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23 Key Numbers to Understand More About VICOM Limited

VICOM Limited (SGX: V01) is a leading provider of technical testing and inspection services in Singapore.

The firm released its annual report for the financial year ended 31 December 2016 (FY2016) earlier this year.

Here are some statistics that investors might want to know about from the report.

Financial Figures

For FY2016, VICOM saw its sales decline by 5.2% year-on-year to S$101.2 million while net profit slumped by 10.4% to S$28.2 million. The poor performance was due to a decline in the number of vehicle inspections for the year.

A total of 88,317 private cars were de-registered, 23% more than the preceding year. Due to this, there was a smaller pool of vehicles due for inspection.

The firm’s already-clean balance sheet strengthened further in FY2016. For the year, it had a cash balance of S$105.7 million as compared to FY2015’s S$100 million. It had no debt in both years.

Return on equity came in at 19%, a decline from 22% clocked in the previous year.

For FY2016, the firm generated S$33.2 million in net cash from operating activities. This is a drop from FY2015’s figure of S$36.4 million.

Dividends

A total dividend of 26.50 Singapore cents was given out in FY2016, a fall from FY2015’s dividend of 28.50 Singapore cents. The dividend cover in both years were 1.2 times.

The graph below shows the dividend trend of VICOM from FY2012 to FY2016:

Source: VICOM Limited Annual Report 2016

Operational Highlights

In all, 488,186 vehicles passed through its inspection lanes, translating to a 6.5% decrease from the 522,140 vehicles in 2015. However, VICOM continued to command a market share of 74.4%.

The Diners/VICOM ‘V’ Card, which was launched in August 2015, had amassed 20,000 members by the end of 2016.

The inspection outfit also welcomed its 10 millionth vehicle inspection in 2016 and held a 10 Millionth Inspection Lucky Draw where more than 15,000 customers participated.

This year, VICOM will celebrate 35 years of providing vehicle inspection services and has planned activities to thank its loyal customers for their continuous support throughout the years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P owns shares of VICOM Limited.