By: Mahmoud Gamal
Dubai - Mubasher: Drake and Scull International's (DSI) accumulated losses in the first quarter of 2017 accounted for 75% of the company's AED 2.285 billion capital, as expenses rose and revenues declined, according to a statement.
Accumulated losses went up 73% to AED 1.714 billion in Q1-17, compared to AED 991.55 million in Q1-16.
Total current liabilities reached AED 6.01 billion, while its current assets reached AED 5.15 billion
Accounts receivable stood at AED 4.55 billion, representing 67.2% of the company’s total assets worth AED 6.77 billion.
Net losses amounted to AED 838.88 million in Q1-17, against profits of AED 9.53 million in Q1-16.
General and administrative expenses rose 1,059% to AED 763.55 million in Q1-17, compared to AED 65.89 million.
Finance costs rose 85% to AED 20.89 million in Q1-17 from AED 11.29 million in Q1-16.
The company’s first-quarter profits were “shocking”, according to Wadah Al Taha, a member of the UK’s Chartered Institute for Securities and Investments (CISI) in the UAE.
The company’s debt reached 94% in Q1-17, while accumulated losses reached 75% of the company’s capital, and cash and cash equivalents amounted to AED 278 million, he added.
The only way out for the company is to follow up with the new strategic partner, Tabarak Investment, as well as to monitor debts and repayment dates, Al Taha noted.
Translated by: Julian Nabil
