Novo Group, the global steel and coal supply-chain manager, says net profit grew to US$4.7 million ($6.6 million) for the financial period ended 31 January 2010 (3QFY2010), up 422% from US$0.9 million in 3Q FY2009. Earnings per share in 3Q FY2010 rose to 0.78 US cents from 0.14 US cents in 3Q FY2009.

Group revenue for 3QFY2010 improved to US$127.7 million ($178.4 million), an increase of 67.7% from US$ 76.2 million in 3Q FY2009. This was due to a significant improvement in the performance of the group’s international steel trading division, contributing 85.7% of the group’s total revenue or US$109.5 million due to the growth in demand of semi-finished products in South East Asia market and the increase in steel price.

The group also saw its gross profit improved to US$18.7 million in 3Q FY2010 from US$ 8.2 million in 3Q FY2009. Consequently gross profit margin improved to 14.6% in 3Q FY2010 from 10.7% in 3Q FY2009. These improvements were attributed to the increase in steel prices coupled with the change of trading terms for certain major contracts during the period under review.

The group managed to derive other operating income of US$0.4 million in 3Q FY2010 from transportation income arising from domestic trade and distribution in Hong Kong and a cancellation fee from a trading contract recorded in 3Q FY2010.

On Jan 7, Novo Group announced its plan to have a dual listing of its shares in the Mainboard of the Stock Exchange of Hong Kong.