Inspection and technical testing services company, Vicom WJP , a subsidiary of ComfortDelGro C52 , has reported earnings of $14.1 million for the 1HFY2024 ended June 30, 1.3% higher y-o-y.
Revenue was up by 0.8% y-o-y to $56.3 million with growth seen in Vicom’s inspection and testing services and others. This was offset by lower rental income, which fell by 6.6% y-o-y to $1.2 million. Revenue for inspection and testing services inched up by 0.6% y-o-y to $54.1 million while other revenue was up by 18.2% y-o-y to $1.0 million.
Operating profit was up by 1.6% y-o-y to $16.8 million.
Ebitda rose by 3.8% y-o-y to $21.1 million.
Earnings per share (EPS) for the period stood at 3.98 cents.
"Vicom has achieved a steady performance for the first half of 2024. For the vehicle testing business, we continue to be focused on the new ‘on-board unit’ installation project. For the non-vehicle testing business, we are keeping a close watch on costs amid intense competition, market volatility, and supply chain challenges that are exerting pressure on margins,” says CEO Sim Wing Yew.
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An interim dividend of 2.8 cents per share has been declared, representing a payout ratio of 70% and higher than the dividend of 2.75 cents per share in the same period the year before. The dividend will be paid on Aug 23.
Looking ahead, Vicom says it expects demand for vehicle testing and related work to remain strong. The company has already begun installing on-board units for the Electronic Road Pricing (ERP) 2.0 exercise as one of the authorised partners appointed by the Land Transport Authority (LTA).
Demand for non-vehicle testing is also expected to increase by profit margins will remain under pressure due to strong competition.
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Barring unforeseen circumstances, the group expects to report a “satisfactory performance” in the 2HFY2024.
Shares in Vicom closed flat at $1.34 on Aug 7.
