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LONDON (Alliance News) - Property developer J. Smart & Co. (Contractors) PLC Thursday said it was "uncertain" about the current year and may report a loss for the full-year as profit dropped in its first-half.
The firm said contracting work remains difficult to obtain and although it has more work than this time last year it is "insufficient" for its needs.
The commercial, residential and industrial property developer, posted pretax profit of GBP441,000 for the six months ended January 31, compared with a GBP1.0 million, as revenue fell 30% to GBP8.5 million from GBP11.2 million a year earlier.
Scotland-focused J. Smart said contracting continues to be "tough" with group construction work carried out amounting to GBP9.0 million down from GBP13.0 million.
It said there is little doubt that the reduction in contracting revenue will significantly limit the recovery of overhead costs resulting in reduced underling profit or even a loss for the current year.
The company interim results, however, were also affected by a drop in operating profit before profit on the sale and net deficient valuation of investment properties of GBP245,000 compared with GBP711,000 a year earlier.
"The buoyant residential sales market looks set to continue, although our margins here are disappointing," the firm said.
J. Smart & Co. maintained its interim dividend at 0.92 pence per share, costing the firm GBP432,000.
The stock was trading at 94.80 pence Thursday afternoon, down 4.20 pence or 4.2%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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