Vicom posts FY18 profit rise, announces special dividend

VEHICLE inspection firm Vicom Ltd on Monday posted a 30.9 per cent rise in net profit to S$34.7 million for its full year ended Dec 31, 2018, while revenue inched up 3.1 per cent to S$100.1 million on higher business volumes.

Its bottom line was mostly bolstered by an "other income" of S$7.7 million for 2018, derived from its gain on the surrender of lease of its property at 18 Teban Gardens Crescent to JTC, after provision for relocation costs to the new building.

The company had said in September last year that it had bought a six-storey warehouse from Mapletree Logistics Trust for S$22.4 million at 531 Bukit Batok Street 23, to replace Setsco's premises at Teban Gardens Crescent, which had been zoned for re-development under the government's plans for the Jurong Lake District.

Setsco is a wholly-owned subsidiary of Vicom.

For FY2018, Vicom's earning per share improved to 39.15 Singapore cents from 29.9 cents a year ago. Net asset value rose to S$1.7016 as at Dec 31, 2018 from S$1.6734 a year ago.

Vicom also proposed a final dividend of 23.17 cents per share, higher than the 22.88 cents per share a year ago. To top if off, 2018's payout also comes with a special dividend of 8.62 cents; there was no special dividend payout a year ago.

The dividends, if approved by shareholders at the annual general meeting on Apr 24, will be payable on May 10.

Looking ahead, Vicom said: "Barring further drops in Certificate of Entitlement prices, the vehicle-testing business is expected to remain stable. We will continue to look at introducing new services in the non-vehicle testing business to mitigate any drop in demand resulting from the slowing Singapore economy."

Vicom is two-thirds owned by transport company ComfortDelgro. Its shares closed unchanged at S$6.10 on Monday.