Smart (J) & Co Regulatory News (SMJ)

J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2015

PRELIMINARY STATEMENT

ACCOUNTS

Headline Group profit for the year before tax, including an unrealised deficit in revalued property as required by the International Financial Reporting Standards came out higher than anticipated at £3,544,000 compared with £1,207,000 for last year. If the impact of revalued property is disregarded, then a truer reflection of Group performance emerges in the form of an underlying profit before tax for the year under review of £3,755,000 (including £1,318,000 profit from property sales and joint venture property sales) which compares with the figure for underlying profit last year of £1,764,000 (no property sales but including £1,299,000 profit from the sale of our listed stock market investment portfolio).

The Board is recommending a Final Dividend of 2.10p nett making a total for the year of 3.02p nett which compares with 2.96p nett for the previous year. After waivers by members holding over 50% of the shares, the Final Dividend will cost the Company no more than £426,000.

TRADING ACTIVITIES

Group construction activities carried out including private residential sales decreased by 13%. Disregarding private residential sales Group construction activities increased by 40%. Own work capitalised decreased by 63%. Group revenue decreased by 9% and headline Group profit increased by almost threefold. Underlying Group profit excluding the unrealised deficit in revalued property increased by 113%.

Turnover in contracting was considerably more than last year and the loss was reduced. As forecast private residential sales were substantially less than the previous year. Sales in precast concrete manufacture were marginally up on last year and a small profit was achieved.

The two large mixed social housing and private residential developments at Seafield Street and Pilton Drive, Edinburgh, referred to in the last annual report are proceeding satisfactorily. A second phase of social housing has commenced at Pilton Drive.

Occupancy levels at our industrial estates remain satisfactory. Whilst occupancy levels at our commercial office premises continue to struggle, the level of interest is now more encouraging.

FUTURE PROSPECTS

Work in hand in contracting is less than at this time last year, although there is a reasonable prospect of more work in the short to medium term. As has become the norm prices for this work are highly competitive.

Private residential sales will be more than last year. The first phase of our industrial development which commenced recently at Bellshill Industrial Estate, Glasgow is attracting healthy interest. Property values remain buoyant, however writedowns in certain instances cannot be ruled out.

Taking the foregoing into account and the fragile state of the current economic recovery it is not possible at this stage to make an informed forecast of the outcome for the current year.

CONSOLIDATED INCOME STATEMENT

for the year ended 31st JULY 2015

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31st JULY 2015

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

as at 31st July 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31st JULY 2015

CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 31st JULY 2015

NOTES TO THE PRELIMINARY STATEMENT

1. BASIS OF PREPARATION

This preliminary statement is an abridged version of the Group'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 2006 and accordingly does not itself comply with IFRS or the Companies Act 2006.

The Group 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 2015 and the financial information included in this preliminary statement and the accounting policies disclosed in the 2014 Annual Report and Statement of Accounts except for the adoption of the following standards, amendments to standards and interpretations which became mandatory for the first time for the financial year to 31st July 2015:

· IAS 32 (amended): Financial Instruments: Presentation.

· IAS 36 (amended): Impairment of Assets.

· IAS 39 (amended): Financial Instruments: Recognition and Measurement.

· Amendments to IFRS 10: Consolidated Financial Statements, IFRS 11: Joint Ventures and IFRS 12: Disclosures of Interests in Other Entities in relation to Investment Entities (transition guidance).

· IFRIC 21: Levies.

The adoption of these standards, amendments to standards and interpretations had no material impact on the Group's financial statements but resulted in minor changes in terms of disclosure.

The consolidated financial statements are prepared under the historical cost convention with the exception of investment properties and available for sale financial assets which are recognised at fair value and, are prepared on a going concern basis.

The financial information for the year to 31st July 2014 is derived from the statutory accounts for that year which were submitted to the Registrar of Companies and upon which the Company's auditors provided an unqualified audit report and which did not contain a statement under S498 of the Companies Act 2006.

2. DIVIDENDS

The Company is proposing a final dividend of 2.10p per share for the year to 31st July 2015 which, after waivers, will cost the Company no more than £426,000.

The dividend if approved will be paid on 21st December 2015 to shareholders on the Register at the close of business on 27th November 2015.