Vicom posts earnings of $6.55 mil for 3QFY2023 as vehicle inspection business remains stable

Bryan Wu
1-min read

This was a a 1% increase y-o-y compared to the same period last year as a result of higher interest income.

Vicom WJP has reported earnings of $6.55 million for its 3QFY2023 ended September, a 1% increase y-o-y compared to the same period last year as a result of higher interest income.

Revenue for the period came in at $27.25 million, slipping 1% compared to the $27.4 million recorded in 3QFY2022, while operating profit dipped by 2% to $7.93 million. Vicom’s operating costs stayed flat at $19.3 million during the quarter.

This was due mainly to the lower business volume in the non-vehicle testing business arising from the slow down of the manufacturing sector.

As at Sept 30, Vicom’s cash and cash equivalents stood at $46.9 million.

Although inflationary pressure began to ease in the quarter ended September, Vicom notes that it remains elevated. “Business costs still remain high, particularly materials and staff costs,” says the company.

Meanwhile, Vicom’s vehicle inspection business has largely been stable, although there was lower demand for new car registrations and emission testing services due to the smaller Certificate of Entitlement (COE) quota.

Vicom has also been appointed by LTA as one of the authorised partners for the installation of vehicle On-Board Units (OBUs) which will commence from December.

Shares in Vicom closed 3 cents or 2.22% up at $1.38 on Nov 8.

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