Drake and Scull auditor raises doubts on #Dubai firm's ability to continue | ZAWYA MENA Edition

Drake and Scull auditor raises doubts on Dubai firm's ability to continue | ZAWYA MENA Edition:

Drake and Scull International’s (DSI) auditor has raised doubts on the company’s ability to continue as a going concern, although the Dubai contractor has just posted a net profit of 199 million UAE dirhams ($54.179 million) for the first half of the year.

In a report submitted to the Dubai Financial Market (DFM) on Tuesday, Ernst & Young (EY) Middle East said the engineering firm’s current liabilities have exceeded its current assets by 3,991 million UAE dirhams ($1,086 million) as of June 30, 2020.

The company also incurred a negative cash flow from operating activities of 5 million dirhams from January to June this year, while accumulated losses have reached 4,806 million dirhams.

“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern and that, therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business,” the auditor said in a note that accompanied the firm’s interim condensed consolidated financial statements.