VICOM Ltd posted a 28.0 per cent year-on-year rise in net profit attributable to shareholders to 19.9 million Singapore dollars for the six months ended Jun 30, supported by ongoing installations under the Electronic Road Pricing (ERP) 2.0 on-board unit (OBU) programme and steady demand from the electronics and precision-engineering sectors.

Group revenue increased 6.4 per cent YoY to S$74.3 million, while earnings per share improved to 5.61 Singapore cents from 4.39 cents a year earlier. The board declared a tax-exempt, one-tier interim dividend of 3.95 cents per share, representing a 70 per cent payout ratio.

Operating profit climbed 27.1 per cent YoY to S$24.0 million, helped by higher testing volumes and tight cost controls. EBITDA expanded 25.1 per cent to S$28.9 million.

The company cautioned that the second half is likely to be softer as ERP 2.0 installation work tapers towards its scheduled completion in December and as demand from the oil-and-gas segment remains subdued amid geopolitical uncertainties in the Middle East.

To underpin longer-term growth, VICOM is progressively ramping up its new integrated Jalan Papan Hub in Singapore and has recently opened the Setsco QAV joint-venture testing facility in Penang, Malaysia, adding capacity in advanced materials and electronics testing.

Chief executive officer Sim Wing Yew said the strong first-half performance was underpinned by the ERP 2.0 programme and resilient electronics-sector demand. He added that management will maintain cost discipline while expanding capabilities at the new hubs to capture opportunities in both Singapore and Malaysia amid an uneven market outlook.