Dubai – Mubasher: Drake & Scull International said that the accumulated losses amounted to 5.261 billion dirhams, constituting 491 percent of its capital, amounting to 1.071 billion dirhams.
The company stated in a statement that the main reasons that led to the accumulation of losses include existing works and contracts receivable in old projects in Oman, India, Saudi Arabia and the UAE, and the complete decline in the value of goodwill and trademark as of December 31, 2018.
The reasons for the losses also included poor performance in old projects, banking embargoes and court decisions.
In order to address the accumulated losses, the company referred to the completion of the restructuring process and business plan, the raising of new ownership rights, and the development of effective operational business practices.
As well as following up on lawsuits to collect all the company’s debts, and controlling overheads at the best level.
Drake & Scull, listed on the Dubai Financial Market, deepened its losses at the end of the first half of this year, compared to the losses of the same period last year.
The company stated that its losses rose to 162.6 million dirhams at the end of the first half of 2023, compared to losses of 89.1 million dirhams incurred by the company at the end of the first half of 2022.
The company’s losses increased to 119.2 million dirhams by the end of the first quarter of 2023, compared to losses of 52.5 million dirhams during the same period in 2022.
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