Smart (J) & Co Regulatory News (SMJ)

5 Nov 2009 11:02



J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2009

PRELIMINARY STATEMENT

ACCOUNTS

As forecast and due to the requirement of the International Financial Reporting Standards that any unrealised deficit in revalued property be included in the Income Statement, I am obliged to report for the first time in the Company's history a headline group loss before tax of £1,208,000. This compares with a profit for last year of £5,871,000 which also included an unrealised deficit 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 £4,468,000 (no property sales) for the year under review which compares with a figure for the previous year of £8,526,000 (including £3,890,000 profit from property sales).

The value of investment properties at the beginning of the year was £68,148,000 (cost £35,452,000). Additions during the year cost £3,577,000. The net deficit on the year end valuation was £5,779,000 leaving a value of £65,946,000 (cost £39,029,000).

The Board is recommending a Final Dividend of 9.35p nett making a total for the year of 13.85p nett which compares with 13.50p nett for the previous year. The dividends will cost the Company £1,165,000.

Loss adjusted for pension scheme deficit, dividends paid and fair value reserve when deducted from opening shareholders' funds brings the total equity of the Group to £92,307,000.

TRADING ACTIVITIES

Group turnover increased by 2%, own work capitalised increased by 88% and other operating income increased by 7%. Total Group profit decreased by 121%. Underlying Group profit excluding an unrealised deficit in revalued property decreased by 48%.

Turnover in contracting increased and a small profit was achieved. Private housing sales were negligible. Sales in precast concrete manufacture decreased and a small loss was made.

The mixed commercial and residential development in McDonald Road, Edinburgh and the second phase of our industrial development at Bilston Glen near Edinburgh are almost finished. The second office block at Glenbervie Business Park, Larbert is complete and 75% let.

FUTURE PROSPECTS

In spite of a slight erosion in tenant numbers our occupation levels are holding up quite well considering the general economic situation, and rental income is expected to increase slightly in the current year. There appears to be genuine interest in the commercial and industrial space we have built recently. Only time will tell if this interest translates into tenancies.

At McDonald Road the 25% affordable portion of the residential development has been handed over to a Housing Association. It is too early to say whether or not the promising start made to private house sales here will be maintained.

The amount of contract work in hand is less than at this time last year, prices have tumbled and it is clear that prospective contracts are thin on the ground.

Bearing the foregoing in mind, there are too many uncertainties to forecast the outcome for the current year with any degree of accuracy at this stage.

J. M. SMART

Chairman

CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2009

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

for the year ended 31st JULY 2009

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONSOLIDATED BALANCE SHEET as at 31st JULY 2009

CONSOLIDATED CASH FLOW STATEMENT for the year ended 31st JULY 2009

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 2006 and accordingly does not itself comply with IFRS or the Companies Act 2006.

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 2009 and the financial information included in this preliminary statement and the accounting policies disclosed in the 2008 Annual Report and Statement of Accounts.

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

The financial information for the year to 31st July 2008 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 S237 of the Companies Act 1985.

2. Dividends

The Company is proposing a final dividend of 9.35p per share for the year to 31st July 2009 which will cost the Company £943,000. No shareholders are waiving their right to the final dividend.

The dividend if approved will be paid on 21st December 2009 to shareholders on the Register at the close of business on 4th December 2009.