Vicom FY2021 net profit up 1.2% to S$24.8 million

MAINBOARD-LISTED vehicle inspection company Vicom's WJP 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.

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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.

Shares of Vicom ended Monday at S$2.04, down S$0.01 or 0.5 per cent.