Monday, April 28th, 2025

VICOM’s Q3 2024 Surge: OBU Project Boosts Revenue Despite Market Challenges








VICOM Ltd Reports Strong Q3 2024 Results Driven by Vehicle On-Board Unit Project

VICOM Ltd Reports Strong Q3 2024 Results Driven by Vehicle On-Board Unit Project

VICOM Ltd has released its business update for the third quarter of 2024, reporting notable financial and operational progress. The company’s revenue for the third quarter stood at \$30.5 million, reflecting a substantial increase of \$3.3 million or 12% compared to the same period last year.

Key Financial Highlights

VICOM Ltd’s operating profit rose to \$8.2 million, up by \$0.3 million or 4% from Q3 2023. The profit after tax and minority interest (PATMI) also saw a 4% increase, reaching \$6.8 million. Year-to-date (YTD) figures show a revenue increase of \$3.7 million, largely driven by the Vehicle On-Board Unit (OBU) project, which commenced in December 2023, and the heightened demand for vehicle emission testing services to comply with the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) standards.

Operational Highlights

The vehicle inspection business remains robust, with the OBU for the Electronic Road Pricing (ERP) 2.0 exercise progressing smoothly. Since the project’s inception, more than 41,000 OBUs have been installed. The non-vehicle testing segment also showed improvement due to the expansion of the manufacturing sector in Singapore, although rising costs and intense competition pose ongoing challenges.

Financial Position

VICOM Ltd maintains a strong balance sheet with cash and cash equivalents totaling \$55.2 million. The company’s current liabilities decreased by \$2.4 million, primarily due to lower trade and other payables. Total liabilities saw a reduction of \$1.8 million, contributing to the company’s healthy financial position.

Cash Flow

Net cash used during the third quarter amounted to \$0.7 million. Cash from operating activities was \$9.9 million, while dividends to shareholders, capital expenditures (CAPEX), and payments under lease liabilities amounted to \$12.7 million. The company also received \$1.4 million in grants for equipment upgrades.

Shareholder Insights

Shareholders should note the positive financial performance driven by the successful implementation of the OBU project and increased demand for vehicle emission testing. These developments could potentially influence the company’s share value. The strong cash position and reduced liabilities further underscore VICOM Ltd’s capacity to sustain and support future business growth.

The company’s continued focus on operational efficiency and strategic project implementations highlights its commitment to maintaining robust financial health and delivering value to shareholders.

Conclusion

VICOM Ltd’s Q3 2024 results showcase significant progress and strategic achievements. The company’s strong performance and future growth prospects make it an attractive consideration for current and potential investors.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.




View VICOM Ltd Historical chart here



Voluntary Unconditional Cash Offer for Sin Heng Heavy Machinery Limited

Tal United Pte. Ltd. Launches Voluntary Unconditional Cash Offer for Sin Heng Heavy Machinery Limited Key Highlights: Tal United Pte. Ltd. (the “Offeror”) is making a voluntary unconditional cash offer to acquire all the...

Seatrium Secures Contract for 5,000-ton Heavy Lift Vessel to Boost Japan’s Offshore Wind Industry

Seatrium Secures Landmark Contract with Japan’s Penta-Ocean to Revolutionize Offshore Wind Energy Seatrium Secures Landmark Contract with Japan’s Penta-Ocean to Revolutionize Offshore Wind Energy Singapore, January 27, 2025 – In a strategic move set...

Jumbo Group Limited Announces Final Dividend of S$0.005 Per Share for FY2024

Jumbo Group Declares Dividend with Key Dates for Shareholders Jumbo Group Declares Dividend with Key Dates for Shareholders Singapore-based Jumbo Group Limited has announced a proposed final tax-exempt (one-tier) dividend of S\$0.005 per ordinary...