Oxley Holdings's Q4 net profit down 41%

SINGAPORE -Property developer Oxley Holdings reported higher administrative expenses and a lower fair value gain on investment properties in the fourth quarter.

Net profit slumped 41 per cent to $41.5 million for the three months to Jun 30 compared with the same period last year. Revenue grew 36 per cent to $224.3 million.

Full-year net profit increased 6 per cent to $218.1 million, while revenue rose 37 per cent to $1.34 billion.

Turnover for the quarter was boosted by the handover of certain plots in The Royal Wharf Phase 1A, sales of units at two mixed-residential projects and rental income from investment properties.

There was also a $32.83 million drop in the share of profits from equity-accounted joint ventures and associates.

Other gains decreased by $39.5 million, mainly owing to a decrease in fair value gain on investment property of $60.17 million, partly offset by an increase in foreign exchange gains of $17.95 million, among other things.

Marketing and distribution expenses fell by $1 million owing to lower advertisement expenses and showflat expenses, while administrative expenses increased by $5.01 million.

There was an increase of $3.95 million for the executive directors' remuneration, a rise in salaries of $1.64 million, higher utilities costs of $510,000 and an increase in property tax of $470,000.

Quarterly earnings per share was 1.42 cents, compared with 2.4 cents a year ago, while net asset value was 35.71 cents as at June 30, compared with 26.79 cents a year ago.

Oxley has presence in 11 markets around the world.

Executive chairman and chief executive Ching Chiat Kwong said: "Operationally, we enhanced our profile as a strong property developer, expanded our presence overseas, and improved on our project pipeline.

"We further capitalised on our strengths by establishing more quality partnerships in various markets under the asset-light model, thereby maintaining capital efficiency."