arabtec unveils threestep recovery plan
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Arabtec unveils three-step recovery plan

Egypt Today, egypt today

Egypt Today, egypt today Arabtec unveils three-step recovery plan

Arabtec said it held “a strong GCC footprint with a major focus on UAE market”.
Dubai - Arab Today

Contractor Arabtec has said it intends to focus on "core competencies" in key Gulf markets as it looks to secure backing from investors for its latest turnaround plan.
The company, which is currently seeking a further cash injection of Dh1.5 billion from investors as part of a new recapitalisation programme, revealed details of a three-point recovery plan it is proposing to be carried out over the next three years.
The first phase, planned for this year, involves a stabilisation of the heavily loss-making business, implementing the recapitalisation to wipe out historic losses, establishing Arabtec Holding as a "strategic management company", introducing better risk management and a "performance-based culture", resolving legacy issues and disposing of "non-core" assets.
The second part, due next year, involves preparing the business for the future, which means keeping its costs in check, delivering projects on-time and to budget and "consistently" secure a backlog of projects worth about Dh8bn to Dh9bn.
The final phase, which will begin in 2019, will focus on growth, most notably its profit margins and its cash generation, as well as boosting its capabilities in: engineering procurement, construction and management (EPCM); infrastructure; MEP; and specialist construction. This will also be the first year in which it is targeting a potential dividend return to shareholders.
The plan has been devised by the group’s new chief executive, Hamish Tyrwhitt, who was appointed in November last year.
Among the actions planned to be taken this year include a "strategic review" of all its current investments, a disposal of any divisions it considers to be non-core and a recycling of the cash elsewhere in the business.
It also has an "action plan on legacy claims, receivables, and WIP (work in progress) to enable the group to focus on the future growth of the business without being restricted by problems from the past", according to the document sent to investors, which the company has published on the Dubai Financial Market.
The recapitalisation plan for which the company is seeking investors’ backing involves a new rights issue to raise Dh1.5bn by increasing the size of its capital base from Dh4.6bn to Dh6.1bn.
Following the fund-raising it intends to then cancel 4.5 billion shares, which will help it to wipe out accumulated losses of Dh4.6bn.
The plan has effectively been underwritten by its biggest shareholder, Aabar Investments, which is part of the soon-to-merge Mubadala-Ipic investment company. Before the recapitalisation, Aabar Investments owns 36.11 per cent of Arabtec, but it has agreed to take its full allocation of shares under the new rights issue and buy up additional stock that any other shareholders decline to take.
The price at which the issue will be set will be determined later this month, when the company reveals its fully audited accounts for 2016. Preliminary accounts filed last month show a net loss attributable to its parent company of Dh3.4bn — a 45 per cent increase on the Dh2.3bn loss declared in 2015. Revenue climbed by 6 per cent to Dh7.7bn.
The company’s backlog fell by 4 per cent to Dh18.1bn. In its presentation document to investors, Arabtec said that over two-thirds (67 per cent) of this related to projects in the UAE.
The company said it held "a strong GCC footprint with a major focus on UAE market". It added that it was "becoming increasingly selective with projects especially in KSA", where it has pulled back from a joint venture with cash-strapped Saudi Binladin Group and had previously stated an intention to bid for work in that market independently.

 

Source: The National

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

arabtec unveils threestep recovery plan arabtec unveils threestep recovery plan



GMT 15:49 2011 Friday ,10 June

Oil firm wins injunction against Greenpeace

GMT 10:27 2015 Monday ,06 July

Mini to launch ‘Clubman’ in 2016

GMT 17:21 2011 Wednesday ,23 February

Lampard Desperate To Win The Champions League

GMT 10:13 2018 Tuesday ,09 January

Barcelona to unveil 160m Coutinho

GMT 23:03 2017 Monday ,16 January

Bank of Korea: Money Production Cost Rise in 2016

GMT 20:33 2011 Friday ,06 May

Asad\'s army arrests all men over 15 in Daraa

GMT 11:55 2011 Tuesday ,29 November

Ultrabooks could save the PC

GMT 13:02 2012 Saturday ,01 September

Zombies and Morons compete

GMT 07:31 2017 Tuesday ,20 June

Sisi keen on attaining unity

GMT 11:50 2015 Saturday ,26 September

The Library of Fragrance announces January launches

GMT 06:28 2014 Saturday ,18 October

Asian Junior Volleyball tourney kicks off in Bahrain

GMT 13:31 2016 Saturday ,13 February

Greek farmers clash with police

GMT 07:40 2012 Friday ,06 July

Deeds, not words, matter the most

GMT 14:16 2016 Wednesday ,23 November

Gigi sorry for ‘racist’ Melania Trump impression

GMT 22:52 2011 Tuesday ,26 April

Nigeria prepares for parliamentary elections

GMT 20:35 2016 Tuesday ,04 October

Paris climate deal: EU backs landmark agreement

GMT 10:50 2016 Thursday ,01 September

India's Reliance announces launch

GMT 09:34 2016 Friday ,30 September

Rosetta spacecraft set for final comet crash landing

GMT 06:27 2017 Wednesday ,28 June

Rakeen Georgia ex-CEO faces trial in Georgia
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday