Vicom's business improves as owners keep their vehicles longer

Vehicle inspector Vicom lodged an 8 per cent improvement in second quarter net profit to $6.9 million on the back of an 11.1 per cent rise in revenue to $26.6 million, thanks to higher business volume.

Earnings per share for the three months to June 30 grew to 7.75 cents from 7.2 cents previously while net asset value per share climbed to 137.93 cents compared to 132.1 cents as at Dec 31.

An interim dividend of eight cents a share was declared, up from 7.5 cents last year.

Vicom said the demand for its 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," it added.