Vehicle inspector Vicom has reported earnings of $12 million for 1HFY2021, up 23.7% y-o-y, on the back of a 23.4% jump in revenue to $49.2 million, as economic activity somewhat resumes compared to the lockdown early 2020.
“There has been an improvement in the level of economic activity in the last few months but the COVID19 situation remains fluid and challenging,” says CEO Sim Wing Yew.
“We continue to manage costs amidst the pandemic, all the while ensuring that the safety of our customers and staff is not compromised,” he adds.
The company plans to pay an interim dividend of 3.4 cents, representing a payout ratio of 90%. It didn’t declare one this time last year.
Going forward, Vicom expects demand for vehicle testing business to remain strong with the implementation of annual periodic inspection for all licensed ride-hail and street-hail service provider vehicles in April 2021.
However, demand for the non-vehicle testing business is expected to remain relatively weak with manpower related challenges and high.
Vicom shares closed Aug 11 at $2.04, unchanged for the day and down 5.56% year to date.