Oxley Holdings posts record 1QFY14 net profit of $251m

As revenue blew up to $868m.

Homegrown lifestyle property developer Oxley Holdings Limited has delivered its most impressive set of results yet, with net profit attributable to shareholders soaring to a record $250.8 million for the three months ended 30 September 2013 (1QFY14), compared to just $6.6 million reported in the previous corresponding period (1QFY13).

Similarly, revenue for 1QFY14 surged to a whopping $686.0 million, from $50.0 million in 1QFY13. Earnings per share was 8.51 cents, versus 0.25 cents a year ago.

Mr Ching Chiat Kwong, Executive Chairman and CEO of Oxley said, “We are off to a good start for our financial year 2014, as we reaped the fruits of our labour in 1QFY14. We had worked hard to ensure the success of Oxley BizHub, our flagship lifestyle-industrial development, the first and largest of its kind in Singapore. Oxley Bizhub has since obtained its TOP, while our residential developments under construction continued to achieve good progress. Together, these have enabled us to report a strong set of results.”

Oxley’s strong 1QFY14 performance was mainly driven by revenue recognition, based on the completion of construction method, from its 728-unit industrial development, Oxley Bizhub. Revenue was also recognized, using the percentage of completion method, from progress made in the construction of 10 mixed-residential projects namely, Viva Vista, RV Point, Loft@Holland, Vibes@Kovan, Devonshire Residences, Suites@Braddell, Vibes@East Coast, The Promenade@Pelikat, Vibes@Upper Serangoon and Presto@Upper Serangoon.

As at 30 September 2013, total shareholder’s equity stood at $524.8 million, compared to $288.5 million as at 30 June 2013. Net asset value per share was 16.6 cents, versus 8.1 cents a year ago.

In view of its positive performance, Oxley has declared an interim one-tier tax exempt cash dividend of 3 cents per ordinary share. This amounts to approximately $88.4 million, and is equivalent to a dividend payout ratio of approximately 35%. For its outlook, the company said the property cooling measures introduced in Singapore the past months continue to soften overall demand in the local residential market. Oxley is hence adopting a prudent approach towards its local land acquisition strategy for the financial year 2014.

Bearing any unforeseen circumstances, more of Oxley’s fully-sold residential projects under construction are expected to obtain their TOP in the ensuing months, while construction progress made in the other residential developments should contribute positively to the Group’s revenue.

Oxley intends to develop its investment properties at Stevens Road and Tampines Industrial Crescent, even as it closely monitors the Singapore market for an opportune time to launch its three remaining pipeline residential projects located at Oxley Rise, Ang Mo Kio Street 66 and Joo Chiat Road.