Smart (J) & Co Regulatory News (SMJ)

5 Nov 2007 15:56

Smart(J.)&Co(Contractors) PLC05 November 2007 J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIESACCOUNTS FOR THE YEAR ENDED 31st JULY 2007PRELIMINARY STATEMENT ACCOUNTS As forecast in the last annual report, group profits for the year before taxwere less than last year turning out at £8,144,000 which compares with thefigure for last year of £13,760,000. Both of these figures include unrealisedgains in revalued property as required by the International Financial ReportingStandards. If the impact of revalued property on the figures is disregarded thena truer reflection of Group Performance emerges in the form of £6,200,000 profitbefore tax (including £2,129,000 profit from property sales) for the year underreview which would compare with a figure for the previous year of £7,005,000(including £899,000 profit from property sales). The Board is recommending a Final Dividend of 10.15p nett making a total for theyear of 13.15p nett which compares with 12.80p nett for the previous year. Afterwaivers by members holding approximately 51% of the shares, the Dividends willcost the Company £648,000. Profit adjusted for pension scheme deficit, dividends paid and fair valuereserve when added to opening shareholders' funds brings the total equity of theGroup to £92,135,000. TRADING ACTIVITIES Group turnover decreased by 24%, own work capitalised increased substantiallyand other operating income decreased by 14%. Total Group profits decreased by41%. Underlying Group profits excluding unrealised gains in revalued propertydecreased by 11%. Turnover and profits in contracting decreased. Private housing sales declinedonce more. Sales in precast concrete manufacture increased slightly and a smallprofit was made. We completed the second large speculative Industrial Unit at Cardonald BusinessPark, Glasgow and the large pre-let Industrial Unit in Helen Street, Glasgowjust after the year end. Helen Street is now occupied. The mixed commercial andresidential development in McDonald Road, Edinburgh is proceeding. Therefurbishment of our large office development in Links Place, Edinburgh iscomplete and attracting steady interest. A1 Industrial Estate, Edinburgh (four phases) and Starlaw Industrial Estate,Livingston (three phases), both joint ventures with EDI (Industrial) Limited,were completed and sold during the year under review. FUTURE PROSPECTS Bearing in mind property disposals, rental income is expected to decrease. We have commenced the second and final phase of our joint venture with WalkerGroup at Prestonfield Park, Edinburgh, comprising five industrial units, threeof which are pre-let. Our residential joint venture with Keane Developments Limited at Duff Street,Edinburgh is well underway. Advance sales figures are promising. The amount of contract work in hand is more than at this time last year. Themajority of this work has been obtained on a negotiated and/or design andconstruct basis and the balance by traditional competitive tender. Private housesales are not expected to be significant. Bearing in mind the impact on the Income Statement of including unrealised gains/losses in revalued property, it is not possible at this stage to forecast thecurrent year's results with any accuracy. J. M. SMART Chairman CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2007 2007 2006 £000 £000Revenue 19,977 26,149Own work capitalised 4,579 98 ________ ________ 24,556 26,247 Cost of sales (21,464) (21,378) ________ ________ Gross Profit 3,092 4,869 Other operating income 5,024 5,819Net operating expenses (5,033) (5,307) ________ ________ Operating Profit before profits on sale and netrevaluation gains on investment properties 3,083 5,381 Profit arising on sale of investmentproperties 627 899Net gain on valuation of investmentproperties 1,944 5,546 ________ ________ Operating Profit 5,654 11,826 Share of profits in Joint Ventures 1,800 1,651Income from investments 63 84Profit/(Loss) on sale of investments 95 (40)Finance income 851 382Finance costs (319) (143) ________ ________ Profit before tax 8,144 13,760 Taxation (1,412) (3,131) ________ ________ Profit attributable to equity shareholders 6,732 10,629 ________ ________ Earnings per share - Basic and Diluted 66.77p 105.43p ________ ________ CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the year ended 31st JULY 2007 2007 2006 £000 £000 Actuarial gain/(loss) recognisedon defined benefit pension scheme 2,755 (1,538)Deferred taxation on actuarial(gain)/loss (826) 461 ________ ________Net gain/(deficit) recogniseddirectly in equity 1,929 (1,077) Profit for period 6,732 10,629 ________ ________ Total recognised income andexpense for the period 8,661 9,552 ________ ________ Attributable to equityshareholders 8,661 9,552 ________ ________ STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Share Fair Value Retained Capital Reserve Earnings Total £000 £000 £000 £000 As at 1st August 2005 1,008 296 73,662 74,966 Total recognised Income andExpense - - 9,552 9,552Fair value adjustment net of tax - 177 - 177Dividends - - (615) (615) ________ ________ ________ ________ As at 31st July 2006 1,008 473 82,599 84,080 ________ ________ ________ ________ Transfer between reserves - (125) 125 -Total recognised Income andExpense - - 8,661 8,661Fair value adjustment net of tax - 24 - 24Dividends - - (630) (630) ________ ________ ________ ________ As at 31st July 2007 1,008 372 90,755 92,135 ________ ________ ________ _______ CONSOLIDATED BALANCE SHEET as at 31st JULY 2007 2007 2006 £000 £000Non-current assetsProperty, plant and equipment 2,537 2,566Investment properties 72,545 77,436Investments in Joint Ventures 1,996 4,604Financial assets 1,695 1,499Other receivables 2,176 2,796Deferred tax asset 1,641 2,531 ________ ________ 82,590 91,432 ________ ________Current assetsInventories 7,635 2,305Trade and other receivables 3,700 2,704Cash and bank 16,468 10,251 ________ ________ 27,803 15,260 ________ ________ Total Assets 110,393 106,692 ________ ________ Non-current liabilitiesRetirement benefit obligations 5,280 8,201Deferred tax liabilities 7,843 9,734 ________ ________ 13,123 17,935 ________ ________ Current liabilitiesTrade and other payables 4,265 3,331Current tax liabilities 870 1,346 ________ ________ 5,135 4,677 ________ ________ Total Liabilities 18,258 22,612 ________ ________ Net Assets 92,135 84,080 ________ ________EquityCalled up share capital 1,008 1,008Fair value reserve 372 473Retained Earnings 90,755 82,599 ________ ________ 92,135 84,080 ________ ________ CONSOLIDATED CASH FLOW STATEMENT year ended 31st JULY 2007 2007 2006 £000 £000 Profit before tax 8,144 13,760Share of profits from Joint Ventures (1,800) (1,651)Depreciation 483 488Unrealised revaluation gains on investment properties (1,944) (5,546)Gain on sale of property, plant and equip (68) (14)Gain on sale of investment properties (627) (899)(Profit)/loss on sale of financial asset (95) 40Change in retirement benefits (166) (365)Interest received (740) (353)Interest received by Joint Ventures (111) (7)Interest paid - 1Interest paid by Joint Ventures 150 142Change in inventories (5,330) 1,619Change in receivables - current (376) 62Change in receivables - non current - (1,140)Change in payables 935 (586) ________ ________ (1,545) 5,551 Tax paid on profits (2,346) (1,520) ________ ________ Net cash flow from operating activities (3,891) 4,031 ________ ________ Cash flows from investing activitiesPurchase of property, plant and equipment (465) (662)Purchase of investment properties (6) (27)Expenditure on own work capitalised (4,579) (98)Sale of property, plant and equipment 79 50Sale of investment properties 12,046 5,119Purchase of financial assets (282) (369)Proceeds of sale of financial assets 205 456Interest received 740 353Interest paid - (1)Dividend received from Joint Venture 3,000 - ________ ________ Net cash from investing activities 10,738 4,821 ________ ________ Cash flows from financing activitiesDividends paid (630) (615) ________ ________ Net cash used in financing activities (630) (615) ________ ________ Increase in cash, cash equivalents and bank 6,217 8,237 ________ ________Cash, cash equivalents and bank at beginning of period 10,251 2,014 ________ ________Cash, cash equivalents and bank at end of period 16,468 10,251 ________ ________ NOTES TO THE PRELIMINARY STATEMENT 1. Basis of Preparation This preliminary statement is an abridged version of the Company's fullconsolidated accounts, which have not yet been filed with the Registrar ofCompanies and have not yet been reported on by the Company's auditors. The financial information included in this preliminary statement does notinclude all of the disclosures required by International Financial ReportingStandards (IFRS) or the Companies Act 1985 and accordingly does not itselfcomply with IFRS or the Companies Act 1985. The company prepares its annual consolidated financial statements in accordancewith IFRS and its interpretations issued by the International AccountingStandards Board as adopted by the European Union. There are no differences inthe accounting policies applied in the preparation of the consolidated financialstatements for the year to 31st July 2007 and the financial information includedin this preliminary statement and the accounting policies disclosed in the 2006Annual Report and Statement of Accounts. The consolidated financial statements are prepared under the historical costconvention with the exception of financial assets which are recognised at fairvalue. The financial information for the year to 31st July 2006 is derived from thestatutory accounts for that year which were submitted to the Registrar ofCompanies and upon which the Company's auditor provided an unqualified auditreport and which did not contain a statement under S237 the of Companies Act 1985. 2. Dividends 2007 2006 £000 £000 Ordinary dividends2007 Interim dividend of 3.00p per share 147 -2006 Final dividend of 9.80p per share 483 -2006 Interim dividend of 3.00p per share - 1472005 Final dividend of 9.50p per share - 468 ________ ________ 630 615 ________ ________ The Company is proposing a final dividend of 10.15p per share for the year to31st July 2007 which after waivers by members holding approximately 51% of theshares will cost the Company £500,000. The dividend if approved will be paid on 24th December 2007 to shareholders onthe Register at the close of business on 7th December 2007. This information is provided by RNS The company news service from the London Stock Exchange