Smart (J) & Co Regulatory News (SMJ)

23 Apr 2007 13:05

Smart(J.)&Co(Contractors) PLC23 April 2007 J SMART & CO (CONTRACTORS) PLC INTERIM REPORT 6 MONTHS TO 31 JANUARY 2007 CHAIRMAN'S REVIEW INTERIM REPORT Unaudited Group profits for the six months to 31st January 2007 amounted to£4,194,000 compared with profits of £3,026,000 for the corresponding period lastyear. Turnover decreased by 25%. Turnover and own work capitalised combined decreased by 5%. The 39% increase in profits before tax compared with the corresponding periodlast year is entirely due to our share of the large increase in profits from thejoint venture company Edinburgh Industrial Estates Limited arising frominvestment property sales flagged up in the last annual report. Private housesales are similar to those in the last half year. The construction of the twoindustrial units at Cardonald Business Park and Helen Street, Glasgow and therefurbishment of the office development at Links Place, Edinburgh are welladvanced. INTERIM DIVIDEND The Board announces an interim dividend of 3.00p per share (2006, 3.00p) to bepaid on 9th July 2007 to shareholders on the register at close of business on15th June 2007. After waivers by members holding approximately 51% of theshares, the interim dividend will cost the Company £147,000. FUTURE PROSPECTS The amount of work in hand in contracting is the same as at this time last yearand more than at the end of last year. Most of the work has been negotiated. Private house sales will be less than last year. Investment values in industrial and commercial property have stabilised andnegligible growth is anticipated this year. Accordingly, the significant boostthat the recent requirement to book unrealised profits in revalued property gaveto the profit figures for the last two financial years will not occur this year. The contribution from our share of joint venture profits in the half year underreview will not be repeated in the second half. Bearing the foregoing in mind and subject to unforeseen or exceptionalcircumstances, it is anticipated that profit for the full year will be not lessthan £6,000,000. 23rd April 2007 J.M. SMART Chairman CONSOLIDATED INCOME STATEMENT Notes 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000REVENUE 9,610 12,843 26,149Own work capitalised 2,617 49 98 ------ ------ ------ 12,227 12,892 26,247Cost of sales (9,514) (10,771) (21,378) ------ ------- ------- GROSS PROFIT 2,713 2,121 4,869Other operating income 2,387 3,103 5,819Net operating expenses (3,159) (2,569) (5,307) ------ ------ ------OPERATING PROFIT BEFOREPROFITS ONSALE AND NET REVALUATION GAINS ON INVESTMENT PROPERTIES 1,941 2,655 5,381Profit arising on sale ofinvestment properties 91 - 899Net gain on valuation ofinvestment properties - - 5,546 ------- ------ ------ OPERATING PROFIT 2,032 2,655 11,826Share of profits in Joint Ventures 1,889 206 1,651Income from investments 26 27 84Decrease in amount written offinvestments - 21 -Profit/(Loss) on sale ofinvestments 77 - (40)Finance income 286 182 382Finance costs (116) (65) (143) ----- ----- ------PROFIT BEFORE TAX 4,194 3,026 13,760Taxation 4 (1,258) (908) (3,131) ------ ----- ------PROFIT ATTRIBUTABLE TO EQUITYSHAREHOLDERS 2,936 2,118 10,629 ======= ======= ========EARNINGS PER SHARE - BASIC ANDDILUTED 6 29.12p 21.01p 105.43p ======== ======== ========= CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE Notes 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000Actuarial loss recognised ondefined benefit pension schemes - - (1,538)Deferred taxation on actuarial loss - - 461 ----- ----- -----NET DEFICIT RECOGNISEDDIRECTLY IN EQUITY - - (1,077)Profit for the period 2,936 2,118 10,629 ------- ------- --------TOTAL RECOGNISED INCOME ANDEXPENSE FOR THE PERIOD 2,936 2,118 9,552 ======= ======= =======ATTRIBUTABLE TO EQUITY SHAREHOLDERS 2,936 2,118 9,552 ======= ======= ======= CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Notes 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000TOTAL RECOGNISED INCOME ANDEXPENSE FOR THE PERIOD 2,936 2,118 9,552Fair value adjustment net of tax 49 - 177Dividends 5 (483) (468) (615) ------ ------ ------ 2,502 1,650 9,114Opening shareholders' funds 84,080 74,597 74,597Adoption of IAS32 and 39 - - 369 ------ ------ ------Closing shareholders' funds 86,582 76,247 84,080 ======== ======== ======== CONSOLIDATED BALANCE SHEET Notes 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000NON-CURRENT ASSETSProperty, plant and equipment 5,099 1,564 2,566Investment properties 75,601 73,825 77,436Investments in Joint Ventures 6,394 3,317 4,604Financial assets 1,686 - 1,499Other receivables 2,796 2,056 2,796Deferred tax assets 2,531 - 2,531 -------- -------- -------- 94,107 80,762 91,432 -------- -------- --------CURRENT ASSETSInventories 3,615 4,758 2,305Other investments - 1,039 -Trade and other receivables 2,975 3,401 2,704Cash and bank 8,449 5,039 10,251 ------- ------- -------- 15,039 14,237 15,260 -------- -------- --------TOTAL ASSETS 109,146 94,999 106,692 ======== ======== ========NON-CURRENT LIABILITIESRetirement benefit obligations 8,201 7,028 8,201Deferred tax liabilities 9,754 6,768 9,734 ------- ------- ------- 17,955 13,796 17,935 ------- ------- -------CURRENT LIABILITIESTrade and other payables 3,351 3,965 3,331Current tax liabilities 1,258 991 1,346 ------- ----- ------- 4,609 4,956 4,677 ------- ------- -------TOTAL LIABILITIES 22,564 18,752 22,612 ======= ======= =======NET ASSETS 86,582 76,247 84,080 ======= ======= =======EQUITYCalled up share capital 1,008 1,008 1,008Fair value reserve 542 - 473Retained earnings 85,032 75,239 82,599 ------- ------- -------TOTAL EQUITY 86,582 76,247 84,080 ======= ======= ======= CONSOLIDATED CASH FLOW STATEMENT Notes 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000Cash flows from operatingactivities 7 594 2,040 5,551Tax paid on profits (1,346) (590) (1,520) ------- ------- -------NET CASH FLOW FROM OPERATINGACTIVITIES (752) 1,450 4,031 ------- ------- -------CASH FLOWS FROM INVESTINGACTIVITIESPurchase of property, plantand equipment (189) (348) (662)Purchase of investment properties (29) (21) (27)Sale of property, plant andequipment 21 19 50Sale of investment properties 2,020 2,443 5,119Expenditure on own work capitalised (2,617) (49) (98)Purchase of investments (210) - (369)Proceeds of sale of investments 168 - 456Interest received 269 - 353Interest paid - (1) (1) ------ ------ ------NET CASH USED IN INVESTINGACTIVITIES (567) 2,043 4,821 ------- ------- -------CASH FLOWS FROM FINANCINGACTIVITIES --- ---Dividends paid (483) (468) (615) ------- ------- -------NET CASH USED IN FINANCINGACTIVITIES (483) (468) (615) ------- ------- -------INCREASE IN CASH, CASHEQUIVALENTS AND BANK (1,802) 3,025 8,237 ------- ------- -------CASH, CASH EQUIVALENTS ANDBANK AT BEGINNING OF PERIOD 10,251 2,014 2,014 ------- ------- -------CASH, CASH EQUIVALENTS ANDBANK AT END OF PERIOD 8,449 5,039 10,251 ======= ======= ======== NOTES TO INTERIM FINANCIAL STATEMENTS 1. BASIS OF PREPARATION These interim financial statements do not constitute statutory accounts asdefined in Section 240 of the Companies Act 1985. The statutory financial statements for the year to 31st July 2006 have beenfiled with the Registrar of Companies and a copy may be obtained from CompaniesHouse. These have been audited and contain an unqualified audit opinion and donot contain a statement under Sections 237(2) or (3) of the Companies Act 1985. 2. ACCOUNTING POLICIES The interim financial statements have been prepared under the historical costconvention. The accounting policies adopted are consistent with those followed in thepreparation of the group's annual financial statements for the year ended 31stJuly 2006, with the exception of the following policies regarding the accountingfor pension scheme deficits and investment properties revaluations. For the interim accounts the assets and liabilities of the pension scheme areestimated to be unchanged from the values included at the previous year end. In accordance with long standing practice, the group's investment properties arerevalued annually on 31st July each year. No revaluation adjustment is made inthe interim financial statements. 3. SEGMENTAL INFORMATION The group's primary basis of segmentation is by activities, all constructionwork relates to activities in Scotland. Inter Total Segment External Profit attributable to Revenue Revenue Revenue equity shareholders £000 £000 £000 £000 £000 £00031st JANUARY 2007(Unaudited)Construction activities 12,227 (2,617) 9,610 914 - -Investment activities 2,387 - 2,387 1,118 - -Joint Ventures - - - 1,889 - - ------ ------ ------ ------- --- --- 14,614 (2,617) 11,997 3,921 - - ------ ------ ------ ------- --- --- 31st JANUARY 2006(Unaudited)Construction activities 12,892 (49) 12,843 - 484 -Investment activities 3,103 - 3,103 - 2,171 -Joint Ventures - - - - 206 - ------ ------ ------ --- ----- --- 15,995 (49) 15,946 - 2,861 - ------ ------ ------ --- ----- ---31st JULY 2006(Audited) Construction activities 26,247 (98) 26,149 - - 1,694Investment activities 5,819 - 5,819 - - 10,132Joint Ventures - - - - - 1,651 ------ --- ------ --- --- ------- 32,066 (98) 31,968 - - 13,477 ------ ---- ------ --- --- -------RESULT 3,921 2,861 13,477Finance income 389 230 466Finance cost (116) (65) (183) ------- ------ -------PROFIT BEFORE TAX 4,194 3,026 13,760Taxation (1,258) (908) (3,131) ------- ------ -------PROFIT ATTRIBUTABLE TOEQUITY SHAREHOLDERS 2,936 2,118 10,629 ======= ======= ======= 4. TAXATION The tax charge for the 6 months to 31st January 2007 is based on the corporationtax rate at 30% (2006, 30%). 5. DIVIDENDS 6 Months 6 Months Year Ended Ended Ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000ORDINARY DIVIDENDS2006 Final dividend declared of 9.80pper share 483 - -2006 Interim dividend declared of3.00p per share - - 1472005 Final dividend of 9.50p per share - 468 468 ----- ----- ----- 483 468 615 ===== ===== ===== Certain shareholders holding approximately 51% of the shares have waived theirrights to the interim and final dividends paid for the years to 31st July 2005and 31st July 2006. The interim dividend of 3.00p per share for the year to 31st July 2007 will bepaid on 9th July 2007 to shareholders on the register at 15th June 2007. Afterwaivers by members holding approximately 51% of the shares the interim dividendwill cost the company £147,000. 6. EARNINGS PER SHARE Profit attributable Basic to equity Earnings shareholders per share £0006 months to 31st January 2007 2,936 29.12p ======= =======6 months to 31st January 2006 2,118 21.01p ======= =======Year to 31st July 2006 10,629 105.43p ======= ======= Basic earnings per share are calculated by dividing the profit attributable toequity shareholders by 10,082,000 shares, the number of ordinary shares in issueduring the period. There is no difference between basic and diluted earnings per share. 7. RECONCILIATION OF OPERATING PROFIT TO CASH FLOWS FROM OPERATING ACTIVITIES 6 Months 6 Months Year ended ended ended 31.1.07 31.1.06 31.7.06 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Profit before tax 4,194 3,026 13,760Share of profits from Joint Ventures (1,889) (206) (1,651)Depreciation 204 200 488Unrealised revaluation gains oninvestment properties - - (5,546)Gain on sale of property, plant andequipment (17) (6) (14)Gain on sale of investment properties (91) (213) (899)(Gain)/Loss on sale of investments (77) (54) 40Amounts written back to investments - (21) -Change in retirement benefits - - (365)Interest received (269) - (353)Interest received by Joint Ventures (17) (3) (7)Interest paid - 1 1Interest paid by Joint Ventures 115 65 142Proceeds of sale of investments - 194 -Purchase of investments - (120) -Change in inventories (1,309) 166 1,619Change in receivables - current (270) (635) 62Change in receivables - non current - (400) (1,140)Change in payables 20 46 (586) ------- ------- -------NET CASH GENERATED FROM OPERATIONS 594 2,040 5,551 ======= ======= ======= This information is provided by RNS The company news service from the London Stock Exchange