Vicom Q3 net profit inches up 1% to S$6.6 million

MAINBOARD-LISTED vehicle inspection company Vicom posted a net profit of S$6.6 million for the third quarter ended September, up 1 per cent from S$6.5 million in the year-ago period.

The marginal rise in net profit was a result of higher interest income, which was offset by lower operating profits, the group said in a business update on Wednesday (Nov 8).

Revenue fell by 1 per cent to S$27.3 million for the quarter, down from S$27.4 million a year ago. Operating profits slipped 2 per cent to S$7.9 million, down from S$8.1 million.

The declines in revenue and operating profits were mainly due to lower business volumes in its non-vehicle testing business resulting from the slowdown of the manufacturing sector, which is into its 12th month of decline, the group said.

For the nine months ended September, Vicom’s net profit rose 5 per cent on the year to S$20.5 million. Revenue grew 3 per cent to S$83.1 million.

The group noted in its update that inflationary pressures remain elevated while business costs still remain high, especially material and staff costs.

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It said that its vehicle inspection business has been largely stable except for lower demand for new car registrations and emission testing services, as a result of low Certificate of Entitlement quotas.

Shares of Vicom closed 2.2 per cent or S$0.03 lower at S$1.38 on Wednesday, before the business update release.