(Alliance News) - Construction firm J Smart & Co Contractors PLC on Thursday said said its profit grew by a quarter in its most recently ended financial year but is unlikely to improve further due to the lull in contracting work.
The Edinburgh-headquartered company said pretax profit was GBP7.3 million in the year to the end of July, 25% higher than GBP5.8 million delivered a year ago, as revenue rose 85% to GBP16.0 million from GBP8.6 million.
J Smart & Co declared a final dividend of 2.24 pence a share, making a total payout for the year of 3.19p versus 3.16p paid a year earlier.
The company said its construction activities including private residential sales on continuing operations increased by 56%, but own work capitalised decreased by 92%.
In addition, J Smart & Co said occupancy levels in its industrial and office portfolio have improved. The total rent roll from the company's commercial property portfolio has increased by 15% since the last financial year end.
Looking ahead, the company said interest in its industrial estates remains robust, with continued rental growth through lettings of new stock and re-lettings/rent review settlements of existing stock.
"At this stage it is difficult to make an informed forecast for the outcome of the current year. However, due to the lull in contracting work and new private housing work this financial year, it seems unlikely that the underlying profit will improve," said Chair David Smart.
J Smart & Co shares were trading 1.3% higher in London on Thursday at 117.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Smart (J) & Co (SMJ)