WATER-TREATMENT company United Envirotech on Friday reported an 85.2 per cent drop in net profit to S$3.32 million despite a 26.4 per cent increase in revenue to S$83.85 million in the first quarter ended June 30, 2015.
Earnings per share slumped to 0.31 cent, from 2.47 cents a year ago.
The company said revenue rose on higher contributions from the water-treatment business and external membrane sales.
But earnings fell due to an 89.3 per cent plunge in other income to S$1.6 billion because of a one-off gain on disposal of Memstar Technology of S$14.2 million in the last corresponding period ended June 30, 2014.
Further hurting the bottom line was a jump in employee benefits expense of S$5.3 million or 107.9 per cent due to the additional staff strength for the operation and maintenance of new treatment plants and manufacturing facilities. Higher depreciation and amortisation expenses also ate into profits.
The counter fell two cents to S$1.68 on Friday.