Vicom declares huge dividend despite earnings dip
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Vicom posted net earnings per share of 29.9 cents, down from 31.77 previously.
ST PHOTO: KELVIN CHNG
SINGAPORE - Vehicle inspection group Vicom has declared a final dividend of 22.88 cents for the financial year ended Dec 31, 2017 - up sharply from 8.5 cents it paid for 2016.
The ComfortDelGro subsidiary posted a 5.9 per cent dip in net earnings to $26.5 million, as revenue slipped 4.1 per cent to $97 million.
Total operating expenses shrank by 3.2 per cent to $66.6 million.
Directors said that if the dividend is approved at its annual general meeting on April 24, it will be paid on May 10.
Vicom posted net earnings per share of 29.9 cents, down from 31.77 previously.
Net asset value per share also slipped from 169.05 cents to 167.34 cents as at Dec 31, 2017.
Vicom attributed its weaker revenue to "lower business volumes".
As Singapore's vehicle population continues to age, and as cars beyond 10 years of age continue to increase in numbers, the frequency of inspections actually rises.
That Vicom is experiencing "lower business volumes" means motorists may be taking their vehicles to other inspection centres.
