Vicom reports 14% drop in 2020 earnings despite government relief.

Vehicle inspection and testing group Vicom posted a 13.8% drop in full-year earnings to $24.5 million despite COVID-19 government relief. Without the $7.7 million in aid, the ComfortDelGro Corp subsidiary's results for the period ended 31 December 2020, would have fallen by 36.8% on an operating level, the company announced on 8 February 2021.

Revenue shrank by 16.6% to $86.5 million on account of the pandemic-induced slowdown. Earnings per share fell from 8.01 cents to 6.91 cents, but margin before depreciation and taxes improved from 40.1% to 42.4%.

Its net asset value per share stood at 37.86 cents, from 37.04 cents as at the end of 2019. Despite the weaker performance, Vicom is declaring a final dividend of 6.22 cents per share, up from 6.07 cents previously.

Its directors expect stronger demand from legislated inspections for all vehicles providing point-to-point transport. Demand for non-vehicle testing is expected to improve, but "it remains to be seen whether it will recover to pre-COVID-19 levels".