Property sales' weak revenue is the culprit.
United Engineers Limited announced that for the year ended 31st December 2012, attributable profit was $72.2 million on the back of revenue of $595.7 million.
Revenue decreased 50% from $1.2 billion for the previous corresponding period in the absence of revenue from property sales following the completion of The Rochester and Park Central @ AMK which contributed significantly to the Group’s turnover and profits in FY2011.
Net profit was 73% lower at $72.2 million, compared with $269.5 million in FY2011.
In the Property Development segment, revenue recorded for FY2012 was in relation to the resale of apartment units from a completed project. No revenue was recorded in FY2012 for ongoing projects.
Construction work on Austville Residences, the Group’s executive condominium project, is currently in progress with completion expected in FY2014.
Based on the completion of construction method, revenue and profits for Austville Residences can only be recognised upon handover of the completed property.
Construction work for 8 Riversuites, which the Group launched in Q2 2012, has not commenced and hence no revenue for this project was recognised. Operating profit before interest decreased 99% to $2.0 million in FY2012.
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