Final Results

Smart(J.)&Co(Contractors) PLC
30 October 2006


J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2006

PRELIMINARY STATEMENT

ACCOUNTS
This is the first year in which the accounts have to be prepared in accordance
with the International Financial Reporting Standards. Group profits for the year
before tax turned out at £13,760,000 which compares with the restated figure for
the previous year of £15,991,000. Both of these figures include unrealised gains
in revalued property as required by the new accounting regime. If the impact of
revalued property on the figures is disregarded then a truer reflection of Group
Performance emerges in the form of £7,005,000 profit before tax (including
£899,000 profit from property sales) for the year under review which would
compare with a figure for the previous year of £5,514,000 (including £131,000
profit from property sales).
The Board is recommending a Final Dividend of 9.80p nett making a total for the
year of 12.80p nett which compares with 12.40p nett for the previous year. After
waivers by members holding approximately 51% of the shares, the Dividends will
cost the Company £630,000.
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 £84,080,000.

TRADING ACTIVITIES
Group turnover increased by 18%, own work capitalised was again negligible and
other operating income decreased by 4%. Total Group profits decreased by 14%.
Underlying Group profits excluding unrealised gains in revalued property
increased by 27%.
Turnover and profits in contracting increased. Sales and profits in private
housing declined. Sales in precast concrete manufacture remained static, however
continued pressure on sales and prices slightly increased losses.
We have commenced construction of a second large industrial unit at Cardonald
Business Park, Glasgow and a large prelet industrial unit in Helen Street,
Glasgow. Demolition and facade retention are progressing at Bridgeside Works, a
mixed commercial and residential development in McDonald Road, Edinburgh. The
upgrading and refurbishment operation at our large office development in Links
Place, Edinburgh referred to in last year's review is in full swing and is
attracting favourable tenant and market reaction.
The fourth and last phase of our joint venture development with EDI (Industrial)
Ltd at A1 Industrial Estate, Edinburgh comprising two industrial units, one of
which is prelet, is now underway.
Phase three of our joint venture development with EDI at Starlaw Industrial
Estate, Livingston, is now complete and let. Both of the A1 and Starlaw
developments are currently being marketed as investment sales.
Negotiations are still proceeding for two pre-lets at Prestonfield Park,
Edinburgh, our joint venture with Walker Group.

FUTURE PROSPECTS
We anticipate commencing our second office development for lease/sale at
Glenbervie Business Park near Stirling in the next calendar year. Rental income
is expected to decrease.
The amount of contracting work in hand is less than at this time last year. As
before the majority of this work has been obtained on a negotiated and/or design
and construct basis and the balance by traditional competitive tender. Turnover
in contracting is expected to be down. Private house sales are again not
expected to be significant this year.
Subject to the effect of unrealised gains in revalued property, profit from
property sales and unforeseen or exceptional circumstances, it is anticipated
that profit for the current year will be less than last year.
                                                                     J. M. SMART
                                                                        Chairman







CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2006

                                                                      Restated
                                      2006                                2005
                                      £000                                £000


Revenue                             26,149                              22,180
Own work
capitalised                             98                                  20
                             ---------------                      --------------
                                                                           
                                    26,247                              22,200

Cost of sales                      (21,378)                            (17,915)
                             ---------------                     ---------------
                                                
                                                                          
Gross Profit                         4,869                               4,285

Other
operating
income                               5,819                               6,065
Net operating
expenses                            (5,307)                             (5,289)
                             ---------------                     ---------------
                                              
                                                                           
Operating
Profit before
profits on
sale and net
revaluation
gains on
investment
properties                           5,381                               5,061

Profit arising
on sale of
investment
properties                             899                                 131
Net gain on
valuation of
investment
properties                           5,546                              10,036
                             ---------------                     ---------------
                                                 
                                                                            
Operating
Profit                              11,826                              15,228

Share of
profits in
Joint Ventures                       1,651                                 848
Income from
investments                             84                                  49
Loss on sale
of investments                         (40)                                  -
Decrease in
amount written
off
investments                              -                                  40
Finance income                         382                                 131
Finance costs                         (143)                               (305)
                             ---------------                     ---------------
                                               
                                                                            
Profit before
tax                                 13,760                              15,991

Taxation                            (3,131)                             (4,277)

                            ---------------                      ---------------
                                                
                                                                            
Profit
attributable
to equity
shareholders                        10,629                              11,714
                            ===============                      ===============
                                                
                                               

Earnings per
share - Basic
and Diluted                         105.43p                             116.19p
                             ===============                     ===============
                                               
                   



CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

for the year ended 31st July 2006

                                                                      Restated
                                      2006                                2005
                                      £000                                £000

Actuarial loss
recognised on
defined
benefit
pension
schemes                             (1,538)                             (1,035)
Deferred
taxation on
actuarial loss                         461                                 310
                             ---------------                     ---------------
                                              
                                        
Net deficit
recognised
directly in
equity                              (1,077)                               (725)
Profit for the
period                              10,629                              11,714
                             ---------------                     ---------------
                                               
                                              
Total
recognised
income and
expense for
the period                           9,552                              10,989
                             ===============                     ===============
                                              
                           

Attributable
to equity
shareholders                         9,552                              10,989
                             ===============                     ===============
                                              
                                  



STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY



                 Share Capital      Fair Value        Retained         Total
                                       Reserve        Earnings
                        £000            £000            £000            £000
At 1st August
2004                   1,008               -          63,193          64,201
Total
recognised
Income and
Expense                    -               -          10,989          10,989
Dividends                  -               -            (593)           (593)
               --------------- --------------- --------------- ---------------
              
               
At 31st July
2005                   1,008               -          73,589          74,597

Adoption of
IAS 32 and 39              -             296              73             369
               --------------- --------------- --------------- ---------------
           

Opening equity
restated after
adoption of
IAS 32 and 39          1,008             296          73,662          74,966
               =============== =============== =============== ===============
               
              

Total
recognised
Income and
Expense                    -               -           9,552           9,552
Fair value
adjustment net
of tax                     -             177               -             177
Dividends                  -               -            (615)           (615)
               --------------- --------------- --------------- ---------------
               
               
At 31st July
2006                   1,008             473          82,599          84,080
               =============== =============== =============== ===============
              
              



CONSOLIDATED BALANCE SHEET as at 31st July 2006

                                                                      Restated
                                   2006                                   2005
                                   £000                                   £000

Non-current assets
Property,
plant and
equipment                         2,567                                  1,428
Investment
properties                       77,436                                 75,985
Investments in
Joint Ventures                    4,604                                  3,172
Financial
assets                            1,499                                      -
Other
receivables                       2,796                                  1,656
Deferred tax
asset                             2,531                                  2,108
                          ---------------                        ---------------
                                               
                                             
                                 91,433                                 84,349
                          ---------------                        ---------------
                                                
                                              

Current assets
Inventories                       2,305                                  4,924
Trade and
other
receivables                       2,704                                  2,766
Other
investments                           -                                  1,038
Cash and bank                    10,251                                  2,014
                          ---------------                        ---------------
                                              
                                                 
                                 15,260                                 10,742
                          ---------------                        ---------------
                                              
                                           

Total Assets                    106,693                                 95,091
                          ===============                        ===============
                                                
                                               

Non-current liabilities
Retirement
benefit
obligations                       8,201                                  7,028
Deferred tax
liabilities                       9,734                                  8,876
                          ---------------                        ---------------
                                                  
                                                 
                                 17,935                                 15,904
                          ---------------                        ---------------
                                               
                                             

Current liabilities
Trade and
other payables                    3,332                                  3,917
Current tax
liabilities                       1,346                                    673
                             ------------                        ---------------
                                                
                                               
                                  4,678                                  4,590
                            -------------                        ---------------
                                               
                                               

Total
Liabilities                      22,613                                 20,494
                          ===============                        ===============
                                                
                                              

Net Assets                       84,080                                 74,597
                          ===============                        ===============
                                             
                                              

Equity
Called up
share capital                     1,008                                  1,008
Fair value
reserve                             473                                      -
Retained
earnings                         82,599                                 73,589
                          ---------------                        ---------------
                                                  
                                                
Total Equity                     84,080                                 74,597
                          ===============                        ===============
                                               
                                              



CONSOLIDATED CASH FLOW STATEMENT year ended 31st July 2006

                                                                      Restated
                                                    2006                  2005
                                                    £000                  £000

Profit before
tax                                               13,760                15,991
Share of
profits from
Joint Ventures                                    (1,651)                 (848)
Depreciation                                         488                   434
Unrealised
revaluation
gains on
investment
properties                                        (5,546)              (10,036)
Gain on sale
of property,
plant and
equipment                                            (14)                  (23)
Gain on sale
of investment
properties                                          (899)                 (131)
Loss/(Gain) on
sale of
investments                                           40                   (22)
Amounts
written back
to investments                                         -                   (40)
Change in
retirement
benefits                                            (365)                  (56)
Interest
received                                            (353)                   (5)
Interest
received by
Joint Ventures                                        (7)                   (3)
Interest paid                                          1                    38
Interest paid
by Joint
Ventures                                             143                    99
Proceeds of
sale of
investments                                            -                   114
Purchase of
investments                                            -                  (250)
Change in
inventories                                        1,619                  (359)
Change in
receivables -
current                                               62                  (690)
Change in
receivables -
non current                                       (1,140)                 (176)
Change in
payables                                            (588)                  110
                                           ---------------       ---------------
                                                 
                                                
                                                   5,550                 4,147
Tax paid on
profits                                           (1,520)               (1,299)
                                           ---------------       ---------------
                                                 
                                                 
Net cash flow
from operating
activities                                         4,030                 2,848
                                           ---------------       ---------------
                                               
                                               

Cash flows from investing activities
Purchase of
property,
plant and
equipment                                           (662)                 (385)
Purchase of
investment
properties                                           (26)                 (308)
Expenditure on
own work
capitalised                                          (98)                   69
Sale of
property,
plant and
equipment                                             50                   386
Sale of
investment
properties                                         5,119                   (20)
Purchase of
investments                                         (369)                    -
Proceeds of
sale of
investments                                          456                     -
Interest
received                                             353                     5
Interest paid                                         (1)                  (38)
                                           ---------------       ---------------
                                               
                                                  
Net cash
from/(used in)
investing
activities                                         4,822                  (291)
                                           ---------------       ---------------
                                                  
                                                  
Cash flows from financing activities
Dividends paid                                      (615)                 (593)
                                           ---------------       ---------------
                                             
                                              
Net cash used
in financing
activities                                          (615)                 (593)
                                           ---------------       ---------------
                                          
                                          

Increase in
cash, cash
equivalents
and bank                                           8,237                 1,964
                                           ---------------       ---------------
                                                
                                              

Cash, cash
equivalents
and bank at
beginning of
period                                             2,014                    50
                                           ---------------       ---------------
                                              
                                                
Cash, cash
equivalents
and bank at
end of period                                     10,251                 2,014
                                           ===============       ===============
                                               
                                                




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 IFRS and accordingly does not itself
comply with IFRS.


The financial information for the year ended 31st July 2005 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.
The financial information has been restated for the year ended 31st July 2005 in
accordance with IFRS.


2.      Dividends

                                             2006                         2005
                                             £000                         £000
Ordinary dividends
2006 Interim
dividend of
3.00p per
share                                         147                            -
2005 Final
dividend of
9.50p per
share                                         468                            -
2005 Interim
dividend of
2.90p per
share                                           -                          143
2004 Final
dividend of
9.15p per
share                                           -                          450
                                    ---------------              ---------------
                                               
                                                
                                              615                          593
                                    ===============              ===============
                                              
                                                


The Company is proposing a final dividend of 9.80p per share for the year to
31st July 2006 which after waivers by members holding approximately 51% of the
shares will cost the Company £483,000.


The dividend if approved will be paid on 18th December 2006 to shareholders on
the Register at the close of business on 1st December 2006.











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