By: La Papillion
Vicom is Singapore’s leading provider in technical testing and inspection services. Listed in 1995, they have 4 business segments: Vehicle inspection business, vehicle assessment, commercial/industrial testing and other services. Vicom group consists of VICOM and JIC inspection centres, VICOM assessment centre (VAC) and SETSCO services. VICOM and JIC centre is a one stop inspection service provider. VAC provides a one-stop, post-accident service solution like towing, car rentals, assistance in accident reporting, claims filing, repairs and safety check through its IDAC. SETSCO is the non-vehicular and testing arm dealing with a range of industry.
% of revenue-----------------------------04-----------05------------06------------07
Vehicle inspection---------------------25.7----------29.6----------30.1----------31.3
Vehicle assessment--------------------13.9-----------8.9-----------5.2-----------4.0
Test/inspection services--------------51.4----------54.8----------56.5----------57.9
% of segment results to revenue-----04-----------05------------06------------07
Vehicle inspection---------------------19.2----------29.8---------33.8----------34.8
Vehicle assessment--------------------17.1-----------2.0---------(3.5)----------(0.2)
Test/inspection services--------------18.9----------28.8---------28.6----------28.2
% of market share in vehicle inspection market in Singapore
FY05--------75%
FY06--------73.15%
FY07--------not sure
We can see from the breakdown of margins and revenue by their business segments that their vehicle assessment is not doing too well. Their main business would be from SETSCO and VICOM centres. Their vehicle assessment centre drops after FY05 because of a new ruling that makes it no longer compulsory for motorists to make accident reports at their IDAC (talk about removing monopoly status). But their vehicle inspection business seems to be monopolistic in nature, owning around 75% of market share in Singapore. Read more...
