Smart (J) & Co Regulatory News (SMJ)

3 Nov 2008 09:41



J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2008

PRELIMINARY STATEMENT

ACCOUNTS

Group profits for the year before tax, including an unrealised deficit in revalued property, as required by the International Financial Reporting Standards, were less than last year turning out at £5,849,000.  This compares with the figure for last year of £8,144,000 which includes an unrealised gain in revalued property. If the impact of revalued property on the figures is disregarded then a truer reflection of Group Performance emerges in the form of an underlying profit before tax of £8,504,000 (including £3,890,000 profit from property sales) for the year under review which would compare with a figure for the previous year of £6,200,000 (including £2,129,000 profit from property sales).

The Board is recommending a Final Dividend of 10.50p nett making a total for the year of 13.50p nett which compares with 13.15p nett for the previous year. After waivers by members holding approximately 51% of the shares, the Dividends will cost the Company £664,000.

Profit adjusted for pension scheme deficit, dividends paid and fair value reserve when added to opening shareholders' funds brings the total equity of the Group to £97,314,000.

TRADING ACTIVITIES

Group turnover increased by 27%, own work capitalised decreased by 53% and other operating income increased by 4%. Total Group profits decreased by 28%. Underlying Group profits excluding an unrealised deficit in revalued property increased by 37%.

Turnover in contracting increased but a small loss was sustained. Private housing sales declined again. Sales in precast concrete manufacture increased slightly and a small profit was made.

The mixed commercial and residential development in McDonald Road, Edinburgh continues apace. We have completed the residential joint venture with Kiltane Developments Ltd (formerly Keane Developments Ltd) at Duff Street, Edinburgh. Over 50% of the flats have been sold.

FUTURE PROSPECTS

Rental income is expected to increase.

We have almost completed the second and final phase of our joint venture with Walker Group at Prestonfield Park, Edinburgh comprising five industrial units, four of which are let or pre-let and one of which is partly let.

We have commenced a second speculative office block at Glenbervie Business Park, Larbert and a medium sized speculative industrial unit which is capable of sub-division into four smaller units at Bilston Glen, near Edinburgh.

The amount of contract work in hand is more than at this time last year. The majority of this work has been obtained on a negotiated and/or design and construct basis and the balance by traditional competitive tender, however, costs have been rising significantly. Private house sales have stalled.

These are uncertain times which make forecasting difficult. However, disregarding the impact on the Income Statement of including unrealised gains/deficits in revalued property, I anticipate that the underlying profit for the current year will be less than last year.

J. M. SMART

Chairman

CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2008

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

for the year ended 31st JULY 2008

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONSOLIDATED BALANCE SHEET as at 31st JULY 2008

CONSOLIDATED CASH FLOW STATEMENT year ended 31st JULY 2008

NOTES TO THE PRELIMINARY STATEMENT

1. Basis of Preparation

This preliminary statement is an abridged version of the Company's full consolidated accounts, which have not yet been filed with the Registrar of Companies and have not yet been reported on by the Company's auditors.

The financial information included in this preliminary statement does not include all of the disclosures required by International Financial Reporting Standards (IFRS) or the Companies Act 1985 and accordingly does not itself comply with IFRS or the Companies Act 1985.

The company prepares its annual consolidated financial statements in accordance with IFRS and its interpretations issued by the International Accounting Standards Board as adopted by the European Union. There are no differences in the accounting policies applied in the preparation of the consolidated financial statements for the year to 31st July 2008 and the financial information included in this preliminary statement and the accounting policies disclosed in the 2007 Annual Report and Statement of Accounts.

The consolidated financial statements are prepared under the historical cost convention with the exception of financial assets which are recognised at fair value.

The financial information for the year to 31st July 2007 is derived from the statutory accounts for that year which were submitted to the Registrar of Companies and upon which the Company's auditor provided an unqualified audit report and which did not contain a statement under S237 of Companies Act 1985.

2. Dividends

The Company is proposing a final dividend of 10.50p per share for the year to 31st July 2008 which after waivers by members holding approximately 51% of the shares will cost the Company £517,000.

The dividend if approved will be paid on 22th December 2008 to shareholders on the Register at the close of business on 5th December 2008.