SINGAPORE (Aug 22): Property group Oxley Holdings has proposed a final dividend of 0.70 cent per share for the full year ended June, close to treble of the final dividend of 0.25 cent per share a year ago.
Oxley’s earnings grew 6% to $218.1 million in FY2017, from $206.0 million a year ago, on the back of higher revenue.
Revenue rose 37% to $1.34 billion in FY2017, from $981.4 million a year ago.
The increase was mainly due to recognition of revenue from two commercial projects – Oxley Tower and The Flow – using the completion of construction method upon their completion, as well as sales of one mixed-residential development at Joo Chiat Road, and from the handover of certain plots in The Royal Wharf Phase 1A.
Oxley registered a loss of $8.7 million from share of equity-accounted associates in FY2017, compared to a profit from share of equity-accounted associates of $49.5 million a year ago. Share of profit of equity-accounted joint ventures fell 70% to $9.0 million in FY2017, from $30.2 million a year ago.
These were mainly attributable to lower profits from joint ventures and associates, and a non-recurring gain of $25.2 million arising from the purchase price allocation adjustment in FY2016.
Other income grew 61% to $2.9 million, mainly due to proceeds from claim on performance bond of $1.1 million.
However, interest income fell 47% to $2.5 million mainly due to decrease in fixed deposit interest income and interest income from advances to non-controlling shareholders of the subsidiaries, while
Other gains fell 80% to $21.1 million, mainly due to lower fair value gain on investment properties of $60.2 million, lower customer's deposit forfeited, and the absence of a one-off $25.6 million gain on disposal of a long-term investment in FY2016.
Administrative expenses doubled to $42.6 million, mainly due to an increase in executive directors' remuneration of $7.7 million and an increase in salaries of $2.2 million.
As at end June, cash and cash equivalents stood at $413.5 million.
Total borrowings fell to $2.46 billion as at June 30, 2017, from $2.63 billion a year ago. Net gearing decreased to 1.9 times, from 2.2 times a year ago.
“With several major completions generating good returns, FY2017 has been another year of respectable growth for Oxley. Operationally, we enhanced our profile as a strong property developer, expanded our presence overseas, and improved on our project pipeline,” says Ching Chiat Kwong, Oxley’s executive chairman and CEO.
“In view of the prevailing market conditions, especially with some signs of recovery in the Singapore property market, we are in a position to seize opportunities presented to the group,” Ching adds.
Shares of Oxley closed flat at 53.5 cents on Monday.