Thanks to higher revenue, lower costs of sales and lower financing costs, Oxley Holdings has reduced its losses for FY2025.
In the year ended June 30, the company was $6.1 million in the red, a sharp drop from $95.9 million of losses incurred in the preceding FY2024.
Revenue for the half year ended June 30 was an increase of 59.8% y-o-y to $198.3 million, which brings its full year revenue to $313.6 million, an increase of 8.7% over the preceding FY2024.
In FY2025, Oxley Holdings generated net positive cash flows from operating activities of $75.7 million, which includes hotel revenue, rental billings, and overseas projects progress billings.
On the other hand, it has further reduced its debt load by $126.2 million. As at June 30, outstanding bank borrowing and fixed-rate notes totalled $1.243 billion, out of which $1.155 billion is secured. Having redeemed $88 million in unsecured debt after June 30, Oxley has no other unsecured debt.
Oxley says that the construction of Oxley Towers Kuala Lumpur City, its flagship development, is fully completed. It expects to maintain its sales momentum and the first residential units to be handed over as early as September.
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The company expects to collect RM200 million of sales proceeds, followed by a further RM60 million within the next 12 months from its committed sold units. Another RM32 million will be received in 2027. For now, Oxley retains some RM550 million worth of inventory.
"Encouragingly, transaction volumes have picked up in recent months on the back of the project’s construction completion," says Oxley, which aims to sell off everything in the next 6 to 12 months.
Renovation works for its KL hotels components are ongoing and the hotels will be operational "in the near term."
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In Singapore, its two hotels managed an average occupancy rate of 86% combined, while the Shangri-La Hotel in Cambodia achieved 52% since its soft launch. This helped generate hotel revenue of $59.4 million in FY2025 versus $58.2 million in the previous year.
Oxley plans a "strategic repositioning" of its business. Instead of engaging in investment properties and developing hotels, the company now wants to focus only on property development. With the "right opportunity", it will sell the hotel business.
“This strategic shift allows us to channel resources into markets and segments where we have a strong competitive advantage," says executive chairman and CEO Ching Chiat Kwong.
"By focusing on our core development business and recycling capital from divestments, we are positioning the group to stay agile, capture growth opportunities, and create sustainable value for our stakeholders,” he adds.
Also, it will focus on its key markets in Singapore, the United Kingdom, and Ireland, and gradually exit from emerging markets namely China, Cambodia and Malaysia when all its projects there are completed.
"Proceeds from these divestments will be strategically redeployed to support core development activities, including participating in local land bidding exercises and the acceleration of the Dublin Arch development in Ireland," says Oxley.
The company, citing the "prevailing low interest rate environment", believes this is a favourable backdrop for its future development activities, as it anticipates "significant" savings in interest costs.
Oxley shares closed at 10 cents on Aug 29, down 0.97% for the day but up 45.71% year to date.
At this level, the shares are trading at half its June 30 net asset value of 19.6 cents per share.
