Vicom reports 14% drop in earnings despite govt relief

SINGAPORE – Vehicle inspection and testing group Vicom posted a 13.8 per cent drop in full-year earnings to $24.5 million despite Covid-19 government relief.

Without the $7.7 million in aid, the ComfortDelGro Corp subsidiary’s results for the period ended Dec 31, 2020, would have fallen by 36.8 per cent on an operating level, the company announced on Monday (Feb 8).

Revenue shrank by 16.6 per cent to $86.5 million on account of the pandemic-induced slowdown. Earnings per share fell from 8.01 cents to 6.91 cents, but margin before depreciation and taxes improved from 40.1 per cent to 42.4 per cent.

Its net asset value per share stood at 37.86 cents, from 37.04 cents as at the end of 2019.

Despite the weaker performance, Vicom is declaring a final dividend of 6.22 cents per share, up from 6.07 cents previously.

Its directors expect stronger demand from legislated inspections for all vehicles providing point-to-point transport. Demand for non-vehicle testing is expected to improve, but “it remains to be seen whether it will recover to pre-Covid-19 levels”.

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