MAINBOARD-LISTED vehicle inspection company Vicom, a subsidiary of transport operator ComfortDelGro Corp, saw its full-year earnings drop by the double digits on the absence of other income from the year-ago period.

Net profit fell by 18.1 per cent year-on-year to S$28.4 million for the year to Dec 31, 2019, even as revenue grew by 3.6 per cent to S$103.7 million on the back of higher business volume.

Part of the hit came from the lack of "other income" in 2019, compared with the S$7.7 million that Vicom netted in 2018 from gains on the surrender of a lease in Teban Gardens Crescent.

Operating costs were also higher from an increase in staff expenses, as well as a higher allowance for expected credit losses.

Earnings per share slipped to 32.05 Singapore cents from 39.15 cents before, while net asset value was 148.15 Singapore cents, down from 170.16 cents at end-2018.

Vicom said in its outlook statement that its vehicle-testing business is expected to remain stable in the year ahead, given how more than 39,000 private cars, which renewed their Certificates of Entitlement in 2019, will be required to go for annual inspections.

"However, the non-vehicle testing business is expected to remain challenging given the economic uncertainties," the company added, citing the global Covid-19 outbreak.

Vicom's non-vehicle testing business includes the provision of inspection, consultancy and training services for sectors such as the aerospace, marine and offshore, petrochemical, construction and electronics manufacturing industries. 

The board has recommended a final dividend of 24.29 Singapore cents a share. It had paid out 31.79 Singapore cents a share in 2018, including a special dividend of 8.62 Singapore cents. The books closure date is Apr 30 and the final dividend will be paid on May 11.

Vicom shares ended higher by S$0.06 or 0.77 per cent at S$7.82 on Wednesday before the results were announced.