SINGAPORE (May 8): Vicom posted a 6.3% fall in 1Q earnings to $6.8 million from a year ago on the back of lower sales.
Total revenue for 1Q17 fell 4.9% to $24.1 million due to lower business volumes.
The group’s operating costs of $16.2 million for the quarter were $0.7 million or 3.9% lower than 1Q16, in tandem with the lower business volumes.
Consequently, group operating profit fell 6.8% to $7.9 million.
Vicom says the vehicle testing business will continue to face high de-registration rate although this will be offset partially by the increase in the number of Certificate of Entitlement (COE) revalidations.
The non-vehicle testing business will continue to weaken with the general slowdown in the industries that it serves.
Shares of Vicom closed 2 cents higher at $5.70.
