Deco Group Operational Review

Middle East-based Deco Group comprises Deco, which is focused on the retail and commercial fit-out sector; carpentry and joinery experts Eldiar; and Carrara, which supplies and installs premium marble, stone and granite.

In 2021 Deco Group generated revenue of AED 127.5 million (2020: AED 130.4 million) and a profit of AED 0.2 million (2020: AED 24.8 million loss). Delays in project awards in both Deco and Carrara continued to impact Deco Group’s revenue generation for 2021. The delay in Deco’s project awards was largely due to the Covid-19 lockdowns in Europe where a number of Deco’s clients’ head offices are based. Following the easing of restrictions, Deco subsequently saw an improvement in its backlog position towards the end of 2021. Carrara, however, continues to face new project award challenges due to difficulties in project financing as a result of the cautious approach UAE based banks are taking towards the construction sector.

While Deco achieved strong profitability for the year, Carrara’s results proved to be a drag on Deco Group’s overall profitability. Deco continued its long-term relationships with several major luxury retailers, securing a number of projects for Versace, Dior, Cartier and Dolce & Gabbana during the year. Project awards of approximately AED 20 million were secured in the Kingdom of Saudi Arabia towards the end of 2021 following its increased focus on this market.

Deco achieved strong project delivery during the year, successfully delivering projects for their repeat clients including multiple projects for both Dior and Versace, while Carrara successfully handed over a number of hospitality packages in Dubai.

REVENUE

150 130.4

75

127.5

0

FY2020 FY2021 10

0

(10)

(30) EBIT

1.4

(23.2)

FY2020 FY2021