Vicom H1 net profit up 23.7% to S$12m

VEHICLE inspection company Vicom's first-half net profit rose 23.7 per cent to S$12 million for the six months ended June 2021.

Vicom, a subsidiary of transport operator Comfort DelGro, declared an interim dividend of 3.04 cents per share, representing a payout ratio of 90 per cent. The company did not declare an interim dividend for the year-ago period to conserve cash due to pandemic-induced uncertainty.

Group revenue for H1 2021 went up 23.4 per cent to S$49.2 million, backed by a strong second quarter and the absence of a complete lockdown, unlike in the year-ago period, said Vicom, in results released after trading hours on Wednesday.

Cash and cash equivalents for the group stood at S$74.4 million as at June 30, 2021.

Basic earnings per share for the period stood at 3.38 Singapore cents, up from 2.74 cents a year ago.

Demand for the vehicle-testing business is expected to remain strong, given that from April this year, regular inspections became a requirement for licensed ride-hail and street-hail service-provider vehicles, Vicom said.

Demand for its non-vehicle testing business, however, is expected to remain "relatively weak" due to manpower challenges and the high costs of complying with safe-management measures in Singapore.

The group's performance remains challenged because of the unpredictabilities brought on by the pandemic, it said.

Vicom's chief executive officer Sim Wing Yew said in a statement released along with the company's results: "There has been an improvement in the level of economic activity in the last few months, but the Covid-19 situation remains fluid and challenging. We continue to manage costs, all the while ensuring that the safety of our customers and staff is not compromised."

Vicom shares closed flat at S$2.04 on Wednesday.