Arabtec Holding accumulated losses at $182.83mln

The accumulated losses of the company reached 44.7% of its capital

  

Dubai – The accumulated losses of Arabtec Holding totalled AED 671.25 million in 2019, representing 44.7% of its capital, according to the company's disclosure to Dubai Financial Market (DFM) on Sunday.

The accumulated losses are attributed to tight liquidity in the real estate and construction sector and delays in settlements and recovery of receivables and claims which put pressure on the cash flow.

In addition, investment in an associate company logged AED 107 million losses, while the group faced an increased volume of legal disputes that led to a delay in collections and additional costs.

To tackle the accumulated losses, the group will focus on completing and handing over the legacy projects, pursue its legal and commercial entitlements, and restructure its operational model.

It is noteworthy to mention that in 2019, the company incurred AED 774.499 million net losses attributable to the owners of the parent, versus AED 256.299 million net profits in 2018.

Source: Mubasher

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