Oxley Narrows Losses Fy2025 Shifts Focus Solely Property Development
Oxley Holdings saw a significant improvement in its financial performance for the 2025 fiscal year, reporting a narrowed net loss of $6.1 million compared to $95.9 million in the previous year. The impressive turnaround was driven by a 59.8% year-on-year increase in revenue for the second half of the year, reaching $198.3 million and contributing to a full-year revenue of $313.6 million, a strong 8.7% increase from the previous year.
The group’s success can be attributed to higher revenue, lower cost of sales, and reduced financing costs. Additionally, the group generated net operating cash inflows of $75.7 million, supported by hotel revenue, rental billings, and progressive billings from its overseas projects. This positive cash flow also allowed the group to further 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, of which $1.155 billion is secured. After the reporting period, the group also redeemed $88 million in unsecured debt, leaving it with no remaining unsecured borrowings. This demonstrates the group’s strong financial management and ability to reduce its debt burden.
One major milestone for Oxley was the completion of its flagship Oxley Towers Kuala Lumpur City project. The group has already begun the handover of its first residential units in September and expects to generate RM200 million in proceeds from its committed sales, followed by an additional RM60 million over the next 12 months and RM32 million in 2027. The group still holds RM550 million worth of unsold inventory, which it aims to clear within the next six to 12 months.
In addition, renovation works at its Kuala Lumpur hotel components are ongoing, and the group is looking to begin operations in the near future. In Singapore, Oxley’s two hotels achieved a combined average occupancy rate of 86%, while the recently launched Shangri-La Hotel in Cambodia recorded a 52% occupancy rate. These properties generated a total of $59.4 million in hotel revenue for the fiscal year, a slight increase from the previous year.
Moving forward, Oxley plans to strategically reposition its business by exiting investment properties and hotel development, and focusing solely on property development. This strategic shift will allow the group to concentrate its resources on markets and segments where it has a strong competitive advantage. The group is also open to divesting its hotel portfolio at the right opportunity.
Executive Chairman and CEO Ching Chiat Kwong emphasizes that this repositioning will enable the group to stay agile, seize growth opportunities, and create sustainable value for its stakeholders. With a renewed focus on its core markets of Singapore, the United Kingdom, and Ireland, Oxley also plans to gradually exit emerging markets, including China, Cambodia, and Malaysia, once its ongoing projects in these locations are completed.
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The group intends to use the proceeds from these divestments to support its core development activities, including participating in local land tenders and accelerating the Dublin Arch project in Ireland. With the current low interest rate environment, Oxley anticipates significant savings in interest costs, providing a favorable backdrop for future development.
As of August 29, Oxley’s shares closed at 10 cents, a 45.71% increase year-to-date. Despite this strong performance, the counter trades at approximately half of its June 30 net asset value of 19.6 cents per share. This presents an attractive investment opportunity for those looking to invest in overseas properties.