The company’s revenue from customer contracts reached 122.1 million dirhams ($33.3 million) during the period, an increase of 16% compared to the same period last year, thanks to the improvement in the performance of the group’s subsidiaries and the positive dynamics of the real market. real estate market in the UAE.
The company was able, according to a statement on Wednesday, to reduce its administrative and general expenses by 21% on an annual basis, to reach 16.6 million dirhams (4.5 million dollars) in the first quarter of 2023.
The group’s operating profit rose 335% year-on-year to 19.8 million dirhams ($5.4 million) during the same period.
Union Properties announced the extent and percentage of its cumulative losses, amounting to 2.9 billion dirhams ($786 million), constituting 67.3% of its capital of 4.3 billion dirhams ($1 billion). and $168 million).
The company said in its statement that the main reasons for these accumulated losses are:
Fair value loss related to investment properties recorded in fiscal year 2017 Fair value loss related to investment properties recognized in fiscal year 2021 Loss on disposal of associate of AED250 million ( $68 million) recorded during fiscal year 2020 Loss and impairment of fair value instruments through profit or loss amounting to MAD 337 million ($91.7 million). Sale of assets to related parties resulting in losses of AED62 million ($16.8 million) for 2020 and AED45.5 million ($12.4 million) in 2021. Provisions of 90 AED.5 million ($24.6 million) against advance payments to contractors in 2020 2021.
To address the accumulated losses, Union Properties said it would take the following actions:
Submit a recovery plan and communicate it to the Securities, Commodities and Market Authority (SCA) for an accumulated loss management plan. Development of an action plan which includes the closure of existing projects and the refocusing of the company on its core business in order to win new projects. Develop continuous efforts to acquire more projects in the UAE, in addition to ongoing projects. Improve productivity and overall operational efficiency. Debt restructuring to reduce financing costs. Recovery of unpaid contributions (in particular through legal and arbitration proceedings). Continuous reduction of operating costs. Development of a large land reserve. Develop assets with recurring cash flows. Strong concentration on the group’s operating subsidiaries. Focus on cash-generating activities.
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