Dubai-based Drake & Scull International (DSI) has announced that documents are being finalised for its creditors to approve its restructuring plan as the contractor looks to the future.
When approved, with the support of the Financial Reorganisation Committee, the company will then look to the courts to approve the implementation of the restructuring plan, DSI said in a filing to Dubai Financial Market.
Once approved by the court, it will then be for the shareholders to approve the deal and the launch of the associated rights issue, it added.
An agreement in principle was reached with a group of the largest lenders in early January and this was subsequently presented to all creditors last month.
The update comes as the company published its audited financial results for the year ended December 2020, reporting a net profit of AED95 million.
General and administrative expenses slumped to AED69 million from AED252 million in 2019, one of the main reasons contributing to the net profit for 2020.
The company posted 2020 revenues of AED182 million compared to AED681 million in 2019 while there was a gain on the disposal of a subsidiary amounting to AED291 million.
Profit from continued operations reached AED114 million in 2020 compared to a profit of AED234 million in 2019.
The company said its order backlog remained stable at AED398 million, driven by on-going operations in the UAE, Algeria, Tunisia, Palestine, India, Kuwait, Iraq, and Germany.
Munir Mansour, CEO of DSI, said: “During the last few months, DSI has managed to deal with the many legacy projects and ensuring the delivery of the current contracts. There has been a renewed focus on the enhancement of our operational efficiencies, operating cost management, and at the same time reorganising the operations so as to be ready to deliver the post-restructuring five-year business plan.
“As per the shareholders’ approval in 2019, the organisational restructuring is progressing well especially after the sale of a number of the loss-making civil related entities with the continued focus on the MEP sector.
“We are making a continuous effort to win more projects were possible, whether in UAE or overseas, in addition to the on-going operations in Algeria, Tunisia, Palestine, India, Kuwait, Iraq, and Germany.”
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