VEHICLE-inspection company Vicom reported a net profit of S$14.1 million for the half year ended Jun 30, having inched up 1.3 per cent from S$13.9 million in the corresponding period of the previous year.
This was after factoring interest income less finance costs and taxation, the company said in a bourse filing on Wednesday (Aug 7).
Revenue grew 0.8 per cent year on year to S$56.3 million in the period, and earnings per share came in at S$0.0398, up from S$0.0393.
The group’s operating costs rose to S$39.5 million, 0.4 per cent higher than in H1 FY2023.
The board has declared an interim dividend of S$0.028 per share, representing a payout ratio of 70 per cent. The dividend will be paid out on Aug 23.
Vicom expects demand for vehicle testing and related work to remain strong. The company has started installing On-board Units in Singapore-registered vehicles; these are readers that will enable motorists to pay for parking and electronic road-pricing (ERP) in the next phase of road pricing in Singapore. Vicom is one of the authorised partners appointed by the Land Transport Authority for this, it said.
Vicom added that demand for non-vehicle testing is expected to increase; these include the tests it conducts on, for example, smoke emissions and speed limits. It said, however, that profit margins will continue to be under pressure due to strong competition.
Shares of Vicom ended Wednesday flat at S$1.34, before the results were announced.
