Oxley Holdings posts 90% profit plunge to $3.56m in Q2

It was blamed on lower revenue contribution from the development project in the UK.

Property developer Oxley Holdings saw its profit plummeted 90% YoY to $3.56m in Q2 2020 from $35.05m in 2018, a bourse filing revealed. Likewise, its revenue dipped 12% YoY to $311.41m from $355.48m over the same period.

It was blamed on lower revenue contribution from the development project in the UK, despite the increase in revenue from the Singapore and Dublin projects, and 3-month revenue contribution from a wholly-owned subsidiary in Australia.

Gross profit margin for Q2 2020 slipped one percentage point, because of lower margins from the residential project in Dublin, the new subsidiary in Australia and certain Singapore development projects.

Furthermore, the group also posted a 54% YoY plunge in profits for H1 2020 to $15.72m from $49.17m, despite the 13% YoY jump in revenue to $525.8m. Oxley stated that it was dragged by higher administrative expenses from its new Australia subsidiary, lower other gains attributable to lower fair value gain on revaluation of investment properties and foreign exchange gain on translation of foreign currency denominated balances, and higher finance costs on the borrowings to finance the Group’s development and investment projects.

Earnings per share of 0.38 cents, which is lower than 0.85 Singapore cents in H1 2019.

As at the end of January 2020, the group had total unbilled contract value of $3.3b, of
which approximately $2.3b are from projects in Singapore. Oxley had sold 69% or units of its SIngapore properties for a collective consideration of $3b. The Addition and Sea Pavilion
Residences were 100% sold.

Meanwhile, its hotels on Stevens Road recorded higher revenue per available room of 15% and
gross operating profit of 36% in H1 2020. However, the group noted that the outbreak has significantly reduced visitor arrivals and dampened demand for hotel rooms and functions rooms that cater to meetings, incentives, conferencing and exhibitions, and related activities.