The Asian subsidiary of Dubai-based fit-out firm Depa, Design Studio Group, has seen revenues for the first nine months of 2019 fall by double-digits due to impairment losses and rising project costs.
Design Studio Group, Depa’s key business unit in Asia, dropped further into the red with a loss of $25.7m (AED94.7) compared to a net loss of $7.4m (AED27.5m) during the same period a year earlier.
The loss – more than triple what it was last year – was mainly due to “reductions in estimated project margins” and “higher-than-expected” project costs in Asia.
Revenue during the first nine months of the year declined by 41.7% to $53.9m (AED198.1m) due in large part to the results in Singapore and Malaysia, coupled with a weak performance from its manufacturing units.
The company said it was currently negotiation with its largest shareholder, Depa Group, for a term loan to support its ongoing operations.