2025 H1 Results Presentation

Our backlog stands strong at AED 2,404.5 million, reflecting steady growth of AED 713 million (42%) compared to AED 1,692.3 million in Jun'24. Backlog distribution is KSA 41%, UAE 32%, followed by Europe and USA 27%.

Group revenue increased by AED 77.5 million to AED

700.5 million in HY25 (12.4%) compared to AED

623.0 million in HY24.

KSA dominated revenue generation with 35% share, followed by UAE 33%, and EU/USA 31%.

Group's Net Profit has increased by AED 38.0 million to AED 84.3 million in HY25 (82.5%) compared to AED 46.3 million in HY24, mainly due to increase in gross margin, finance income, and net reversal of provision for

impairment of financial and contract assets.

Maintained healthy cash position with cash and cash equivalents increasing by AED 53.9 million to AED

322.5 million in Jun'25 compared to AED 268.6 million in Jun'24.

Revenue

Generated AED 700.5 million, up by AED 77.5 million (HY24: AED 623.0).

Expenses

Incurred AED 616.0 million, up by AED 11.1 million (HY24: AED 604.9 million).

Net reversal of provisions

Recorded net reversal of provisions for impairment on financial and contract assets of AED 13.8 million (HY24: net reversal AED 36.1 million).

Associates

NIL (HY24: loss AED 0.5 million).

Net Finance expense

Incurred AED 2.3 million (HY24: AED 0.4 million).

Income tax expense

Recognized AED 11.7 million (HY24: 7.0 million).

Net results

Generated net profit for the period AED 84.3 million (HY24: AED 46.3 million).

EPS

Basic and diluted earnings per share UAE fils 6 (HY24: UAE fils 3).

Liquidity management

Maintained adequate liquidity and worked closely with longstanding relationship banks to secure necessary working capital facilities.

Cash and bank balances

The Group reported cash and bank balances of AED 414.0 million (31 December 2024: AED 386.0 million) including fixed deposits and restricted cash.

Net cash balance

The Group reported net cash of AED 289.4 million (31 December 2024: AED 264.2 million) net of bank borrowings and lease liabilities and excluding restricted cash and fixed deposits.

Assets

Total assets amounted to AED 1,393.4 million (31 December 2024: AED 1,250.8 million) of which AED 1,025.1 million are current (31 December 2024: AED 979.0 million).

Liabilities

Total liabilities amounted to AED 828.7 million (31 December 2024: AED 787.4 million) of which AED

709.2 million are current (31 December 2024: AED 682.2 million).

Equity

Equity attributable to equity holders of the parent stood at AED 568.4 million (31 December 2024: AED 467.1 million).

Share capital

As at 30 June 2025, the Group's outstanding ordinary shares and ordinary Class-A shares amounted to 1,364,145,794, net of 4,306,959 treasury shares.

Operating activities

Net cash inflow from operating activities amounted to AED 82.1 million (HY24: inflow AED 37.8 million) supported by improved margins, efficient collections of receivables from customers and effective working capital management.

Investing activities

Net cash outflows used in investing activities amounted to AED 70.4 million (HY24: outflow AED 3.9 million) mainly in property, plant and equipment to meet expanding operating needs.

Financing activities

Net cash outflows used in financing activities were AED 7.8 million (HY24: outflow AED 6.9 million) due to higher finance cost and principal lease payments.

Exchange differences arising on translation of foreign operations

Favorable exchange differences arising on translation of foreign operations contributed to AED 13.0 million positive movement (HY24: AED 3.2 million negative movement) in the reported cash and cash equivalents.

Cash and cash equivalents balance

The Group ended the period with cash and cash equivalents of AED 322.5 million (30 June 2024: 268.6 million).

AED million

HY25

HY24

Change

Revenue

700.5

623.0

77.5

Expenses

(616.0)

(604.9)

(11.1)

Net reversal of provision for impairment on financial and contract assets

13.8

36.1

(22.3)

Share of loss from associates

-

(0.5)

0.5

Profit before interest and tax

98.3

53.7

44.6

Net finance cost

(2.3)

(0.4)

(1.9)

Profit before tax

96.0

53.3

42.7

Income tax expense

(11.7)

(7.0)

(4.7)

Profit for the period

84.3

46.3

38.0

12.4%

Revenue growth compared to HY24 due to strong performance recorded by all key business units, in particular Vedder and Depa Interiors.

AED 13.8 million

Net reversal of provision for impairment on financial and contract assets primarily relates to Depa Interiors and Carrara. During the period, the Group engaged with the customers to recover outstanding receivable balances amounting to AED

13.8 million.

.

AED 98.3 million

EBIT has increased by AED

44.6 million to AED 98.3 million mainly due to increased gross margin despite net reversal of provision for impairment on financial and contract assets being AED 22.3 million less than HY24.

AED 84.3 million

Net profit has increased by AED 38.0 million to AED

84.3 million in line with improved EBIT.

AED million

30-Jun-25

31-Dec-24

Change

Cash and cash equivalents

322.5

305.6

16.9

Restricted cash

91.5

80.4

11.1

Trade and other receivables

379.5

432.1

(52.6)

Due from construction contract customers

196.8

132.7

64.1

Inventories

34.8

28.2

6.6

Total current assets

1,025.1

979.0

46.1

Contract retentions

116.3

82.9

33.4

Property, plant and equipment including right-of-use assets

191.6

127.9

63.7

Goodwill

32.3

32.3

-

Other non-current assets

28.1

28.7

(0.6)

Total non-current assets

368.3

271.8

96.5

Total assets

1,393.4

1,250.8

142.6

Trade and other payables

706.0

679.7

26.3

Current tax liabilities

3.2

2.5

0.7

Total current liabilities

709.2

682.2

27.0

Employees' end of service benefits

58.2

55.4

2.8

Deferred tax liabilities

22.4

9.8

12.6

Other non-current liabilities

38.9

40.0

(1.1)

Total non-current liabilities

119.5

105.2

14.3

Total liabilities

828.7

787.4

41.3

Total equity including minorities

564.7

463.4

101.3

AED 414.0 million

Cash and bank balance of AED 414.0 million including restricted cash, up by AED

28.0 million compared to 31

December 2024 supported by better gross margins and collections.

AED NIL

No bank debt as at 30 June 2025

AED 0.41

Net asset value per share of AED

0.41 (31 December

2024: AED 0.34)

and tangible net asset value per share of AED 0.38 (31 December

2024: AED 0.31).

1.45

Current ratio of

1.45 (31 December

2024: 1.44).

1.47

Liabilities to equity ratio of 1.47 (31

December 2024: 1.70)

AED million

HY25

HY24

Change

Operating activities:

Operating cash flows before working capital changes and other movements

97.6

33.0

64.6

Working capital changes

(15.3)

9.2

(24.5)

Employees EOS and income tax paid

(0.2)

(4.4)

4.2

Net cash flows from operating activities

82.1

37.8

44.3

Investing activities:

Net capital expenditure

(73.5)

(6.7)

(66.8)

Dividends received from associates

0.9

0.7

0.2

Finance income received

2.2

2.1

0.1

Net cash flows used in investing activities

(70.4)

(3.9)

(66.5)

Financing activities:

Net movement in bank borrowings

0.0

(1.9)

1.9

Principal element of lease payments

(3.0)

(2.5)

(0.5)

Finance cost paid

(4.8)

(2.5)

(2.3)

Net cash flows used in financing activities

(7.8)

(6.9)

(0.9)

Net movement in cash and cash equivalents

3.9

27.0

(23.1)

Exchange differences arising on translation of foreign operations

13.0

(3.2)

16.2

Cash and cash equivalents at the beginning of the period

305.6

244.8

60.8

Cash and cash equivalents at the end of the period

322.5

268.6

53.9

AED 82.1 million

Operating cash inflows were AED 82.1 million in HY25 as compared to AED

37.8 million inflows in HY24, an increase of AED 44.3 million mainly due to improved gross margins and collections, coupled

with effective working capital management.

AED 70.4 million

Investing cash outflows were AED 70.4 million in HY25 as compared to AED

3.9 million outflows in HY24; an increase of AED 66.5 million mainly investment in new manufacturing facility (under construction) in Germany.

AED 7.8 million

Financing cash outflows were AED 7.8 million in HY25 as compared to AED

6.9 million outflows in HY24 mainly in principal lease payments and higher finance cost.

AED 322.5 million

Cash and cash equivalents increased by AED 53.9 million from AED

268.6 million in 30-Jun-24 to AED 322.5 million in 30-Jun-25.

Financial Highlights

• Revenue: AED 219.8 million, up by AED 37.0 million or 20%

• EBIT: AED 38.7 million, up by AED 26.3 million or 212%

Operational Highlights

• Revenue has increased mainly due to overall increased construction activities and the substantial completion of certain projects.

• Increase in EBIT is mainly due to one-off uplift in margin in a project, coupled with overall projects margin improvement and release of warranties.

Financial Highlights

• Revenue: AED 359.7 million, up by AED 16.8 million or 4.9%

• EBIT: AED 55.8 million, up by AED 13.5 million or 32%

Operational Highlights

• Strong backlog in the UAE and KSA.

• The increase in revenue and EBIT is attributable to overall projects progress and margin improvement coupled with settlement of final accounts on certain completed projects.

Financial Highlights

• Revenue: AED 91.1 million, up by AED 4.7 million or 5.4%

• EBIT: AED 10.1 million, down by AED 4.3 million or 30%

Operational Highlights

• Continued strong relationships with long-term clients securing projects for Lois Vuitton, Versace, Dior, Channel and Dolce & Gabbana during the year

• Increased revenue mainly from sustained increase in backlog

• Decrease in EBIT as compared to HY24 is due to one-off reversal of provision in prior period. Deco continues to consistently deliver profitable progress in line with prior periods.

Financial Highlights

• Revenue: AED 38.9 million, up by AED 3.7 million or 14%

• EBIT: AED 6.4 million, up by AED 9.7 million from AED 3.5 million loss

Operational Highlights

• Strong business development efforts lead to securing record-breaking contract wins with healthy gross margins.

• Increased revenue is supported by new contract wins and robust performance.

• Strong EBIT recovery compared to HY24 is due to higher margin variation orders, profitable progress on newly secured projects coupled with one-off reversal of provision for impairment on financial and contract assets during the period.

Depa PLC

Tel:

+966 11 515 0666

+971 4 821 6666