VICOM LTD
Company Registration Number : 198100320K
Unaudited Condensed Interim Consolidated Financial Statements for the
Half year ended 30 June 2024 and Dividend Announcement
CONTENTS
Page | |
A. CONDENSED INTERIM GROUP INCOME STATEMENT | 1 |
B. CONDENSED INTERIM GROUP COMPREHENSIVE INCOME STATEMENT | 2 |
C. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION | 3 |
D. CONDENSED INTERIM GROUP CASH FLOW STATEMENT | 4 |
E. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY | 5 |
F. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL | 7 |
STATEMENTS | |
G. OTHER INFORMATION REQUIRED BY LISTING RULE APPENDIX 7.2 | 13 |
A CONDENSED INTERIM GROUP INCOME STATEMENT
Note | |
Revenue | 5 |
Staff costs | |
Depreciation and amortisation | |
Contract services | |
Materials and consumables | |
Premises costs | |
Repairs and maintenance costs | |
Utilities and communication costs | |
Other operating costs | |
Total operating costs | |
Operating Profit | |
Finance costs | |
Interest income | |
Profit before Taxation | |
Taxation | 7 |
Profit after Taxation | 8 |
Profit attributable to: | |
Shareholders of the Company | |
Non-Controlling Interests |
Page 1 of 15
Group | ||
1st Half | 1st Half | Incr/ |
2024 | 2023 | (Decr) |
$'000 | $'000 | % |
56,304 | 55,880 | 0.8 |
(25,196) | (26,602) | (5.3) |
(4,240) | (3,724) | 13.9 |
(1,680) | (1,156) | 45.3 |
(1,672) | (1,766) | (5.3) |
(1,179) | (985) | 19.7 |
(932) | (977) | (4.6) |
(1,798) | (1,432) | 25.6 |
(2,769) | (2,661) | 4.1 |
(39,466) | (39,303) | 0.4 |
16,838 | 16,577 | 1.6 |
(435) | (428) | 1.6 |
1,030 | 978 | 5.3 |
17,433 | 17,127 | 1.8 |
(3,179) | (2,981) | 6.6 |
14,254 | 14,146 | 0.8 |
14,116 | 13,932 | 1.3 |
138 | 214 | (35.5) |
14,254 | 14,146 | 0.8 |
Page 2 of 15 | |||
B | CONDENSED INTERIM GROUP COMPREHENSIVE INCOME STATEMENT | ||
Group | |||
1st Half | 1st Half | ||
2024 | 2023 | ||
$'000 | $'000 | ||
Profit after taxation | 14,254 | 14,146 | |
Other comprehensive income: | |||
Items that may be reclassified subsequently to profit or loss | |||
Exchange differences arising on translation | |||
of foreign operations | 10 | (68) | |
Items that will not be reclassified subsequently to profit or loss | |||
Fair value adjustment on equity investments | 112 | 862 | |
Other comprehensive income for the period | 122 | 794 | |
Total comprehensive income for the period | 14,376 | 14,940 | |
Total comprehensive income attributable to: | |||
Shareholders of the Company | 14,238 | 14,726 | |
Non-controlling interests | 138 | 214 | |
14,376 | 14,940 | ||
Earnings per share for profit for the period attributable to the owners of the | |||
Company during the year : | |||
Basic and diluted (in cents) | 3.98 | 3.93 |
Page 3 of 15
C CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
Group | Company | |||
30 Jun | 31 Dec | 30 Jun | 31 Dec | |
2024 | 2023 | 2024 | 2023 | |
Note | $'000 | $'000 | $'000 | $'000 |
ASSETS
Current assets
Cash and cash equivalents Trade receivables
Other receivables and prepayments Due from subsidiaries Inventories
Total current assets
Non-current assets Subsidiaries Associate
Financial assets at fair value through other comprehensive income
Vehicles, premises and equipment Goodwill
Intangible assets Deferred tax assets Total non-current assets
Total assets
LIABILITIES AND EQUITY
55,899 | 55,066 | 52,657 | 52,071 | ||||
15,508 | 14,378 | 3,160 | 2,645 | ||||
1,458 | 2,315 | 658 | 968 | ||||
- | - | 5,542 | 3,416 | ||||
19 | 28 | - | - | ||||
72,884 | 71,787 | 62,017 | 59,100 | ||||
- | - | 25,941 | 25,941 | ||||
25 | 25 | - | - | ||||
11 | 6,374 | 6,262 | 6,374 | 6,262 | |||
13 | 104,222 | 105,515 | 32,562 | 33,039 | |||
12 | 11,588 | 11,588 | - | - | |||
8 | 16 | - | - | ||||
1,152 | 1,178 | 1,081 | 1,131 | ||||
123,369 | 124,584 | 65,958 | 66,373 | ||||
196,253 | 196,371 | 127,975 | 125,473 |
Current liabilities | ||||||||
Trade and other payables | 18,854 | 24,024 | 7,421 | 7,992 | ||||
Due to subsidiaries | - | - | 28,718 | 24,760 | ||||
Lease liabilities | 14 | 1,248 | 1,444 | 658 | 650 | |||
Income tax payable | 5,891 | 5,851 | 3,534 | 3,335 | ||||
Total current liabilities | 25,993 | 31,319 | 40,331 | 36,737 | ||||
Non-current liabilities | ||||||||
Other payables | 720 | 720 | - | - | ||||
Deferred tax liabilities | 2,430 | 2,053 | - | - | ||||
Lease liabilities | 14 | 30,183 | 29,977 | 24,187 | 23,774 | |||
Total non-current liabilities | 33,333 | 32,750 | 24,187 | 23,774 | ||||
Total liabilities | 59,326 | 64,069 | 64,518 | 60,511 | ||||
Capital, reserves and | ||||||||
non-controlling interests | ||||||||
Share capital | 15 | 36,284 | 36,284 | 36,284 | 36,284 | |||
Other reserves | 4,810 | 4,698 | 4,810 | 4,698 | ||||
Foreign currency translation reserve | (170) | (180) | - | - | ||||
Accumulated profits | 94,460 | 90,095 | 22,363 | 23,980 | ||||
Equity attributable to | ||||||||
shareholders of the Company | 135,384 | 130,897 | 63,457 | 64,962 | ||||
Non-controlling interests | 1,543 | 1,405 | - | - | ||||
Total equity | 136,927 | 132,302 | 63,457 | 64,962 | ||||
Total liabilities and equity | 196,253 | 196,371 | 127,975 | 125,473 |
Page 4 of 15
D | CONDENSED INTERIM GROUP CASH FLOW STATEMENT | |||||
Group | ||||||
1st Half | 1st Half | |||||
2024 | 2023 | |||||
Note | $'000 | $'000 | ||||
Operating activities | ||||||
Profit before taxation | 17,433 | 17,127 | ||||
Adjustments for: | ||||||
Depreciation and amortisation | 4,240 | 3,724 | ||||
Interest expense | 435 | 428 | ||||
Interest income | (1,030) | (978) | ||||
Loss/(gain) on disposal of vehicles, premises and equipment | 1 | (26) | ||||
Writeback of allowance for expected credit losses | (196) | (175) | ||||
Operating cash flows before changes in working capital | 20,883 | 20,100 | ||||
Changes in working capital | ||||||
Trade receivables | (967) | (1,593) | ||||
Other receivables and prepayments | 508 | (1,320) | ||||
Inventories | 9 | (36) | ||||
Trade and other payables | (3,655) | (2,955) | ||||
Cash flows generated from operations | 16,778 | 14,196 | ||||
Interest paid | (435) | (428) | ||||
Income tax paid | (2,736) | (2,568) | ||||
Net cash flows generated from operating activities | 13,607 | 11,200 | ||||
Investing activities | ||||||
Purchase of vehicles, premises and equipment | 13 | (3,655) | (2,686) | |||
Purchases of unquoted equity instruments | - | (2,355) | ||||
Proceeds from disposal of vehicles and equipment | - | 26 | ||||
Interest received | 1,380 | 1,013 | ||||
Net cash flows used in investing activities | (2,275) | (4,002) | ||||
Financing activities | ||||||
Repayments of lease liabilities | (753) | (5,835) | ||||
Dividends paid | 9 | (9,751) | (11,772) | |||
Net cash flows used in financing activities | (10,504) | (17,607) | ||||
Net effect of foreign exchange rates in consolidating | ||||||
subsidiaries | 5 | (40) | ||||
Net increase/(decrease) in cash and cash equivalents | 833 | (10,449) | ||||
Cash and cash equivalents at beginning of period | 55,066 | 60,491 | ||||
Cash and cash equivalents at end of period | 55,899 | 50,042 |
Page 5 of 15 | |||||||||
E | CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY | ||||||||
Attributable to shareholders of the Company | |||||||||
Foreign | |||||||||
currency | Non- | ||||||||
Share | Other | translation | Accumulated | controlling | Total | ||||
capital | reserves | reserve | profits | Total | interests | equity | |||
Note | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||
Group | |||||||||
At 1 January 2024 | 36,284 | 4,698 | (180) | 90,095 | 130,897 | 1,405 | 132,302 | ||
Profit for the period | |||||||||
- | - | - | 14,116 | 14,116 | 138 | 14,254 | |||
Other comprehensive income | - | 112 | 10 | - | 122 | - | 122 | ||
Total comprehensive | |||||||||
income for the period | - | 112 | 10 | 14,116 | 14,238 | 138 | 14,376 | ||
Contribution by and distributions | |||||||||
to shareholders | |||||||||
Payment of dividends | 9 | ||||||||
- | - | - | (9,751) | (9,751) | - | (9,751) | |||
Total contributions by | |||||||||
shareholders | - | - | - | (9,751) | (9,751) | - | (9,751) | ||
At 30 June 2024 | |||||||||
36,284 | 4,810 | (170) | 94,460 | 135,384 | 1,543 | 136,927 | |||
At 1 January 2023 | 36,284 | 4,008 | (91) | 84,016 | 124,217 | 914 | 125,131 | ||
Profit for the period | - | - | - | 13,932 | 13,932 | 214 | 14,146 | ||
Other comprehensive income | - | 862 | (68) | - | 794 | - | 794 | ||
Total comprehensive | |||||||||
income for the period | - | 862 | (68) | 13,932 | 14,726 | 214 | 14,940 | ||
Contribution by and distributions | |||||||||
to shareholders | |||||||||
Payment of dividends | 9 | - | - | - | (11,772) | (11,772) | - | (11,772) | |
Total contributions by | |||||||||
shareholders | - | - | - | (11,772) | (11,772) | - | (11,772) | ||
At 30 June 2023 | |||||||||
36,284 | 4,870 | (159) | 86,176 | 127,171 | 1,128 | 128,299 |
Page 6 of 15
E CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (CONT'D)
Share | Other | Accumulated | Total | ||
capital | reserves | profits | equity | ||
Note | $'000 | $'000 | $'000 | $'000 | |
Company | |||||
At 1 January 2024 | 36,284 | 4,698 | 23,980 | 64,962 | |
Profit for the period | - | - | 8,134 | 8,134 | |
Other comprehensive income | - | 112 | - | 112 | |
Total comprehensive income for the period | - | 112 | 8,134 | 8,246 | |
Contribution by and distributions to shareholders | |||||
Payment of dividends | 9 | - | - | (9,751) | (9,751) |
Total contributions by shareholders | - | - | (9,751) | (9,751) | |
At 30 June 2024 | 36,284 | 4,810 | 22,363 | 63,457 | |
At 1 January 2023 | 36,284 | 4,008 | 16,816 | 57,108 | |
Profit for the period | - | - | 21,363 | 21,363 | |
Other comprehensive income for the period | - | 862 | - | 862 | |
Total comprehensive income for the period | - | 862 | 21,363 | 22,225 | |
Contribution by and distributions to shareholders | |||||
Payment of dividends | 9 | - | - | (11,772) | (11,772) |
Total contributions by shareholders | - | - | (11,772) | (11,772) | |
At 30 June 2023 | 36,284 | 4,870 | 26,407 | 67,561 |
Page 7 of 15
- NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
-
Corporate information
VICOM Ltd (the Company) (Registration No. 198100320K) is incorporated in the Republic of Singapore with its registered office at 205 Braddell Road, Singapore 579701. Its principal place of business is at 385 Sin Ming Drive, Singapore 575718. The Company is listed on the Singapore Exchange Securities Trading Limited. These condensed interim consolidated Financial Statements as at and for the six months ended 30 June 2024 comprise the Company and its subsidiaries (collectively, the Group).
The principal activities of the Company are those of an investment holding company and the provision of motor vehicle evaluation and other related services. The principal activities of the companies in the Group are in the business of testing services which include the provision of motor vehicle inspection services and provision of non-vehicle testing, inspection and consultancy services. - Basis of preparation
The condensed interim consolidated Financial Statements for the six months ended 30 June 2024 have been prepared in accordance with SFRS(I) 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim consolidated Financial Statements do not include all the information required for a complete set of Financial Statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last annual Financial Statements for the year ended 31 December 2023.
The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards as set out in Note 2.1.
The condensed interim consolidated Financial Statements are presented in Singapore dollar which is the Company's functional currency and all values are expressed in thousand ($'000) except when otherwise indicated.
- New and amended standards adopted by the Group
A number of amendments to Standards have become applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting those standards. - Use of judgements and estimates
Critical judgements in applying the Group's accounting policies
In the application of the Group's accounting policies, Management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Management is of the opinion that any instances of applications of judgements are not expected to have a significant effect on the amounts recognised in the condensed interim consolidated Financial Statements (apart from those involving estimations, which are dealt with below).
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Page 8 of 15
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below:
Goodwill impairment review
The Group tests goodwill annually for impairment at year end, or more frequently if there are indicators that goodwill might be impaired.
Determining whether goodwill is impaired requires an estimation of the value in use of the cash- generating units ("CGU") to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. No provision for impairment has been recognised. The carrying amount of goodwill at the end of the reporting period is disclosed in Note 12.
Allowance for expected credit losses
The Group makes allowances for expected credit losses based on an assessment of the recoverability of trade receivables.
The impairment provisions for trade receivables are based on assumptions about risk of default by reference to past default experience and different loss patterns for different customer segments, and incorporate forward looking estimates specific to the debtors and economic environment that the debtors' operation is in. For instance, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in the relevant sectors in which the customers operate in, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
The identification of loss allowance requires use of judgement and estimates.
-
Seasonal operations
The Group's businesses are not affected significantly by seasonal or cyclical factors during the financial period. - Segment information
The Group operates predominantly in Singapore. All vehicle inspection and non-vehicle testing services are managed and reported together as one segment in order to improve productivity and efficiency as these services have similar economic characteristics and processes. Hence there are no other reportable segments to be presented. - Revenue information Revenue
The Group | ||
1H2024 | 1H2023 | |
$'000 | $'000 | |
Inspection and testing services | 54,094 | 53,747 |
Rental income | 1,173 | 1,256 |
Others | 1,037 | 877 |
56,304 | 55,880 |
Majority of the revenue is derived from Singapore.
Rental income relates to income arising from subleasing right-of-use assets.
Page 9 of 15 | |||||||
6 | Financial assets and financial liabilities | ||||||
The Group | The Company | ||||||
30 June | 31 December | 30 June | 31 December | ||||
2024 | 2023 | 2024 | 2023 | ||||
Note | $'000 | $'000 | $'000 | $'000 | |||
Financial assets | |||||||
Amortised cost | 72,599 | 71,303 | 61,921 | 59,015 | |||
Financial assets at FVTOCI | 11 | 6,374 | 6,262 | 6,374 | 6,262 | ||
Financial liabilities | |||||||
Amortised cost | 17,790 | 22,828 | 35,564 | 32,185 | |||
Lease liabilities | 31,431 | 31,421 | 24,845 | 24,424 |
7 Taxation
The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. The major components of income tax expense in the condensed interim Group Income Statement are:
The Group | |||
1H2024 | 1H2023 | ||
$'000 | $'000 | ||
Current income tax expense | 2,776 | 2,923 | |
Deferred income tax expense relating to origination and reversal of | |||
temporary differences | 403 | 58 | |
3,179 | 2,981 | ||
8 | Profit after taxation | ||
8.1 Significant items - charges/(credits) | |||
The Group | |||
1H2024 | 1H2023 | ||
$'000 | $'000 | ||
Foreign currency exchange adjustment loss | 16 | 53 | |
Writeback of allowance for expected credit losses (net) | (196) | (175) |
8.2 Related party transactions
The Company is a subsidiary of ComfortDelGro Corporation Limited, incorporated in the Republic of
Singapore, which is also the Company's ultimate holding company. Related companies in these condensed interim consolidated Financial Statements refer to members of the holding company's group of companies.
Some of the Group's transactions and arrangements and terms thereof are arranged by or between members of the holding company's group of companies. The intercompany balances are unsecured, interest-free and repayable on demand unless otherwise stated.
Transactions between the Company and its subsidiaries, which are related companies of the Company, have been eliminated on consolidation and are not disclosed in this note.