Oxley Holdings has reversed out of the red in FY2021 ended June with earnings of $13.1 million, comapred to a loss of $280.6 million in FY2020.
Revenue for FY2021 came in at $1.36 billion, 33% higher than $1.03 billion recorded in the same period a year ago, mainly due to higher revenue from the projects in Cambodia, Singapore and Ireland, partially offset by lower revenue from the project in the United Kingdom.
As cost of sales also increased by 33% y-o-y to $1.06 billion, gross profit for FY2021 came in at $296.5 million, 32% higher than $225.3 million last year.
During the period, other gains saw a significant increase to $39.7 million from just $7.0 million. This comprised of a one-off gain from the sale of a show flat land in Cambodia, forfeited deposits from abandoned sales and write-back of provisions pertaining to dispute settlements, as well as foreign exchange gains.
As at end-June, cash and cash equivalents stood at $173.4 million.
As at early August, the group had future progress billings of $3.1 billion, of which approximately $2.8 billion was attributable to the projects in Singapore and $0.4 billion was attributable to overseas projects. The group’s effective stake in the future progress billings was approximately $1.9 billion.
The board has decided to not declare dividends for FY2021 to preserve its working capital.
Looking forward, the group is hopeful that normal business and social activities may resume before the end of the year, as the vaccination rate in Singapore increases and the economy reopens.
With the restrictions still in place for foreign workers travelling from the non-exempted countries, the construction sector is facing manpower shortages and escalating costs, while restrained productivity from enhanced safe distancing measures may affect construction site progress. The group is managing the construction of the residential projects carefully to minimise disruption to the completion schedules.
In addition, the group has also been reviewing potential asset divestment opportunities to strengthen its cash flow position.
Ching Chiat Kwong, executive chairman and CEO of Oxley says, "Oxley is pro-actively managing the construction activities in order to complete the projects expeditiously and monetise the sales proceeds to further reduce borrowings and strengthen the group’s cash flows."
Shares in Oxley closed 2.1% lower at 24 cents on Aug 26.