National Central Cooling Co. – “Tabreed” (DFM: TABREED) today announced revenues of AED 124.6 million for the first quarter of fiscal 2008 ended March 31. Tabreed's segmental results showed total revenue of AED 49.1 million generated from the company's core Chilled Water business in comparison with AED 40.3 million for the same quarter in 2007. The company posted gross profit of AED 66.5 million for the period, up from AED 62.2 million in 2007. Net profit declined to AED 10.0 million compared to AED 21.4 million in 2007 for the same period.
Tabreed's profits for the quarter in Chilled Water of AED 11.0 million compared with AED 10.9 million for the same period in 2007, were impacted by high inflation in labor costs, administrative payrolls and certain other expenses and overheads. Within the Manufacturing segment several contracts due to complete in the first quarter were delayed, with profits for the quarter of AED 5.1 million in comparison with AED 11.3 million last year. Additionally, the company took a negative mark to market against one of its investments, which resulted in a negative cash management result for the quarter.
Commenting on the company’s first quarter results Tabreed’s CEO Dany Safi said: “Our first quarter results have been impacted by several exceptional factors, however within the Chilled Water business this was largely foreseen and we remain on-track to achieve our full year budget for the segment and for the group. I am very proud of the 21.8% top-line growth achieved in Chilled Water, and of the group's two successful capital raisings this quarter. We are very well positioned to maintain our record of strong and steady growth."
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