Vicom's first-quarter earnings up 5.1%

SINGAPORE - Higher business volume lifted first-quarter earnings for vehicle inspection and testing services provider Vicom.

Net profit for the three months to March 31 grew 5.1 per cent to $8.42 million, while revenue climbed 5.2 per cent to $28.3 million.

Operating expenses also rose 5.7 per cent to $18.4 million due mainly to "expenses incurred to generate the increase in revenue", said the firm in a filing to the Singapore Exchange on Monday.

Pre-tax profit was higher by 5 per cent at $10.2 million.

Earnings per share came in at 9.5 cents, up from 9.05 cents, while net asset value per share stood at 166.21 cents as at March 31, up from the 156.74 cents as at Dec 31 last year.

Vicom said that demand for the vehicle testing services is expected to "moderate" as more vehicles are expected to be deregistered in the year.

"The non-vehicle testing business is expected to continue to grow even though competition remains keen."

Vicom shares closed one cent up at $6.22 on Monday.