Oxley full-year profits halved to $146.2m

Lower revenue contribution from their UK project hit earnings hard.

Oxley Holdings’ profits shrunk 49% YoY to $146.2m for the full year that ended on June 30, from $285.02m profits recorded in the last fiscal year, an announcement revealed. Year-to-date (YTD) revenue also dropped 42% YoY to $686.07m in FY2019 from $1.19b previously.

In Q4, profits crashed 81% YoY to $25.59m from $137.7m in Q4 2018; whilst revenue fell by 57% YoY to $100.4m from $233.06m over the same period.

The decline in revenue and profits was mainly attributed to lower revenue contribution from its project in the United Kingdom, partially offset by higher fair value gains on investment properties.

Marketing and distribution costs, administrative expenses, and losses, also increased during the period. Finance costs also climbed 56% YoY to $100.79m from $65.6m previously as a result of a reported increase in the amount of bank loans to support acquisitions and property developments as well as higher interest rates over the last 12 months.

As at 30 June, Oxley had cash and cash equivalents of $474.4m and a gearing ratio of 2.05, compared with cash and cash equivalents of $255.0 million and a gearing ratio of 2.17 as at 30 June 2018.

The group recommended a final dividend of $0.0068 per share for FY2019. Together with the interim dividend $0.0032 per share paid in May, the full year dividend is $0.01 per share.