Drake & Scull Confirms Historic Losses
Dubai-based Drake & Scull International has reported 2018 losses of 4.5 billion UAE dirhams (£938,290), and confirmed the Emirate's Public Prosecutor is investigating the contents of the prospectus issued prior to its 2009 listing on the Dubai Financial Market.
In a statement released yesterday, the construction and engineering group restated its accounts to incorporate losses from previous years it claims were concealed by a previous management team.
The company also revealed that the extent of its losses had only come to light as a result of an internal investigation that was initiated early in 2018 with the support of an external auditor.
Drake & Scull International has fallen victim to intense price competition within its core mechanical, engineering and plumbing (MEP) business. Following the 2008 global financial crisis, the group reported significant losses.
In 2017 the company installed a new Board of Directors and called on shareholders to fund a new capital restructuring plan.