Vicom 2Q earnings up 4.9% to $6.6m

Vicom expects the vehicle inspection business to remain strong as more cars that were registered after April 2014 pass the three-year mark and are subject to a new emission test requirement by the National Environment Agency.
Vicom expects the vehicle inspection business to remain strong as more cars that were registered after April 2014 pass the three-year mark and are subject to a new emission test requirement by the National Environment Agency.PHOTO: ST FILE

SINGAPORE - ComfortDelGro-owned vehicle inspection and testing company Vicom posted earnings of $6.6 million for the second quarter, up 4.9 per cent on the same period last year.

This was on the back of a 3.7 per cent growth in revenue to $25.6 million for the three months to June 30, fuelled by higher business volume.

Vicom posted a 4.9 per cent increase in earnings to $13.9 million for the half year and a 3.9 per cent rise in revenue to $51.1 million.

Net earnings per share for the second quarter stood at 7.4 cents, up from 7.05. Net tangible asset backing per share was 145.89 cents, down from 170.16 cents as at Dec 31.

The firm has recommended an interim dividend of 14.11 cents a share, up from 13.46 cents.

It expects the vehicle inspection business to remain strong as more cars that were registered after April 2014 pass the three-year mark and are subject to a new emission test requirement by the National Environment Agency.

But the non-vehicle testing business will remain challenging, with the expected slowdown in the Singapore economy.