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 2017 (FY2017) recently. Here are some statistics that investors might want to know about from the report.
VICOM said that 2017 was a challenging year with a “large number of vehicles which continued to be de-registered”.
468,807 vehicles were inspected at its seven service centres in 2017, which was a 4% fall from the 488,186 vehicles examined in the prior year. Total vehicle de-registrations in 2017 hit a peak of 120,376, with more commercial vehicles and taxis brought off the roads. In spite of the headwinds, VICOM managed to have a 74.5% share of the vehicle inspection market in Singapore.
In all, VICOM had inspected more than 10 million vehicles since being in business. Also, more than 30,000 members have signed up thus far for the Diners Club/VICOM co-branded credit card or “V” Card, which offers motoring-related discounts and rebates.
For FY2017, the company saw its revenue decline by 4.1% to S$97.0 million while its net profit attributable to shareholders slumped by 5.9% to S$26.5 million. Consequently, earnings per share came in at 29.90 cents, down from 31.77 cents in 2016.
As of 31 December 2017, the firm had S$107.5 million in cash and cash equivalents and no debt. This is an improvement from one year ago where it had S$105.7 million in cash and zero debt.
VICOM’s cash flow from operations for 2017 was S$33.3 million, with S$4.4 million spent on capital expenditure. Therefore, it raked in S$28.9 million in free cash flow, a 1% decline from S$29.2 million generated in 2016.
A total dividend of 36 Singapore cents per share was declared in 2017, which gives a 36% increase over the total dividend of 26.5 Singapore cents per share in 2016. The dividend cover for 2017 was 0.8 times while that in 2016 was 1.2 times.
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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.