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.
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