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LONDON (Alliance News) - J Smart & Co PLC on Thursday said revenue halved in its most recent year due to falling sales, but property valuations led to an increase in profit.
Shares in the property firm were up 4.0% at 111.75 pence on Thursday.
Revenue came to GBP10.7 million for its year ended July 31, less than half the GBP22.9 million revenue the year before as its construction activities dropped.
J Smart made no private residential sales in its year and precast concrete manufacture sales fell as well.
J Smart posted a GBP5.3 million pretax profit, up 32% from GBP4.0 million, predominantly a result of a net surplus of GBP2.9 million on the valuation of its investment properties, up from only GBP614,000 the year prior.
J Smart maintains its view discounting its commercial property portfolio revaluations provides a "truer reflection" of its performance, which would provide an underlying pretax profit of GBP2.4 million, dropping from GBP3.4 million the year before.
The company did, however, make an unanticipated profit of GBP460,000 via its joint venture company, Duff Street Ltd. This is included in underlying figures.
Duff sold its residential flats after an off-market approach from a prospective buyer. The joint venture company is to be wound up "in due course".
J Smart will pay a final dividend per share of 2.21p, bringing the total for the year to 3.16p from 3.12p the year before.
According to David Smart, chairman of J Smart, current work-in-hand contracting is below the previous year and there can be no certainty of securing new contracting work, although there are "potential acquisitions and tender work" in the housing association sector.
Private housing sales will take place, and property valuation levels have improved over last year.
However, Smart said confidence in the housing and commercial property markets may stall on political uncertainty.
"At this stage it is difficult to make an informed forecast for the outcome for the current year, however it seems unlikely that the underlying profit will improve," the chairman said.