Vicom has reported earnings of $13.1 million for 1HFY2022, up 9.2% y-o-y. Revenue was up 8.5% to $53.3 million, as the company enjoyed better business in “tandem with the improving Singapore economy.”
According to Vicom, the improvement was especially so for its non-vehicle testing segment, which is “highly dependent on the recovery of the construction, marine & offshore, oil & gas and manufacturing sectors.”
However, the company warns that rising inflationary pressures and the tight labour market will however serve as pain points for the group for the rest of the year.
“As Singapore emerges from the COVID-19 pandemic, demand for Vicom’s services, especially in the non-vehicle testing segment, is improving,” says CEO Sim Wing Yew.
“But growing inflationary pressures and the threat of recession loom near and we are not out of the woods yet. We will thus continue to keep a tight lid on costs and adopt a cautionary stance in the immediate future,” he adds.
The company plans to pay an interim dividend of 3.32 cents per share, representing a payout ratio of 90%.
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Vicom shares closed at $2.05, up 0.49%.
