Final Results

RNS Number : 2661H

Smart(J.)&Co(Contractors) PLC

03 November 2008

 



J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2008

PRELIMINARY STATEMENT

ACCOUNTS

Group profits for the year before tax, including an unrealised deficit in revalued property, as required by the International Financial Reporting Standards, were less than last year turning out at £5,849,000.  This compares with the figure for last year of £8,144,000 which includes an unrealised gain 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 £8,504,000 (including £3,890,000 profit from property sales) for the year under review which would compare with a figure for the previous year of £6,200,000 (including £2,129,000 profit from property sales).

The Board is recommending a Final Dividend of 10.50p nett making a total for the year of 13.50p nett which compares with 13.15p nett for the previous year. After waivers by members holding approximately 51% of the shares, the Dividends will cost the Company £664,000.

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 £97,314,000.

TRADING ACTIVITIES

Group turnover increased by 27%, own work capitalised decreased by 53% and other operating income increased by 4%. Total Group profits decreased by 28%. Underlying Group profits excluding an unrealised deficit in revalued property increased by 37%.

Turnover in contracting increased but a small loss was sustained. Private housing sales declined again. Sales in precast concrete manufacture increased slightly and a small profit was made.

The mixed commercial and residential development in McDonald Road, Edinburgh continues apace. We have completed the residential joint venture with Kiltane Developments Ltd (formerly Keane Developments Ltd) at Duff Street, Edinburgh. Over 50% of the flats have been sold.

FUTURE PROSPECTS

Rental income is expected to increase.

We have almost completed the second and final phase of our joint venture with Walker Group at Prestonfield Park, 
Edinburgh comprising five industrial units, four of which are let or pre-let and one of which is partly let.

We have commenced a second speculative office block at Glenbervie Business Park, Larbert and a medium sized speculative industrial unit which is capable of sub-division into four smaller units at Bilston Glen, near Edinburgh.

The amount of contract work in hand is more than at this time last year. The majority of this work has been obtained on a negotiated and/or design and construct basis and the balance by traditional competitive tender, however, costs have been rising significantly. Private house sales have stalled.

These are uncertain times which make forecasting difficult. However, disregarding the impact on the Income Statement of including unrealised gains/deficits in revalued property, I anticipate that the underlying profit for the current year will be less than last year.

J. M. SMART

Chairman

CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2008

		2008		2007
		£000		£000
Revenue		25,416		19,977
Own work capitalised		2,157		4,579
		27,573		24,556
Cost of sales		(24,447)		(21,464)
Gross Profit		3,216		3,092
Other operating income		5,228		5,024
Net operating expenses		(5,101)		(5,033)
Operating Profit before profits on sale and net
revaluation gains on investment properties		3,253		3,083
Profit arising on sale of investment properties		3,890		627
Net (deficit)/gain on valuation of investment properties		(2,655)		1,944
Operating Profit		4,488		5,654
Share of profits in Joint Ventures		45		1,800
Income from investments		79		63
Profit on sale of investments		33		95
Finance income		1,358		851
Finance costs		(154)		(319)
Profit before tax		5,849		8,144
Taxation		(518)		(1,412)
Profit attributable to equity shareholders		5,331		6,732
Earnings per share - Basic and Diluted		52.88p		66.77p

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

for the year ended 31st JULY 2008

		2008		2007
		£000		£000
Actuarial gain recognised on defined benefit pension scheme		1,381		2,755
Deferred taxation on actuarial gain		(387)		(826)
Net gain recognised directly in equity		994		1,929
Profit for period		5,331		6,732
Total recognised income and expense for the period		6,325		8,661
Attributable to equity shareholders		6,325		8,661

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

		Share		Fair  Value		Retained
		Capital		Reserve		Earnings		Total
		£000		£000		£000		£000
As at 1st August 2006		1,008		473		82,599		84,080
Transfer between reserves		-		(125)		125		-
Total recognised Income and Expense		-		-		8,661		8,661
Fair value adjustment net of tax		-		24		-		24
Dividends		-		-		(630)		(630)
As at 31st July 2007		1,008		372		90,755		92,135
Total recognised Income and Expense		-		-		6,325		6,325
Fair value adjustment net of tax		-		(499)		-		(499)
Dividends		-		-		(647)		(647)
As at 31st July 2008		1,008		(127)		96,433		97,314

CONSOLIDATED BALANCE SHEET as at 31st JULY 2008

	2008		2007
	£000		£000
Non-current assets
Property, plant and equipment	4,333		2,537
Investment properties	68,149		72,545
Investments in Joint Ventures	2,067		1,996
Financial assets	1,533		1,695
Other receivables	3,176		2,176
Deferred tax asset	936		1,641
	80,194		82,590
Current assets
Inventories	8,184		7,635
Trade and other receivables	3,830		3,700
Cash and bank	18,390		16,468
	30,404		27,803
Total Assets	110,598		110,393
Non-current liabilities
Retirement benefit obligations	1,089		5,280
Deferred tax liabilities	5,944		7,843
	7,033		13,123
Current liabilities
Trade and other payables	5,518		4,265
Current tax liabilities	733		870
	6,251		5,135
Total Liabilities	13,284		18,258
Net Assets	97,314		92,135
Equity
Called up share capital	1,008		1,008
Fair value reserve	(127)		372
Retained Earnings	96,433		90,755
	97,314		92,135

CONSOLIDATED CASH FLOW STATEMENT year ended 31st JULY 2008

	2008		2007
	£000		£000
Profit before tax	5,849		8,144
Share of profits from Joint Ventures	(45)		(1,800)
Depreciation	533		483
Unrealised revaluation deficit/(gains) on investment properties	2,655		(1,944)
Gain on sale of property, plant and equipment	(32)		(68)
Gain on sale of investment properties	(3,890)		(627)
Profit on sale of financial assets	(33)		(95)
Change in retirement benefits	(2,810)		(166)
Interest received	(1,257)		(740)
Interest received by Joint Ventures	(101)		(111)
Interest paid	7		-
Interest paid by Joint Ventures	96		150
Change in inventories	(549)		(5,330)
Change in receivables - current	(130)		(376)
Change in receivables - non current	(1,000)		-
Change in payables	1,253		934
	546		(1,546)
Tax paid on profits	(2,070)		(2,346)
Net cash flow from operating activities	(1,524)		(3,892)
Cash flows from investing activities
Purchase of property, plant and equipment	(757)		(465)
Purchase of investment properties	(6)		(5)
Expenditure on own work capitalised - investment properties	(549)		(4,579)
Expenditure on own work capitalised - properties under construction	(1,608)		-
Sale of property, plant and equipment	69		79
Sale of investment properties	6,188		12,046
Purchase of financial assets	(639)		(282)
Proceeds of sale of financial assets	145		205
Interest received	1,257		740
Interest paid	(7)		-
Dividend received from Joint Venture	-		3,000
Net cash from investing activities	4,093		10,739
Cash flows from financing activities
Dividends paid	(647)		(630)
Net cash used in financing activities	(647)		(630)
Increase in cash, cash equivalents and bank	1,922		6,217
Cash, cash equivalents and bank at beginning of period	16,468		10,251
Cash, cash equivalents and bank at end of period	18,390		16,468

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 1985 and accordingly does not itself comply with IFRS or the Companies Act 1985.

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 2008 and the financial information included in this preliminary statement and the accounting policies disclosed in the 2007 Annual Report and Statement of Accounts.

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

The financial information for the year to 31st July 2007 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.

2. Dividends

	2008		2007
	£000		£000
Ordinary dividends
2008 Interim dividend of 3.00p per share	147		-
2007 Final dividend of 10.15p per share	500		-
2007 Interim dividend of 3.00p per share	-		147
2006 Final dividend of 9.80p per share	-		483
	647		630

The Company is proposing a final dividend of 10.50p per share for the year to 31st July 2008 which after waivers by members holding approximately 51% of the shares will cost the Company £517,000.

The dividend if approved will be paid on 22th December 2008 to shareholders on the Register at the close of business on 5th December 2008.

 

END

 

 

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