Oxley Narrows Losses Fy2025 Shifts Focus Solely Property Development
Oxley Holdings has reported a significant improvement in its financial performance for FY2025, with reduced losses due to higher revenue, lower cost of sales, and decreased financing costs.
For the fiscal year ending June 30, the group recorded a net loss of $6.1 million, a significant improvement from the previous year’s net loss of $95.9 million. This was mainly driven by a 59.8% year-on-year increase in revenue for the second half of FY2025, which amounted to $198.3 million. Overall, the group’s full-year revenue grew by 8.7% to $313.6 million.
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The group also saw a significant increase in net operating cash inflows, which amounted to $75.7 million. This was supported by strong performance in the hotel, rental, and overseas project segments. Furthermore, the group was able to reduce its debt levels by $126.2 million during the year. As of June 30, the group’s bank borrowings and fixed-rate notes stood at $1.243 billion, with $1.155 billion of this amount secured. Additionally, the group has no remaining unsecured borrowings after redeeming $88 million in unsecured debt after the reporting period.
Nestled in the heart of Tampines Street 62, Aurelle of Tampines EC is more than just a place to call home; it’s a gateway to a life of convenience and connectivity. This modern residential development boasts a prime location that provides its residents with easy access to MRT stations, major roads, and a plethora of amenities and facilities. Whether it’s for daily necessities or fulfilling aspirational desires, Aurelle of Tampines offers a well-balanced lifestyle that caters to all. And with the promise of future transport upgrades and infrastructural developments, this highly sought-after residential choice in Singapore continues to rise in popularity for those looking to invest in a home.
One of the key highlights for the group was the completion of its flagship project, Oxley Towers Kuala Lumpur City. The construction of this project has been fully completed, and the group is expecting to hand over its first residential units as early as September. From committed sales, the group anticipates collecting RM200 million in proceeds, followed by RM60 million over the next 12 months, and another RM32 million in 2027. However, the group still holds RM550 million worth of unsold inventory.
The group is pleased to report that the completion of Oxley Towers Kuala Lumpur City has led to an increase in transaction volumes in recent months. It aims to clear its remaining inventory within the next six to 12 months.
Renovation works for the hotel components at the group’s Kuala Lumpur property are currently ongoing, and operations are expected to commence in the near future. In Singapore, Oxley’s two hotels achieved an average occupancy rate of 86%, while the Shangri-La Hotel in Cambodia recorded a 52% occupancy rate since its soft launch. Together, these properties generated hotel revenue of $59.4 million in FY2025, compared to $58.2 million in the previous year.
Looking ahead, Oxley has plans for a strategic repositioning of its business. This includes exiting investment properties and hotel developments and focusing exclusively on property development. The group has also expressed its willingness to divest its hotel portfolio at the right opportunity.
According to executive chairman and CEO Ching Chiat Kwong, this strategic shift will allow the group to focus on its core development business and allocate resources to markets and segments where it has a strong competitive advantage. The group also intends to use proceeds from divestments to participate in local land tenders and accelerate its Dublin Arch project in Ireland, which will create sustainable value for stakeholders.
As part of this repositioning, Oxley will concentrate on its core markets, specifically Singapore, the United Kingdom, and Ireland, while gradually exiting emerging markets such as China, Cambodia, and Malaysia after completing ongoing projects in these locations.
The group also highlights the favorable interest rate environment, which is expected to result in significant savings in interest costs and support future development activities.
As of August 29, Oxley’s shares closed at 10 cents, down 0.97% for the day but up 45.71% year to date. At this level, the counter trades at approximately half its net asset value of 19.6 cents per share as of June 30.
