Oxley H1 FY22 net profit edges up 3%

Property developer Oxley Holdings posted a net profit of S$23.5 million for the six months ended Dec 31, 2021, up by 3 per cent year-on-year.

Revenue for H1 FY2022 was 13 per cent lower at S$506.4 million on the back of lower revenue contribution from Royal Wharf project in the United Kingdom, partially offset by higher revenue from the development projects in Singapore and sale of land parcels in Australia.

Earnings per share worked out to 0.55 Singapore cent, compared with 0.54 cent a year ago.

Net profit after tax was 18 per cent lower at S$23.4 million on the back of lower revenue and gross profit, partially offset by absence of a loss from discontinued operations of S$14.9 million in H1 FY2021.

As at Jan 25, 2022, the group had total unbilled contract value of about S$1.8 billion, of which some S$1.5 billion was attributable to projects in Singapore.

About 97 per cent of the group's Singapore residential units has been sold, representing 96 per cent of the total gross development value (GDV) or about S$4.7 billion. Oxley said that it plans to sell the remaining 110 units, or 3 per cent of the portfolio, by end 2022 and complete construction of all the Singapore development projects progressively by early 2023.

Touching on the latest property cooling measures rolled out in Singapore, Oxley highlighted that its current exposure to the Singapore residential market is not significant. In addition, "the remaining units are in the mid-mass market segment which is attractive to the first-time buyers," it added.

Meanwhile, the group intends to focus its property development activities in developed countries that generate relatively higher profit margin, such as its Riverscape project (formerly known as Deanston Wharf) in the United Kingdom and Connolly Station project in Ireland.

The counter closed at 18.3 Singapore cents on Thursday, down 0.3 cent or 1.61 per cent.