Oxley Narrows Losses Fy2025 Shifts Focus Solely Property Development
Oxley Holdings reported a significant improvement in its financial performance for the fiscal year 2025, with higher revenue, reduced cost of sales and financing expenses, resulting in a narrowed net loss of $6.1 million compared to $95.9 million in the previous year.
The group’s revenue for the second half of fiscal 2025 grew by 59.8% year-on-year to $198.3 million, bringing full-year revenue to $313.6 million, a 8.7% increase compared to last year. Explore properties for sale worldwide if you are interested in investing in overseas properties.
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Oxley Holdings generated strong net operating cash inflows of $75.7 million, driven by hotel revenue, rental income and progressive billings from its overseas projects. The company also managed to reduce its debt levels by $126.2 million during the year. As of June 30, bank borrowings and fixed-rate notes stood at $1.243 billion, with $1.155 billion secured. After redeeming $88 million in unsecured debt, the group has no remaining unsecured borrowings.
In addition, the flagship project Oxley Towers Kuala Lumpur City has been fully completed, with the first residential units expected to be handed over in September. The company is expected to receive RM200 million in proceeds from committed sales, followed by RM60 million over the next 12 months and RM32 million in 2027. However, the group still holds unsold inventory worth RM550 million.
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“Encouragingly, transaction volumes have picked up in recent months following the project’s completion,” said the developer. The company aims to clear its inventory within the next six to 12 months.
Renovation works on the hotel components of its Kuala Lumpur project are ongoing, with operations expected to begin in the near term. In Singapore, Oxley’s two hotels recorded a combined average occupancy rate of 86%, while the Shangri-La Hotel in Cambodia achieved 52% occupancy since its soft launch. Together, these properties generated hotel revenue of $59.4 million in fiscal year 2025, compared to $58.2 million in the previous year.
Looking ahead, Oxley plans to realign its business strategy by focusing exclusively on property development and exiting investment properties and hotel development. The company is open to divesting its hotel portfolio at the right opportunity.
“This strategic shift allows us to allocate resources into markets and segments where we have a competitive advantage,” said 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 capture growth opportunities and create sustainable value for our stakeholders.”
As part of its repositioning, Oxley will concentrate on its core markets of Singapore, the United Kingdom, and Ireland, while gradually exiting emerging markets like China, Cambodia, and Malaysia after completing its ongoing projects in these locations.
“The proceeds from these divestments will be strategically redeployed to support core development activities, including participating in local land tenders and accelerating the Dublin Arch project in Ireland,” the company stated.
Oxley also noted the favorable low-interest rate environment, which is expected to result in significant cost savings for future development projects. As of August 29, Oxley’s shares closed at 10 cents, a 0.97% drop for the day, but a 45.71% increase year-to-date. At this level, the counter trades at approximately half of its net asset value per share of 19.6 cents as of June 30.