Bildco wipes out Dh464m losses, eyes fresh growth chapter

08/06/2026 04:11 AST

Abu Dhabi National Co. for Building Materials (Bildco) has fully eliminated accumulated losses worth Dh464 million, marking what the company calls a definitive turning point in its five-decade history and setting the stage for a shareholder-focused growth drive.

The resolution, approved by shareholders at the company's General Assembly on Saturday, saw the losses - standing at Dh464,078 million as of March 31, 2026 - written off entirely against Bildco's General Reserve of Dh931 million. The move hands the Abu Dhabi Securities Exchange-listed firm a clean balance sheet for the first time in years.

"These transformational steps represent a launching point toward a new phase of growth, profitability, and sustainability," ADX-listed firm said in a statement.

The practical effect is immediate: future operating profits will no longer be eaten up by historical shortfalls but will instead flow directly into shareholders' equity, potentially unlocking dividends and improving returns.

Bildco also retains a sizeable war chest - a general reserve of more than Dh466.9 million - after absorbing the losses, giving management room to pursue acquisitions, expansion, or other capital allocation moves without tapping external financing.

The company said the clean-up enhances the "investment attractiveness" of its shares and improves the quality of its financial reporting going forward.

Founded in 1974, Bildco has spent more than 50 years supplying building materials to some of the UAE's largest infrastructure and construction projects. The company, listed on ADX, offers a broad range of construction products and positions itself as an integrated solutions provider to the sector.

The loss-extinguishment plan was first greenlit by the board in November 2025 and ratified by the General Assembly in December of that year before receiving final approval this week.

Management said the resolution is part of a wider financial and operational transformation aimed at boosting efficiency and delivering "long-term added value" for investors.

Khaleej Times