Singapore-based United Engineers Limited (UE) has posted a 257 percent increase in net profit to S$186.2 million in the fiscal year 2010.
The company’s full-year revenue also rose 28 percent to S$901.4 million, mainly attributed to progressive revenue recognition from property projects such as Park Central @ AMK and The Rochester. Arising from the strong revenue, gross profit climbed 77 percent to S$286.6 million, while other income rose 381 percent to S$51.1 million. This was attributed to higher revaluation gains from the company’s investment properties.
However, revenue in the engineering and construction division fell seven percent to S$396.5 million, due to stringent job selection, which helped boost gross margin by 46 percent to S$68.8 million.
Meanwhile, integrated facility management division, including its property development segment, recorded a 96 percent increase of revenue to S$649.7 million, fuelled by strong revenue recognition from its residential projects.
Looking forward, the company will continue to bid for commercial and residential developments in the next 12 months, as the Singapore Building and Construction Authority projected total construction demand to reach between S$22 billion and S$28 billion this year.