Demand for testing services lifts full-year earnings at Vicom

VEHICLE testing company Vicom today reported a 5.2 per cent rise in full year net profit to $26.4 million on the back of a 7 per cent rise in revenue to $97.1 million, due to higher business volume.

Operating profit for the year to Dec 31 was up 5.9 per cent at $31.8 million.

However, taxation surged by 12.7 per cent to $5.2 million due to higher profits this year as well as lower taxes paid in 2011 as it benefited from the enhanced capital allowances under the productivity and innovation credit scheme.

Earnings per share grew to 29.95 cents from 28.73 cents previously while net asset value per share increased to 132.1 cents compared to 120.02 cents as of June 30.

On its prospects, Vicom said the demand for testing services is expected to remain strong.

"Vehicles are likely to be on the road longer and our non-vehicular testing services are expected to grow despite the keen competition."

A final dividend of 7.5 cents a share, plus a special dividend of 3.2 cents a share have been recommended by the board.

Vicom shares rose one cent to $5.10.