MAINBOARD-LISTED vehicle inspection company Vicom on Tuesday (Feb 21) posted a 2.4 per cent increase in net profit to S$13.1 million for the second half ended December 2022, from S$12.8 million the previous year.

H2 revenue grew 6.3 per cent to S$55 million, from S$51.7 million in the year-ago period.

This brings full-year earnings up 5.7 per cent to S$26.2 million, while FY2022 revenue was 7.3 per cent higher at S$108.3 million.

Earnings per share (EPS) rose to S$0.0738 for FY2022, from S$0.0699 in FY2021.

Vicom said its vehicle testing business saw the periodic inspection for vehicles clocking a record number of 534,840 inspections in FY2022, up from 523,639 in FY2021.

It added that demand for the group’s non-vehicle testing service continued to improve with the lifting of most Covid-19 restrictions, and exceeded that of pre-Covid levels.

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The board has proposed a final dividend of S$0.0332 per share for FY2022, to be paid on May 15. Including an interim dividend of S$0.0332 per share paid in August 2022, the total dividend for 2022 will be S$0.0664 per share, representing a payout ratio of 90 per cent.

In FY2021, Vicom had paid an interim dividend of S$0.0304 per share, a final dividend of S$0.0324 per share as well as a special dividend of S$0.02 per share.

“The group has managed to turn in a strong performance for the year, riding on the recovery resulting from the resumption of economic activities,” said Vicom chief executive officer Sim Wing Yew.

“However, the outlook is uncertain for the year ahead, amid a backdrop of high inflation and slower economic growth,” he added. “We will continue to drive revenue growth and at the same time, manage costs tightly in 2023.”

Shares of Vicom closed flat at S$1.90 on Tuesday, before the results announcement.