Vicom posts 2% rise in Q3 earnings to S$6.5 million
Corinne Kerk
INSPECTION and technical testing services provider Vicom on Thursday (Nov 10) posted earnings of S$6.5 million for the third quarter ended September, up 2 per cent from S$6.3 million in the year-ago period.
This was due to higher operating profit and interest income being offset by higher tax expenses, the company said in a business update.
Revenue in Q3 rose 4 per cent year on year to S$27.4 million from S$26.3 million.
This increase came mainly from higher business volume in the non-vehicle testing business as it rides on the recovery phase of the Singapore economy, it said.
For the first nine months ended Sep 30, earnings grew 7 per cent to S$19.6 million, from S$18.3 million a year ago. Revenue was also up 7 per cent year on year to S$80.7 million from S$75.4 million.
Vicom said its vehicle inspection business has largely been stable, except for lower demand for new car registrations and emission testing services as a result of low Certificate of Entitlement quotas and the worldwide shortage of microchips affecting vehicle productions.
As for its non-vehicle testing arm, overall business continued to improve in Q3, with the recovery of most industries from the pandemic. However, the company flagged considerable inflationary pressures as a result of supply chain disruptions and labour shortages in the segment.
Shares of Vicom closed 0.5 per cent or S$0.01 lower at S$1.90 on Thursday, before the business update.
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