Oxley Holdings has reported earnings of $3.2 million for the FY2022 ended June, 75% lower than the $13.1 million reported in the year before.
During the period, revenue fell by 32% y-o-y to $925.9 million mainly due to lower revenue contribution from the overseas projects in Cambodia, UK, Ireland and Malaysia, partly offset by higher revenue from the development projects in Singapore and the sale of land parcels in Australia.
Gross profit fell by 56% y-o-y to $129.6 million mainly due to lower gross profit margins (GPMs). The GPMs were mainly due to lower margins from local development projects coupled with lower revenue from overseas projects.
Other income fell by 53% y-o-y to $3.0 million mainly due to lower government grants received.
Interest income, however, increased by 35% y-o-y to $12.5 million mainly due to higher interest income from advances to joint ventures and associates for Riverfront Residences and Affinity at Serangoon projects.
Other gains doubled y-o-y to $79.4 million from $39.7 million the year before mainly from fair value gains arising from the revaluation of investment properties in Singapore, write-back of impairment of development properties in Cambodia. Other gains also comprised the mark-to-market valuation of derivative financial instruments, in addition to forfeited customer deposits.
Share of results from joint ventures and associates, net of tax increased by 154% y-o-y to $20.3 million mainly due to the higher profit contribution from Oxley’s joint ventures and associates in Singapore and Malaysia, partly offset by the higher share of losses from the other overseas entities.
Profit before tax fell by 68% y-o-y to $35.0 million.
Loss for the period fell by 85% y-o-y to $7.3 million.
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During the period, Oxley posted a loss from discontinued operations related to expenses incurred for the voluntary administration of Pindan Group in Australia. This is mainly to facilitate the fulfilment of the conditions under the deed of company agreement (DOCA).
During the FY2022, net fair value on investments in securities stood at a $10.0 million loss from the $8.8 million period.
The group, however, stood at a gain of $44.6 million on the revaluation of properties, net of tax, from the $32.0 million loss in the year before.
During the FY2022, earnings per share (EPS) stood at 0.07 cents per share on a fully diluted basis, down from the 0.31 cents per share.
As at June 30, net asset value (NAV) per share stood at 14.49 cents.
Cash and cash equivalents for the period stood at $122.3 million.
For the FY2022, Oxley has proposed a final dividend of 0.25 cent per share.
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In its operational review, the group says the current housing price levels are favourable for the sale of its remaining units, as Singapore’s private home prices rose in the 2Q2022.
The group’s Novotel and Mercure hotels will cease to be stay-home-notice (SHN) dedicated facilities in September. The hotels will reopen for full operation to the public at market rates, which the group sees benefitting from the continued recovery of the travel industry.
In its outlook statement, Oxley expects most of its development projects in Singapore to be completed by the end of 2022. The group adds that it expects its gearing ratio to be reduced “significantly” upon the repayment of the project loans.
It adds that it intends to focus its property development activities in developed countries such as the UK and Ireland.
Construction of the group’s Riverscape and Dublin Arch projects in the UK and Ireland and the projects are expected to achieve their temporary occupation permits (TOP) by 2024 and 2025 respectively.
“Uncertainty in the global business environment continues unabated in 2022 with war and interest rate hikes,” says Ching Chiat Kwong, executive chairman and CEO of Oxley.
“Oxley is looking optimistically forward to FY2023, with most of Singapore's development projects to be completed by the end of 2022. The cash inflow is expected to reduce borrowings significantly and strengthen the group’s cash position. Barring any unforeseen circumstances, the group is cautiously optimistic of the year ahead,” he adds.
As at 11.08am, shares in Oxley are trading 0.8 cent lower or 4.60% down at 16.6 cents.