Mainboard-listed United Envirotech says it achieved a net profit growth of 284.9% to $4.2 million for the first three months ended 30 June 2010 (1Q FY2011) on the back of a 152.8% growth in revenue to $22.4 million in 1Q FY2011.

United Envirotech says the growth was due to higher engineering income recognised mainly arising from the Guangzhou EPC project which has been completed.

The group’s Engineering business continued to be the key growth revenue driver, contributing $19.4 million or 86.6% of total 1Q FY2011 revenue. The increase was due to the higher engineering income recognised chiefly arising from Guangzhou EPC project.

Recurring income from its Wastewater Treatment business grew steadily over the quarters, contributing $3.0 million or 13.4% of total 1Q FY2011 revenue. Wastewater treatment revenue in 1Q FY2011 remained comparable as in 1Q FY2010.

Materials purchased, consumables used and subcontractors’ fees increased 205.2% to $14.7 million in 1Q FY2011 from $4.9 million in 1Q FY2010 as a result of higher engineering business activities.

Overall, the group turned in a net profit before tax of $4.7 million in 1Q FY2011, signifying 255.8% increase from $1.3 million in 1Q FY2010. Due to higher taxable income, net profit after tax was $4.2 million in 1Q FY2011, representing 284.9% increase from $1.1 million in 1Q FY2010. Net profit margin improved by six percentage points to 18.9% in 1Q FY2011 from 12.4% in 1Q FY2010.