Oxley reports fiscal 2H21 swung to net profit on higher sales, lower finance costs

The Mercure Hotel at Stevens Road, Singapore. Credit: Oxley HoldingsThe Mercure Hotel at Stevens Road, Singapore. Credit: Oxley Holdings

Oxley Holdings reported Thursday its fiscal second half net profit came in at S$9.48 million, swinging from a year-ago net loss of S$288 million on higher sales and lower finance costs.

Revenue for the fiscal second half increased 58 percent on-year to S$781.92 million, Oxley said.

“This was mainly due to higher revenue from the projects in Cambodia, Singapore and Ireland, partially offset by lower revenue from the project in the United Kingdom,” Oxley said.

Profit from continuing operations for the January-to-June period came in at S$45.96 million, swinging from a year-ago loss of S$281.68 million, Oxley reported in a filing to SGX.

Finance costs for the fiscal second half fell to S$57.29 million, down 15 percent on-year, mainly due to repayments of fixed rate notes and
bank borrowings, and drop in average interest rates, Oxley reported.

For the full fiscal year, Oxley reported net profit of S$49.51 million, swinging from a year-ago net loss of S$275.09 million, on revenue of S$1.36 billion, up 33 percent on-year.

Cautious outlook

Oxley issued a cautious outlook.

“With the restrictions still in place for foreign workers travelling from the non-exempted countries, the construction sector is facing manpower shortages and escalating costs, while restrained productivity from enhanced safe distancing measures may affect construction site progress,” Oxley said. “The group is managing the construction of the residential projects carefully to minimise disruption to the completion schedules.”

The U.K., Ireland and Cambodia are leaning toward easing lockdown restrictions, with construction and sales of London and Dublin projects substantially completed, and planning for two new development projects being finalised, Oxley said.

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

For the hospitality sector, Oxley noted strict border restrictions and health concerns will impede recovery.