United Engineers’ net profit for the first quarter of 2010 has more than trebled to $28.2 million, as sales of residential apartments propelled an increase in revenue. The group posted a 32 percent increase in revenue to $195.9 million.
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The improvements were attributed mainly to the progressive recognition of income and revenue from sales of apartment units at Park Central @ AMK in Ang Mo Kio and The Rochester in one-north. Both developments are slated to receive Temporary Occupation Permit by 2011.
Earnings per share increased to 11 cents in Q1 2010 from 3.8 cents in Q1 2009. As at 31 March 2010, net asset value per share was $3.51 against $3.43 as at end-2009. UE had $319.6-million cash and cash equivalents as at end-March 2010, slightly higher than the $318.2 million as at end-2009.
United Engineers, which is involved in engineering, construction and property development and investment, is currently developing at Changi Business Park an office, retail, hotel and convention centre project, which is scheduled for completion in 2013. The project, which will be named UE BizHub East, is being constructed on a site with a leasehold tenure of 30 years from February 2008, with an option to extend for another 30 years at existing lease premium.
In April, the company snapped up two industrial buildings at Ang Mo Kio – Motorola Excellence Centre and Motorola Innovation Centre – for about $25 million, as part of its plans to expand its portfolio of build-to-suit properties. The two buildings, which have 378,426 sq ft of total gross floor area, will be collectively known as UE BizHub Central after the ownership change.
UE also hopes to grow UE BizHub Central.