VICOM saw its net profit fall in the three months ended March 31, 2016, by 13.2 per cent on year to S$7.3 million, as more vehicles were de-registered.
The vehicle inspection and testing services provider said on Tuesday evening that its first quarter total revenue fell by 10.4 per cent to S$25.4 million "due to lower business volumes".
Operating costs fell 8.3 per cent to S$16.8 million, while operating profit dipped 14.1 per cent to S$8.5 million.
As a result, the group's earnings per share fell from 9.50 Singapore cents in Q1 2015 to 8.25 Singapore cents in Q1 2016. No dividend was declared.
Vicom's lower profits came as more vehicles were de-registered.
In the first three months of this year, 32,177 vehicles were de-registered, figures by the Land Transport Authority show. This is 45.2 per cent higher than the 22,168 vehicles de-registered in the same period last year.
"Demand for vehicle testing services will continue to be impacted as more vehicles will be deregistered during the year. Demand for non-vehicle testing services is not expected to improve with the continuing slowdown in the industries that we serve," said Vicom.