Oxley Holdings Limited Annual Report FY2024: Key Insights for Investors

Key Facts:

1. Revenue & Financial Performance:

   • The company recorded a total comprehensive loss of $80.7 million for FY2024. This includes a significant loss attributable to owners, amounting to $95.9 million.
   • Total equity declined from $938.7 million in FY2023 to $852 million in FY2024 due to the losses and expenses incurred during the year.

2. Dividends:

   • Oxley declared dividends for the year. However, there was a reduction in dividends compared to previous years. A total of $4.5 million in dividends was paid.

3. Debt Management:

   • Oxley reduced its overall debt, with a net decrease in total loans and borrowings from $1.52 billion to $1.24 billion. However, the company still maintains a high debt-to-capital ratio of 145%, reflecting significant leverage.

4. Treasury Shares:

   • The company continued its share buyback program, purchasing approximately 26.1 million shares during the year, reflecting confidence in its long-term valuation.

5. Key Activities to Improve Profitability:

   • There were efforts to streamline operations, such as the liquidation of subsidiaries and incorporation of new entities with non-controlling interests to optimize the group structure.
   • The company is actively managing its portfolio of investment properties and development projects, continuing with its core activities in property development, hotel management, and investments.

Investor Actions:

1. For Existing Shareholders:

   • Hold: While Oxley has recorded a loss this year, its active debt reduction and share buybacks signal long-term stability. Investors may choose to hold on to the stock if they believe in the company’s future recovery and management’s strategic direction to lower its debt and optimize its project portfolio.

2. For Potential Investors:

   • Buy: The current depressed share price, combined with management’s commitment to restructuring and potential future profitability improvements, might offer an opportunity for long-term gains. However, potential investors should be aware of the high gearing and recent losses, which suggest that recovery could be a longer-term scenario.

Special Notes for Investors:

• The company continues its share buyback strategy, which might provide support to the share price.
• Investors should take note of the company’s high debt levels, which, while decreasing, remain a concern in terms of liquidity and risk management.

Disclaimer: The above recommendations are based solely on the analysis of the provided annual report and should not substitute for personalized financial advice. Investors are encouraged to consult with a financial advisor to consider their individual financial situation before making any investment decisions.