Higher interest charges put huge dent in earnings of Oxley Holdings
Published on May 14, 2014 10:48 PM
Boutique developer Oxley Holdings reported its net profit plunged by 92 per cent to $1 million in the third quarter.
This was despite a 46 per cent rise in revenue for the three months to March 31 to $103.1 million.
Higher revenue was mainly driven by revenue recognition, using the percentage of completion method, from progress made in the construction of 12 mixed-residential projects.
The company saw its finance costs ballooned to $9.9 million from $1.9 million previously, mainly due to increase in interest on medium term notes of $7.4 million and increase in amortisation of medium term notes issue expenses of $710,000, partly offset by the decrease in interest from bank borrowings of $180,000.
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