Oxley posts full-year net profit of S$49.5m, reversing last year's losses

PROPERTY developer Oxley Holdings has posted a net profit of S$49.5 million for the full year ended June 30, reversing from a loss of S$275.1 million in the previous year.

The company's revenue jumped 58 per cent to S$781.9 million in the first six months of 2021, bringing full-year revenue to S$1.4 billion - a 33 per cent increase compared with the preceding financial year, according to Oxley's interim financial statements.

This was mainly due to higher revenue from its projects in Cambodia, Singapore and Ireland, which partially offset lower revenue from its project in the United Kingdom, the mainboard-listed company said.

Earnings per share stood at 0.31 cent, compared with a loss per share of 6.71 cents in FY2020.

In FY2021, other losses amounting to S$89.2 million include the provision of S$29.6 million for impairment of hotel development cost in Cambodia as well as fair value loss of S$17.7 million arising from the annual revaluation of an investment property in Cambodia.

Meanwhile, costs incurred for rental support and finalisation of accounts of the property at 30 Raffles Place amounted to S$17.6 million while costs incurred for defect rectification and settlement of disputes on construction and other contracts of completed projects totalled S$16.8 million, it said.

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Overall, it generated positive cash flows of S$623.6 million from operating activities primarily due to completion and delivery of overseas development projects to the buyers and repaid about S$600 million of fixed rate notes and bank borrowings in the year.

Net gearing ratio is now 2.18 times as at June 30, compared with 2.48 times a year ago.

Oxley noted that Singapore private home prices rose for the fifth straight quarter since Q1 2020 due to tight supply and strong demand.

As of early August, 3,600 units, or 91 per cent, of its Singapore development projects have been sold, representing S$4.3 billion or 87 per cent of the portfolio gross development value, the company said. It is targeting to achieve 100 per cent sales by the end of the year.

At the same time, the group's Novotel and Mercure Hotels on Stevens have signed up as a government quarantine facility and have been generating positive operating cash flows, it added.

Oxley said its overseas projects have achieved "tremendous success" in the past year, with its project in London and Dublin fully completed and fully sold, except a residential block in the latter that is to be completed in Q3. Its project in Cambodia was 87 per cent sold.

Looking ahead, the construction sector continues to face manpower shortages and escalating costs alongside restrictions that could affect productivity, Oxley said.

It said it is manging the construction of residential projects carefully to minimise disruption to the completion schedules.

Outside Singapore, Oxley is finalising the planning of new development projects at Deanston Wharf and Connolly Station in London and Dublin respectively with a combined gross development value of more than S$1.6 billion.

It is looking to launch the sales of the Deanston Wharf project, together with its joint-venture partner, towards the end of 2021.

In addition to property development activities, the group has also been reviewing potential asset divestment opportunities to strengthen the group's cash flow position, it said.

Oxley shares closed at 23.5 Singapore cents, down 0.5 cent or 2.08 per cent, on Thursday.