Vicom, which provides testing and inspection services for vehicles and business customers, has reported earnings of $6.2 million for the 1QFY2021 ended March, down 16.0% from earnings of $7.3 million from the year before.
Revenue in the same period fell 4.9% y-o-y and 1.4% q-o-q to $24.1 million.
The lower figure q-o-q was partly due to lower revenue from vehicle testing as backlog inspection of private cars deferred during the circuit breaker were completed by 4QFY2020.
For the 1QFY2021, the group recognised government reliefs of $586,000 mainly from the jobs support scheme and rebates on foreign worker levies.
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According to the group, the group’s vehicle inspection business is stable and operating at pre-Covid-19 levels.
Business for its non-vehicle testing segment has continued to improve during the quarter with Phase 3 of re-opening; albeit with uneven improvements seen in the construction, marine and process industries where work progress continued to be “hampered” by the Covid-19 restrictions on site.
The non-vehicle testing business is expected to continue to face challenges ahead.
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1QFY2021 operating profit fell 14.5% y-o-y to $7.6 million.
Profit after tax (PAT) fell 15.8% y-o-y to $6.2 million.
Cash and cash equivalents as at March 31 stood at $94.8 million.
Shares in Vicom closed 2 cents lower or 0.9% down at $2.10 on May 10.
