Vicom posts 11% higher H2 net profit on robust demand for vehicle testing
VEHICLE Inspection company Vicom posted 11 per cent higher net profit of S$15.2 million for the half-year ended Dec 31, 2024, from S$13.7 million in the year before.
This comes as revenue over the same period rose 12.8 per cent year on year to S$63.2 million, from S$56 million.
The company’s board has proposed a final dividend of S$0.03 per share, up from the S$0.0275 declared the year before. If the dividend is approved by shareholders at the company’s upcoming annual general meeting, it will be paid out on May 9, after books close on May 2.
In its earnings release on Friday (Feb 21), Vicom said that it grew its vehicle-testing market share to 72.9 per cent in 2024, inspecting 525,108 vehicles in that time.
It also installed 77,000 on-board units (OBUs) under the Land Transport Authority’s ERP 2.0 exercise in 2024.
Vicom said the subdued sentiment of the manufacturing sector affected Vicom’s performance marginally.
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“Fortunately, this sector rebounded in the second half of the year, bolstered partly by the upturn in the global electronics cycle, resulting in satisfactory results for our non-vehicle testing business for the year,” it added.
Earnings per share for the half year stood at S$0.0428, from S$0.0386 the year before.
For the full year, the company’s net profit grew 6.1 per cent to S$29.3 million, as revenue rose 6.8 per cent to S$119.5 million.
Vicom expects strong demand for vehicle testing and related work in 2025, bolstered by the full-scale installation of OBUs.
Improvement in manufacturing activity and strong growth in the construction sector are also expected to contribute to demand for non-vehicle testing, the company said.
Share of Vicom closed flat at S$1.32 on Friday, before the results were released.
