Interior design and specialty contractor Depa PLC pivoted to a net loss of 44.4 million dirhams ($12 million) in FY 2023 versus a net profit of AED 59.1 million in FY 2022, with the bottom line impacted by provisions.

Revenue came to AED 1.09 billion, up 19% from AED 917.8 million in the year-ago period, Depa said in a statement on Tuesday on Nasdaq Dubai, where its shares are listed.

The Saudi Arabia-based company recorded net provisions for doubtful debts of AED 51.3 million primarily related to Depa Interiors and Carrara project receivables.

Group CEO Haitham Tuqan acknowledged the impact of significant provisions for impairments related to project receivable balances, particularly within Depa Interiors, while noting the strong performances of subsidiaries, Deco Emirates and Vedder. He said in Vedder's planned diversification into the US high-end residential fit-out market would bring "promising opportunities".

In early 2023 Saudi sovereign wealth fund, the Public Investment Fund (PIF), bought $40.84 million worth of new shares in Depa and currently owns 55% of the company.

(Writing by Brinda Darasha; editing by Seban Scaria)