Vicom Q2 profit down 12.6%

Vicom has posted a 12.6 per cent drop in net profit to S$6.62 million for the second quarter on lower business volumes.

Revenue for the three months ended June 30 fell to S$25.4 million, down 6.9 per cent from S$27.3 million a year ago, Vicom said in a Singapore Exchange filing on Wednesday.

Operating costs fell 2.5 per cent to S$17.9 million, while operating profit shrank 16 per cent to S$7.5 million.

Earnings per share for the quarter fell to 7.47 Singapore cents, down from 8.55 cents a year ago.

A dividend of eight cents per share was declared, down from 8.75 cents per share previously.

"Demand for vehicle testing services will continue to be impacted as more vehicles will be deregistered during the year," Vicom said in a statement.

"Demand for non-vehicle testing services is not expected to improve with the continuing slowdown in the industries that we serve."

The counter closed one cent up at S$5.91 on Wednesday before the results were released.