Vicom net profit up 6.5% to S$7.2m in Q3

TECHNICAL testing and vehicle inspection group Vicom has posted a net profit of S$7.2 million in the third quarter, up 6.5 per cent from the same period a year earlier.

Revenue in the three months ended Sept 30 was S$26.4 million, up 4.7 per cent from the same period a year earlier on higher business volumes.

Vicom, which is a unit of ComfortDelGro, said on Monday that demand for vehicle inspection is expected to remain strong: "The Land Transport Authority announced in October that there would be a 1.7 per cent quarter-on-quarter reduction in the quota for Certificates of Entitlement for three months starting November 2019, due to a slowdown in the deregistration of older cars. With more older cars on the road, the demand for vehicle inspection is expected to remain strong."

However, the non-vehicle testing business is expected to remain "challenging" against a backdrop of global economic uncertainties, Vicom said.

Third-quarter earnings per share was 8.07 Singapore cents, up from 7.58 Singapore cents in the third quarter last year.

Net asset value per share was 139.94 Singapore cents as at Sept 30, from 170.16 Singapore cents as at Dec 31 last year.

Vicom shares rose one Singapore cent or 0.13 per cent to S$7.64 before results were released after market close.