Oxley reports wider H2 loss of S$20.3m; overseas revenue and margins also down
Michelle Zhu
OXLEY Holdings posted a S$20.3 million loss attributable to shareholders for the second half of the fiscal year ended June 2022, more than doubling from its loss of S$9.6 million the year before.
According to the property developer’s financial statements filed after the market opened on Friday (Aug 19), this was largely due to a steep decline in revenue, lower profit margins and continued losses booked from discontinued operations.
A final dividend of 0.25 Singapore cent per share has been proposed.
Revenue for H2 FY2022 fell 46 per cent on-year to S$419.5 million from S$781.9 million as the group registered lower contributions from its overseas projects in Cambodia, the UK, Ireland and Malaysia, which more than offset year-on-year topline gains from development projects in Singapore and the sale of land parcels in Australia.
A decline in gross profit margin - mainly due to lower margins from local development projects coupled with reduced revenue from overseas projects - led to a 73 per cent fall in gross profit for the half year to S$56 million, against S$206.1 million in gross profit for H2 FY2021.
The latest set of half-yearly results brings the group’s profit attributable to shareholders to S$3.2 million for FY2022, down 75 per cent from S$13.1 million in FY2021.
Loss per share (LPS) for H2 stood at 0.48 cent - widening from the group’s H2 FY2021 LPS of 0.23 cent. For the full year, earnings per share (EPS) was a lower 0.08 cent compared to the 0.31 cent EPS in FY2021.
In its results filing, Oxley said it is in the midst of selling its assets in Vietnam and believes this will contribute positively to the group’s cash flows in H1 of FY2023 should the transaction successfully complete.
The group is anticipating most of its Singapore development projects to be completed by end-2022, and its gearing ratio to be reduced significantly upon the repayment of project loans. This would allow the group to effectively mitigate the impact of gradual interest rate hikes on its borrowing costs, it said.
Construction of its Riverscape (UK) and Dublin Arch (Ireland) projects have also commenced, and TOP (temporary occupation permit) is expected in 2024 and 2025, added the group.
“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,” said Oxley’s executive chairman and chief executive, Ching Chiat Kwong.
Shares of Oxley last ended Thursday unchanged at S$0.174 before the group called for a trading halt on Friday morning, pending the results announcement. Oxley requested to lift the halt on trading from 10.15 am on the same day.
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