United Engineers Q1 profit surges with Mflex back in the black

Property and engineering group United Engineers (UE) posted a surge in net profit for the first quarter even though revenue slid.

Net profit for the three months to March 31 leapt 226 per cent to S$24.99 million, it said in a Singapore Exchange filing on Friday.

The jump came partly because the group wrote back over-provisions for previous years' income tax and also because its subsidiary Multi-Fineline Electronix (MFLEX) returned to profitability. MFLEX makes printed circuit boards.

Revenue declined 24 per cent to S$515.26 million in Q1, which UE said was due to the absence of contributions from businesses it has sold off - namely, its automotive business Wearnes and its technology business MFS Technology. That was partly offset by higher progressive revenue recognition from property sales at its Eight Riversuites private development near Boon Keng as well as higher contributions from MFLEX, UE said.

Earnings per share climbed to 3.9 Singapore cents for Q1 from 1.2 cents the previous year.

Net asset value per share also rose to S$3.00 as at March 31, up from S$2.93 as at Dec 31.

UE shares closed flat at S$2.59 on Friday before the results were released.