Wednesday 22 June 2011

Arabtec's stance on provisions disappoints

Arabtec's latest guidance on how it will provision against future delays in client payments has dampened enthusiasm among investors for the Dubai builder.

The emirate's largest construction company is owed more by clients than it posted in revenues last year.

At the end of the year, receivables stood at Dh5.7 billion. That is equivalent to more than a year of revenues, or 374 days of sales at the company.

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