Vicom Q3 net profit up 5% on higher business volumes

VEHICLE inspection group Vicom on Wednesday posted a third-quarter net profit of S$6.7 million, up 5.1 per cent from the same period a year earlier on higher business volumes.

Revenue in the three months ended Sept 30 rose 2.7 per cent to S$25.2 million.

Earnings per share was 7.58 Singapore cents, up from 7.21 cents in the year-ago period.

Net asset value per share was 153.56 Singapore cents as at Sept 30, from 167.34 cents as at Dec 31 last year.

Vicom, owned by transport giant ComfortDelGro, said in its outlook statement: "The Land Transport Authority recently announced that there will be more Certificates of Entitlement (COEs) for the three-month quota period starting from November 2018 compared to the preceding quota period due to premature scrapping of cars bought when the COE prices were high.

"This is expected to further dampen COE prices leading to more de-registration thereby reducing the demand for the vehicle testing business. For the non-vehicle testing business, there are signs of recovery in some industries that we serve but competition remains intense. Demand is expected to remain stable."

Vicom shares rose three Singapore cents to close at S$6.02 on Wednesday before the results were announced after market close.