MAINBOARD-LISTED vehicle inspection company Vicom posted a net profit of S$6.6 million for the third quarter ended September, up 1 per cent from S$6.5 million in the year-ago period.

 

The marginal rise in net profit was a result of higher interest income, which was offset by lower operating profits, the group said in a business update on Thursday (Nov 10).

 

Revenue fell by 1 per cent to S$27.3 million for the quarter, down from S$27.4 million a year ago. Operating profits slipped 2 per cent to S$7.9 million, down from S$8.1 million.

 

The declines in revenue and operating profits were mainly due to lower business volumes in its non-vehicle testing business resulting from the slowdown of the manufacturing sector, which is into its 12th month of decline, the group said.

 

For the nine months ended September, Vicom&rsquo s net profit rose 5 per cent on the year to S$20.5 million. Revenue grew 3 per cent to S$83.1 million.

 

The group noted in its update that inflationary pressures remain elevated while business costs still remain high, especially material and staff costs.

 

It said that its vehicle inspection business has been largely stable except for lower demand for new car registrations and emission testing services, as a result of low Certificate of Entitlement quotas.

 

MAINBOARD-LISTED vehicle inspection company Vicom : WJP -1.78% on Friday (Aug 11) reported a net profit of S$13.9 million for the half year ended Jun 30, climbing 6.3 per cent from S$13.1 million the corresponding year-ago period.

 

This was due to higher interest income earned from the period, the group said. Interest income for the period leapt 500 per cent to S$978,000, from S$163,000. 

 

Revenue increased 4.8 per cent year on year to S$55.9 million, contributed by higher business volume. 

 

Earnings per share for the period was $0.0393, up from S$0.037.

 

The group&rsquo s operating costs rose to S$39.3 million, 6.8 per cent higher than H1 FY2022. This was due to higher staff costs and a lower write-back of allowance for expected credit losses. 

 

Vicom declared an interim dividend of S$0.0275, payable on Aug 29.

 

The group, however, revised its dividend payout ratio from 90 per cent of net profit attributable to shareholders to 70 per cent, in view of the capital expenditure required for its expansion plans. This includes an investment in a new testing and inspection centre at Jalan Papan. 

 

The group maintains a cautious outlook for the year as it expects demand for vehicle testing to remain stable, while demand for non-vehicle testing is likely to slow down in tandem with the economy. 

 

An increase in the Certificate of Entitlement quota for cars will also result in a higher demand for new car registration and emissions testing services. 

 

Vicom&rsquo s chief executive Sim Wing Yew said: &ldquo The pressure on profit margin due to these factors remains a concern.&rdquo

 

The company also recently acquired An Security, which provides information technology security evaluation and testing services for cybersecurity products. 

 

&ldquo With rising threats in our digital era, we expect this to be a new growth area,&rdquo he added. 

VEHICLE inspection company Vicom : WJP -1.09% posted a 8 per cent rise in profit after tax and minority interest for its first quarter ended Mar 31, 2023, from S$6.3 million in the year-ago period.

 

This was due to higher operating profit &mdash which more than offset the higher operating costs due to increases in staff costs &mdash as well as higher interest income, the mainboard-listed company said in a business update on Thursday (May 11) evening.

 

Revenue rose 6.6 per cent on the year to S$27.8 million for the quarter, from S$26 million previously, mainly due to higher business volume in its non-vehicle testing business.

 

The company said it has a &ldquo healthy cash balance&rdquo of S$59.6 million to support business growth and opportunities.

 

While inflationary pressures have begun to ease in the quarter, it remains elevated, and business costs are still high &ndash particularly material, utility and staff costs, said Vicom.

 

Its vehicle inspection business has &ldquo largely been stable&rdquo , though there was a lower demand for new car registrations or emission testing services as a result of low Certificate of Entitlement quota.

 

On the other hand, its non-vehicle business continues to improve, along with the recovery of the aerospace, construction, marine and offshore, as well as oil and gas industries. &ldquo However, there are signs of slowdown in the Singapore economy due to the wider macro environment,&rdquo it added.

 

Led by a higher volume of testing services provided, Vicom WJP 0.00%   has reported earnings of $26.2 million for FY2022, up 5.7% over the preceding year. Revenue in the same period was up 7.3% to $108.3 million.

 

Vicom says that higher demand was seen for non-vehicle testing services with the pandemic easing and economic activities back to normal. Sectors singled include construction, marine and offshore, oil and gas and manufacturing.

 

However, Vicom warns that while the demand for the group&rsquo s services was strong, intense competition and high inflation rates continued to put pressure on profit margins.

 

&ldquo The group has managed to turn in a strong performance for the year, riding on the recovery resulting from the resumption of economic activities,&rdquo says Vicom CEO Sim Wing Yew.

 

&ldquo However, the outlook is uncertain for the year ahead, amidst a backdrop of high inflation and slower economic growth. We will continue to drive revenue growth and at the same time, manage costs tightly in 2023,&rdquo he adds.

 

The company plans to pay a final dividend of 3.32 cents per share, which, will bring the total for FY2022 to 6.64 cents, which translates into a payout ratio of 90%.

 

For the current FY2023, Vicom expects demand for vehicle testing to remain stable in 2023, led by new car registration and emissions testing services as a result of the increase in the Certificate of Entitlement quota.

 

In addition, demand for non-vehicle testing is expected to increase with the full resumption of economic activities.

 

Nonetheless, Vicom warns that its margins will continue to be under pressure because of inflationary pressure and stiffer competition, especially in the non-vehicle testing business segment.

 

&ldquo The group maintains a cautious outlook for the year ahead,&rdquo says Vicom

SETSCO Services, a wholly-owned subsidiary of inspection and technical services provider Vicom : WJP 0%, has won the tender to lease an industrial site at Jalan Papan (Plot 2) for some S$7 million.

 

The tender, which has a lease term of 20 years, was awarded by JTC, said the mainboard-listed company in a bourse filing on Wednesday (Dec 21). The site area of the Jalan Papan plot is 12,400.4 square metres.

 

Setsco will undertake the development of the plot and intends to use it for testing, inspection and certification activities once completed, subject to the terms of the lease.

 

The plan is also for the site to eventually replace the JIC Inspection Centre located at Pioneer, whose lease is expiring in November 2024, said the company. The inspection centre is owned and operated by Vicom&rsquo s subsidiary JIC Inspection Services.

 

A quarter of the tender price is due on Jan 5, 2023, while the remaining 75 per cent will have to be paid by Mar 8, 2023. The tender price was arrived at after taking into consideration the successful tender prices for the last three tenders for the lease of land parcels by JTC.

 

The company will fund the sum through internal resources. The transaction is not expected to have any material impact on the net tangible assets or earnings per share of Vicom for the financial year ending Dec 31.

 

INSPECTION and technical testing services provider Vicom : WJP -0.52% on Thursday (Nov 10) posted earnings of S$6.5 million for the third quarter ended September, up 2 per cent from S$6.3 million in the year-ago period.

 

This was due to higher operating profit and interest income being offset by higher tax expenses, the company said in a business update.

 

Revenue in Q3 rose 4 per cent year on year to S$27.4 million from S$26.3 million.

 

This increase came mainly from higher business volume in the non-vehicle testing business as it rides on the recovery phase of the Singapore economy, it said.

 

For the first nine months ended Sep 30, earnings grew 7 per cent to S$19.6 million, from S$18.3 million a year ago. Revenue was also up 7 per cent year on year to S$80.7 million from S$75.4 million.

 

Vicom said its vehicle inspection business has largely been stable, except for lower demand for new car registrations and emission testing services as a result of low Certificate of Entitlement quotas and the worldwide shortage of microchips affecting vehicle productions.

 

As for its non-vehicle testing arm, overall business continued to improve in Q3, with the recovery of most industries from the pandemic. However, the company flagged considerable inflationary pressures as a result of supply chain disruptions and labour shortages in the segment.

 

INSPECTION and technical testing-services provider Vicom on Thursday (Aug 11) announced earnings of S$13.1 million for the first half ended June, up 9.2 per cent from S$12 million in the year-ago period.

 

Earnings per share climbed to S$0.037, from S$0.0338 in the same period last year.

 

The increase comes on the back of higher demand for the group&rsquo s services, in tandem with the improving Singapore economy, Vicom said in a bourse filing.

 

The group added that demand was particularly buoyant for its non-vehicle testing business, which is highly dependent on the recovery of the construction, marine and offshore, oil and gas, and manufacturing sectors.

 

H1 revenue was 8.5 per cent higher at S$53.3 million, up from S$49.2 million the year before.

 

Operating profit rose 10.6 per cent to $16.5 million, despite lower Covid-19 government reliefs received in the period.

 

The company&rsquo s chief executive officer Sim Wing Yew said: &ldquo As Singapore emerges from the Covid-19 pandemic, demand for VIicom&rsquo s services, especially in the non-vehicle testing segment, is improving. But growing inflationary pressures and the threat of recession loom, and we are not out of the woods yet.&rdquo

 

The group has declared an interim dividend of S$0.0332 per share, payable on Aug 26. This is up from the interim dividend of S$0.0304 per share paid out in the corresponding period last year.

VEHICLE inspection company Vicom&rsquo s group profit after tax and minority interest (Patmi) inched up by 3 per cent to about S$6.3 million for the first quarter ended Mar 31, 2022, from S$6.2 million in the year-ago period.

 

This was due to higher operating profit, which was offset partially by higher tax expenses, the mainboard-listed company said in a business update on Wednesday (May 11) evening.

 

Revenue rose 8.1 per cent on the year to S$26 million for the quarter, from S$24.1 million previously. The top line was mainly boosted by higher business volume in the non-vehicle testing business as it rode on the recovery phase of the Singapore economy.

 

Cash and cash equivalents as at March 2022 stood at S$78.9 million, up 4.6 per cent year on year. Vicom : WJP 0% said this &ldquo healthy cash balance&rdquo will support its business growth and opportunities.

 

The company noted that its overall business for the non-vehicle testing segment continued to improve in the first quarter of this year, and is expected to mirror the trajectory of the Singapore economy.

 

&ldquo However, there are considerable inflationary cost pressures as a result of supply chain disruptions and shortages of labour,&rdquo it added.

 

As for the vehicle inspection business, Vicom said it has largely been stable, although there was lower demand for new car registrations and emission testing services, as the worldwide shortage of microchips hindered vehicle productions.

MAINBOARD-LISTED vehicle inspection company Vicom&rsquo s VICOM Ltd: WJP -0.49% net profit rose 1.2 per cent to S$24.8 million for the full-year ended Dec 31, 2021 as demand for the group' s services picked up.

 

While the economy continues to recover from the impact of the pandemic, Vicom chief executive Sim Wing Yew said in a press statement on Monday (Feb 21) that the group is still not out of the woods given the " fluid and challenging" situation of Covid-19.

 

Still, demand for the vehicle testing business is expected to remain strong, with the new regulations mandating annual inspection for licensed ride-hail and street-hail service vehicles, Vicom noted in its financial statement.

 

A record number of 523,639 vehicles were inspected during the year, including 33,202 hybrid and electric vehicles. This is higher than the 493,520 vehicles inspected in 2020.

 

Revenue was up 16.7 per cent to S$100.9 million versus S$86.5 million the year before. This was largely due to a much improved second quarter compared to the corresponding quarter in 2020 which was marked by a complete lockdown due to pandemic.

 

The group' s operating profit grew by 5.6 per cent to S$31 million in FY2021 from S$29.3 million the year before.

 

Earnings per share for the full-year came in at 6.99 Singapore cents versus the 6.91 cents the previous year.

 

The board has recommended a final dividend of 3.24 cents per share and a special dividend of 2 cents per share to commemorate Vicom' s 40th anniversary. The final and special dividend will be paid on May 25, 2022, subject to shareholders' approval.

 

Together with the interim tax-exempt one-tier dividend of 3.04 cents paid on Aug 31, 2021, the total dividend for 2021 will be 8.28 cents per share.

 

MAINBOARD-LISTED vehicle inspection company Vicom, a subsidiary of transport operator ComfortDelGro, reported a 13.8 per cent fall in its full-year earnings from the year-ago period to S$24.5 million.

 

In results released on Monday, Vicom said that it expects profit margins to " continue to be under pressure due to greater competition for contracts and higher manpower and compliance costs to deal with shortages of manpower and Covid-19 restrictions" .

 

For its financial year ended Dec 31, 2020, revenue for the group slipped 16.6 per cent to S$86.5 million.

 

Vicom said that its full-year results comes " after the full impact of a global pandemic, the likes of which few of us have ever seen" .

 

" With economic activity grinding to a halt especially during the circuit-breaker period, Vicom' s operations for the year have been hard hit. This has been especially so for the non-vehicle testing business, which is directly dependent on the level of economic activity in the country," it added.

 

Both the company' s operating costs and operating profit also fell year-on-year (y-o-y). Its operating costs declined 17.8 per cent y-o-y to S$57.1 million, due to lower operating costs of S$4.7 million and various government reliefs of S$7.7 million.

 

Operating profit stood at S$29.3 million 14.2 per cent lower than in FY2019. Without the Covid-19 government reliefs of S$7.7 million, Vicom said its operating profit of S$21.6 million for FY2020 was 36.8 per cent lower than the year-ago period.

 

Following its share split last June, earnings per share for Vicom fell to 6.91 Singapore cents in FY2020 from 8.01 Singapore cents in FY2019.

 

Despite the impact of the pandemic on its business, Vicom said that the demand for vehicle inspection is " expected to remain strong with the implementation of periodic inspection for all licensed ride-hail and street-hail service providers" .

 

The demand for non-vehicle testing is also expected to improve under Phase 3, it said, though it remains to be seen whether the demand will " recover to pre-Covid-19 levels or to a new normal" .

 

Vicom added that the outlook for the vehicle inspection and non-vehicle testing businesses assumes that the pandemic situation in Singapore " remains under control" .

 

The board has recommended a final dividend of 6.22 Singapore cents a share. It had paid out 6.07 Singapore cents per share the previous year. The books closure date is May 6, and the final dividend will be paid on May 18.

 

VICOM posted a 5 per cent slip in its profit after tax and minority interest (Patmi) for the third quarter ended Sept 30, from S$7.15 million a year ago to S$6.82 million.

 

Revenue for the vehicle-inspection firm, a subsidiary of transport operator ComfortDelGro Corp, fell by 16 per cent year-on-year (y-o-y), from S$26.4 million to S$22.2 million for the quarter.

 

The company attributed this mainly to the lower business volumes as a result of the Covid-19 pandemic.

 

Its operating costs also decreased from S$17.9 million a year ago to S$13.9 million.

 

Part of the lower operating costs was attributed to the Covid-19 government reliefs of S$2.1 million in the Jobs Support Scheme, and waivers and rebates on the foreign worker levy the remaining S$1.9 million from lower operating costs came as a result of lower staff costs and other variable costs in tandem with the lower revenue.

 

However, due to the decline in revenue - which offset the government reliefs and lower operating costs, Vicom' s operating profit in Q3 fell 3 per cent y-o-y from S$8.53 million to S$8.26 million.

 

In a bourse filing on Monday, Vicom said that its vehicle-inspection business is back to normal as inspection for private cars, including those that were deferred in Q2, resumed on June 8.

 

Inspection and emissions testing for new-car registrations resumed with the reopening of the COE bidding on July 6.

 

As for its non-vehicle testing business, improvement during the quarter was " uneven" for the different sectors Vicom serves, particularly in the construction industry, where work progress was hampered by several start-stops as a result of resurgence of Covid-19 in the dormitories around August and September.

 

This was on top of having to fulfil additional requirements for workers in the construction, process and marine industries, such as having to put them through routine rostered testing every fortnight, staggering their days off, arranging for dedicated and safe transport arrangement between work sites and dormitories, and having split teams at sites.

 

" All these have significant impact on both costs as well as productivity," said Vicom, which said that it thus expects its non-vehicle testing business to " continue to face challenges ahead" .

 

Nonetheless, the company returned to profitability in Q3, a turnaround from its loss in Q2 before the government reliefs. It has a cash balance of S$89.2 million.