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Oxley plunges into the red with $296.3 mil loss in 2H20 on fair value and non-recurring losses

Felicia Tan
Felicia Tan8/28/2020 06:13 PM GMT+08  • 3 min read
Oxley plunges into the red with $296.3 mil loss in 2H20 on fair value and non-recurring losses
The group registered total losses of $280.6 million for FY20, from the earnings of $96.8 million in FY19.
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Oxley Holdings registered losses of $296.3 million for 2H20 ended June, from the earnings of $62.5 million a year ago.

The group registered total losses of $280.6 million for FY20, from the earnings of $96.8 million in FY19.

Revenue for 2H20 surged 299% y-o-y to $638.9 million mainly driven by higher revenue from the projects in Cambodia, the UK, and Singapore, as well as new contribution from its wholly-owned subsidiary group in Australia.

Group revenue for FY20 grew 80% y-o-y to $1.23 billion due to the same reasons.

Gross profit increased by 303% y-o-y to $149.3 million.

Gross profit margins (GPM) for 2H20 and FY20 were “comparable” to the year before due to higher margins from the development project in Cambodia. The margins were partially offset by lower margins from the new subsidiary group in Australia, as well as the development projects in the UK and Singapore.

Other income for 2H20 and FY20 fell by 7% and 24% y-o-y to $5.8 million and $6.5 million respectively on lower dividend income received from investment in quoted securities. The decline in other income was partially mitigated by government grants received in 2H20.

Interest income grew by 66% and 57% y-o-y for 2H20 and FY20 to $5.2 million and $10.3 million respectively mainly due to higher interest income from advances due from joint ventures and associate companies.

Other gains for 2H20 and FY20 plunged 98% and 97% y-o-y to $3.1 million and $7.2 million respectively due to the absence of fair value gains on investment properties in Singapore and Ireland.

Administrative expenses fell by 17% y-o-y in 2H20 to $39.1 million due to lower payroll and related costs in Singapore. This was partially offset by the inclusion of payroll and related costs of the newly acquired Australian subsidiary.

For FY20, administrative expenses increased by 18% y-o-y to $72.9 million due to the inclusion of a nine-month payroll and related costs, as well as other administrative expenses from the newly acquired Australian subsidiary.

Other losses for 2H20 dived to $324.9 million from losses of $14.5 million the year before. Other losses for FY20 fell to $298.3 million from the $16.3 million in losses in FY19.

The losses were mainly due to the fair value loss of $48.7 million in the investment properties in Singapore by independent external valuers due to the Covid-19 pandemic. They were also attributable to the non-recurring losses of $210.7 million due to the disposal of investment in its associated company, Galliard Group.

Oxley Holdings divested its 18.8% stake in Galliard Group in June for $52.7 million in a bid to streamline its portfolio, divest non-core assets and enhance financial flexibility.

See: Oxley Holdings disposes entire Galliard stake for $52.7 mil

The losses were also due to a receivable of proceeds from the final completion of the share sale of Oxley Beryl, which generated a profit of $130 million, and unrealised foreign exchange losses of $23.7 million primarily from US dollar denominated Euro Medium Term Notes (EMTNs) due to the appreciation of the US dollar against the Singapore dollar.

For 2H20, the board has declared a final and special dividend of 0.5 cent and 1.0 cent per ordinary share respectively, compared to the 0.68 cent in FY19.

As at end June, cash and cash equivalents stood at $384.7 million.

Shares in Oxley closed flat at 21.5 cents on August 28, prior to the announcement.

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