REG - Dar Global PLC - Full-year results for the year ended 31 Dec 2024
13/03/2025 07:15
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RNS Number : 4681A Dar Global PLC 13 March 2025
LEI: 213800XRFXQ1KEWACW80
13 March 2025
DAR GLOBAL PLC
('Dar Global', or the 'Company', or the 'Group')
Full-year results for the year ended 31 December 2024
Significant progress in achieving strategic milestones with increased sales,
project launches and completions, as well as expansion into new markets,
backed by a strong balance sheet.
Dar Global, the luxury international real estate developer, today announces
its audited full-year results for the year ended 31 December 2024 ('FY 2024').
Ziad El Chaar, Chief Executive Officer of Dar Global, commented: "As we
reflect on another transformative year at Dar Global, I am proud to highlight
our significant progress in shaping global luxury real estate. 2024 has been a
year of important achievements with the Group now working on 17 active
projects with a GDV of USD 7.5 billion, reinforcing our leadership in the
high-end market. We have strengthened our presence, expanded into key regions,
deepened global partnerships, and delivered on our commitments. From
completing landmark projects to entering new territories, these bold steps
underscore our dedication to excellence, innovation, and sustained growth.
"Looking ahead, we remain committed to delivering the finest portfolio of
luxury homes across the world's most desirable locations and strengthening our
brand collaborations. We continue to expand our global footprint, with the
United States and Greece in focus for 2025.
"With the continued construction progress and new projects announced, we
remain on track to achieve our previously announced cumulative USD 700 million
revenue target across 2024 and 2025 whilst maintaining an average EBITDA
margin over 2024 and 2025 comparable to that achieved in FY 2023. With a
strong pipeline of projects and a focus on unmatched luxury, Dar Global is
poised for sustained growth and long-term success."
Robust sales performance driven by sustained demand
· Portfolio Gross Development Value ('GDV') increased to USD 7.5
billion across 17 active projects (31 December 2023: 12 active projects with
GDV of USD 5.9 billion)
· Customer demand for both newly launched and existing projects
remains strong with contracted sales rising to over 2,250 units (FY 2023:
1,498 units) amounting to a total sales value of c. USD 1.6 billion (FY 2023:
USD 1 billion). Contracted sales are 49% of total launched GDV of c. USD 3.3
billion.
· Total Revenue of USD 240.3 million (FY 2023: USD 360.6 million),
a 33% year-on-year decline, with major revenue recognition milestones
anticipated during 2025.
· Gross profit of USD 87.4 million (FY 2023: USD 146.5 million) -
resulting in a 36% gross profit margin (FY 2023: 41%).
· EBITDA for the period of USD 30.0 million (FY 2023: EBITDA USD
83.0 million).
· Reiterate our previously stated 2024-2025 two-year target of
delivering an EBITDA margin in line with previous period.
· Profit before tax for the period of USD 14.1 million (FY 2023:
profit USD 81.3 million) as project construction cycles bridge across
financial reporting periods as is typical for our industry.
Strong financial position to capitalise on growth opportunities
· Increased net asset value of USD 478.5 million compared to USD
465.4 million as of 31 December 2023.
· Strong balance sheet with a cash position of USD 424.4 million,
comprising free cash of USD 153.0 million and restricted cash balances (escrow
and escrow retention) of USD 271.4 million.
· Total liquidity of USD 206.0 million (including undrawn debt
facilities of USD 53.1 million), providing the flexibility to capitalise on
further project opportunities in the year ahead.
Financial highlights:
Summary Profit & Loss FY 2024 (USD M) FY 2023 (USD M) Change
(%)
Revenue 240.3 360.6 -33%
Gross profit 87.4 146.5 -40%
Gross profit margin 36% 41%
EBITDA 30.0 83.0 -64%
EBITDA margin 12% 23%
Profit before tax 14.1 81.3 -83%
Summary Financial Position As at 31 December 2024 (USD M) As at 31 December 2023 (USD M) Change (USD M)
Assets
Cash and cash equivalents 413.6 228.5 185.1
Escrow retentions 10.8 10.0 0.8
Trade and unbilled receivables 277.3 221.9 55.4
Advances, deposits and other receivables 119.8 60.9 58.9
Development properties 586.4 216.9 369.5
Other assets 33.5 29.2 4.3
Total 1,441.4 767.4 678.0
assets
Liabilities
Trade and other payables 85 25.7 59.3
Advance from customers 180 57.5 122.5
Loans and borrowings 205.5 125.4 80.1
Due to related parties 222.6 1.2 221.4
Development property liability 254.7 78.6 176.1
Other 15.1 13.5 1.6
liabilities
Total liabilities 962.9 301.9 661.0
Equity
Net asset value 478.5 465.5 13
Net asset value per share (in USD)* 2.7 2.6 0.1
*Net asset value per share is based on the number of shares outstanding as on
31(st) December 2024 of 180,021,612
Group Operational Highlights
We continue to focus on developing bespoke, high end living and investment
opportunities across prime locations worldwide, designed for global citizens
and affluent buyers. This strategic approach has driven a strong performance
despite a backdrop of global uncertainties.
Our growth trajectory and sales momentum remain robust across all active
projects, supported by a prudent and strategic investment approach. We are
pleased to present an update on our geographically diverse portfolio and
overall financial position.
· UAE: In 2024, we successfully delivered Urban Oasis Tower by
Missoni and advanced our ongoing projects. We strengthened our presence in the
UAE by securing prime land plots in Dubai and Ras Al Khaimah where we
introduced Astera, with interiors by Aston Martin. Additionally, we expanded
our luxury partnerships, extending our collaboration with the Trump
Organization, with plans to launch Trump Tower Dubai in 2025. We will also
launch our first villa community within the Jumeirah Golf Estate in 2025.
· Oman: Building on the success of AIDA, we further expanded our
footprint with the launch of Trump Hotels, Trump Villas and Marriott-branded
residences. We also ensured beach access by securing an additional ~ 0.93
million sqm of land, we are upgrading the golf course to Championship level
and to increase the number of units with golf and sea views. These
developments reinforce our commitment to luxury living, offering world-class
hospitality and premium residential experiences within AIDA. We are truly
creating in AIDA a world class resort and a destination to drive further
growth within Oman.
· Saudi Arabia: We began our strategic expansion in Riyadh and
Jeddah, securing key land plots to strengthen our presence. In collaboration
with the Trump Organization and Mouawad, we successfully launched two projects
in 2024, further enhancing our luxury brand portfolio in the region. As
previously announced, we have hired Rothschild & Co. to help advise on
investment opportunities in this key new market for us and expect further
significant expansion into the Saudi market in FY 2025.
· Qatar: We expanded our luxury waterfront development with the
launch of the third tower of Les Vagues. Meanwhile, construction advanced
significantly on one of the towers, marking steady progress toward completion.
· UK: The successful sale and handover of 149, Old Park Lane in
London marked a significant milestone in our luxury development portfolio. Oh
So Close has now been completed and is in the handover phase, while 8 To
Central is expected to be completed in 2025. Further strengthening our
presence in the city, we have commenced our prestigious Albert Hall Mansions
project, reinforcing our commitment to delivering iconic luxury residences in
prime locations.
· Spain: We enhanced the designs for Marea, Finca Cortesin,
refining our luxury offerings. Additionally, infrastructure work commenced at
Tierra Viva, marking a key step in the development process.
Global Expansion: We expanded our sales network and continue to expand with
new offices coming up in KSA, New York and Greece in 2025, increasing our
global presence to nine locations and strengthening direct broker
relationships in key cities worldwide. As we continue to grow, we aim to
further expand in these regions throughout 2025, reinforcing our international
reach. Additionally, we are exploring strategic investment opportunities in
The London and Saudi Arabia markets in collaboration with Rothschild & Co,
reinforcing our commitment to long-term growth.
Capital Strengthening: We strengthened our liquidity position by securing an
additional USD 275 million for expansion and will look to continue to improve
our funding capabilities to support the growth we are experiencing in the
business.
Outlook and Guidance
As we enter the new financial year, I extend my gratitude to our team,
partners, and stakeholders for their dedication and support. We remain on
track to achieve our market guidance of USD 700 million in aggregate revenue
for 2024 and 2025 while maintaining similar margins. With a robust pipeline,
solid financial position, and expanding global presence, we are
well-positioned to capitalise on new opportunities and drive sustainable
growth, delivering value for our stakeholders.
Management Presentation
The Company's full year results presentation will be available on the Investor
Relations section of Dar Global's website (https://darglobal.co.uk/investor/
(https://darglobal.co.uk/investor/) ).
2024 Accounts and Audit Report
The complete 2024 Annual Report and Accounts for the financial year ended 31
December 2024 will be available on our website
(https://darglobal.co.uk/investor (https://darglobal.co.uk/investor) ) during
the course of today.
- Ends -
For further enquiries, please contact:
Dar Global plc IR@darglobal.co.uk
Panmure Liberum (Corporate Broker) T (mailto:IR@darglobal.co.uk) el: (mailto:IR@darglobal.co.uk) +44 (0) 20 3100
2000
Dru Danford / Jamie Richards
Burson Buchanan (Financial Communications) Tel: +44 (0) 20 7466 5000
Henry Harrison-Topham / Simon Compton darglobal@buchanancomms.co.uk
www.bursonbuchanan.com (http://www.bursonbuchanan.com)
Notes to editors:
Dar Global PLC is a highly differentiated international real estate business.
It focuses predominantly on developing real estate projects comprising bespoke
luxury homes for internationally mobile customers, in some of the most
desirable locations across the Middle East and Europe, including Jeddah and
Riyadh in Saudi Arabia, downtown Dubai, Muscat in Oman, London and the Costa
del Sol region in the South of Spain.
Dar Global was originally established to house and develop the international
assets of Dar Al Arkan Real Estate Development PJSC ('DAARE'), a leading real
estate developer in the Kingdom of Saudi Arabia. Listed on the Saudi Stock
Exchange since 2007, Dar Al Arkan has delivered over 15,000 residential units
with total assets of c. US$7.5 billion.
The Company intends to expand its focus to hospitality assets. The aim is to
acquire or build hotels and sell them after a period of three to five years of
operation once the hotels' or resorts' revenue streams stabilise. Target
markets include the US, Spain, Dubai, Maldives, Athens, Saudi Arabia, and
London.
Dar Global was admitted to the Main Market of the London Stock Exchange on 28
February 2023. For more information, please visit www.DarGlobal.co.uk
(http://www.DarGlobal.co.uk)
Chairman's Statement
It is a privilege to address you as the new Chairman of Dar Global at such a
pivotal moment for our company. First and foremost, I am pleased to report
that 2024 marked yet another year of significant progress and achievement.
Since our public listing on the London Stock Exchange in 2023, Dar Global has
continued to build on the strong foundation of our vision: crafting iconic
developments in some of the world's most sought-after locations for the global
citizen. We take pride in partnering with brands celebrated for timeless
elegance and exclusivity-all while delivering our projects safely,
sustainably, and with prudent capital management.
2024 was a milestone year for the Company. We not only delivered our very
first projects in Dubai and London-but we did so with remarkable speed and an
unwavering commitment to quality. Our team's tireless work has set the stage
for seven projects now under construction worldwide, with another flagship
development ready to be handed over in Q1 2025. I am proud of our development
team for successfully bringing so many of these to life, both safely and in
record time.
We achieved significant construction milestones that allowed us to recognise
revenue, and our project portfolio has grown in both geographic reach and
Gross Development Value ('GDV'). Launching four new projects in 2024 brings us
to a total of 17 developments with an estimated GDV of USD 7.5 billion. This
growth is a testament to our ability to identify and seize on high-return
opportunities. It is made possible by the trust and collaboration we enjoy
with our partners and landowners. Our business development team continues to
actively search for profitable new projects in all focus areas.
One of the highlights of this year was our successful expansion into new
markets, particularly in Saudi Arabia, where our first project exceeded
initial expectations. This move aligns with our strategy of targeting
high-growth regions with strong demand for premium real estate offerings. In
addition to the Saudi Arabia projects in Riyadh, and Jeddah, we launched our
first project in Ras Al Khaimah. These landmark developments are being brought
to life in partnership with globally renowned brands-Aston Martin, Mouawad,
and the Trump Organization (with whom we have already announced a further
launch in Dubai).
It is worth noting that I made my first public appearance as Chairman of Dar
Global at the Trump Jeddah sales launch in December 2024. This event provided
me with a first-hand view into the incredible infrastructure Dar Global has
created across business development, design, development, marketing, sales,
and construction. The Dar Global team is agile. In a span of less than six
months, the Company selected a site, completed the design of a world-class
building, and launched a series of successful sales events. I am proud to
share that Trump Jeddah Tower was one the most successful launches in Saudi
Arabia and this would have been difficult to accomplish if it were not for our
prolific team of accomplished professionals led by our impressive CEO Ziad El
Chaar.
Even amid global uncertainties, our sales have remained strong. With seven
sales offices around the globe, and new offices in KSA, New York and Athens
expected to open in 2025, our customer base continues to grow-not just in
numbers, but in loyalty. Many of our clients are investing across multiple
projects, reflecting the deep trust they place in us. Ending the year with
liquidity of USD 206.0 million underscores our financial strength and
readiness for the opportunities ahead.
Shaping the future of luxury living
At Dar Global, we are not just constructing buildings; we are crafting spaces
that embody luxury, sustainability, and a sense of belonging. Our focus on
luxury homes in prime international locations has once again proven to be a
successful model, allowing us to capitalise on the evolving preferences of our
discerning clients.
Upholding the Highest Standards
At Dar Global, our commitment to you is grounded in the highest standards of
corporate governance, transparency, and shareholder engagement. We continue to
enhance our corporate practices, and strive towards ensuring we operate with
integrity, ethical conduct, and a long-term vision, which are the cornerstones
of our success.
Innovation is at the heart of our work. We continually explore new
technologies and data-driven approaches to enhance our operations, streamline
our sales processes, and deliver exceptional service to our clients. This
proactive mindset not only helps us stay ahead in a rapidly evolving real
estate landscape but also reinforces our dedication to sustainability and
corporate responsibility.
Outlook
While global economic uncertainties and geopolitical challenges persist, our
diverse portfolio and agile business model have proven remarkably resilient.
These strengths have allowed us to navigate turbulent times and consistently
deliver value to you, our shareholders.
As we look toward 2025, our excitement about the future only grows. With a
robust pipeline of projects and a capital-light model that underscores our
disciplined approach, we remain focused on selective expansion in markets that
align with our core strengths and values.
I want to express my heartfelt gratitude to our shareholders, partners, and
every member of the Dar Global team. Your unwavering support and confidence in
our vision have been instrumental in our achievements this year. We remain
dedicated to delivering exceptional value to our customers, sustainable
returns to our shareholders, and a positive impact on the communities we
serve. Together, we are poised to continue our growth story for many years to
come as we approach the future with optimism and determination.
David R. Weinreb
Chairman
CEO's Statement
Building on Success, Expanding Our Horizons
As we reflect on another transformative year at Dar Global, I am proud to
highlight the remarkable progress we have made in shaping the future of luxury
real estate. 2024 has been a year of achievements, growth, evolution, and
delivering on our commitments. We have strengthened our market position,
expanded into key regions, and deepened partnerships with some of the world's
most prestigious brands and delivered on a number of strategic milestones.
From completing landmark projects to entering new territories, our bold steps
underscore our unwavering commitment to excellence, innovation, and strategic
expansion.
Delivering Iconic Developments
We achieved a number of market successes in 2024. We successfully handed over
two flagship projects: Urban Oasis Tower by Missoni in Dubai and 149, Old
Park Lane in London, setting new standards for luxury living and design.
Additionally, we made substantial progress across several other high-profile
developments, including Les Vagues, AIDA, DG1, and Astera, while advancing
work on the W Residences and DaVinci Tower. Our portfolio continues to
expand and has grown to 17 projects with a Gross Development Value ('GDV') of
USD 7.5 billion-up from 12 projects valued at USD 5.9 billion in 2023.
Customer demand has remained exceptionally strong, with cumulative contracted
sales exceeding 2,250 units by year-end (49% of launched units), representing
USD 1.6 billion of the total launched GDV of USD 3.4 billion. These
achievements reflect the trust and confidence our investors and clients place
in Dar Global's vision and the enduring appeal of our high-end developments.
Strategically, we have also secured prime land transactions in Ras Al Khaimah
(Astera), the Maldives (Dolce & Gabbana Resort), Riyadh (Neptune Villas by
Mouawad), Jeddah (Trump Tower Jeddah), and Dubai (Jumeirah Golf Estates and
Trump Tower Dubai). Each project is carefully chosen to deliver exclusive
luxury homes in high-growth destinations. These milestones are a testament to
our commitment to creating exceptional living spaces and expanding our
footprint in key global markets.
Financial Highlights: Sustaining Growth Amid Expansion
Dar Global has maintained strong momentum driven by record sales, strong
demand for our premium properties and a growing portfolio of high-value
projects, with total gross development value increasing to USD 7.5 billion.
Revenue for the year reached USD 240.3 million (FY 2023: USD 360.6 million).
As previously indicated, whilst our sales volumes have grown significantly, we
will hit a number of revenue recognition milestones in FY 2025 which will
allow for a greater proportion of revenue to be recognised in FY 2025 than FY
2024
Gross profit stood at USD 87.4 million with a margin of 36% (FY 2023: 41%),
while EBITDA totalled USD 30.0 million and net profit reached USD 14.9
million. Our capital-light model and disciplined financial strategy ensure
that we remain agile and well-positioned for future growth. With cash and cash
equivalents at USD 424.4 million (including project escrow balances) and
undrawn debt facilities of USD 53.1 million (including project restricted
debt), we have the financial strength to expand our footprint and seize new
opportunities. Looking ahead, we are firmly on track to achieve USD 700
million in revenue within this year and 2025.
Operational excellence to meet our strategic goals
As our business has expanded, so has our team. We now have a fully established
organisation covering all key functions, from front to back office, staffed by
talented and dedicated professionals worldwide. Our distribution network is
equally strong, combining an in-house sales force with a global broker
network. Over the past year, with a team of over 70 sales professionals across
eight locations, supported by over 1,300 active brokers in more than 60
countries cities worldwide. Our leadership team brings decades of collective
experience, providing a strong foundation of expertise to support our
entrepreneurial drive, and to fuel our growth.
With a liquidity pool of USD 206.0 million, and our capital-light business
model we are well positioned to deliver further growth. By selling units
off-plan, forming joint development agreements to reduce upfront costs, and
outsourcing construction under fixed-price contracts, we ensure substantial
risk mitigation as we scale and continue to strengthen our growth strategy.
A Vision for Sustainable Luxury
In line with our growing operations, there is a natural increase in our
responsibility to the environment. We are committed to innovating to provide
sustainable development through eco-friendly designs, energy-efficient
technologies, and responsible construction practices that align with global
sustainability standards. By optimising resources and reducing waste, we aim
to create communities that are luxurious yet environmentally conscious.
Building the Future Together
As we progress into the new financial year, I extend my heartfelt thanks to
our talented team, trusted partners, and loyal stakeholders for their
unwavering dedication and support. Your hard work and commitment have been
instrumental in our journey so far, and will remain key to our future growth.
Together, we are not just building homes but crafting experiences that
redefine luxury living, we remain steadfast in our mission to deliver
exceptional homes and exceptional places to live.
As we look ahead, I am pleased to confirm that we remain firmly on track to
achieve our market guidance of cumulative USD 700 million revenue target
across 2024 and 2025 whilst maintaining an average EBITDA margin over 2024 and
2025 comparable to that achieved in FY 2023.
As we move into 2025, we are well-positioned to capitalise on emerging
opportunities in the luxury real estate market. Our robust pipeline, strong
balance sheet, and talented team provide a solid foundation for continued
growth and value creation. With an expanding global footprint, our
capital-light approach, and an unrelenting focus on excellence, we remain
poised to deliver sustainable growth and create lasting value for our
stakeholders.
Ziad El Chaar
Chief Executive Officer
Dar Global's Portfolio
Dubai, United Arab Emirates (UAE)
Dubai's residential real estate market continues to thrive, achieving record
transaction levels in 2024. The first three quarters alone saw home sales
surpass the total transactions of 2023, with a significant rise in deal
values. Q3 2024 set a new benchmark, contributing AED 116.8 billion in sales,
according to a report published by Knight Frank. Dubai also retained its
position as the global leader in luxury home sales above USD 10 million,
outpacing major cities like New York and London. This underscores Dubai's
strengthening dominance in the high-end real estate sector.
Our projects in Dubai
1. Urban Oasis Tower by Missoni
The Urban Oasis Tower is a 34-story residential building located on the Dubai
Canal, offering stylish apartments with interiors designed in partnership with
the Italian luxury fashion brand Missoni. These homes feature stunning views
of the canal and city, spacious bedrooms, and elegant living spaces, perfectly
combining modern luxury with a Miami-inspired flair.
a) Status: Completed
b) Launched: Q4 2021
c) Scheduled Completion: Completed
d) Number of units: 467
2. Da Vinci Tower, Interiors by Pagani
Da Vinci Tower is a residential building in Downtown Dubai, featuring
interiors designed by Pagani, the renowned Italian luxury car brand. Acquired
in late 2021, the property is currently undergoing a full luxury-standard
refurbishment. Being the world's first residences by Pagani, the Da Vinci
Tower is an architectural masterpiece designed to inspire and impress.
a) Status: Near completion
b) Launched: Q4 2022
c) Scheduled Completion: Q2, 2025
d) Number of units: 85
3. W Residences
W Residences in Downtown Dubai is a 49-story residential tower offering
stunning views of the Burj Khalifa and proximity to Dubai's major landmarks,
including the Dubai Mall. Inspired by the bold, dynamic spirit of New York
City's W Hotels, these residences redefine luxury living, blending modern
sophistication with a vibrant lifestyle in the heart of Dubai.
a) Status: Under construction
b) Launched: Q4 2022
c) Scheduled Completion: Q2, 2026
d) Number of units: 383
4. DG1
DG1 is a 20-story tower located along the canal in Downtown Dubai, designed by
the renowned Gensler Architects. It's a work of art that transforms the
cityscape around it. With its striking architecture and unique design, DG1
offers a fresh perspective on luxury living, setting a new standard for
sophistication in Dubai.
a) Status: Under construction
b) Launched: Q1 2023
c) Scheduled Completion: Q4, 2026
d) Number of units: 249
Ras Al Khaimah, United Arab Emirates (UAE)
Ras Al Khaimah's real estate market is growing rapidly, attracting global
investors with high-value properties and strategic developments. Demand for
prime waterfront homes is soaring, driven by upcoming tourism projects and
much-anticipated Wynn, Marjan Island, the UAE's first integrated resort
featuring a Casino. This project is set to redefine the Emirate's hospitality
and entertainment landscape, further driving property demand..
Investor-friendly policies, including freehold ownership and long-term
residency, further enhance its appeal. As the Emirate evolves, it is emerging
as the UAE's next major real estate success story.
Our projects in Ras Al Khaimah
1. Astera, interiors by Aston Martin
The Astera by Aston Martin is a stunning beachfront residence on Al Marjan
Island, Ras Al Khaimah, where Aston Martin's signature elegance meets modern
coastal living. Offering luxurious one to three-bedroom apartments and
exclusive three-bedroom beach villas, each home is designed with breathtaking
Gulf views and world-class amenities. With direct beach access, an infinity
pool, and a private cinema, The Astera promises a lifestyle of sophistication
and serenity in one of the UAE's most exciting waterfront destinations.
a) Status: Under construction
b) Launched: Q2 2024
c) Scheduled Completion: Q4 2028
d) Number of units: 280
Oman
Oman's residential real estate market is set for strong growth, expected to
expand from USD 4.78 billion in 2025 to USD 7.42 billion by 2030 at a 9.19%
CAGR, according to Mordor Intelligence. This growth is driven by rising demand
from both locals and expatriates, who are shaping the market dynamics. The
luxury segment is also gaining traction, supported by investor-friendly
policies, residency for life, expanding free zones, and a focus on
sustainability. Offering a mix of affordable and high-end properties, Oman is
emerging as a prime real estate destination with strong long-term investment
potential.
Our projects in Oman
1. AIDA
AIDA is a breathtaking luxury development set on the dramatic cliffs of
Muscat, offering an unparalleled blend of natural beauty and refined living.
Spanning 4.3 million square meters, this visionary project will be developed
over 8 to 10 years and launched in phases and this exclusive community will
comprise of luxurious residences, a world-class Trump golf course, and premium
hospitality experiences. Designed to harmonise with Oman's stunning
landscapes, AIDA seamlessly merges modern elegance with the serenity of its
coastal surroundings. With thoughtfully crafted villas and apartments boasting
panoramic views, along with exceptional amenities, AIDA offers a one-of-a-kind
lifestyle where luxury meets nature's masterpiece.
a) Status: Under construction
b) Launched: Q1 2023
c) Scheduled Completion: Entire masterplan - 2034 (Phase 1 - 2027-28)
d) Number of units: Launched 1,296
Saudi Arabia
Saudi Arabia's real estate market is expanding rapidly, driven by Vision 2030,
a strong economy, and a growing young population. Key cities like Riyadh,
Jeddah, and Dammam are seeing rising transactions and steady price growth.
Government infrastructure projects and increasing foreign investment are
further boosting demand. According to Knight Frank, more expatriates are
considering homeownership, with strong interest in branded residences and
long-term investment. With large-scale developments and economic reforms,
Saudi Arabia is emerging as a leading real estate hub in the region.
Our projects in Saudi Arabia
1. Neptune, Interiors by Mouawad
Neptune is our first project in Saudi Arabia with 200 units offering a blend
of modern design and high-quality living. Strategically located, the project
features beautifully crafted homes designed by Mouawad with contemporary
architecture and access to a range of amenities.
a) Status: Under-construction
b) Launched: Q4 2024
c) Scheduled Completion: Q4 2027
d) Number of units: 200
2. Trump Tower, Jeddah
Trump Tower Jeddah is our first project in Jeddah and second in Saudi Arabia,
located along the iconic Jeddah Corniche. With 561 exclusive residences, the
tower reflects the excellence and sophistication of the Trump brand, offering
contemporary design, high-end finishes, and world-class amenities. Its prime
waterfront location and thoughtfully designed living spaces set a new
benchmark for luxury living in the city.
a) Status: Sales commenced
b) Launched: Q4 2024
c) Scheduled Completion: Q4 2029
d) Number of units: 561
Spain
Spain's real estate market is in a strong growth phase, driven by high demand
and limited supply. New home prices surged 10.7% year-on-year in early 2024,
while existing home prices rose 6.5%. According to Caixa Bank Research,
factors like lower interest rates, economic improvement, and rising household
formation are fuelling demand. This trend is expected to continue into 2025,
with home prices projected to grow at 4%, outpacing inflation.
Our projects in Spain
1. Tierra Viva, Design by Automobili Lamborghini
Tierra Viva is our first project in continental Europe, launched in June 2023
in partnership with Automobili Lamborghini. This exclusive gated community of
53 luxury units is set in the scenic hills of Benahavís, overlooking Marbella
and the Mediterranean Sea. Inspired by Lamborghini's bold design philosophy,
Tierra Viva blends modern elegance with breathtaking views, offering a refined
living experience in one of Spain's most sought-after locations.
a) Status: Under construction
b) Launched: Q2 2023
c) Scheduled Completion Q4 2027
d) Number of units: 53
2. Marea, Interiors by Missoni
Marea, our second project in Spain, was unveiled in August 2023, featuring
interiors by Missoni. Located in a prime coastal enclave, it offers a seamless
blend of luxury and natural beauty. With expansive sea views and proximity to
world-class golf and lifestyle amenities, Marea provides an exclusive
residential experience designed for refined living.
a) Status: Pre-Sales
b) Launched: Q3 2023
c) Scheduled Completion: Q4 2027
d) Number of units: 59
3. Manilva, Tabano
In September 2022, Dar Global acquired six land plots (4.6 million sqm) in
Manilva, Málaga, near the Cádiz border in southern Spain. Located about 45
minutes from Marbella, the site is close to several polo clubs and some of the
finest beaches on the Costa del Sol.
The Tabano project is currently in the early permitting phase, with completion
targeted for December 2029. Dar Global is working with consultants to develop
the concept master plan and infrastructure strategy which will be utilised for
seeking permits.
Doha, Qatar
Qatar's real estate market is expanding, offering exciting opportunities for
investors and homebuyers. Government initiatives, including freehold ownership
for expats and residency-linked investments, are driving market activity.
While new developments provide more options, demand for premium living spaces
remains strong. As Qatar continues to invest in its future, its real estate
sector is evolving into a hub of stability, opportunity, and luxury living.
Our project in Doha
1. Les Vagues by Elie Saab
Les Vagues by Elie Saab is a one-of-a-kind residential masterpiece of 5 towers
in Lusail's Qetaifan Island North, offering over 300 luxury seafront
apartments with breathtaking views. As Qatar's first residences with interiors
by world-renowned designer Elie Saab, the project blends timeless elegance
with modern coastal living. With 3 towers already launched, these thoughtfully
designed one, two, and three-bedroom apartments, along with world-class
amenities, Les Vagues offers a refined lifestyle where luxury meets the
serenity of the sea.
a) Status: In progress
b) Launched: Q4 2022
c) Scheduled Completion: Q1 2027
d) Number of units: Over 300
London, United Kingdom
London's real estate market is set for strong growth in 2025, driven by
improved mortgage affordability, rising buyer confidence, and a recovery in
sales. The upcoming Stamp Duty reversion is expected to boost activity,
especially among first-time buyers. According to CBRE, house prices are
forecast to rise, supported by stable economic conditions and wage growth.
With renewed market confidence and government support for housing development,
London's property market is poised for sustained momentum.
Our projects in London
1. Old Park Lane
Situated on the corner of Old Park Lane and Piccadilly and overlooking Green
Park, 149 Old Park Lane is a sophisticated landmark building with an important
role in London's architectural heritage.
a) Status: Completed
b) Launched: Q4 2022
c) Number of units: 1
2. 8mins-to-Central
Situated only minutes from central London on the new Elizabeth underground
line, this is a low-rise building housing meticulously designed apartments.
a) Status: Under Construction
b) Launched: Q2 2023
c) Scheduled completion: H1 2025
d) Number of units: 9
3. Oh So Close
Located within the leafy community of West Ealing, this project comprises of
two 3-storey houses divided into luxury flats.
a) Status: Completed
b) Launched: Q2 2023
c) Number of units: 17
4. Albert Hall
7&8 Albert Hall Mansions Penthouse is situated in one of London's most
prestigious neighbourhoods, directly overlooking the iconic Royal Albert Hall.
This historic and architecturally significant building offers residents
breathtaking views as well as an exclusive address.
a) Status: Under Construction
b) Launched: Q2 2024
c) Scheduled completion: Q2, 2027
d) Number of units: 1
FY 2024 financial performance
A Diversified and Resilient business model
Dar Global PLC has demonstrated a robust and versatile business model in the
two years since its London Stock Exchange listing. The Company has
consolidated its position as a leading developer of luxury homes, and achieved
remarkable milestones, setting the stage for future expansion, and sustained
long-term growth.
2024, was a showcase of Dar Global's resilience, whereby we flourished despite
a challenging global environment and made significant operational progress.
The Company's financial performance for 2024 reflects its strategic focus on
long-term growth. While reported revenue and EBITDA were lower compared to the
previous year, Dar Global achieved substantial increases in sales and Gross
Development Value (GDV) of launched projects both of which are key performance
indicators for our business. This growth in sales and GDV underscores the
Company's commitment to delivering sustainable value and its strong market
positioning in the luxury real estate sector.
Dar Global's success is further supported by our expanding portfolio, which
now spans nine markets and attracts affluent clientele from over 100
nationalities. The Company's strategic partnerships, innovative designs, and
focus on high-quality projects in desirable locations have contributed to its
rapid growth and will position us well for years to come.
Year 2024: Financial Performance
Revenue for the year stood at USD 240.3 million (FY 2023: USD 360.6 million)
and was primarily attributed to project progress across three key markets.
Gross Profit was USD 87.4 million, with a margin of 36% (FY 2023: USD 146.5
million and margin of 41%). EBITDA for the year was USD 30.0 million (FY 2023:
USD 83.0 million), while Net Profit stood at USD 14.9 million (FY 2023: USD
83.2 million).
Strategic Progress and Financial Stability
The Group continues to leverage its capital light model and maintain a
disciplined approach to liquidity management. The Group's liquidity position
strengthened significantly, with cash and cash equivalents (including escrow
and escrow retentions) reaching USD 424.4 million as of 31 December 2024, a
78% increase from USD 238.5 million in the previous year. Net asset value grew
to USD 478.5 million, reinforcing the Group's solid financial foundation and
operational strength.
The Group demonstrated robust access to capital, enhancing its financial
flexibility to capitalize on new opportunities. As of year-end, undrawn debt
facilities stood at USD 53.1 million, demonstrating the Group's financial
resilience and ability to fund future growth initiatives.
As of 31 December 2024, the total liquidity pool stands at c. USD 206.0
million, including unrestricted undrawn debt facilities of c. USD 53.1
million and excluding project escrow balances. The Group's escrow balances
(including restricted cash) stood at USD 271.5 million which provides adequate
liquidity for completion of our ongoing projects. This robust liquidity
position provides the Group with the flexibility to capitalize on project
opportunities, ensuring a robust and dynamic asset portfolio to drive future
growth.
Summarised consolidated statement of profit or loss and other comprehensive
income
Amounts in USD million 2024 2023
Revenue 240.3 360.6
Cost of revenue (152.9) (214.1)
Gross profit 87.4 146.5
Gross profit % 36% 41%
Other income 4.4 3.1
SG&A expenses (67.1) (68.0)
Finance income/ (cost) (11.3) (0.2)
Share of profit /(loss) from joint venture 0.7 (0.1)
Profit before tax 14.1 81.3
Income tax credit 0.8 2.0
Profit for the period 14.9 83.3
Increase/(decrease) in foreign currency translation reserve (1.9) 1.4
Total comprehensive income for the year 13.0 84.7
Summarised Balance Sheet
Amounts in USD million 2024 2023 Change
Cash and cash Equivalents 413.6 228.5 185.1
Escrow retentions 10.8 10.0 0.8
Trade and unbilled receivables 277.3 221.9 55.4
Advances, deposits and other receivables 119.8 60.9 58.9
Development properties 586.4 216.9 369.5
Other assets 33.5 29.2 4.3
Total assets 1,441.4 767.4 674.0
Trade and other payables 85.0 25.7 59.3
Advance from customers 180.0 57.5 122.5
Bank borrowings 205.5 125.4 80.1
Due to related parties 222.6 1.2 221.4
Development property liabilities 254.7 78.6 176.1
Other liabilities 15.1 13.5 1.6
Total liabilities 962.9 301.9 661.0
Net asset value / Total equity 478.5 465.5 13.0
· Development properties - There was a gross addition of USD 522.4 million
primarily driven by the acquisition of lands in UAE, Oman, and KSA, as well as
the asset acquisition through Dar Al Arkan for Real Estate Development WLL,
Qatar. This increase is offset by USD 152.9 million transferred to the cost of
goods sold as per revenue recognition.
· Advances from customers - There was an increase in collections during the
year due to the launch of new projects in KSA, Oman, and UAE, as well as
collections from sale of new and previously sold units in existing projects,
in line with the agreed payment plans.
· Development property liabilities - Increase in development property
liabilities is mainly due to the acquisition of lands in KSA, Oman, Qatar and
UAE under a deferred payment plan.
· Advances, deposits and other receivables - The increase is mainly
attributed to advances for land acquisitions, contractor payments in line with
contractual obligations and sales commission paid to brokers and employees for
sale of properties.
· Bank borrowings: Bank borrowings have increased as funds have been
utilised for expansion, the acquisition of new land plots, and meeting working
capital requirements.
· Due to related parties: During the year, the Group obtained a financing
facility of up to USD 325 million from its major shareholder. The increase is
mainly on account of drawdown of loan, which has been utilised for acquiring
land plots for new projects.
Prospects for 2025
The Group's strong sales momentum and significant GDV of newly launched
projects highlights the underlying strength of Dar Global's business. As these
projects advance in 2025, we expect revenue and profitability to increase.
Additionally, the Group has strategically acquired two land parcels in Dubai,
which are planned for launch in 2025, further reinforcing its presence in the
region. Plans are also underway to unveil additional phases in Oman and Qatar,
with a focus on ongoing exploration of expansion opportunities across its key
geographies in the Middle East and Europe. These initiatives reflect Group's
proactive approach and commitment to capitalising on market potential and
generating long-term value for stakeholders.
Dar Global's planned entry into the United States market in 2025 also
represents a bold step towards global expansion, aiming to develop luxury
residences for both US-based and international buyers. This move, coupled
with the Company's diverse portfolio of projects across Saudi Arabia, the UAE,
Qatar, Oman, and Spain, positions Dar Global for steady growth and reinforces
its status as a leader in the global luxury real estate sector.
Principal risks and uncertainties
Strategic and financial risks
Risk description Remediation / Mitigation
1. Property market cycles and interest rates
Changes in macroeconomic environment or tightening of financial conditions may - Critical assessment of target location and underlying demand.
lead to falling demand through a reduction in the wealth of our target
affluent customer demographic. This could result in reduced sales volumes and - Conservative deployment of capital.
affect our ability to deliver profitable growth.
- Joint venture agreements for suitable land and partners.
Availability of suitable land at appropriate cost is also strongly impacted by
property market conditions, incorrect timing of purchases could impact future - Frequent review of pricing.
profitability.
- Strong relationships with key brokers.
- Geographical diversification.
2. Capital availability and solvency
Lack of sufficient financing may restrict our ability to respond to changes in - Disciplined capital management.
the economic environment and take advantage of appropriate land buying and
operational opportunities to deliver strategic priorities. - Secured funding lines for future opportunities.
- Strong and supportive majority shareholder.
3. Political risk
Significant political events locally and globally may impact Dar Global's - Diversification across several jurisdictions, with the majority considered
business as customers may be reluctant to make purchases due to uncertainty. safe havens by wealthy investors.
Sanctions may cause supply chain disruption, and changes in local laws may
increase costs or cause delays to projects. - Conservative capital policy enables management to tolerate lower sales
volumes and avoid steep price cuts.
Operational risks
Risk description Remediation / Mitigation
4. Contractor ability to deliver on time with high quality/low defect
Failure to achieve excellence in construction, such as late completion of - Rigorous contractor due diligence.
works, design and construction defects could expose the Company to future
remediation liabilities, and impact future sales through reputational damage. - Legally binding contractual terms.
- Stringent quality assurance through build programme oversight by both Dar
Global engineers and independent consultants on multiple sites across several
countries.
5. Legal risks: joint venture and branding
Differences in interpretation of goals, roles, and responsibilities of each - Extensive due diligence on all partners.
partner may lead to protracted delays in executing and legal recourse, which,
in the event of underperformance by one or more parties, a change in control/ - Contractual agreements detailing roles, responsibilities and performance
financial stability of one of our partners, could result in large losses and requirements, defined through pre-agreement discussions to effectively address
reputational damage to Dar Global. and allocate ownership of risks and potential liabilities between parties.
- Effective, frequent communication and updates to all relevant parties
throughout the life of each project.
- Oversight by both Dar Global engineers and independent consultants
6. Labour standards and health & safety
Health and safety, or environmental breaches can impact Dar Global's - Robust health and safety procedures for all construction sites.
employees, subcontractors and site visitors, and result in reputational
damage, criminal prosecution, civil litigation, increased cost and delays in - Regular health and safety monitoring, external audits of all sites, and
construction. regular management reviews.
- Contractual requirements for all subcontractors to abide by high standards
of safety
7. Cyber and data risk
The Group places significant reliance upon the availability, accuracy, and To address the residual risk, the Group:
confidentiality of all of its information systems and data. It could suffer
significant financial and reputational damage from corruption, loss or theft - Has a comprehensive Information Security Programme to complement existing
of data. controls, addressing any vulnerabilities and implementing best practices with
the support of specialist external third parties.
- Deployed multi-factor authentication on key platforms.
- Uses cloud-based services reducing centralised risk exposure.
8. Employee relations
Increasing competition for skills may mean we are unable to recruit and retain We have the following measures in place:
the best people. It could result in a failure to deliver our strategic
objectives, a loss of corporate knowledge and competitive advantage. - Succession planning for key management.
- Monitoring attrition rates, attendance and feedback from exit interviews.
- In addition, we are enhancing our performance management approach.
Directors' Responsibility Statement
The directors confirm that, to the best of their knowledge the audited
financial statements have been prepared in accordance with UK-adopted
international accounting standards, and give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Group and
that this announcement includes a fair review of the development and
performance of the business and the position of the Group.
The names and functions of the Company's directors are listed on the Company's
website.
By order of the Board.
David Weinreb
Chairman
12 March 2025
Dar Global PLC and its subsidiaries
London - United Kingdom
Consolidated statement of financial position
(In United States dollar)
December 31, December 31,
Note 2024 2023
ASSETS
Cash and cash equivalents 5 413,625,405 228,492,034
Trade and unbilled receivables 6 277,338,806 221,867,464
Advances, deposits and other receivables 7 119,774,587 60,870,788
Development properties 8 586,415,420 216,931,211
Escrow retentions 9 10,774,653 9,987,477
Investment in joint venture 10 - 5,370,876
Loan to joint venture 11 - 2,150,987
Due from related parties 19 1,600,015 8,619,797
Property and equipment 12 21,897,663 5,536,049
Right-of-use assets 13 4,133,177 5,538,638
Deferred tax assets 20 5,860,228 1,980,741
----------------- ---------------
TOTAL ASSETS 1,441,419,954 767,346,062
========== =========
LIABILITIES AND EQUITY
LIABILITIES
Trade and other payables 14 85,015,114 25,713,890
Advances from customers 15 180,027,547 57,523,290
Retention payable 16 9,630,047 6,849,069
Development property liabilities 17 254,747,426 78,631,324
Bank borrowings 18 205,493,025 125,363,803
Due to related parties 19 222,567,717 1,248,415
Employees' end of service benefits 1,117,792 660,158
Lease liabilities 13 4,114,862 5,944,562
Deferred tax liabilities 20 252,935 -
--------------- ---------------
TOTAL LIABILITIES 962,966,465 301,934,511
========= =========
EQUITY
Share capital 21 1,800,216 1,800,216
Share premium 22 88,781,078 88,781,078
Retained earnings 387,488,728 372,985,572
Foreign currency translation reserve (437,202) 1,436,244
Statutory reserve 2.21 820,669 408,441
--------------- ---------------
TOTAL EQUITY 478,453,489 465,411,551
----------------- ---------------
TOTAL LIABILITIES AND EQUITY 1,441,419,954 767,346,062
========== =========
The accompanying notes from 1 to 37 form an integral part of these
consolidated financial statements.
These consolidated financial statements were approved by the Board of
Directors on 12 March 2025 and signed on its behalf by:
__________________ __________________
David Weinreb
Ziad El Chaar
Chairman Chief Executive Officer
Dar Global PLC and its subsidiaries
London - United Kingdom
Consolidated statement of profit or loss and other comprehensive income
(In United States dollar)
December 31, December 31,
2024 2023
Note
Revenue 23 240,330,393 360,575,755
Cost of revenue 23 (152,946,653) (214,131,383)
--------------- ---------------
Gross profit 87,383,740 146,444,372
Other income 24 4,373,756 3,147,006
Selling and marketing expenses 25 (27,345,974) (38,764,532)
General and administrative expenses 26 (39,737,003) (29,256,276)
Finance costs 27 (22,979,983) (5,020,798)
Finance income 27 11,690,273 4,788,820
Share of profit/ (loss) from joint venture 10 704,640 (93,162)
Gain from disposal of joint venture 10 20,038 -
--------------- ---------------
Profit before tax 14,109,487 81,245,430
Income tax credit 20 803,690 1,980,741
--------------- ---------------
Profit for the year 14,913,177 83,226,171
========= =========
Other comprehensive income
Items that are or may be classified subsequently to profit or loss
(Decrease)/increase in foreign currency translation reserve (1,871,239) 1,434,037
--------------- ---------------
Total comprehensive income for the year 13,041,938 84,660,208
======== ========
Profits attributable to:
Owners of the company 14,913,177 83,226,171
Non-controlling Interests - -
--------------- ---------------
14,913,177 83,226,171
Total comprehensive income attributable to: ========= =========
Owners of the company 13,041,938 84,660,208
Non-controlling Interests - -
---------------- -------------
13,041,938 84,660,208
========= ========
Earnings per share attributable to owner of the Company:
- basic and diluted earnings per share (USD) 28 0.08 0.46
---------------- --------------
Adjusted earnings before interest, tax, depreciation and amortisation
(adjusted EBITDA)
Net finance costs 11,289,710 231,978
Depreciation on property and equipment and right-of-use assets 4,530,248 3,184,400
Listing related (reversal)/ expenses - (1,680,520)
Tax credit (675,239) (1,937,734)
------------- -------------
Adjusted earnings before interest, tax, depreciation and amortisation
(adjusted EBITDA) 30,057,896 83,024,295
======== ========
The accompanying notes from 1 to 37 form an integral part of these
consolidated financial statements.
Dar Global PLC and its subsidiaries
London - United Kingdom
Consolidated statement of changes in equity
(In United States dollar)
Share capital Statutory reserve Foreign currency translation reserve Retained earnings Share premium Capital Contribution Total equity
Balance as at January 1, 2023 22,395,109 - - - - 259,006,479 281,401,588
Profit for the year - - - 83,226,171 - - 83,226,171
Other comprehensive income - - 1,436,244 - - - 1,436,244
Total comprehensive income for the year - - 1,436,244 83,226,171 - - 84,662,415
Transaction with owners of the Company
Issue of shares related to acquisition of subsidiary (notes 21 3,666,666 - - - 279,662,114 (259,006,479) 24,322,301
& 22)
Issue of ordinary shares (notes 21 & 22) 216,216 - - - 71,783,588 - 71,999,804
Reduction of share capital (notes 21 & 22) (24,477,775) - - 287,142,399 (262,664,624) - -
Other reserves - - - 3,025,443 - - 3,025,443
Statutory reserve - 408,441 - (408,441) - - -
Total transactions with owners of the Company (20,594,893) 408,441 - 289,759,401 88,781,078 (259,006,479) 99,347,548
------------ ------------ ------------ ---------------- -------------- ----------- ---------------
Balance as at December 31, 2023 1,800,216 408,441 1,436,244 372,985,572 88,781,078 - 465,411,551
======= ======= ======= ========= ======== ====== =========
Balance as at January 1, 2024 1,800,216 408,441 1,436,244 372,985,572 88,781,078 - 465,411,551
Profit for the year - - - 14,913,177 - - 14,913,177
Other comprehensive income/(loss) - - (1,871,239) - - - (1,871,239)
Total comprehensive income for the year - - (1,871,239) 14,913,177 - - 13,041,938
Transaction with owners of the Company
Other reserves - 2,207 (2,207) - - - -
Statutory reserve - 410,021 - (410,021) - - -
Total transactions with owners of the Company - 412,228 (2,207) (410,021) - - -
------------ ------------ ------------ ---------------- -------------- ----------- ---------------
Balance as at December 31, 2024 1,800,216 820,669 (437,202) 387,488,728 88,781,078 - 478,453,489
======= ======= ======= ========= ======== ====== =========
The accompanying notes from 1 to 37 form an integral part of these
consolidated financial statements.
Dar Global PLC and its subsidiaries
London - United Kingdom
Consolidated statement of cash flows
December 31, December 31,
2024 2023
Note
Cash flows from operating activities
Profit for the year 14,913,177 83,226,171
Adjustments for:
Depreciation on property and equipment 26 2,022,188 984,458
Depreciation on right-of-use assets 26 2,508,060 2,200,115
Provision for employees' end of service benefits 653,073 334,248
Accruals for listing related expenses 26 - (1,680,520)
Finance costs 27 22,979,983 5,020,798
Finance income 27 (11,690,273) (4,788,820)
Share of (profit)/loss from joint venture 10 (704,640) 93,162
Gain from disposal of joint venture 10 (20,038) -
Income tax credit (803,690) (1,980,741)
--------------------- ---------------------
Operating profit before working capital changes 29,857,840 83,408,871
Working capital changes:
Trade and unbilled receivables (55,471,342) (181,314,724)
Advances, deposits and other receivables (54,577,821) 20,261,061
Development properties (167,585,674) 89,177,623
Trade and other payables 55,904,872 (271,431)
Advances from customers 84,862,015 (36,932,806)
Retention payable 2,541,630 2,810,866
Due to related party 1,556,244 (853,253)
------------------------ ---------------------
Cash used in operating activities (102,912,236) (23,713,793)
Employee benefits paid (224,830) -
------------------------- -----------------------
Net cash used in operating activities (103,137,066) (23,713,793)
------------------------ ----------------------
Cash flows from investing activities
Acquisition of property and equipment 12 (18,149,090) (4,397,667)
Escrow retentions (787,176) (4,134,224)
Funds transferred to related parties (125,628) (2,796,105)
Proceeds from disposal of property and equipment 12 60,382 10,223
Proceeds from disposal of investment in joint venture 10 6,288,099 -
Net cash acquired on acquisition 30 9,355,259 -
Interest 27 11,259,006 3,754,858
income
Repayment/ (loan) to joint venture 2,150,987 (48,742)
--------------------- ---------------------
Net cash generated from/(used in) investing activities 10,051,839 (7,611,657)
Cash flows from financing activities -------------- --------------
Proceeds from bank borrowings 18 147,882,072 77,234,071
Repayment of bank borrowings 18 (67,092,067) (18,882,948)
Interest expense on borrowings 27 (15,817,177) (3,579,519)
Payment of structuring fees for bank borrowings (660,784) (2,655,982)
Proceeds from related party borrowings 19 226,576,921 -
Payment of structuring fees for related party borrowings (7,798,634) -
Proceeds from initial public offerings - 71,999,804
Funds received from Major shareholder - 24,322,301
Payment of lease liabilities 13 (2,931,863) (1,898,214)
Interest expense on lease liabilities 13 (314,936) (376,587)
----------------------- -----------------------
Net cash generated from financing activities 279,843,532 146,162,926
---------------------- ----------------------
Net increase in cash and cash balances 186,758,305 114,837,476
Effect of translation of foreign currency (1,624,934) 1,042,173
Cash and cash equivalents, beginning of the year 228,492,034 112,612,385
----------------------- -----------------------
Cash and cash equivalents at the end of the year 413,625,405 228,492,034
Cash and cash equivalents: --------------- ---------------
Cash in hand 5 81,076 24,785
Cash at banks 5 413,544,329 228,467,249
--------------- ---------------
413,625,405 228,492,034
d ========= =========
The accompanying notes from 1 to 37 form an integral part of these
consolidated financial statements.
Dar Global PLC and its subsidiaries
London - United Kingdom
Notes to the consolidated financial statements
(In United States dollar)
1. Legal status and business activities
1.1 Dar Global PLC (the "Company") is a public limited company,
limited by shares, incorporated, domiciled, and registered in England and
Wales. The Company operates under a Company Number 14388348 issued by the
registrar of the companies for England and Wales. The majority of shares of
the Company are held by Dar Al Arkan Global Investment LLC ("Major
shareholder") in United Arab Emirates ("UAE") and the Ultimate parent company
of the Major shareholder is Dar Al Arkan Real Estate Development Company,
Kingdom of Saudi Arabia ("KSA").
1.2 The registered address of the Company is located at 6(th)
Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom.
1.3 These consolidated financial statements ("financial
statements") represent the results of Dar Global PLC and its subsidiaries (the
"Group"), set out in note 1.4.
1.4 The Company has the following subsidiaries over which it has
direct or indirect control:
Name of subsidiary and domicile Percentage of effective holding Percentage of voting rights License / Registration No. Principal activities
Dar Al Arkan Properties L.L.C - UAE 100% 100% Commercial license no. 791860 Development and sale of real estate.
Dar Global UK Holdings LTD - United Kingdom 100% 100% Company registration no. 13881707 Development and sale of real estate.
(Formerly Dar Al Arkan Global UK Holdings LTD)
Dar Global UK No. 1 LTD - United Kingdom 100% 100% Company registration no. 14751868 Development and sale of real estate.
Dar Global UK No. 2 LTD - United Kingdom 100% 100% Company registration no. 14751750 Development and sale of real estate.
Dar Global UK No. 3 LTD - United Kingdom 100% 100% Company registration no. 14751915 Development and sale of real estate.
Dar Global UK No. 4 LTD - United Kingdom 100% 100% Company registration no. 14385758 General business activities
(Formerly Dar Al Arkan Holding UK LTD)
Dar Al Arkan Spain S.L. - Spain 100% 100% Company registration no. B09896390 Development and sale of real estate.
Dar Benahavis I, S.L. - Spain 100% 100% Company registration no. B72530843 Development and sale of real estate.
Daranavis S.L. - Spain 100% 100% Company registration no. B72530850 Development and sale of real estate.
1. Legal status and business activities (continued)
1.4 The Company has the following subsidiaries over which it has
direct or indirect control: (continued)
Name of subsidiary and domicile Percentage of effective holding Percentage of voting rights License / Registration No. Principal activities
Dar Tabano, S.L. - Spain 100% 100% Company registration no. B72530835 Development and sale of real estate.
M/s. Prime Real Estate D.o.o Sarajevo - Bosnia 100% 100% Company registration no. 65-01-0672-17 Development and sale of real estate.
M/s. Luxury Real Estate D.o.o. Sarajevo - Bosnia 100% 100% Company registration no. 65-01-0698-17 Development and sale of real estate.
M/s. Dar Al Arkan Property Development D.o.o Sarajevo - Bosnia 100% 100% Company registration no. 65-01-0676-17 Development and sale of real estate.
M/s. Beijing Dar Al Arkan Consulting Co. Ltd. 100% 100% Company registration no. 91110105MA7 EQ79Y9Q Economic and trade consulting, Engineering consulting, business management
consulting, corporate planning, real estate information consulting,
undertaking exhibition activities, advertising design, production, agency and
release, development of real estate, technical consulting and technical
services, computer and graphic design.
Aqtab Properties L.L.C -UAE (Formerly Dar Al Arkan Global Property Development 100% 100% Commercial license no. 997901 Purchase and sale of real estate
L.L.C)
1 Legal status and business activities (continued)
1.4 The Company has the following subsidiaries over which it has
direct or indirect control: (continued)
Name of subsidiary and domicile Percentage of effective holding Percentage of voting rights License / Registration No. Principal activities
Dar DG Global Properties L.L.C - UAE 100% 100% Commercial license no. 997919 Purchase and sale of real estate
(Formerly Dar Al Arkan International Properties L.L.C)
Dar DG Global Property Development L.L.C - UAE 100% 100% Commercial license no. 997915 Purchase and sale of real estate
(Formerly Dar Al Arkan International Property Development L.L.C)
DG Luxury Property Management L.L.C - UAE 100% 100% Commercial license no. 1274015 Property management services.
Dar Global Real Estate Development LLC OPC - UAE * 100% 100% Commercial license no. 59000 Land and real estate purchase and sale, self-owned property management
services, real estate enterprises investment, development, institution and
Management.
Dar Al Arkan Property Development SPC - Oman 100% 100% Commercial license no. 1402786 Real estate development, Construction of buildings (general constructions of
residential and non-residential buildings
Dar Global Luxury SPC - Oman 100% 100% Commercial license no. 1540816 Real estate development
1 Legal status and business activities (continued)
1.4 The Company has the following subsidiaries over which it has
direct or indirect control: (continued)
Name of subsidiary and domicile Percentage of effective holding Percentage of voting rights License / Registration No. Principal activities
Dar Global Holdings Limited (ADGM) - UAE 100% 100% Commercial license no. 000008662 Proprietary investment company,
(Formerly Dar Al Arkan Holdings Limited) Activities of holding companies, Treasury
planning and operations, Treasury cash
and liquidity management, Treasury
funding and capital markets, Treasury corporate governance,
Treasury bank and
stakeholder relations, Management
services of companies and private
institutions
Dar Global Development Maldives Private LTD * 100% 100% Commercial license no. C00212024 Owning, operating and managing tourist hotels and resorts.
Dar DG Global Investment L.L.C - UAE 100% 100% Commercial license no. 1215259 Investment in Commercial Enterprises & Management.
Dar Global Services Limited - UK 100% 100% Commercial license no. 15273295 Business support including marketing activities.
Dar Al Arkan Global Holdings Real Estate - KSA 100% 100% Commercial license no. 1010924907 Development of projects and buying and selling of real estate.
1 Legal status and business activities (continued)
1.4 The Company has the following subsidiaries over which it has
direct or indirect control: (continued)
Name of subsidiary and domicile Percentage of effective holding Percentage of voting rights License / Registration No. Principal activities
Dar Global Holdings For Investment - KSA* 100% 100% Commercial license no. 1009115608 Development of residential and commercial properties, Buying and selling of
real estate, Management and leasing of owned or rented residential properties
and non residential properties, Real estate brokerage
Dar Global USA LLC - USA 100% 100% Commercial license no. M23000008667 Investment in Commercial Enterprises & Management.
Dar Global Investment LLC - USA * 100% 100% File No. Real estate development and investment.
100250498100
Dar Global Holdings LLC - USA * 100% 100% File No. Real estate development and investment.
100250318100
Dar Global Centralized Services DMCC - UAE 100% 100% Commercial license no. DMCC198720 Project management services.
Dar Global Greece M.A.E - Greece * 100% 100% Commercial license no. 175922001000 Sale of property.
Dar Al Arkan For Real Estate Development W.L.L, Qatar ** 100% 100% Commercial License No. Real estate development
165584
Dar Global Morocco LLC - Morocco * 100% 100% Commercial license no. 12673 Acquisition, development and sale of real estate properties, management and
administration of properties
1 Legal status and business activities (continued)
1.4 The Company has the following subsidiaries over which it has
direct or indirect control: (continued)
* These entities have been formed by the Group during the year 2024.
** This entity became part of the Group on 14 October 2024 pursuant to its
acquisition by Dar Global UK Holdings LTD (refer to note 30).
2 Material accounting policies
2.1 Statement of compliance
The financial information set out below has been extracted from the Company's
statutory accounts for the years ended 31 December 2023 and 31 December 2024
("FY24"). This results announcement does not constitute statutory accounts of
the Group within the meaning of Sections 434(3) and 435(3) of the Companies
Act 2006. Statutory accounts for 2023 have been delivered to the Registrar of
Companies, and those for 2024 will be delivered in due course.
The financial statements have been prepared in accordance with UK adopted
International Accounting Standards and in conformity with the requirements of
the Companies Act 2006.
The financial statements have been prepared on a going concern basis and
applying consistent accounting policies to those applied by the Group in the
comparative period. The Company will publish its full FY24 Annual Report and
Accounts, including the full text of the auditor's report in due course.
The auditors' report on the consolidated financial statements was unqualified,
did not draw attention to any matters by way of emphasis without qualifying
their report, and did not contain statements under Section 498(2) or 498(3) of
the Companies Act 2006.
This announcement has been prepared in accordance with the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority. It does not include
all the information required for a full annual financial report and should be
read in conjunction with that report when it is published.
All values are rounded to the nearest unit in USD except where otherwise
indicated. Each entity determines its own functional currency and items
included in the financial statements of each entity are measured using that
functional currency.
The financial statements have been prepared on a historical cost basis.
Historical cost is generally based on the fair value of the consideration
given in exchange for assets.
2.2 Basis of preparation
Basis of consolidation
The financial statements comprise the financial statements of the Company and
the subsidiaries ('the Group'), plus the Group's share of the results and net
assets of its joint ventures and associates.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. In assessing control, the Group takes into
consideration potential voting rights. The acquisition date is the date on
which control is transferred to the acquirer. The financial statements of
subsidiaries are included in the consolidated financial statements from the
date that control commences until the date that control ceases.
Joint ventures
A joint venture is a contract under which the Group and other parties
undertake an activity or invest in an entity, under joint control. The Group
uses equity accounting for such entities, carrying its investment at cost plus
the movement in the Group's share of net assets after acquisition, less
impairment.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
(except for foreign currency transaction gains or losses) arising from
intragroup transactions, are eliminated. Unrealised losses are eliminated in
the same way as unrealised gains, but only to the extent that there is no
evidence of impairment.
Going concern
The Group's forecasts and projections based on the current trends in sales and
development and after taking account of the funds currently held, available
facility including the undrawn facility of USD 53,081,754 at year end (refer
to note 18 and 19) show that the Company and the Group will be able to operate
within the level of resources and will be able to discharge its liabilities
including the mandatory repayment of banking facilities.
The Directors have, at the time of approving the consolidated financial
statements, a reasonable expectation that the Group have adequate resources to
continue in operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in preparing the
consolidated financial statements.
Adoption of new and revised standards
The Group has adopted all relevant amendments to existing standards and
interpretations issued by the International Accounting Standard Board (IASB)
that are effective for the respective financial year ends presented, with no
material impact on its consolidated results or financial position.
The Group did not implement the requirements of any other standards or
interpretations that were in issue but were not required to be adopted.
The preparation of the financial statements requires estimates and assumptions
to be made that may affect the amounts reported in the financial statements
and accompanying notes. Actual amounts could differ from the estimates
included in the financial statements herein. The preparation of the financial
statements on the basis set out, requires the use of certain critical
accounting estimates. It also requires judgement to be exercised in the
process of applying the accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates
are Material to the financial statements, are disclosed in note 2.22.
2.3 Fair value measurement
Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date.
The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous
market for the asset or liability.
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions
that market participants would use when pricing the asset or liability,
assuming that market participants act in their best economic interest.
A fair value measurement of a non-financial asset takes into account a market
participant's ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would
use the asset in its highest and best use.
2.4 Foreign currency
The transactions in currencies other than the Group's presentation currency
are recognized at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated
in foreign currencies are retranslated at the rates prevailing at that date.
Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair
value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognized in the consolidated
statement of profit or loss in the period in which they arise.
In preparing the separate financial information of the individual
subsidiaries, the transactions in currencies other than the subsidiaries
functional currency are recognized at the rates of exchange prevailing at the
dates of the transactions. At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the rates prevailing at
that date. Non-monetary items carried at fair value that are denominated in
foreign currencies are retranslated at the rates prevailing at the date when
the fair value was determined.
Any gain or loss on translation from functional currency of subsidiaries to
presentation currency of the Group is taken to statement of other
comprehensive income.
Foreign exchange differences
Exchange differences on monetary items are recognized in consolidated
statement of profit or loss in the period in which they arise except for
exchange differences that relate to assets under construction for future
productive use. These are included in the cost of those assets when they are
regarded as an adjustment to interest costs on foreign currency borrowings.
2 Material accounting policies (continued)
2.4 Foreign currency (continued)
Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign
currency is determined in that foreign currency and translated at the spot
rate at the end of each reporting period. Financial assets measured at
amortized cost, exchange differences are recognized in the consolidated
statement of profit or loss.
2.5 Property and equipment
Property and equipment is stated at cost less accumulated depreciation and
identified impairment loss, if any. The cost comprises of purchase price,
together with any incidental expense of acquisition.
Subsequent costs are included in the asset's carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the cost
of the item can be measured reliably. All other repairs and maintenance
expenses are charged to the statement of profit or loss during the financial
period in which they are incurred.
Depreciation is spread over its useful lives so as to write off the cost of
property and equipment, using the straight-line method over its useful lives
as follows:
Assets Life years
Leasehold improvements 3-5
Furniture and fixtures 3-5
Computers and office equipment 3-5
No depreciation is charged on land and capital work-in-progress.
When part of an item of property and equipment have different useful lives,
they are accounted for as separate items (major components) of property and
equipment.
The leasehold improvements are being depreciated over the period from when
they became available for use up to the end of the lease term.
The estimated useful lives, residual values and depreciation method are
reviewed at the end of each reporting period, with the effect of any changes
in estimate accounted for on a prospective basis.
The gain or loss arising on the disposal or retirement of an item of property
and equipment is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in the combined statement
of profit or loss.
2 Material accounting policies (continued)
2.6 Leases
Leases are accounted for by recognising a right-of-use asset and a lease
liability except for:
- Leases of low value assets; and
- Leases with a duration of 12 months or less.
Lease liabilities are measured at the present value of the contractual
payments due to the lessor over the lease term, with the discount rate
determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the
group's incremental borrowing rate on commencement of the lease is used.
Variable lease payments are only included in the measurement of the lease
liability if they depend on an index or rate. In such cases, the initial
measurement of the lease liability assumes the variable element will remain
unchanged throughout the lease term. Other variable lease payments are
expensed in the period to which they relate.
On initial recognition, the carrying value of the lease liability also
includes:
· amounts expected to be payable under any residual value guarantee;
· the exercise price of any purchase option granted in favor of the
group if it is reasonably certain to assess that option;
· any penalties payable for terminating the lease, if the term of the
lease has been estimated based on termination option being exercised.
Right of use assets are initially measured at the amount of the lease
liability, reduced for any lease incentives received, and increased for:
· lease payments made at or before commencement of the lease;
· initial direct costs incurred; and
· the amount of any provision recognized where the group is
contractually required to dismantle, remove or restore the leased asset.
Subsequent to initial measurement lease liabilities increase as a result of
interest charged at a constant rate on the balance outstanding and are reduced
for lease payments made. Right-of-use assets are amortised on a straight-line
basis over the remaining term of the lease or over the remaining economic life
of the asset if, rarely, this is judged to be shorter than the lease term.
2.7 Development properties
Properties constructed or in the course of construction for sale in the
ordinary course of business are classified as development properties and are
stated at the lower of cost or net realizable value. Cost includes cost of
acquisition of land, cost of construction including planning and design cost,
commission, borrowing costs, employee costs, cost of acquiring development
rights and other direct costs attributable to the development.
Certain portion of land plots, on which the Group's projects are located, is
acquired with minimal upfront cash contributions and certain variable
consideration based on the percentage of profit. The entire projects are
controlled and managed by the Group, which includes development, marketing,
collections etc. On initial recognition these properties are recognized at the
fair value of the consideration payable computed based on a deferred payment
plan as defined in the sale and purchase agreement ("SPA").
2 Material accounting policies (continued)
2.7 Development properties (continued)
Net realizable value is the estimated selling price in
the ordinary course of business, based on market prices at the reporting date
and discounted for the time value of money, if material, less costs to
completion and the estimated costs of sale.
The management reviews the carrying values of the
development properties on each reporting date.
2.8 Advances from customers
Advances received from customers include instalments received from customers
for properties sold either before the revenue recognition criteria have been
met or in excess of the project's stage of completion. These funds are later
recognized in the profit or loss statement once the revenue recognition
criteria are satisfied. Additionally, advances from customers may be
derecognized from the books when either the customer or the Group terminates
the contract.
2.9 Asset acquisition
If the Group acquires an asset or a group of assets (including any liabilities
assumed) that does not constitute a business, then the transaction is outside
the scope of IFRS 3 because it cannot meet the definition of a business
combination. Such transactions are accounted for as asset acquisitions in
which the cost of acquisition is generally allocated between the individual
identifiable assets and liabilities in the Group based on their relative fair
values at the date of acquisition. They do not give rise to goodwill or a gain
on a bargain purchase.
The measurement and allocation of cost in an asset acquisition are completed
at the date of recognition of the assets acquired and liabilities assumed, if
there are any.
2.10 Impairment of non-financial assets
Non-financial assets of the Group mainly include development properties,
advances to suppliers and contractors, right-of-use assets and property and
equipment. At the end of each reporting period, the Group reviews the carrying
amounts of its non-financial assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).
Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit
to which the asset belongs. Where a reasonable and consistent basis of
allocation can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the
smallest group of cash-generating units for which a reasonable and consistent
allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated
to be less than its carrying amount, the carrying amount of the asset (or
cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognized immediately in the consolidated statement of profit or loss.
2 Material accounting policies (continued)
2.10 Impairment of non-financial assets (continued)
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss
been recognized for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognized immediately in the consolidated
statement of profit or loss.
2.11 Financial instruments
Financial assets and financial liabilities are recognized when the Group
becomes a party to the contractual provisions of the instrument.
2.12 Financial assets
Classification
The Group classifies its financial assets at amortized cost.
Measurement
At initial recognition, the Group measures a financial asset at its fair value
plus transaction costs that are directly attributable to the acquisition of
the financial asset.
Financial assets comprise cash and cash equivalents, trade and unbilled
receivables, advances, deposits and other receivables, due from related
parties and escrow retentions.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Trade and other receivables (including due from related parties)
Receivable balances that are held to collect are subsequently measured at the
lower of amortized cost or the present value of estimated future cash flows.
The present value of estimated future cash flows is determined through the use
of value adjustments for uncollectible amounts. The Group assesses on a
forward-looking basis the expected credit losses associated with its
receivables and adjusts the value to the expected collectible amounts.
Receivables are written off when they are deemed uncollectible because of
bankruptcy or other forms of receivership of the debtors. The assessment of
expected credit losses on receivables takes into account credit-risk
concentration, collective debt risk based on average historical losses,
specific circumstances such as serious adverse economic conditions in a
specific country or region and other forward-looking information.
For accounts receivable, the Group applies the simplified approach permitted
by IFRS 9, which requires expected lifetime losses to be recognized from
initial recognition of the receivables.
2 Material accounting policies (continued)
2.12 Financial assets (continued)
Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to
the cash flows from the asset expire; or it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another
Group. If the Group neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the transferred asset, the
Group recognizes its retained interest in the asset and an associated
liability for the amounts, it may have to pay. If the Group retains
substantially all the risks and rewards of ownership of a transferred
financial asset, the Group continues to recognize the financial asset.
2.13 Financial liabilities
Financial liabilities are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial
liability. All financial liabilities are recognized initially at fair value
and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs.
The Group's financial liabilities include trade and other payables, loans and
borrowings, development property liabilities, advance from customers and due
to related party.
Trade and other payables
Accounts payable are obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. Accounts payable
are classified as current liabilities if payment is due within one year or
less (or in the normal operating cycle of the business if longer). If not,
they are presented as non-current liabilities. Accounts and other payables are
recognized initially at fair value and subsequently are measured at amortized
cost using effective interest method.
Loans and borrowings
Term loans are initially recognised at the fair value of the consideration
received less directly attributable transaction costs. After initial
recognition, interest-bearing loans and borrowings are subsequently measured
at amortised cost using the effective interest rate method. Gains and losses
are recognised in the consolidated income statement when the liabilities are
derecognised as well as through the amortisation process.
Development property liabilities
Development property liabilities represents the amount payable for the
acquisition of development properties on a deferred payment plan basis
including variable consideration. Initially, these amounts are stated at the
fair value of the consideration payable. Subsequently, at each reporting date
the development property liabilities are measured at amortised cost.
2 Material accounting policies (continued)
2.13 Financial liabilities (continued)
Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and only when, the Group's
obligations are discharged, cancelled or they expire. When an existing
financial liability is replaced by another, from the same lender on
substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in
the consolidated statement of profit or loss.
2.14 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the
consolidated statement of financial position, when there is a legally
enforceable right to offset the recognized amounts and there is an intention
to settle on a net basis or realize the asset and settle the liability
simultaneously.
2.16 Revenue recognition
Revenue from contracts with customers for development and sale of residential
properties
The Group recognizes revenue from contracts with customers based on a five
step model as set out in IFRS 15 Revenue from contracts with customers.
Step 1. Identify the contract(s) with a customer: A contract is defined as
an agreement between two or more parties that creates enforceable rights and
obligations and sets out the criteria for every contract that must be met.
This is evidenced by issuance of signed Sale and Purchase Agreement ("SPA") to
the customer and for revenue recognition over time, meeting specified
threshold of project completion and collection from the customers.
Step 2. Identify the performance obligations in the contract: A performance
obligation is a promise in a contract with a customer to transfer a good or
service to the customer. The performance obligation for the Group is to
deliver the constructed property to the customers along with the ancillary
rights such as the right to use amenities and other related infrastructure
facilities available. Accordingly, one performance obligation has been
identified for each unit to be sold. The group assesses its revenue
arrangements against specific criteria to determine if it is acting as
principal or agent. The Group has concluded that it is acting as a principal
in all of its revenue arrangements.
Step 3. Determine the transaction price: The transaction price is the
amount of consideration to which the Group expects to be entitled in exchange
for delivering the property to its customers. The agreed transaction price is
part of the signed SPA issued to each customer. Revenue excludes taxes and
duty, and includes an adjustment for a significant financing component ("SFC")
where the payment plan for the projects extends beyond twelve months from the
reporting period. No adjustment has been made for variable consideration as
the group does not have any contracts with variable consideration.
2 Material accounting policies (continued)
2.15 Revenue recognition (continued)
Step 4. Allocate the transaction price to the performance obligations in
the contract: The Group allocates the transaction price to each unit sold,
consistent with the performance obligation identified in Step 2.
Step 5. Recognize revenue when (or as) the entity satisfies a performance
obligation.
The Group satisfies a performance obligation and recognizes revenue over time,
if one of the following criteria is met:
1. The customer simultaneously receives and consumes the
benefits provided by the Group's performance as the Group performs; or
2. The Group's performance creates or enhances an asset
that the customer controls as the asset is created or enhanced; or
3. The Group's performance does not create an asset with
an alternative use to the Group and the entity has an enforceable right to
payment for performance completed to date.
The Group determines the satisfaction of performance obligation separately for
each of its contracts and recognize revenue accordingly.
For performance obligations where one of the above conditions are not met,
revenue is recognised at the point in time at which the performance obligation
is satisfied.
Under the terms of the contracts in the UAE, Oman and Qatar, the Group is
contractually restricted from redirecting the properties to another customer
and has an enforceable right to payment for work done. Therefore, revenue from
construction of residential properties in the UAE, Oman and Qatar is
recognised over time on an input/cost-to-cost method, i.e. based on the
proportion of contract costs incurred for work performed to date relative to
the estimated total contract costs. The Group considers that this input method
is an appropriate measure of the
progress towards complete satisfaction of the performance obligation under
IFRS 15. In respect of the Group's contracts for development of residential
properties in the United Kingdom, the Group has assessed that the criteria for
recording revenue over time is not met and transfer of control happens only at
the time of handover of completed units to the customers and accordingly the
revenue is recognised at the point in time at which the performance obligation
is
satisfied.
When the Group satisfies a performance obligation by delivering the promised
goods or services it creates a contract asset based on the amount of
consideration earned by the performance. Where the amount of consideration
received from a customer exceeds the amount of revenue recognized this gives
rise to a contract liability.
Project management service
The Group provides advisory and assisting services relating to management of
construction of properties under long term contracts with customers. The
revenue is measured based on the consideration from customers to which the
Group expects to be entitled in a contract with a customer in an amount that
corresponds directly with the value to the customer of the Group's performance
completed to date.
2 Material accounting policies (continued)
2.16 Cost of revenue
Cost of revenue represent cost for purchase of land, construction costs,
consultant costs, utilities cost, and other related direct costs recognized to
consolidated statement of profit or loss on percentage of completion or point
in time as applicable.
2.17 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale. Borrowing costs consist of
interest and other costs that the Group incurs in connection with the
borrowing of funds. All other borrowing costs are recognised in the
consolidated statement of profit or loss in the year in which they are
incurred.
2.18 Escrow Accounts
Escrow accounts represent bank accounts where money is held in with the bank,
acting as an escrow agent, and available for use only if all the
pre-determined conditions are fulfilled. The funds paid by customers for their
residential units in off-plan sales are required to be deposited into escrow
accounts held by banks accredited by the local governing bodies.
For Escrow retention, in line with Dubai and KSA laws an escrow agent must
retain prescribed per cent of the total value of each escrow account once the
developer obtains the building completion certificate to ensure coverage of
defects in the property post-handover. The retained amount will be released to
the developer one year from the registration of the residential units in the
name of purchasers of such units.
2.19 Equity and reserves
Share capital represents the nominal value of shares that have been issued.
Share premium represents the excess consideration received over the nominal
value of share capital upon the sale of shares, less any incidental costs of
issue.
The retained earnings represent distributable reserves.
The foreign currency translation reserve is used to record exchange difference
arising from translation of the financial statements of foreign subsidiaries,
associates and joint ventures.
2.20 Taxation
The tax charge represents the sum of the tax currently payable and deferred
tax.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable
income or loss for the year and any adjustment to the tax payable or
receivable in respect of previous years. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or
received that reflects uncertainty related to income taxes, if any. It is
measured using tax rates enacted or substantively enacted at the reporting
date. Current tax also includes any tax arising from dividends.
2 Material accounting policies (continued)
2.20 Taxation (continued)
Deferred tax
Deferred tax is recognised in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes.
Deferred tax is recognised in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes. Deferred tax is not recognised
for:
- temporary differences on the initial recognition of assets or
liabilities in a transaction that:
a) is not a business combination; and
b) at the time of the transaction (i) affects neither accounting nor taxable
profit or loss and (ii) does not give rise to equal taxable and deductible
temporary differences;
- temporary differences related to investments in subsidiaries, associates
and joint arrangements to the extent that the Group is able to control the
timing of the reversal of the temporary differences and it is probable that
they will not reverse in the foreseeable future; and
- taxable temporary differences arising on the initial recognition of
goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits
and deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which they can be used.
Future taxable profits are determined based on the reversal of relevant
taxable temporary differences. If the amount of taxable temporary differences
is insufficient to recognise a deferred tax asset in full, then future taxable
profits, adjusted for reversals of existing temporary differences, are
considered, based on the business plans for individual subsidiaries in the
Group. Deferred tax assets are reviewed at each reporting date and are reduced
to the extent that it is no longer probable that the related tax benefit will
be realised; such reductions are reversed when the probability of future
taxable profits improves.
The measurement of deferred tax reflects the tax consequences that would
follow from the manner in which the Group expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if certain criteria are
met.
2.21 Statutory Reserve
According to Article 103 of the UAE Federal Law No. (32) of 2021, 5% of annual
net profits after NCI are allocated to the statutory reserve for the entities
registered in UAE. The transfers to the statutory reserve may be suspended
when the reserve reaches 50% of the paid-up capital.
2.22 Significant accounting judgements, estimates and Assumptions
In the application of the Group's accounting policies, which are described in
policy notes, the management are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.
2 Material accounting policies (continued)
2.22 Significant accounting judgements, estimates and Assumptions
(continued)
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
The significant judgments and estimates made by management, that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are described below.
Critical judgements in applying accounting policies
In the process of applying the Group's accounting policies, which are
described above, and due to the nature of operations, management makes the
following judgments that has the most significant effect on the amounts
recognized in the consolidated financial statements.
Identifying a contract
The group assesses for each development and for each customer the point in
time at which a contract exists. This requires assessing the point in each
development where there is certainty that it will continue to completion
subject to certain thresholds i.e. development stages ranging from 20% to 30%,
depending on the geography and associated project risks. Additionally, the
Group assesses the point in time at which consideration from the customer is
probable, typically being receipt of 20% of the consideration together with
the legal requirements of the sale and purchase agreement and the continuing
trend of collections indicating the likelihood receipt of future instalment
payments due.
Recognition of revenue over time or at point in time
The Group is required to assess each of its contracts with customers to
determine whether performance obligations are satisfied over time or at a
point in time in order to determine the appropriate method of recognizing
revenue.
The Group has assessed that based on the sale and purchase agreements entered
into with customers for sale of property under development in the UAE, Oman
and Qatar, as well as the relevant laws and regulations, that it does not
create an asset with an alternative use to the Group and has an enforceable
right to payment for performance completed to date. In these circumstances the
Group recognizes revenue over time.
However, for contracts relating to sale of property under development in the
United Kingdom where the above is not applicable, the Group recognizes revenue
at a point in time. In recognizing revenue at a point in time, the Group
considers the point in time at which the customer obtains control of the
asset.
Measurement of progress when revenue is recognized over time
The Group has elected to apply the input method to measure the progress of
performance obligations where revenue is recognized over time. The Group
considers that the use of the input method which requires revenue recognition
on the basis of the Group's efforts to the satisfaction of the performance
obligation provides the best reference of revenue actually earned. In applying
the input method, the Group estimates the cost to complete the projects in
order to determine the amount of revenue to be recognized.
2 Material accounting policies (continued)
2.23 Significant accounting judgements, estimates and Assumptions
(continued)
Critical judgements in applying accounting policies (continued)
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are discussed below.
Significant financing component
In jurisdictions where the Group recognizes revenue over time, unbilled
revenue for customers with expected collections beyond one year is discounted
at the prevailing market interest rate. The transaction price for these
contracts is adjusted using the rate that would have been applied if a
separate financing agreement had been made between the Group and the customer
at the contract's inception, usually matching the market rate at that time.
The Group has used discount rates ranging from 7% to 8.5%.
In jurisdictions where the Group acquires development properties on a deferred
payment plan with expected payments beyond one year are discounted at the
Group's incremental borrowing rate. The transaction price for these
acquisitions is adjusted using the borrowing rate, typically the rate that
would have been applied if a separate financing agreement had been made
between the Group and the seller at the contract's inception. The Group has
used discount rates ranging from 6% to 8.5%.
Cost to complete the projects
The Group estimates the cost to complete the projects in order to determine
the cost attributable to revenue being recognized. These estimates include the
cost of providing infrastructure, potential claims by contractors as evaluated
by the project consultant and the cost of meeting other contractual
obligations to the customers.
The Group has conducted sensitivity analysis on the total budgeted cost for
its ongoing projects eligible for revenue recognition. Based on sensitivity
analysis, a 5% increase in total budgeted cost will lead to 10% decrease in
gross revenue, whilst a decrease in total budgeted cost by 5% will lead to 12%
increase in gross revenue.
The Group has entered into arrangements to acquire land where there is a
development profit share element to the acquisition price as contingent
consideration. The Group estimates the contingent consideration payable to the
seller. In order to determine the contingent consideration, the Group
estimates the total sales price, the total cost of development properties
including potential claims by contractors and the estimated cost of meeting
other contractual obligations.
The overall profitability of the projects can be affected due to change in
total budgeted cost. These fluctuations in profit will, in turn, have an
impact on the contingent consideration payable. Since the contingent
consideration is tied to the profitability of the projects, any significant
changes in the budgeted costs will directly influence the amount of contingent
consideration owed.
3 New standards and amendments
3.1 New standards and amendments applicable for 2024
The following standards and amendments apply for the first time to the
financial reporting periods commencing on or after January 01, 2024.
- Non-current liabilities with Covenants - Amendments to IAS 1
- Classification of Liabilities as Current or Noncurrent -
Amendments to IAS 1
- Lease liability in a Sale and Leaseback - Amendments to IFRS
16
- Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
The management believes that the adoption of the above amendments effective
for the current accounting period has not had any material impact on the
recognition, measurement, presentation, and disclosure of items in the
consolidated financial statements.
The following standards and interpretations had been issued but not yet
mandatory for annual periods beginning after 1 January 2024.
Description Effective for annual periods beginning on or after
Lack of Exchangeability - Amendments to IAS 21 January 1, 2025
Classification and Measurement of Financial Instruments - Amendments to IFRS 9 January 1, 2026
and IFRS 7
Annual Improvement to IFRS Accounting Standards - Volume 11
January 1, 2026
IFRS 18 Presentation and Disclosure in Financial Statements* January 1, 2027
Sale or Contribution of Assets between an investor and its Associate or Joint Effective date
Venture - IFRS 10 and IAS 28
deferred indefinitely
* The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements
in April 2024. IFRS 18 aims to improve how companies communicate in their
financial statements, with a focus on information about financial performance
in the statement of profit or loss. IFRS 18 is accompanied by limited
amendments to the requirements in IAS 7 Statement of Cash Flows. IFRS 18 is
effective from 1 January 2027. IFRS 18 replaces IAS 1 Presentation of
Financial Statements and will affect the presentation and disclosure of
financial performance in the Group's consolidated financial statements when
adopted.
The adoption of these new standards will have no material impact on the
financial statements in the period of initial application, except for IFRS 18
where management are assessing the impact.
4 Segment Information
Management monitors the operating results of its business segments separately
for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on operating profit or loss
and is measured consistently with operating profit or loss in the consolidated
financial statements. The only segment is real estate development,
accordingly, the component parts of the revenue, profits or assets as
disclosed in the notes to the consolidated financial statement pertain to this
segment.
Business segment
The only business segment is Real estate development which represents 100% of
the revenue and total assets.
Geographic segments
The following tables include revenue and other segment information for the
years ended 31 December 2024 and 31 December 2023. Certain assets information
for geographic segments is presented as at 31 December 2024 and 31 December
2023.
The Group has divided its operations into two categories i.e. Domestic (UK)
and International (all other countries where Group has its operations).
Domestic International
USD USD
For the year ended December 31, 2024:
Revenue 5,133,207 235,197,186
Profit/(loss) for the year (3,732,794) 18,645,971
For the year ended December 31, 2023:
Revenue - 360,575,755
Profit for the year 1,587,396 81,638,775
As at December 31, 2024
Total assets 29,179,639 1,412,240,315
Total liabilities 235,150,383 727,816,082
As at December 31, 2023
Total assets 35,170,037 732,176,025
Total liabilities 2,386,588 299,547,923
4 Segment Information (continued)
a) The major geographical areas of total assets and revenue under
"International" sub-segment are given below:
As at December As at December
31, 2024 31, 2023
---------------- ----------------
Total Assets
UAE 959,149,463 619,795,160
Qatar 99,514,428 -
Oman 145,792,264 40,651,994
KSA 117,930,811 26,667
Other countries 89,853,349 71,702,204
----------------- ---------------
1,412,240,315 732,176,025
========== =========
Revenue
UAE 156,382,028 360,575,755
Qatar 37,338,548 -
Oman 39,876,610 -
KSA 1,600,000 -
--------------- ---------------
235,197,186 360,575,755
========= =========
5 Cash and cash equivalents
As at December As at December
31, 2024 31, 2023
---------------- ----------------
Cash in hand 81,076 24,785
Cash at bank
- Current accounts 32,606,307 12,815,812
- Escrow retention accounts (refer to (a) below) 10,774,653 9,987,477
- Escrow accounts (refer to (b) below) 260,680,858 148,308,559
- Demand deposit (refer to (c) below) 120,257,164 67,342,878
---------------- ----------------
424,400,058 238,479,511
Less: Escrow retention accounts (refer to note 9) (10,774,653) (9,987,477)
---------------- ---------------
413,625,405 228,492,034
========= =========
a) The above represents Escrow retention accounts maintained with
commercial banks in accordance with the local laws issued by the governing
body in UAE and KSA. The retention balances shall be released after one year
from the completion of the project and therefore do not meet cash and cash
equivalents criteria and are therefore presented separately as escrow
retentions.
5 Cash and cash equivalents (continued)
b) The above represents Escrow accounts maintained with a commercial bank
in accordance with the local laws issued by the governing body of the
respective countries. This escrow account can be used for making payments
directly related to the projects subject to the regulations and therefore
meets the cash and cash equivalents criteria. The significant increase in the
balances during the period is mainly due to collections from customers as per
the payment plan.
c) The above includes a deposit of USD 93,006,048 held with one of its
related parties (refer to note 19), a financial services company in KSA, for a
period of one to three years at an interest rate of 7.80% per annum. This
deposit is repayable on demand without any penalty on early maturity.
Management has concluded that the Expected Credit Loss (ECL) for all bank
balances is immaterial as these balances are held with banks/financial
institutions whose credit risk rating by international rating agencies has
been assessed as low.
6 Trade and unbilled receivables
As At December As At December
31, 2024 31, 2023
---------------- ----------------
Unbilled receivables (refer to (a) below) 244,363,889 207,553,472
Trade receivables (refer to (b) below) 32,974,917 14,313,992
---------------- ----------------
277,338,806 221,867,464
Less: Provision for impairment on trade receivables - -
---------------- ----------------
Net receivables 277,338,806 221,867,464
========= =========
Not more than 12 months 174,545,102 139,199,058
More than 12 months 102,793,704 82,668,406
---------------- ---------------
277,338,806 221,867,464
========= =========
a) Unbilled receivables are contract assets which relate to
the Group's right to receive consideration for work completed but not billed
as at the reporting date. These are transferred to trade receivables when
invoiced as per milestones agreed in contracts with the customers.
b) At reporting date, the ageing analysis of net trade and
unbilled receivables is as follows:
6 Trade and unbilled receivables (continued)
As At December As At December
31, 2024 31, 2023
---------------- ---------------
Current (Not past due) 244,363,889 207,553,472
Not more than 90 days 21,034,872 7,749,411
Between 91 to 180 days 4,450,299 907,483
Between 181 to 360 days 2,695,093 4,229,881
More than 360 days 4,794,653 1,427,217
--------------- ---------------
Total 277,338,806 221,867,464
========= =========
Refer note 31(d) on credit risks of trade and unbilled receivables, which
explains how the Group manages and measures credit quality of trade and
unbilled receivables.
7 Advances, deposits and other receivables
As at December As at December
31,2024 31,2023
---------------- ----------------
Prepayments (refer to (a) below) 57,360,824 33,100,762
Advances to suppliers and contractors (refer to (b) below) 47,211,940 23,324,510
Margin deposit (refer to (c) below) 3,546,942 1,353,302
Other deposits (refer to (d) below) 6,296,603 1,007,198
Other receivables 2,710,003 687,037
VAT refundable 2,648,275 1,397,979
-------------- --------------
119,774,587 60,870,788
======== ========
Not more than 12 months 116,227,645 59,517,486
More than 12 months 3,546,942 1,353,302
-------------- --------------
119,774,587 60,870,788
======== ========
a) The above mainly includes incremental cost of
obtaining a contract such as sales commission paid to brokers and employees
for the sale of properties amounting to USD 50,590,518 (2023: USD 27,685,694)
and will be amortized consistent with the pattern of revenue in the future.
b) The above includes an advance payment of USD 15,853,249 for
the acquisition of land plots in the UAE.
c) The above represents margin deposits held with a bank
against project guarantee (refer to note 33). The credit risk on these
deposits is limited because the counterparties are banks with high
credit-ratings assigned by international credit-rating agencies.
7 Advances, deposits and other receivables (continued)
d) The above mainly includes a deposit of USD 5,043,187 (AED
18,521,104) with Dubai Land Department related to escrow retentions for one of
the projects in Dubai. The credit risk on this deposit is limited because the
counterparty is a government body.
8 Development properties
As at December As at December
31,2023 31,2023
--------------- ---------------
Balance at the beginning of the year 216,931,211 302,274,899
Additions during the year 454,350,102 130,052,699
Recognised as part of asset acquisition (refer to note 30) 67,240,828 -
Reclass from/(to) property and equipment (refer to note 12) 839,932 (1,265,004)
Cost of revenue (refer to note 23) (152,946,653) (214,131,383)
--------------- ---------------
Balance at the end of the year 586,415,420 216,931,211
========= =========
Properties acquired, constructed or in the course of construction for sale in
the ordinary course of business are classified as development properties and
include the costs of:
· Freehold and leasehold rights for land;
· Amounts paid to contractors for construction including the cost of
construction of infrastructure; and
· Planning and design costs, costs of site preparation, professional
fees for legal services, property transfer taxes, borrowing costs, employee
costs, cost of acquiring development rights, construction overheads and other
related costs.
Common overhead cost (directly attributable to the projects) is allocated to
various projects and forms part of the estimated cost to complete a project in
order to determine the cost attributable to revenue being recognised.
The Group assesses the net realizable value of development properties for
impairment on each reporting date and the management believes that the net
realizable value of the above development properties is higher than its
carrying value as on the reporting date.
Development properties in the UAE, Qatar, Oman and KSA include land acquired
with minimal upfront cash contributions and variable consideration. On initial
recognition these properties have been recognized at the fair value of the
consideration payable computed based on a deferred payment plan as defined in
the sale and purchase agreement ("SPA") (note 17). Under this arrangement, the
variable contribution from the development profits is as follows: 50% for
lands in the UAE, 30% for land in Qatar, and 20% for land in Oman.
Development properties with mortgage value of USD 113,785,025 (December 2023:
USD 95,302,927) is registered as primary mortgage in the favour of commercial
banks against the borrowings (note 18).
The development properties are located in UAE, United Kingdom, Spain, Bosnia,
Oman, Qatar and KSA.
9 Escrow retentions
As at December As at December
31, 2024 31,2023
--------------- ---------------
More than 12 months (note 5) 10,774,653 9,987,477
======== ========
10 Investment in joint venture
As at December As at December
31, 2024 31,2023
--------------- ---------------
Percentage of ownership interest - 75.30%
149 OPL Ltd - 5,370,876
======== ========
The table below represents the movement during the year:
As at December As at December
31, 2024 31,2023
---------------- ----------------
Balance at the beginning of the year 5,370,876 4,681,667
Interest income 431,267 520,842
Net profit/ (loss) 704,640 (93,162)
Gain on disposal 20,038 -
Disposal* (6,457,206) -
Translation adjustments (69,615) 261,529
-------------- --------------
Balance at the end of the year - 5,370,876
======== ========
* On 3 November 2024, the Group disposed of its interest in the joint venture
for a consideration of USD 6,457,206. The cash proceeds received against the
consideration was USD 6,288,099 with the remaining USD 169,107 included under
other receivables. This disposal resulted in a gain of USD 20,038.
11 Loan to joint venture
As at December As at December
31, 2024 31,2023
---------------- ----------------
149 OPL Ltd - 2,150,987
======== ========
The amount was repaid during the year.
12 Property and equipment
Land Leasehold improvements Furniture and fixtures Computers and office equipment Capital work-in-progress Total
Cost
As at January 1, 2023 (unaudited) - - 43,153 237,835 576,016 857,004
Additions - 227,250 941,356 1,729,079 1,499,982 4,397,667
Transfer from Capital work-in-progress - 1,412,172 429,343 - (1,841,515) -
Reclass from development properties - - 590,872 674,132 1,265,004
-
Disposal - - - (10,223) - (10,223)
Translation adjustments - 6,524 19,068 300 - 25,892
---- ---------- ------------ ------------ ------------ ------------
As at December 31, 2023 - 1,645,946 1,432,920 2,547,863 908,615 6,535,344
---- ---------- ------------ ------------ ----------- ------------
As at January 1, 2024 - 1,645,946 1,432,920 2,547,863 908,615 6,535,344
Additions 16,294,400 95,347 47,701 1,711,642 - 18,149,090
Recognised as part of asset acquisition (refer to note 30) - 1,364,725 5,240 87,489 - 1,457,454
Transfer from Capital work-in-progress - - - 68,683 (68,683) -
Reclass to development properties - - - - (839,932) (839,932)
Disposal - - (192,166) (279,125) - (471,291)
Translation adjustments (303,821) (6,676) (23,676) (8,262) - (342,435)
------------- ------------ ------------ ------------ ------------ ------------
As at December 31, 2024 15,990,579 3,099,342 1,270,019 4,128,290 - 24,488,230
------------- ------------ ------------ ------------ ----------- ------------
Accumulated depreciation
As at January 1, 2023 (unaudited) - - 5,425 9,448 - 14,873
Charge for the year - 192,693 268,456 523,309 - 984,458
Disposal - - - (173) - (173)
Translation adjustments - - - 137 - 137
---- ---------- ---------- ---------- ------------ ------------
As at December 31, 2023 - 192,693 273,881 532,721 - 999,295
---- ---------- ---------- ---------- ------------ ------------
As at January 1, 2024 - 192,693 273,881 532,721 - 999,295
Charge for the year - 715,587 358,293 948,308 - 2,022,188
Disposal - - (190,004) (220,905) (410,909)
Translation adjustments - (4,880) (7,145) (7,982) - (20,007)
---- ---------- ---------- ------------ ------------ ------------
As at December 31, 2024 - 903,400 435,025 1,252,142 - 2,590,567
---- ---------- ---------- ------------ ------------ ------------
Carrying value as
As at December 31, 2024 15,990,579 2,195,942 834,994 2,876,148 - 21,897,663
======== ====== ====== ====== ======= =======
As at December 31, 2023 - 1,453,253 1,159,039 2,015,142 908,615 5,536,049
======== ====== ====== ====== ======= =======
The addition in land during the current year pertains to the acquisition of
land in the Maldives, along with associated costs. The Group's intention is to
develop and operate a branded hotel on this newly acquired land.
13 Right-of-use assets and Lease liabilities
The Group primarily leased office spaces, with lease term typically spanning 3
years.
The carrying amounts of the Group's right-of-use assets and lease
liabilities and the movements during the year:
Right-of-use assets As at December As at December
31, 2024 31,2023
---------------- ----------------
Balance at the beginning of the year 5,538,638 2,643,470
Additions during the year - 5,095,167
Recognised as part of asset acquisition (refer to note 30) 1,175,633 -
Depreciation charge for the year (2,508,060) (2,200,115)
Translation adjustments (73,034) 116
-------------- --------------
Balance at the end of the year 4,133,177 5,538,638
======== ========
Lease liabilities As at December As at December
31, 2024 31,2023
---------------- ----------------
Balance at the beginning of the year 5,944,562 2,743,815
Additions during the year - 5,095,167
Recognised as part of asset acquisition (refer to note 30) 1,217,570 -
Interest expense for the year 314,936 376,587
Payments for the year (3,246,799) (2,274,801)
Translation adjustments (115,407) 3,794
------------ ------------
Balance at the end of the year 4,114,862 5,944,562
======= =======
Not more than 12 months 2,797,673 2,597,561
More than 12 months 1,317,189 3,347,001
------------ ------------
4,114,862 5,944,562
======= =======
14 Trade and other payables
As at December As at December
31, 2024 31,2023
---------------- ----------------
Trade payables 8,902,807 3,050,477
Accruals (refer to (i) below) 76,112,307 22,533,630
Other payables - 129,783
-------------- --------------
85,015,114 25,713,890
======== ========
14 Trade and other payables (continued)
Not more than 12 months 85,015,114 25,713,890
More than 12 months - -
------------- -------------
85,015,114 25,713,890
======== ========
i. This mainly includes accruals for project related expenses and sales
commission.
15 Advances from customers
As at December As at December
31, 2024 31,2023
---------------- ----------------
Balance at the beginning of the year 57,523,290 94,456,096
Additions during the year 266,877,110 102,043,688
Revenue recognized during the year (180,098,407) (137,692,637)
Recognised as part of asset acquisition (refer to note 30) 37,642,242 -
Income from termination of units (refer to note 24) (1,916,688) (1,283,857)
--------------- --------------
Balance at the end of the year 180,027,547 57,523,290
========= ========
The above represent contractual liabilities arising
from the property sales agreement with the customers including advance
consideration received from them.
The aggregate amount of the sale price allocated to the performance
obligations of the Group that are fully or partially unsatisfied as at 31
December 2024 is USD 219,557,394 (31 December 2023: USD 165,477,358). The
Group expects to recognise these unsatisfied performance obligations as
revenue over a period of 1 to 5 years.
16 Retention payable
As at December As at December
31,2024 31,2023
---------------- ----------------
Retention payable for construction works - not more than 12 months 4,811,952 2,956,238
Retention payable for construction works - more than 12 months 4,818,095
3,892,831
------------ ------------
9,630,047 6,849,069
======= =======
17 Development property liabilities
As at December As at December
31,2024 31,2023
---------------- ----------------
Development property liabilities for Land - not more than 12 months 135,545,451 -
Development property liabilities for Land - more than 12 months 119,201,975 78,631,324
-------------- --------------
254,747,426 78,631,324
======== ========
The above represents amount payable for the land acquired. These liabilities
are secured against development properties (note 8). The properties have been
purchased on a deferred payment plan with the final instalment due on the
completion of the projects. The above liabilities have been discounted at a
rate of 6% to 8.5%.
The above includes USD 36,378,866 through acquisition of assets during the
year (refer to note 30).
There were acquisitions of land during the year in the amount of USD
153,218,519 which resulted in an increase to the development property
liability.
18 Bank borrowings
As at December As at December
31,2024 31,2023
---------------- ----------------
Balance at the beginning of the year 128,019,785 69,668,662
Add: Drawdown during the year 147,882,072 77,234,071
Less: Repayments during the year (67,092,067) (18,882,948)
---------------- ---------------
Total borrowings 208,809,790 128,019,785
Less:- Unamortised cost (3,316,765) (2,655,982)
--------------- ---------------
205,493,025 125,363,803
======== =========
18 Bank borrowings (continued)
Bank borrowings maturity profile: As at December As at December
31, 2024 31,2023
---------------- ----------------
Not more than 12 months 16,337,646 17,699,115
More than 12 months 189,155,379 107,664,688
-------------- ---------------
205,493,025 125,363,803
======== =========
The Group has following secured interest-bearing borrowings:
- On 17 May 2024, the Group has obtained financing facility of USD
18,278,306 (GBP 14,547,000) from a commercial bank in London. This facility is
secured against development property (note 8) in the United Kingdom and
carries interest at SONIA rate plus 2.25% per annum and is repayable by May
2026.
During the year, the Group has drawn down USD 10,209,063 (GBP 8,125,000). The
amount of undrawn facility as at 31 December 2024 is USD 8,069,243 (GBP
6,422,000).
- On 26 May 2023, the Group secured a financing facility of USD
204,220,558 (AED 750,000,000) from a commercial bank in UAE, backed by a
guarantee from the Major shareholder and the Ultimate parent company of the
major shareholder. The facility is repayable in half-yearly instalments, with
the final payment due at maturity in July 2027. The facility carries an
interest rate of 3 months EIBOR plus 2.30% per annum.
During the year, the Group has drawn USD 127,978,216 (AED 470,000,000). The
amount of undrawn facility as at 31 December 2024 is USD 8,168,822 (AED
30,000,000).
- During the year 2022, the Group entered into a financing facility
with a commercial bank for an amount of USD 87,134,105 (AED 320,000,000). This
facility is secured against development property (note 8) in UAE, carries
interest at 3 months EIBOR plus 2.55% per annum and is repayable by November
2027.
During the year, the Group has drawn USD 9,694,793 (AED 35,604,129).The amount
of undrawn facility as at 31 December 2024 is USD 5,317,477 (AED 19,528,434).
19 Related party transactions
The Group enters into transactions with other entities that fall within the
definition of a related party as contained in IAS 24, Related party
disclosures. Related parties comprise entities under common ownership and/or
common management and control; their partners and key management personnel.
19 Related party transactions (continued)
a) Due from related parties
As at December As at December
31,2024 31,2023
---------------- ----------------
Subsidiary
Dar Al Arkan For Real Estate Development W.L.L, Qatar (refer to (i) below) - 7,201,786
Entity under common control
Compass Project For Contracting LLC, UAE 1,600,000 -
Quara Holding, UAE 15 1,392,125
Dar (Beijing) International Holdings Co. Ltd., China - 25,886
------------- ------------
1,600,015 8,619,797
======== =======
These balances are unsecured, interest free and repayable on demand.
(i) During the year, Dar Al Arkan For Real Estate Development W.L.L was
acquired by one of the Group's subsidiaries (refer to note 30), resulting in
the elimination of this balance at the Group level.
b) Loan from a related party
As at December As at December
31,2024 31,2023
---------------- ----------------
Major shareholder
Dar Al Arkan Global Investment LLC, UAE 219,706,697 -
========= ==
Movement for the year:
Opening - -
Add: Drawdown during the year 226,576,921 -
Less: Repayments during the year - -
-------------- ==
Total Borrowings 226,576,921 -
Less:- Unamortised cost (6,870,224) -
--------------- ---
219,706,697 -
========= ==
On 1 September 2024, the Group secured a financing facility of USD 325,000,000
from its Major shareholder. This facility is unsecured and carries interest at
EIBOR/SOFR plus 2.95% per annum and is repayable by January 2028.
Of this total facility, the committed facility is USD 258,103,133, from which
the Group has drawn USD 226,576,921. The amount of undrawn facility as at 31
December 2024 stands at USD 31,526,212.
19 Related party transactions (continued)
c) Due to related parties
As at December As at December
31,2024 31,2023
---------------- ----------------
Major shareholder
Dar Al Arkan Global Investment LLC, UAE 2,804,659 1,248,415
Ultimate parent company of major shareholder
Dar Al Arkan Real Estate Development Company, KSA 56,361 -
------------ ------------
2,861,020 1,248,415
======= =======
These balances are unsecured, interest free and are repayable on demand.
d) Transactions with key management personnel
As at December As at December 31
31,2024 31,2023
---------------- ----------------
Short term benefits 2,590,752 2,052,682
Employees' end-of-service benefits 288,204 180,014
Board of directors' fees 927,373 637,685
------------ ------------
3,806,329 2,870,381
======= =======
e) Other related party transactions
As at December As at December
31,2024 31,2023
---------------- ----------------
Issuance of shares for acquisition of subsidiary
Major shareholder - 283,328,780
Issuance and redemption of preference shares
Major shareholder - 61,900
Loan (granted)/received
Major shareholder 226,576,921 -
Entity under common control of Ultimate parent company of Major shareholder - (2,796,105)
Loan repayment/(provided)
Joint venture 2,150,987 (48,742)
Deposits *
Entity under common control 25,663,170 67,342,878
Capitalization of borrowing cost
Major shareholder 2,578,875 -
19 Related party transactions (continued)
e) Other related party transactions (continued)
As at December As at December
31,2024 31,2023
---------------- ----------------
Unamortised cost related to loan
Major shareholder (7,798,634) -
Prepayments
Entity under common control of Ultimate parent company of Major shareholder - 73,997
Acquisition of assets
Ultimate parent company of the major shareholder 201,923 -
Share of profit/ (loss)
Joint venture 704,640 (93,162)
Gain on disposal
Joint venture 20,038 -
Interest income
Entity under common control of Ultimate parent company of Major shareholder - 513,120
Joint venture 431,267 520,842
Revenue
Entity under common control of Ultimate parent company of Major shareholder 1,600,000 -
Other income
Entity under common control of Ultimate parent company of Major shareholder 1,450,321 1,325,833
Major shareholder 1,000,000 -
Professional fees
Ultimate parent company of Major shareholder - (470,959)
During the year 2023, the Group entered into revolving credit agreement of USD
200 million with the Ultimate parent company of the Major shareholder to
finance the general corporate purposes of the Group. The amount is fully
undrawn as at 31 December 2024 and the terms and conditions of any drawdown
will be agreed when they occur.
* The Group held deposits with one of its related parties, a financial
services company in KSA amounting to USD 93,006,048 (refer to note 5).
20 Income taxes
Tax expense represents the sum of current income tax and deferred tax.
Current income tax is measured at the amount expected to be paid to the
taxation authorities.
The Group recognizes deferred tax assets only to the extent that it is
probable that future taxable profit will be available against which the
carried forward tax losses and the deductible temporary differences can be
utilised. Some tax losses remain unrecognized due to uncertainty in
recoverability.
Deferred tax assets and liabilities are measured on an undiscounted basis at
the tax rates that are expected to apply when the asset is realised or the
liability is settled, based on tax rates and tax laws enacted or substantively
enacted at the balance sheet date.
The total tax expense for the year are as follows:
As at December As at December
31,2024 31,2023
---------------- ----------------
Current tax expense 2,861,638 44,314
Deferred tax expense/ (credit) (3,665,328) (2,025,055)
------------ --------------
Total expense for the year 803,690 (1,980,741)
======= ========
Deferred tax
The Group recognises deferred tax assets and liabilities for future tax
impacts.
Deferred tax asset Deferred tax liability
---------------- ----------------
Tax losses carried forward 5,838,700 -
Other temporary differences 21,528 (252,935)
--------------- --------------
Total 5,860,228 (252,935)
========= ========
20 Income taxes (continued)
As at December 31, 2024 As at December 31, 2023
---------------- ----------------
Profit before tax 14,109,487 81,245,430
Tax at UK statutory rate (25%) 3,527,372 20,311,358
Effect of different tax rates in overseas jurisdictions (3,774,270) (22,433,407)
Recognition of previously unrecognised tax losses (1,721,315) (3,057,836)
Withholding taxes 942,007 44,314
Non-deductible expenses 135,065 2,008,750
Current year losses for which no deferred tax asset is recognised*
142,190 109,664
Tax Impact on transfer of group losses to joint venture -
90,601
Other reconciling items (145,340) 1,036,416
------------- -------------
Total tax expense (803,690) (1,980,741)
======= ========
Effective tax rate (ETR) -5.70% -2.44%
*Losses on which no deferred tax asset has been created amounts to USD 568,759
(2023: USD 438,654)
UAE Federal Decree-Law No (47) of 2022 on the Taxation of Corporations and
Businesses
On 9 December 2022, the UAE Ministry of Finance released the Federal
Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ('the
CT Law') to enact a Federal corporate tax ('CT') regime in the UAE. The CT Law
is effective for financial years beginning on or after 1 June 2023. Decision
No. 116 of 2022 specifies the threshold of income (as AED 375,000) over which
a corporate tax of 9% would apply. For the Group, current taxes is accounted
for as appropriate in the financial statements for the period beginning 1
January 2024. In accordance with IAS 12 Income Taxes, the related deferred tax
accounting impact for the UAE component has been considered for the
consolidated financial statement for the year ended 31 December 2024.
The Group has assessed the deferred tax implications for the year ended 31
December 2024 and, after considering its interpretations of applicable tax
law, official pronouncements, cabinet decisions and ministerial decisions
(especially with regard to transition rules), it has been concluded that
deferred tax implications are not expected to be material.
The Group shall continue to monitor critical Cabinet Decisions to determine
the impact on the Group, from deferred tax perspective.
Global Minimum Top-up Tax
The OECD's Pillar II global minimum tax, based on the Global Anti-Base Erosion
(GloBE) Model Rules, is not expected to have an impact on the Group, as the
Group's total revenue is less than Euro 750 million.
21 Share capital
As at December 31, 2024 As at December 31, 2023
Ordinary shares Number Amount Number Amount
Called up and fully paid-up share capital
Opening 180,021,612 1,800,216 2,239,510,913 22,395,109
Issuance of shares for acquisition of subsidiary - - 366,666,594 3,666,666
Issuance of ordinary shares - - 21,621,612 216,216
Capital reduction - - (2,447,777,507) (24,477,775)
--------------- -------------- ----------------- --------------
180,021,612 1,800,216 180,021,612 1,800,216
========= ======== ========== ========
22 Share premium
As at December As at December
31,2024 31,2023
---------------- ----------------
Share premium 88,781,078 88,781,078
-------------- --------------
88,781,078 88,781,078
======== ========
23 Revenue
December 31, December 31,
2024 2023
---------------- ----------------
Revenue is recognised over time as provided below:
Sale of residential units 233,597,186 360,575,755
Project management service 1,600,000 -
Revenue is recognised point in time as provided below:
Sale of residential units 5,133,207 -
-------------- --------------
240,330,393 360,575,755
========= =========
Cost of revenue
Cost of residential units (152,946,653) (214,131,383)
========= ========
Revenue from sale of residential units is net of discount against transaction
prices for certain units sold with a significant financing component amounting
to USD 4,652,862 (2023: USD 19,367,185).
23 Revenue (continued)
Change in estimate
During the current year, management has refined the cost to complete of
certain projects resulting in an increase in the total budget developments
costs as a result of specification enhancements. The Group uses the input cost
method to measure recognition of revenue over time, the effect of this change
in estimate of costs to complete results in lower gross revenue being
recognised in the current year amounting to USD 12.5 million.
24 Other income
December 31, December 31,
2024 2023
------------------ -----------------
Intercompany back-charge (note (a) below) 2,450,321 1,325,833
Income from termination of units (note (b) below) 1,916,688 1,283,857
Foreign exchange gain - 497,508
Others 6,747 39,808
----------------- -----------------
4,373,756 3,147,006
========== ==========
(a) This represents income related to general and advisory support services
provided to the related parties (refer to note 19).
(b) This represents instalments collected from customers that have been
forfeited due to termination of contracts on account of cancellation of units
booked.
25 Selling and marketing expenses
December 31, December 31,
2024 2023
---------------------- ----------------------
Sales commission 17,302,442 33,009,570
Marketing expenses 10,043,532 5,754,962
-------------- --------------
27,345,974 38,764,532
======== ========
26 General and administrative expenses
December 31, December 31,
2024 2023
-------------------- -------------------
Salaries and related benefits 22,665,169 19,040,312
Legal and professional expenses 3,637,197 3,166,009
Depreciation on right-of-use assets (refer to note 13) 2,508,060 2,200,115
Depreciation on property and equipment (refer to note 12) 2,022,188 984,458
IT related expenses 1,594,043 1,058,667
Utilities 758,051 476,155
Board of Directors fees 927,373 637,865
Travelling expenses 665,190 705,319
Bank charges 584,975 722,808
Rent 61,827 352,252
Listing related (reversal)/ expenses (refer to (a) below) - (1,680,520)
Value added tax expense 128,451 43,007
Foreign exchange loss 2,045,484 -
Other expenses 2,138,995 1,549,829
------------------------- -------------------------
39,737,003 29,256,276
=========== ===========
27 Net finance costs/(income)
December 31, December 31,
2024 2023
---------------- ----------------
Finance costs
Interest expense on bank borrowings 15,817,177 3,579,519
Interest expense on unwinding of discount on long term liability 6,847,870 1,064,692
Interest on lease liability (refer to note 13) 314,936 376,587
------------- ------------
22,979,983 5,020,798
======== =======
Finance income
Interest income (11,259,006) (3,754,858)
Income from investment in bonds of joint venture (refer to note 19) (431,267) (520,842)
Interest income from loan to related party (refer to note 19) - (513,120)
-------------- --------------
(11,690,273) (4,788,820)
======== ========
Net finance cost 11,289,710 231,978
======== ========
28 Earnings Per Share
Basic earnings per share amounts are calculated by dividing net profit or loss
for the year attributable to the owners of the Company by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit
or loss attributable to the owners of the Company by the weighted average
number of ordinary shares outstanding during the year plus the weighted
average number of ordinary shares that would be issued on conversion of all
the dilutive potential ordinary shares into ordinary shares. The company has
no dilutive instruments in issue.
The information necessary to calculate basic and diluted earnings per share is
as follows:
December 31, December 31,
2024 2023
---------------- ----------------
Earnings:
Profit attributable to the owners of the Company for basic/ diluted earnings 14,913,177 83,226,171
======== ========
Number of shares
Weighted-average number of ordinary shares for basic/diluted earnings per 180,021,612 180,021,612
share*
========= =========
Earnings per share:
- basic and diluted earnings per share (USD) 0.08 0.46
======== ========
* Weighted average number is adjusted retrospectively for December 2023.
29 Financial instruments
a) Material accounting policies
Details of the material accounting policies and methods adopted, including the
criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognized, in respect of each class of financial
asset and financial liability are disclosed in note 2 to the financial
statements.
29 Financial instruments (continued)
b) Categories of financial instruments
The Group considers that the carrying amount of financial assets and
liabilities are reasonable approximation of fair values.
As at December 31, 2024 As at December 31, 2023
Financial assets
Cash and cash equivalents 413,625,405 228,492,034
Trade and unbilled receivables 277,338,806 221,867,464
Advances, deposits and other receivables* 12,553,548 3,047,537
Escrow retentions 10,774,653 9,987,477
Due from related parties 1,600,015 8,619,797
Loan to joint venture - 2,150,987
--------------- ---------------
715,892,427 474,165,296
========= =========
Financial liabilities
Trade and other payables 85,015,114 25,713,890
Retention payable 9,630,047 6,849,069
Development property liabilities 254,747,426 78,631,324
Bank borrowings 205,493,025 125,363,803
Due to related party 222,567,717 1,248,415
Lease liabilities 4,114,862 5,944,562
--------------- ---------------
781,568,191 243,751,063
========= =========
* This is excluding prepayments, advance to suppliers and contractors and VAT
refundable.
30 Acquisition of assets/subsidiaries
Acquisition of assets
In November 2022, Dar Al Arkan Properties LLC ("Dar UAE") and Dar Al Arkan For
Real Estate Development W.L.L. ("Dar Qatar") entered into an investment
management agreement, under which Dar UAE agreed to provide management and
technical support services to Dar Qatar in exchange for management fees. At
the time, Dar Qatar was owned by the ultimate parent company of a major
shareholder, holding a 49% controlling stake.
Pursuant to the agreement, Dar UAE was to operate and manage the business of
Dar Qatar.
During 2024, Dar Global UK Holdings Ltd. ("Dar UK") agreed to acquire Dar
Qatar from the ultimate parent company of the major shareholder for a cash
consideration of USD 201,923 (QAR 735,000) for the 49% controlling stake.
Accordingly, the Group consolidated Dar Qatar from 1 October 2024.
The transaction was an asset acquisition as the definition of business is not
met against the principles of IFRS 3 Business Combinations. The allocation of
the aggregate purchase consideration over various financial and non-financial
assets acquired and liabilities assumed as part of the acquisition of Dar
Qatar as at 30 September 2024, is presented below:
Allocation of purchase consideration USD
Assets
Development properties (refer to note 8) 67,240,828
Cash and cash equivalents 9,557,182
Advances, deposits and other receivables 4,156,870
Property and equipment (refer to note 12) 1,457,454
Right-of-use assets (refer to note 13) 1,175,633
Due from related party 141,481
-------------
83,729,448
Less: Liabilities
Advances from customers (refer to note 15) (37,642,242)
Development property liability (refer to note 17) (36,378,866)
Due to related party (7,349,534)
Lease liabilities (refer to note 13) (1,217,570)
Others (939,313)
----------
Net assets acquired 201,923
----------
For cashflow statement:
Cash acquired 9,557,182
Cash paid (201,923)
-----------
Net cash inflow 9,355,259
=======
30 Acquisition of assets/subsidiaries (continued)
Acquisition of subsidiaries
On 25 January 2023, the Company acquired Dar Al Arkan Holdings Limited (ADGM)
from the Major shareholder, at a book value as at 31 December 2022, in
exchange for issuing 366,666,594 new ordinary shares by the Company amounting
to USD 3,666,666.
The acquisition by the Company is a common control transaction under IFRS 3
and has been accounted as continuing group using the book value accounting. In
the statement of financial position, the acquiree's identifiable assets,
liabilities are recognised at their book values at legal acquisition date.
For the year ended 31 December 2023, ADGM accounted for entire revenue and
profit of the Group. Management estimates that if the acquisition had occurred
on 1 January 2023, there would be no material change in consolidated revenue
or profit.
The total net identifiable total assets amounted to USD 296,783,783.
31 Financial risk management objectives
The Board of Director's set out the Group's overall business strategies and
its risk management philosophy. The Group's overall financial risk management
program seeks to minimize potential adverse effects on the financial
performance of the Group. The Group policies include financial risk management
policies covering specific areas, such as market risk (including foreign
exchange risk, interest rate risk), liquidity risk and credit risk. Periodic
reviews are undertaken to ensure that the Group's policy guidelines are
complied with.
There has been no change to the Group's exposure to these financial risks or
the manner in which it manages and measures the risk.
The Group is exposed to the following risks related to financial instruments.
The Group has not framed formal risk management policies, however, the risks
are monitored by management on a continuous basis. The Group does not enter
into or trade in financial instruments, investment in securities, including
derivative financial instruments, for speculative or risk management purposes.
31 Financial risk management objectives (continued)
a) Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies.
Hence, exposures to exchange rate fluctuations arise. The summarized
quantitative data about the Group's exposure to currency risk as reported to
the management of the Group is as follow:
EUR GBP BAM CNY
December 31, 2024
Cash and cash equivalents 6,855,578 1,862,411 96,265 345,116
Other financial assets 13,577 2,467,218 - 10,939
Financial liabilities (617,325) (234,768,633) (81,242) (46,259)
------------ ---------------- --------- ---------
6,251,830 (230,439,004) 15,023 309,796
======= ========== ===== =====
December 31, 2023
Cash and cash equivalents 5,910,324 1,885,534 30,734 -
Other financial assets 892,563 3,991,989 - -
Financial liabilities (359,745) (1,337,715) (82,953) -
------------ ------------ --------- ---------
6,443,142 4,539,808 (52,219) -
======= ======= ===== =====
The table below illustrates the impact of a 1000 basis point change in USD
against relevant foreign currencies on the Group's profit or loss
December 31, December 31,
2024 2023
---------------- ---------------
EUR 625,183 644,314
GBP 23,043,900 453,980
BAM 1,502 5,221
CNY 30,980 -
The Group's significant monetary assets and liabilities denominated in foreign
currencies are in AED which is pegged to USD. As the AED is currently pegged
to the USD, balances are not considered to represent significant currency
risk.
31 Financial risk management objectives (continued)
b) Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to
interest rates for non-derivative financial instruments as at 31 December
2024. The analysis is prepared assuming the amount of liabilities outstanding
at the reporting date was outstanding for the whole year.
The interest rate profile of the Group's interest-bearing financial
instruments as reported to the management of the Group is as follows:
December 31, December 31,
2024 2023
---------------- ---------------
Fixed rate instruments
Financial assets 120,257,164 74,544,664
( ) -------------- --------------
( ) 120,257,164 74,544,664
( ) ======== ========
Variable rate instruments ( ) ( )
Financial assets 307,608,760 172,465,150
Financial liabilities (425,199,721) (125,363,803)
--------------- --------------
(117,590,961) 47,101,347
========= ========
A 50-basis point increase or decrease is used when reporting interest rate
risk internally to key management personnel and represents management's
assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other
variables were held constant, the change in Group's profit for the year ended
31 December 2024 would be USD 587,955 (2023: USD 235,507). This is mainly
attributable to the Group's exposure to variable rate financial instruments.
c) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the
management which has built an appropriate liquidity risk management framework
for the management of the Group's short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves, continuously monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and
liabilities.
The Group's objective is to maintain a balance between continuity of funding
and flexibility through the use of bank overdrafts, bank loans and equity from
shareholders.
The table below summarizes the maturity profile of the Group's financial
liabilities. The contractual maturities of the financial liabilities have been
determined on the basis of the remaining period at reporting date to the
contractual maturity date. The maturity profile of these liabilities at the
reporting date based on contractual repayment arrangements are shown in the
table below:
31 Financial risk management objectives (continued)
c) Liquidity risk management (continued)
Contractual Cashflows
Carrying amount Less than More than 5 years
Total 1 year 1-2 years 2-5 years
31 December 2024
Financial liabilities
Payables 85,015,114 (85,015,114) (85,015,114) - - -
Retention payable 9,630,047 (9,630,047) (4,811,952) (2,073,458) (2,744,637) -
Bank borrowings 205,493,025 (238,992,448) (29,928,407) (100,970,564) (108,093,477) -
Development property liabilities 254,747,426 (286,879,647) (153,611,264) (49,534,163) (83,734,220) -
Lease liabilities 4,114,862 (4,551,866) (3,094,790) (1,015,448) (441,628) -
Due to related party 222,567,717 (268,318,639) (17,694,776) (43,936,842) (206,687,021) -
--------------- --------------- ------------- ------------- ------------- ----------
781,568,191 (893,387,761) (294,156,303) (197,530,475) (401,700,983) -
======== ======== ======= ======= ======= =====
31 December 2023
Financial liabilities
Payables 25,713,890 (25,713,890) (25,713,890) - - -
Retention payable 6,849,069 (6,849,069) (2,956,238) (3,184,957) (707,874) -
Bank borrowings 125,363,803 (154,130,558) (28,517,099) (41,101,308) (84,512,151) -
Development property liability 78,631,324 (92,579,986) - - (92,579,986) -
Lease liabilities 5,944,562 (6,390,540) (2,792,437) (2,280,731) (1,317,372) -
Due to related party 1,248,415
(1,248,415) (1,248,415) - - -
------------- --------------- ------------- ------------- ------------- ----------
243,751,063 (286,912,458) (61,228,079) (46,566,996) (179,117,383) -
======= ======== ======= ======= ======= =====
d) Credit risk management
Credit risk refers to the risk that the counterparty
will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy
counterparties. The Group's exposures are continuously monitored and their
credit exposure is reviewed by the management regularly.
The credit risk on liquid funds is limited because the
counterparties are banks with high credit-ratings assigned by international
credit-rating agencies.
The carrying amounts of the financial assets recorded
in the consolidated financial statements, which is net of impairment losses,
represents the Group's maximum exposure to credit risks. The Group considers
that the risk of loss related to unbilled receivables and trade receivables is
remote due to collateral held against such amounts due, being residential
property developed by the Group.
32 Capital risk management
The capital structure of the Group consists of cash and cash equivalents,
debt, which includes bank borrowings as disclosed in note 18 and equity as
disclosed in the consolidated financial statements.
The Group manages its capital to ensure that it will be able to continue as a
going concern while maximizing the return to stakeholders through the
optimization of the equity balance. The Group's overall strategy remains
unchanged from prior year. The Group is not subject to any externally imposed
capital requirements.
The Group monitors capital using 'debt' to 'equity'. Debt is calculated as
bank borrowings (as shown in the statement of financial position). Equity
comprises all components of equity as disclosed in note 21.
The Group's policy is to keep the ratio below 1.2. The Group's net debt to
equity ratio at 31 December was as follows.
December 31, December 31,
2024 2023
---------------- ---------------
Debt 205,493,025 125,363,803
-------------- --------------
Total equity 478,453,489 465,411,551
-------------- --------------
Debt to equity ratio 0.43 0.27
33 Contingent liabilities
As at December As at December
31, 2024 31, 2023
---------------- ----------------
Letters of guarantee (refer to note (a) below) 12,337,530 3,866,575
Others - 339,547
-------------- ------------
12,337,530 4,206,122
======== =======
(a) This primarily involves letters of guarantee provided to the Dubai Land
Department for the Group's projects in Dubai, UAE. The Group holds margin
deposits with the bank issuing these letters of guarantee, which are
refundable upon project completion.
Except for the above and ongoing business obligations which are under normal
course of business, there has been no other known contingent liability on
Group's consolidated financial statements as of reporting date.
34 Commitments
As at December As at December
31, 2024 31, 2023
---------------- ----------------
Contracted commitments for development properties 433,882,782 102,250,823
(refer to note 8)
========= =========
A significant portion of the Group's commitment is towards land plots
acquired, amounting to USD 260,274,987. All other commitments mentioned above
are related to ongoing construction projects and business obligations, which
are part of the normal course of business. There are no other known
commitments reflected in the Group's consolidated financial statements as of
the reporting date. These commitments will be funded through the Group's
existing funds or undrawn loan and borrowing facilities.
35 Staff number and costs
December 31, December 31,
2024 2023
---------------- ----------------
The average number of employees employed by the Group 258 207
========= =========
The payroll cost for these employees is as follows:
- Wages and salaries 22,665,169 19,040,312
========= =========
36 Auditors Remuneration
December 31, December 31,
2024 2023
---------------- ----------------
Audit of these consolidated financial statements 326,690 394,630
Audit of condensed consolidated interim financial statements 113,823 133,665
Audit of financial statements of subsidiaries of the company 149,724 153,142
Filing - Section 92F - 25,140
--------- -----------
590,237 706,577
====== =======
37 Events after the reporting date
Subsequent to 31 December 2024, there have been no events that require
disclosure or adjustment to these consolidated financial statements.
Alternative performance measures (unaudited)
The Group uses a number of alternative performance measures (APM) which are
not defined within IFRS. The Directors use the APMs, along with IFRS measures
to assess the operational performance of the Group. Definitions and
reconciliations of the financial APMs used compared to IFRS measures, are
included below:
Adjusted performance metrics
Adjusted performance metrics reconciled to statutory reported measures are (In US$)
shown below. The Directors consider these performance metrics provide
additional information regarding the Group's core operations and business
performance.
Particulars January 1, 2024 to December 31, 2024 January 1, 2023 to December 31, 2023
Revenue 240,330,393 360,575,755
Gross Profit 87,383,740 146,444,372
Gross Profit % 36% 41%
Profit for the year before tax 14,109,487 81,245,430
Profit for the year % of revenue 6% 23%
Dar Global PLC
London - United Kingdom
Company statement of financial position
for the year ended 31 December 2024
(In United States dollar)
December 31, December 31,
2024 2023
Note
Assets
Cash and cash equivalents 3 1,234,178 1,316,794
Advances, deposits and other receivables 4 1,522,430 1,756,628
Investment in Subsidiaries 5 379,464,441 370,547,062
Due from related parties 6 8,502,807 1,170,872
Loan to subsidiaries 6 218,494,065 11,745,796
Deferred tax assets 7 812,889 -
--------------- ---------------
Total Assets 610,030,810 386,537,152
========= =========
Liabilities and equity
Liabilities
Accruals and other payables 8 524,306 935,332
Loan from major shareholder 6 219,706,697 -
Due to related parties 6 5,799,258 47,483
--------------- ----------------
Total liabilities 226,030,261 982,815
--------------- ----------------
Equity
Share capital 9 1,800,216 1,800,216
Share premium 10 88,781,078 88,781,078
Retained earnings 293,419,255 294,973,043
--------------- ---------------
Total equity 384,000,549 385,554,337
--------------- ---------------
Total liabilities and equity 610,030,810 386,537,152
========= =========
The accompanying notes from 1 to 11 form an integral part of these financial
statements.
These financial statements were approved by the Board of Directors on 12 March
2025 and signed on its behalf by:
__________________ __________________
David Weinreb
Ziad El Chaar
Chairman
Chief Executive Officer
Dar Global PLC
London - United Kingdom
Company statement of changes in equity
for the year ended 31 December 2024
(In United States dollar)
Share capital Retained earnings Share premium Total equity
At September 30, 2022 (date of incorporation) - - - -
Loss for the period - (5,634,359) - (5,634,359)
Other comprehensive income/(loss) - - - -
Total comprehensive loss for the period - (5,634,359) - (5,634,359)
Transactions with owners of the company
Issue of ordinary shares 22,395,109 - - 22,395,109
Issue of shares related to acquisition of subsidiary 3,666,666 - 279,662,114 283,328,780
Issue of ordinary shares 216,216 - 71,783,588 71,999,804
Reduction of share capital (24,477,775) 287,142,399 (262,664,624) -
Other reserves (note 6) - 13,465,003 - 13,465,003
Total transactions with owners of the Company 1,800,216 300,607,402 88,781,078 391,188,696
------------ ---------------- -------------- ---------------
Balance as at December 31, 2023 1,800,216 294,973,043 88,781,078 385,554,337
======= ========= ======== =========
At January 01, 2024 1,800,216 294,973,043 88,781,078 385,554,337
Loss for the year - (1,553,788) - (1,553,788)
Other comprehensive income/(loss) - - - -
Total comprehensive loss for the year - (1,553,788) - (1,553,788)
------------ ---------------- -------------- ---------------
Balance as at December 31, 2024 1,800,216 293,419,255 88,781,078 384,000,549
======= ========= ======== =========
The accompanying notes from 1 to 11 form an integral part of these financial
statements.
Dar Global PLC
London - United Kingdom
Notes to the company financial statements
for the year ended 31 December 2024
(In United States dollar)
1. Corporate information
1.1. Dar Global PLC- ("The Company") was incorporated on
September 30, 2022 as a private limited company by shares, under a company
Number 14388348 issued by the registrar of the companies for England and
Wales. The majority of shares of the Company are held by Dar Al Arkan Global
Investment LLC ("Major shareholder") in United Arab Emirates ("UAE") and the
ultimate parent company of Major shareholder is Dar Al Arkan Real Estate
Development Company, Kingdom of Saudi Arabia ("KSA").
1.2. The registered address of the Company is located at 6th
floor, 65 Gresham Street, London, United Kingdom ("UK"), EC2V 7NQ.
1.3. The principal activity is property development holding
company.
2. Material accounting policies
2.1. Basis of preparation
These financial statements were prepared in accordance with Financial
Reporting Standard 101 Reduced Disclosure Framework ("FRS 101").
In preparing these financial statements, the Company applies the recognition,
measurement and disclosure requirements of international accounting standards
in conformity with the requirements of the Companies Act 2006 ("Adopted
IFRSs") but makes amendments where necessary in order to comply with Companies
Act 2006 and has set out below where advantage of the FRS 101 disclosure
exemptions has been taken.
In these financial statements, the Company has applied the exemptions
available under FRS 101 in respect of the following disclosures:
· Cash Flow Statement and related notes;
· Certain disclosures regarding revenue;
· Disclosures in respect of transactions with wholly owned
subsidiaries;
· Disclosures in respect of capital management;
· The effects of new but not yet effective IFRSs;
As the consolidated financial statements include the equivalent disclosures,
the Company has also taken the exemptions under FRS 101 available in respect
of the following disclosures:
· Certain disclosures required by IFRS 3 Business Combinations in
respect of business combinations undertaken by the Company in the current and
prior periods; and
· Certain disclosures required by IFRS 13 Fair Value Measurement and
the disclosures required by IFRS 7 Financial Instrument Disclosures.
· Certain disclosures required by IAS 36 Impairment of Assets
Under section 408 of the Companies Act 2006 the Company is exempt from the
requirement to present its own profit and loss account.
2. Material accounting policies (continued)
2.2. Going Concern
The Company's forecasts and projections based on the current trends in sales
and development and after taking account of the funds currently held, show
that the Company and the Group will be able to operate within the level of
cash reserves.
The directors have, at the time of approving the Company financial statements,
made a reasonable expectation that the Company has adequate resources to
continue in operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting in preparing the
financial statements.
2.3. Financial instruments
Financial assets and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the instrument.
Foreign exchange gains and losses
The carrying amount of financial assets that are denominated in a foreign
currency is determined in that foreign currency and translated at the spot
rate at the end of each reporting period. Financial assets measured at
amortized cost, exchange differences are recognized in the statement of profit
or loss.
2.4. Financial assets
Classification
The Company classifies its financial assets at amortized cost.
Measurement
At initial recognition, the company measures a financial asset at its fair
value plus transaction costs that are directly attributable to the acquisition
of the financial asset.
Financial assets comprise of cash and cash equivalents, advances deposits and
other receivables, loan to subsidiary and due from related parties.
Cash and cash equivalents
Cash and cash equivalents consist of bank balances.
2. Material accounting policies (continued)
2.4. Financial assets (continued)
Other receivables (including due from related parties and loan to subsidiary)
Receivable balances that are held to collect are subsequently measured at the
lower of amortized cost or the present value of estimated future cash flows.
The present value of estimated future cash flows is determined through the use
of value adjustments for uncollectible amounts. The Company assesses on a
forward-looking basis the expected credit losses associated with its
receivables and adjusts the value to the expected collectible amounts.
Receivables are written off when they are deemed uncollectible because of
bankruptcy or other forms of receivership of the debtors. The assessment of
expected credit losses on receivables takes into account credit-risk
concentration, collective debt risk based on average historical losses,
specific circumstances such as serious adverse economic conditions in a
specific country or region and other forward-looking information.
Impairment of financial assets
The loss allowances for financial assets are based on assumptions about risk
of default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on
the Company's past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to
the cash flows from the asset expire; or it transfers the financial asset and
substantially all the risks and rewards of ownership of the asset to another
entity. If the Company neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset,
the Company recognizes its retained interest in the asset and an associated
liability for the amounts, it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognize the financial asset.
2.5. Financial liabilities
Financial liabilities are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial
liability. All financial liabilities are recognized initially at fair value
and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities are subsequently
measured at amortised cost.
The Company's financial liabilities include accounts payable and provisions,
loan from major shareholder and amounts due to related parties.
Accounts and other payables
Accounts payable are obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. These are due for
payment within one year or less (or in the normal operating cycle of the
business if longer).
2. Material accounting policies (continued)
2.5. Financial liabilities (continued)
Accounts and other payables
Accounts and other payables are recognized initially at fair value and
subsequently are measured at amortised cost using effective interest method.
Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the
Company's obligations are discharged, cancelled or they expire. When an
existing financial liability is replaced by another, from the same lender on
substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in
the statement of profit or loss.
2.6. Taxation
Current tax assets and liabilities arising in current and past periods are
measured at the amount expected to be recovered from or paid to the tax
authorities. The tax rates and tax laws used to compute the tax balances are
those that are enacted or substantively enacted by the reporting date.
Deferred tax is provided on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying values for
financial reporting purposes. Deferred tax is determined using the tax rate
and laws that have been enacted or substantially enacted by the reporting date
and are expected to apply when the related tax asset is realised or the tax
liability is settled.
Deferred tax is not recognised for temporary differences related to
investments in subsidiaries to the extent that the Company is able to control
the timing of the reversal of the temporary differences and it is probable
that they will not reverse in the foreseeable future.
Deferred tax assets are recognised only when it is probable that future
taxable profits will be available against which these temporary differences
can be utilised. The carrying value of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised.
2.7. Reserves
Share capital, share premium and retained earnings.
An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities.
Incremental costs that are directly attributable to the issue of an equity
instrument are deducted from the initial measurement of the equity
instruments.
Share premium represents the excess consideration received over the par value
of shares issued, and it is not distributable.
Retained earnings represent distributable reserves.
2. Material accounting policies (continued)
2.8. Investment in subsidiaries
Classification
The Company accounts for investment in subsidiaries at cost less impairment.
2.9. Significant accounting judgements, estimates and
assumptions
In applying the Company's accounting policies, which are described in policy
notes, management are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily
apparent from other sources.
The estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
3. Cash and cash equivalents
As at December 31, As at December 31,
2024 2023
Cash at bank
- Current accounts 1,234,178 1,316,794
-------------- --------------
1,234,178 1,316,794
======== ========
4. Advances, deposits and other receivables
As at December 31, As at December 31,
2024 2023
Margin deposit 1,418,655 1,353,302
Other receivables 80,163 35,355
VAT receivable 23,612 367,971
-------------- --------------
1,522,430 1,756,628
======== ========
5. Investment in subsidiaries
As at December 31, As at December 31,
2024 2023
Dar Al Arkan Property Development SPC, Oman 647,478 647,478
Dar Al Arkan Spain SL, Spain 30,199,813 30,199,813
Dar Global UK Holdings LTD, UK 8,266,790 8,266,790
Dar Global Holdings Limited (ADGM), UAE* 340,350,360 331,432,981
-------------- ---------------
379,464,441 370,547,062
======== =========
All investments are owned 100% and related to property development activity.
* During the year, the Company made an additional capital contribution of USD
8,917,379 towards its investment in the subsidiary.
The management believes that the carrying value of the investments is
supported by the underlying net assets of the subsidiaries and the review of
the budget forecasts for the respective subsidiaries projects.
6. Related party transactions
Related parties transactions comprise of transactions with entities under
common ownership and/or common management and control; their partners and key
management personnel. Management decides on the terms and conditions of the
transactions and services received/rendered from/to related parties as well as
other charges, if applicable.
a) Loan to subsidiaries
As at December 31, As at December 31,
2024 2023
Loan to subsidiaries
Dar Global Holdings Limited (ADGM), UAE (refer to (i) below) 218,494,065 -
Dar Global UK No. 2 Ltd, UK - 1,745,796
Dar Global UK No. 1 Ltd, UK - 10,000,000
-------------- --------------
218,494,065 11,745,796
======== ========
(i) On 1 June 2024, the Company has given financing facility of USD
325,000,000 to its subsidiary. This facility is unsecured and carries interest
at EIBOR plus 5.18% per annum and is repayable by May 2029.
Of this total facility, the committed facility is USD 258,103,133, from which
the Company has given USD 218,494,065. The amount of undrawn facility as at 31
December 2024 stands at USD 39,609,068.
As at 31 December 2024, management has assessed the subsidiary's ability to
repay and concluded that the loan is recoverable, considering its financial
position and expected cash flows.
6. Related party transactions (continued)
b) Due from related parties
As at December 31, As at December 31,
2024 2023
Subsidiaries
Dar Global UK Holdings LTD, UK 251,641 62,532
Dar Al Arkan Properties LLC, UAE 1,055,437 449,377
Dar Al Arkan Property Development SPC, Oman 1,369,177 443,137
Dar DG Global Property Development LLC, UAE 318,392 9,423
Dar Global UK No. 1 Ltd, UK 245,312 54,433
Dar Global UK No. 2 Ltd, UK 149,516 75,369
Dar Al Arkan Spain SL, Spain 161,316 76,601
Dar Al Arkan For Real Estate Development WLL, Qatar 27,282 -
Dar Global Services Limited, UK 101 -
Dar Global USA LLC, USA 657,093 -
Dar Global Holdings Limited (ADGM), UAE 2,955,392 -
Dar Global Real Estate Development LLC OPC, UAE 1,173,497 -
Dar Behanavis SL, Spain 138,651 -
--------------- ---------------
8,502,807 1,170,872
========= =========
(i) The above balances are unsecured, interest free and repayable on
demand.
c) Loan from related party
As at December 31, As at December 31,
2024 2023
Major shareholder
Dar Al Arkan Global Investment LLC, UAE 219,706,697 -
========= =========
Movement for the year:
Opening - -
Add: Drawdown during the year 226,576,921 -
Less: Repayments during the year - -
--------------- ---------------
Total Borrowings 226,576,921 -
Less:- Unamortised cost (6,870,224) -
--------------- ---------------
219,706,697 -
========= =========
On 1 September 2024, the Company secured a financing facility of USD
325,000,000 from its Major shareholder. This facility is unsecured and carries
interest at EIBOR/SOFR plus 2.95% per annum and is repayable by January 2028.
Of this total facility, the committed facility is USD 258,103,133, from which
the Company has drawn USD 226,576,921. The amount of undrawn facility as at 31
December 2024 stands at USD 31,526,212.
6. Related party transactions (continued)
d) Due to related parties
As at December 31, As at December 31,
2024 2023
Subsidiaries
Dar Global UK Holdings LTD, UK 2,170,385 47,483
Dar Al Arkan Global Investment LLC, UAE 3,628,873 -
------------ ---------------
5,799,258 47,483
======= =========
(i) The above balances are unsecured, interest free and
repayable on demand.
e) Transactions with key management personnel
As at December 31, As at December 31,
2024 2023
Board of directors' fees 927,373 637,685
======= ======
f) Other related party transactions
As at December 31, As at December 31,
2024 2023
Income - Management service to subsidiaries
Dar Al Arkan Properties LLC, UAE 606,059 771,372
Dar DG Global Property Development LLC, UAE 308,969 400,388
Dar Al Arkan Property Development SPC, Oman 1,375,496 745,488
Dar Global UK Holdings LTD, UK 219,262 117,523
Dar Al Arkan Spain SL, Spain 222,600 76,601
Dar Global Real Estate Development LLC OPC, UAE 1,173,497 -
Dar Behanavis SL, Spain 138,652 -
Dar Global UK No. 2 Ltd, UK 61,790 -
Dar Al Arkan For Real Estate Development WLL, Qatar 27,282 -
Dar Global Holdings Limited (ADGM), UAE 251,640 -
Expense - Management service from a subsidiary
Dar Global UK Holdings LTD, UK (391,400) (1,832,815)
6. Related party transactions (continued)
f) Other related party transactions (continued)
As at December 31, As at December 31,
2024 2023
Income - Interest on loan to subsidiaries
Dar Al Arkan Properties LLC, UAE - 180,174
Dar Global UK No. 1 Ltd, UK - 54,433
Dar Global UK No. 2 Ltd, UK - 5,369
Dar Global Holdings Limited (ADGM), UAE 2,736,152 -
Expense - Interest on loan from subsidiary
Dar Global Holdings Limited (ADGM), UAE (32,400) -
Expense - Interest on loan from Major shareholder
Major shareholder (2,578,875) -
Issuance and redemption of preference shares
Major shareholder - 61,900
Issuance of shares for acquisition of subsidiary
Major shareholder - 283,328,780
Other reserves
Capital contribution by the Major shareholder - 13,465,003
Investment in subsidiary
Capital contribution in subsidiary 8,917,379 -
Unamortised cost related to loan
Major shareholder (7,798,634) -
Other transactions
Payment to suppliers on behalf of Dar Global USA LLC, USA 657,093 -
7. Income taxes
Tax expense represents the sum of current income tax and deferred tax.
Current income tax is measured at the amount expected to be paid to the
taxation authorities.
The Company recognizes deferred tax assets only to the extent that it is
probable that future taxable profit will be available against which the
carried forward tax losses and the deductible temporary differences can be
utilised.
Deferred tax assets and liabilities are measured on an undiscounted basis at
the tax rates that are expected to apply when the asset is realised or the
liability is settled, based on tax rates and tax laws enacted or substantively
enacted at the balance sheet date.
The total tax expense for the year are as follows:
As at December As at December
31,2024 31,2023
---------------- ----------------
Current tax expense - -
Deferred tax expense/ (credit) (812,889) -
--------------- ---
Total expense for the year (812,889) -
========= ==
Deferred tax
The Company recognises deferred tax assets and liabilities for future tax
impacts.
Deferred tax asset Deferred tax liability
---------------- ----------------
Tax losses carried forward 812,035 -
Other temporary differences 854 -
--------------- ---
Total 812,889 -
========= ==
The company intends to surrender losses to its group entities in exchange for
a charge equivalent to the tax savings realized in the future. Furthermore,
the company anticipates generating sufficient taxable income in future periods
to fully offset the carried-forward losses against future profits.
8. Accruals and other payables
As at December 31, As at December 31,
2024 2023
Accruals 397,780 884,194
Other payables 126,526 51,138
---------- ----------
524,306 935,332
===== ======
9. Share capital
As at December 31, 2024 As at December 31, 2023
Ordinary shares Number Amount Number Amount
Called up and fully paid-up share capital
Opening 180,021,612 1,800,216 2,239,510,913 22,395,109
Issuance of shares for acquisition of subsidiary - - 366,666,594 3,666,666
Issuance of ordinary shares - - 21,621,612 216,216
Capital reduction - - (2,447,777,507) (24,477,775)
--------------- -------------- ----------------- --------------
180,021,612 1,800,216 180,021,612 1,800,216
========= ======== ========== ========
10. Share premium
As at December 31, As at December 31,
2024 2023
Share premium 88,781,078 88,781,078
-------------- --------------
88,781,078 88,781,078
======== ========
11. Events after the reporting date
There are no significant events after the reporting
date.
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