Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced its financial results for 1H 2018. The Group recorded a net profit to parent of AED 113 million on revenue of AED 4.8 billion for the first half ended 30 June 2018. The Group’s backlog stood at AED 16.1 billion, supported by AED 34.6 billion of tenders submitted or under preparation.
In 2Q 2018, trade and other receivables reduced by 223 million with a 17-day improvement in debtor days, producing positive net cash from operating activities of AED 206 million. In line with the Group’s strategic priority, to strengthen the balance sheet, net debt to equity ratio improved to 1.2x at 30 June 2018 compared to 1.4x at 31 March 2018. Quarter-on-quarter, SG&A further reduced to 3.3% of revenue, consistent with the Group’s objective to become a leaner and more agile organisation.
The Group continues to focus selectively on countries that offer a strong, sustainable pipeline of construction and infrastructure opportunities including the United Arab Emirates, Saudi Arabia, Bahrain and Egypt. Furthermore, Arabtec is actively pursuing a number of infrastructure opportunities through its operating companies, evidenced by the recent award of the strategic sewerage and drainage infrastructure project in Jebel Ali from Dubai Municipality.
Group Chief Executive Officer Hamish Tyrwhitt said: “I am delighted to report a strong first-half performance which has seen the Group deliver six consecutive quarters of profitability. It is also pleasing that we are now seeing a reduction in trade receivables and debtor days reflecting the Group’s ongoing efforts to improve the resolution and collection of receivables. We continue to make good progress on simplifying our business model through better tools and processes and outsourcing non-core business activities, as well as applying innovative approaches to enhance our work and delivery capabilities.”
“We are also taking positive steps towards ensuring better economic, social and environmental sustainability across our operations, and therefore I am pleased to announce the release of our first Sustainability Report marked by the Global Reporting Initiative (GRI) ”.