Dubai-listed developer Union Properties PJSC (UPP) said its turnaround strategy is accelerating, as it turned a profit of AED 285,000 ($77,603) profit for the first quarter of 2022.

UPP said it had consolidated three business units under a new body, EDACOM, to make AED7 million in savings this year, and collaborated with EDACOM and ServeU to make cost savings of up to 60% by the end of the year.

The company, however, reported accumulated losses of AED2.9 billion, equivalent to 68.55% of capital. Revenue for the first quarter was AED98.7 million, down year-on-year (YoY) from 99.2 million, according to financial results posted on the Dubai Financial Market (DFM).

Among other initiatives, the company said it had started design and engineering work for major infrastructure upgrade projects within its flagship development, Motor City.

“We continue to implement a business transformation culture aimed at improving the overall efficiency and productivity of the business through better utilization of resources and deployment of advanced technology,”

Amer Khansaheb, board member and managing director of Union Properties, said.

The company said it has introduced a wide range of infrastructure initiatives across its communities, including the installation of solar panels, LED conversion plans, smart waste management and technological updates, such as the deployment of Computer-Aided Facility Management (CAFM) systems for its B2B and B2C customer operations.

In its detailed analysis of accumulated losses, UPP said it will present a recovery plan to the Securities & Commodities Authority (SCA), and develop a business plan that includes focusing on closing out existing projects and refocusing on core business activities in order to win new projects.

The analysis also said UPP would recover misappropriated funds through legal procedures. UPP dismissed its chairman and three board members on claims of financial irregularities last year.

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)