Vicom declares special dividend on 31% jump in profit

Vehicle inspection and testing group Vicom posted earnings attributable to shareholders of $34.7 million after tax on a 3.1 per cent rise in revenue to $100.1 million.
Vehicle inspection and testing group Vicom posted earnings attributable to shareholders of $34.7 million after tax on a 3.1 per cent rise in revenue to $100.1 million.PHOTO: LIANHE ZAOBAO

SINGAPORE - Vehicle inspection and testing group Vicom reported a 30.9 per cent jump in net earnings for the year ended Dec 31, 2018, and has declared bumper dividends.

The ComfortDelGro Group subsidiary posted earnings attributable to shareholders of $34.7 million after tax on a 3.1 per cent rise in revenue to $100.1 million.

Directors have recommended a final dividend of 23.17 cents and a special dividend of 8.62 cents. The corresponding dividend in the previous financial year was 22.88 cents.

Much of the bottomline growth was from a net gain on the surrender of lease of a property at 18 Teban Gardens Crescent, which netted $7.7 million.

Operating costs crept up by 2.3 per cent to $68.1 million, with utilities and communications posting the biggest increase.

Vicom said "barring further drops in certificate of entitlement prices, the vehicle testing business is expected to remain stable".

"We will continue to look at introducing new services in the non-vehicle testing business to mitigate any drop in demand resulting from the slowing Singapore economy," it added.