VICOM Ltd FY2025 Financial Analysis: Strong Growth Driven by OBU Project, Outlook Mixed
VICOM Ltd released its audited condensed financial statements for the second half and full year ended 31 December 2025. The company showed robust performance, driven primarily by contributions from the On-Board Unit (OBU) project. Below is a structured analysis of key financial metrics, performance trends, dividend announcements, and outlook for investors.
Key Financial Metrics and Comparisons
| Metric |
2H 2025 |
2H 2024 |
FY 2025 |
FY 2024 |
YoY Change |
QoQ Change |
| Revenue (\$’000) |
97,556 |
63,178 |
167,407 |
119,482 |
+40.1% |
+54.4% |
| Operating Profit (\$’000) |
32,904 |
17,786 |
51,817 |
34,624 |
+49.7% |
+85.0% |
| Profit Attributable to Shareholders (\$’000) |
26,932 |
15,168 |
42,483 |
29,284 |
+45.1% |
+77.6% |
| EPS (Basic & Diluted, cents) |
7.59 |
4.28 |
11.98 |
8.26 |
+45.1% |
+77.4% |
| Dividend per Share (cents) |
3.10 (Interim) |
2.80 (Interim) |
8.40 (Total: 3.10 interim + 5.30 final) |
5.80 (Total: 2.80 interim + 3.00 final) |
+44.8% |
+10.7% (interim) |
Historical Performance Trends
VICOM Ltd has demonstrated consistent growth in revenue and profits over the past year, with a notable spike in FY2025. This surge was primarily attributed to the OBU project, which contributed significantly to both revenue and operating profit. Operating costs also increased, mainly due to higher subcontractor fees and staff costs associated with the project, as well as a goodwill impairment charge.
Exceptional Earnings and Expenses
- Impairment of Goodwill: VICOM recognized an impairment charge of \$2.06 million in FY2025 following a review of the recoverable value of a cash-generating unit.
- Spike in Contract Services Costs: Contract services costs increased by 378% YoY, reflecting the heavy reliance on subcontractors for the OBU project.
- Dividend Payouts: Total dividends paid increased to \$21.63 million in FY2025 from \$19.68 million in FY2024.
Dividends
VICOM proposed a tax-exempt one-tier final dividend of 5.30 cents per share for FY2025, up from 3.00 cents in FY2024. Together with the interim dividend of 3.10 cents, the total dividend for FY2025 is 8.40 cents per share, representing a 44.8% increase over FY2024. The record date for the final dividend is 30 April 2026, and payment is scheduled for 8 May 2026.
Balance Sheet and Cash Flow
- Total Equity: Increased by \$21.3 million to \$163.8 million, driven by profits and the addition of new non-controlling interests.
- Total Assets: Rose by \$39.2 million to \$250.4 million, mainly due to investments in vehicles, premises, and equipment.
- Total Liabilities: Up by \$17.9 million, primarily from higher trade and other payables, tax liabilities, and lease liabilities.
- Cash and Cash Equivalents: Ended the year at \$57.9 million, down \$2.8 million after dividend payments.
Related Party Transactions
VICOM continues to transact with related parties, including shared services, rental income, and subcontractor fees. No guarantees have been given or received, and there are no unusual fund flows noted.
Forecasted Events and Outlook
The company expects demand for vehicle testing and related work to decrease in the year ahead, following the substantial completion of OBU installations in 2025. However, demand for non-vehicle testing is anticipated to rise with the new integrated testing hub at Jalan Papan becoming operational in the second half of 2026.
Conclusion and Recommendations
Overall, VICOM’s FY2025 financial performance is strong, driven by exceptional revenue from the OBU project and robust profit growth. However, the outlook is mixed due to expected tapering off of vehicle testing demand, though non-vehicle testing may offset some of the decline.
- If you are currently holding VICOM shares: Consider maintaining your position to capture the elevated dividend payout and monitor the company’s transition toward non-vehicle testing. The strong balance sheet and cash flow support continued shareholder returns.
- If you are not currently holding VICOM shares: New investors may consider entry if comfortable with the company’s shift in business mix and potential reduction in vehicle testing demand. The upcoming dividend and solid historical performance are positives, but future growth depends on successful expansion in non-vehicle testing.
Disclaimer: This analysis is based solely on VICOM Ltd’s published financial statements and does not account for external factors or market conditions. Investors should conduct their own due diligence and consult professional advisors before making investment decisions.
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