SINGAPORE (May 10): Vicom declared 1Q19 earnings of $7.3 million, 4.8% higher than $7.0 million in 1Q18.
This came on the back of a 4.1% increase in revenue to $25.5 million from $24.5 million a year ago, contributed by higher business volumes.
Total operating costs also increased by 2.5% to $16.7 million from $16.3 million last year.
Hence, operating profit for 1Q19 increased by 7.4% to $8.8 million compared to $8.2 million in 1Q18.
As at end-March, the group’s cash and cash equivalents stood at $112.8 million.
On the outlook, the vehicle testing business is expected to improve as a record high number of 37,000 old private cars, all of which are subjected to mandatory annual inspections, renewed their Certificates of Entitlement in 2018.
Meanwhile, the group expects its non-vehicle testing business to remain challenging as a result of the slowing Singapore economy.
Shares in Vicom closed at $6.50 on Friday.
