the period from 1 January 2025 to 30 June 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025.
Critical accounting estimates and judgements
The significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that were applied in preparation of the consolidated financial statements of the Group as at and for the year ended 31 December 2024.
As disclosed in note 6, management performed an in-house impairment assessment using the expected future cash flows based on an approved long-term strategic plan of the Group which takes into account macroeconomic factors. The discount rate was also assessed based on the current market risks and key business unit's specific risks.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025 (CONTINUED)
In addition, management has internally performed an assessment of the fair value of the investment properties and no fair value change was recorded for the current reporting period and the increase in the carrying value related to foreign exchange gain.
Financial risk management
The condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the annual consolidated financial statements; therefore, it should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2024. The Group's financial risk management objectives and policies are consistent with those disclosed in the annual consolidated financial statements at and for the year ended 31 December 2024.
There have been no significant changes in the risk management function or in any risk management policies since the year end.
Liquidity risk factors
Ultimate responsibility for liquidity risk management rests with the board of directors, which has an appropriate liquidity risk management framework for the management of the Group's short, medium, and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and financial liabilities.
Fair values of financial instruments
Financial instruments comprise financial assets and financial liabilities. Financial assets consist of cash and cash equivalents, trade receivable and other receivables (excluding prepayments and advances to subcontractors and suppliers), amounts due from customers on construction contracts and due from related parties. Financial liabilities consist of trade payables and accruals, (excluding advances received) subcontractors' retention, lease liabilities and due to related parties.
At the period end, the fair values of financial instruments are not materially different from their carrying values. The fair value of the financial assets and liabilities are considered at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The following assumptions were used to estimate the fair values:
Cash and cash equivalents, trade receivable and other assets (excluding prepayments and advances to subcontractors and suppliers), amount due from customers on construction contracts, due from related parties, bank borrowings, trade payables and accruals (excluding advances received), subcontractors' retention and due to related parties approximate their carrying amounts, largely due to the short-term maturities of these instruments.
Long term receivables are evaluated by the Group based on parameters such as interest rates, specific country risk factors and individual credit worthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, provisions are taken to account for the expected losses of these receivables. As at 30 June 2025, the carrying amounts of such receivables, net of provisions, are not materially different from their fair values.
Fair values estimation
The different levels have been defined as follows:
Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
Investment properties valued at AED 10.3 million (31 December 2024: AED 9.9 million), are classified under Level 3.
Investment properties are valued based on the market value of the relevant region in which the property is located (a) annually by qualified independent property valuation firms or (b) at each reporting period based on latest information available. The most significant input into this valuation approach is price per square meter. The property valuation firms are specialized in valuing these types of investment properties.
Specific valuation techniques used to fair value the investment properties include Comparable method: market approach provides an indication of value by comparing the asset with identical or
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025 (CONTINUED)
comparable assets for which price information is available. Factors such as location, accessibility, plot size and shape, view, land use and communities nearby are assessed.
Accounting policies
Changes in accounting policies
The accounting policies applied are consistent with those of the previous financial year and corresponding interim reporting period.
(a) New amendment adopted by the Group
An amendment became applicable for the current reporting period.
Amendments to IAS 21 - Lack of Exchangeability.
The Group did not have to change its material accounting policies or make retrospective adjustments as a result of adopting the amended standard.
(b) New standards and amendments not early adopted by the Group
The new standards and amendments that are issued, but not yet effective, up to the date of issuance of the Group's condensed consolidated interim financial statements are disclosed below.
Annual improvements to IFRS Accounting Standards
Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments
Amendments to IFRS 9 and IFRS 7 -Contracts Referencing Nature-dependent Electricity
IFRS 18 Presentation and Disclosures in Financial Statements
IFRS 19 Subsidiaries without Public Accountability: Disclosures
Effective date
1 January
2026
1 January
2026
1 January
2026
1 January
2027
1 January
2027
Management is currently assessing the impact of these new accounting standards, amendments and interpretations.
3 Expenses
AED million
30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | |
Personnel costs | 232.1 | 190.9 |
Material costs | 192.1 | 177.4 |
Sub-contractor costs | 155.1 | 200.9 |
Depreciation of property, plant and equipment | 8.5 | 8.2 |
Registration and legal expenses | 6.1 | 4.0 |
Depreciation of right-of-use assets | 1.3 | 1.5 |
Premise rent | 0.7 | 0.8 |
Amortisation of intangible assets | 0.4 | 0.4 |
Fair value loss on investment properties | - | 2.8 |
Other expenses | 19.7 | 18.0 |
616.0 | 604.9 |
4 Cash and cash equivalents
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
Cash on hand | 0.9 | 0.7 |
Current accounts | 206.4 | 186.5 |
Short term fixed deposits - maturity of less than 3 months | 115.2 | 118.4 |
Balances as per condensed consolidated interim statement of financial position | 322.5 | 305.6 |
The above figures reconcile to the cash and cash equivalents disclosed in the condensed consolidated interim statement of cash flows at the end of the reporting period.
Restricted cash amounting to AED 91.5 million (31 December 2024: AED 80.4 million) is cash held with the banks as margin for various trade finance instruments issued by these banks to the Group's customers.
5 Trade and other receivables | ||
AED million | ||
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
Trade receivables | 176.4 | 261.0 |
Contract retentions | 306.9 | 281.5 |
Less: non-current portion of contract retentions | (116.3) | (82.9) |
Less: Impairment of trade receivables and contract retentions | (190.3) | (207.2) |
Trade receivable and contract retentions - net | 176.7 | 252.4 |
Amounts due from related parties | 9.0 | 9.0 |
Other receivables | 62.7 | 69.6 |
Other current assets: | ||
Prepayments | 39.5 | 23.3 |
Advances to subcontractors and suppliers | 91.6 | 77.8 |
379.5 | 432.1 | |
Trade receivables represent amounts due from customers for contract work rendered by the Group and duly certified by the customers.
Contract retentions represent amounts withheld by the customers in accordance with contract terms and conditions. These amounts are to be repaid upon fulfilment of the contractual obligations.
The movement in the provision for impairment for trade receivables during the period/year is as follows:
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
At 1 January | 82.4 | 99.0 |
Charge for the period / year | 0.1 | 1.1 |
Reversal during the period / year | (7.8) | (13.1) |
Amounts transferred / (written off) - net | (0.7) | (4.6) |
Closing balance | 74.0 | 82.4 |
The movement in the provision for impairment for contract retentions during the year is as follows:
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
At 1 January | 124.8 | 159.9 |
Charge for the period / year | 0.2 | 1.0 |
Reversal during the period / year | (6.3) | (25.8) |
Amounts written off / transferred - net | (2.4) | (10.3) |
Closing balance | 116.3 | 124.8 |
The Group has certain long overdue contract balances for completed projects for which the Group is currently in discussion with the customers for the settlement of the outstanding balances and believes no further provision is required. Associated with the recoverability of contract balances, the Group commenced legal cases against certain customers in order to recover outstanding balances.
6 Goodwill
The goodwill arose on the acquisition by the Group of Vedder which is related primarily to the value of the synergies of the combined business operations, new customers relationships, growth opportunities and skilled labour. Goodwill is not tax deductible for tax purpose.
Goodwill has been allocated to the groups of cash-generating units which are the lowest level at which goodwill is monitored for internal management purposes.
Goodwill allocation to group of cash-generating units is as follows:
AED million
30 June 2025 (Unaudited)
31 December
2024 (Audited)
32.3
Vedder
Annual test for impairment
32.3
Goodwill is tested for impairment annually or when circumstances indicate the carrying value may be impaired. For impairment test purposes, the recoverable amount of the group of cash generating units has been estimated and is based on the higher of fair value less cost to sell or value in use calculated using current forecast and approved cash flow projections covering a five-year period. Based on the assessment, the management concluded that no impairment was required.
Key assumptions used
The calculation of value in use is sensitive to the following assumptions:
Growth rate;
Discount rate; and
Earnings before interest and tax (EBIT) rate.
Growth rate: Estimates are based on historic performance, approved business plan, backlog and prospective projects. An average growth rate of approximately 8.1% (31 December 2024: 8.1%) per annum was used for the revenue estimate.
Discount rate: Discount rate used throughout the assessment period was 9.25% (31 December 2024: 9.25%) per annum, reflecting the cash generating unit's estimated weighted average cost of capital and specific market risk profile and cost of debt. Segment-specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available market data.
EBIT rate: EBIT rate used throughout the assessment period was 5.8% (31 December 2024: 5.8%) reflecting historic average EBIT of Vedder.
At 30 June 2025, if the growth rate or EBIT rate had decreased by 2% (other variables held constant) or discount rate increased by 2% (other variables held constant), the recoverable amount of the cash generating unit exceeded the carrying value of the goodwill.
Management believes that for the carrying value of Vedder to materially exceed the recoverable amount, there would have to be unreasonable changes to key assumptions. Management considers the chances of these changes occurring to be unlikely.
7 Investment in associates
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
At 1 January | 11.7 | 12.2 |
Share of profit for the period / year | - | 0.8 |
Dividend received | (0.9) | (1.3) |
Closing balance | 10.8 | 11.7 |
AED million
8 Due from construction contract customers
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
Contracts in progress at end of the reporting period | ||
Amount due from construction contract customers | 259.0 | 196.2 |
Less: Impairment of amount due from construction contract customers | (62.2) | (63.5) |
Amount due from construction contract customers included in current assets | 196.8 | 132.7 |
Amount due to construction contract customers included in trade and other payables | (207.1) | (230.1) |
Amount due from construction contract customers includes amounts which have been recognised as revenue and have not been certified or invoiced at the end of the reporting period.
The movement in the provision for impairment for amount due from construction contract customers during the year is as follows:
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
At 1 January | 63.5 | 68.4 |
Reversal during the period / year | - | (3.0) |
Amounts written off | (1.3) | (1.9) |
Closing balance | 62.2 | 63.5 |
9 Related parties
Transactions between the Company and its subsidiaries have been eliminated upon consolidation and are not disclosed in this note. Related parties include directors, parent company shareholders and key management personnel and entities in which they have the ability to control and exercise a significant influence in financial and operating decisions. The Group considers its joint operations as related parties on the basis of substance of the relationship. The Group maintains significant balances with related parties which arise from commercial transactions. The types of related party transactions are described below:
Commercial transactions
The Group receives and provides services to related parties in the normal course of business at mutually agreed prices and market terms. Pricing policies and terms of related party transactions are approved in accordance with the Group's Corporate Governance policies, addressing related party transactions and conflicts of interest and which are aligned with the relevant provisions of the Dubai Financial Services Authority Market Rules relating to related party transactions.
Trade and other payables include amounts due to related parties (entities with common ownership and/or management) amounting to AED 9.6 million as at 30 June 2025 (31 December 2024: AED 9.6 million).
Trade and other receivables include amount due from related parties (joint operations) amounting to AED 9.0 million as at 30 June 2025 (31 December 2024: AED 9.0 million).
AED million
257.6
227.3
Revenue
Entities with common ownership
Related party transactions
30 June 2024 (Unaudited)
30 June 2025 (Unaudited)
Compensation of key management personnel
The remuneration of directors and other key members of management of the Group during the period were as follows:
AED million
30 June 2025 (Unaudited) | 30 June 2024 (Unaudited) | |
Short-term compensations | 3.1 | 3.2 |
End of service benefits | 0.1 | 0.1 |
Directors' fees | 0.4 | 0.4 |
3.6 | 3.7 |
10 Commitments and contingencies
AED million
30 June 2025 (Unaudited) | 31 December 2024 (Audited) | |
Letters of credit | 14.0 | 13.5 |
Letters of guarantee | 330.9 | 257.5 |
Security cheques issued | 21.0 | 24.2 |
The above letters of credit and guarantee were issued in the normal course of business. The Group has committed AED 51.2 million of capital expenditures as at 30 June 2025 (31 December 2024: AED 5.4 million). The security cheques were issued in lieu of performance bonds.
Legal cases
The Group companies are defendants in a number of legal proceedings which arose in the normal course of business. The Group does not expect that the outcome of such proceedings either individually or in the aggregate will have a material effect on the Group's operations, cash flows or financial position.
11 Property, plant and equipment
During the year, the Group incurred capital expenditure amounting to AED 56.0 million in relation to its new manufacturing facility under construction in Germany which is expected to be completed in 2026.
12 Segment information
Until 31 December 2024, the Group was organised in four key business units: Vedder, Depa Interiors, Deco Group and Investments and others. Effective 1 January 2025, information in relation to Carrara Mid-East Industrial Co. L.L.C. ('Carrara') was presented separately to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance which was previously aggregated with Deco Group key business unit in the consolidated financial statements for the year ended 31 December 2024 and 2023.
As a result, the key business units were reorganised to five: Vedder, Depa Interiors, Deco, Carrara and Investments and others. Accordingly, the management has restated previously reported corresponding information based on the revised key business units.
The principal products and services of each of these businesses are as follows:
Vedder
Interior fit-out solutions, including contracting, manufacturing and supply, specialising in luxury super yachts, private jets and residences.
Primarily operates in Europe.
Depa Interiors
Interior fit-out solutions, including contracting, manufacturing and supply, specialising in luxury hotels, villas, residential, hospitality and public buildings.
Primarily operates in the Middle East.
Deco
Interior fit-out solutions, including contracting, manufacturing and supply, specialising in the high-end luxury retail sector.
Manufacture and supply of joinery and carpentry work to the interior fit-out sector.
Primarily operates in the Middle East.
Carrara
Manufacture, supply and installation of stone works to the interior fit-out sector and construction sector in general, specialising in high quality marble and natural stones.
Primarily operated in the Middle East.
Investments and others
Corporate services and head office function
Activities are geographically spread.
DEPA PLC AND ITS SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX -MONTH PERIOD ENDED 30 JUNE 2025 (CONTINUED)
The following is the analysis of the Group's segments as at:
AED million
Vedder | Depa Interiors | Deco | Carrara | Investments and others | Eliminations / adjustments | Total | |
30 June 2025 (unaudited) | |||||||
Reportable segment assets | 376.7 | 986.0 | 153.7 | 97.7 | 3,066.5 | (3,287.2) | 1,393.4 |
Reportable segment liabilities | 191.0 | 804.8 | 81.8 | 51.5 | 120.2 | (420.6) | 828.7 |
31 December 2024 (audited) | |||||||
Reportable segment assets | 325.8 | 837.7 | 162.0 | 78.3 | 3,060.5 | (3,213.5) | 1,250.8 |
Reportable segment liabilities | 193.9 | 711.9 | 98.1 | 37.0 | 104.0 | (357.5) | 787.4 |
30 June 2025 (unaudited) | |||||||
Revenue - Internal | - | - | - | 9.0 | - | (9.0) | - |
Revenue - external | 219.8 | 359.7 | 91.1 | 29.9 | - | - | 700.5 |
Expenses (including net reversal of impairment on financial and contract assets) | (181.1) | (303.8) | (81.0) | (32.5) | (12.8) | 9.0 | (602.2) |
Net finance cost | (0.1) | (1.6) | (0.3) | (0.4) | 0.1 | - | (2.3) |
Income tax expense | (11.1) | (0.3) | (0.9) | (0.5) | 1.1 | - | (11.7) |
Profit for the period | 27.5 | 54.0 | 8.9 | 5.5 | (11.6) | - | 84.3 |
Depreciation | 4.5 | 3.1 | 0.6 | 1.0 | 0.6 | - | 9.8 |
Amortisation | 0.2 | - | - | 0.2 | - | - | 0.4 |
30 June 2024 (unaudited) | |||||||
Revenue - Internal | - | - | - | 24.4 | - | (24.4) | - |
Revenue - external | 182.8 | 342.9 | 86.5 | 10.8 | - | - | 623.0 |
Expenses (including net reversal of impairment on financial and contract assets) | (170.4) | (300.6) | (71.8) | (38.5) | (12.4) | 24.4 | (569.3) |
Net finance cost | 0.3 | (0.6) | (0.1) | (0.4) | 0.4 | - | (0.4) |
Income tax expense | (3.8) | (3.3) | (1.3) | - | 1.4 | - | (7.0) |
Profit for the period | 8.9 | 38.4 | 13.3 | (3.7) | (10.6) | - | 46.3 |
Depreciation | 4.1 | 3.1 | 0.7 | 1.1 | 0.9 | - | 9.9 |
Amortisation | 0.1 | - | - | 0.3 | - | - | 0.4 |
The Group recorded revenue amounting to AED 703.4 million over time from construction contracts (30 June 2024: AED 622.3 million). Point in time revenue amounted to AED 1.0 million from supply of materials (30 June 2024: AED 0.7 million).
Report on review of condensed consolidated interim financial statements to the board of directors of Depa PLC IntroductionWe have reviewed the accompanying condensed consolidated interim statement of financial position of Depa PLC and its subsidiaries (the 'Group') as at 30 June 2025 and the related condensed consolidated interim statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended and other explanatory notes. Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"). Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.
Scope of reviewWe conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
ConclusionBased on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting".
PricewaterhouseCoopers Limited 28 August 2025
Wassim El Afchal
Audit Principal, Reference Number I018372 Place: Dubai, United Arab Emirates
PricewaterhouseCoopers Limited License no. CL0215
DIFC, Unit 801, Al Fattan Currency House, Tower 1, Dubai, UAE T: +971 (0)4 304 3100, F: +971 (0)4 436 3060, https://www.pwc.com/me