Final Results

RNS Number : 0261C

Smart(J.)&Co(Contractors) PLC

05 November 2009

 



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

		2009		2008
		£000		£000
Group construction work carried out and share of Joint Ventures' turnover		29,616		29,169
Less: Share of Joint Ventures' turnover		(165)		(1,596)
Less: Own construction work capitalised		(4,050)		(2,157)
Revenue		25,401		25,416
Cost of sales		(21,707)		(22,290)
Gross Profit		3,694		3,126
Other operating income		5,568		5,228
Net operating expenses		(5,230)		(5,101)
Operating Profit before profits on sale and net
revaluation deficit on investment properties		4,032		3,253
Profit arising on sale of investment properties		-		3,890
Net deficit on valuation of investment properties		(5,779)		(2,655)
Operating (Loss)/Profit		(1,747)		4,488
Share of profits in Joint Ventures		217		72
Income from available for sale financial assets		66		79
(Loss)/profit on sale of available for sale financial assets		(55)		33
Impairment of available for sale financial assets		(365)		-
Finance income		677		1,257
Finance costs		(1)		(58)
(Loss)/Profit before tax		(1,208)		5,871
Taxation		50		(540)
(Loss)/Profit attributable to equity shareholders		(1,158)		5,331
(Loss)/Earnings per share - Basic and Diluted		(11.49)p		52.88p

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

for the year ended 31st JULY 2009

		2009		2008
		£000		£000
Actuarial (loss)/gain recognised on defined benefit pension scheme		(4,553)		1,381
Deferred taxation on actuarial loss/(gain)		1,275		(387)
Net (deficit)/surplus recognised directly in equity		(3,278)		994
(Loss)/profit for period		(1,158)		5,331
Total recognised income and expense for the period		(4,436)		6,325
Attributable to equity shareholders		(4,436)		6,325

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

		Share		Fair  Value		Retained
		Capital		Reserve		Earnings		Total
		£000		£000		£000		£000
As at 1st August 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
Total recognised Income and Expense		-		-		(4,436)		(4,436)
Impairment of available for sale financial
assets taken to Income Statement		-		365		-		365
Fair value adjustment net of tax		-		(197)		-		(197)
Dividends		-		-		(739)		(739)
As at 31st July 2009		1,008		41		91,258		92,307

CONSOLIDATED BALANCE SHEET as at 31st JULY 2009

	2009		2008
	£000		£000
Non-current assets
Property, plant and equipment	6,715		4,331
Investment properties	65,946		68,148
Investments in Joint Ventures	2,284		2,067
Available for sale financial assets	1,914		1,533
Other receivables	-		3,176
Deferred tax asset	1,778		936
	78,637		80,191
Current assets
Inventories	8,476		8,184
Trade and other receivables	7,001		3,833
Cash at bank and in hand	23,234		26,883
	38,711		38,900
Total Assets	117,348		119,091
Non-current liabilities
Retirement benefit obligations	4,468		1,089
Deferred tax liabilities	4,763		5,944
	9,231		7,033
Current liabilities
Trade and other payables	4,872		5,518
Current tax liabilities	163		733
Bank overdraft	10,775		8,493
	15,810		14,744
Total Liabilities	25,041		21,777
Net Assets	92,307		97,314
Equity
Called up share capital	1,008		1,008
Fair value reserve	41		(127)
Retained earnings	91,258		96,433
	92,307		97,314

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

	2009		2008
	£000		£000
(Loss)/profit before tax	(1,208)		5,871
Share of profits from Joint Ventures	(217)		(72)
Depreciation	521		533
Unrealised revaluation deficit on investment properties	5,779		2,655
Loss/(profit) on sale of property, plant and equipment	42		(31)
Profit on sale of investment properties	-		(3,890)
Loss/(profit) on sale of available for sale financial assets	55		(33)
Impairment of available for sale financial assets	365		-
Change in retirement benefits	(1,174)		(2,810)
Interest received	(602)		(1,257)
Interest paid	1		7
Change in inventories	(292)		(549)
Change in receivables - current	8		(133)
Change in receivables - non current	-		(1,000)
Change in payables	(646)		1,252
	2,632		543
Tax paid on profits	(1,333)		(2,066)
Net cash flow to/(from) operating activities	1,299		(1,523)
Cash flows from investing activities
Purchase of property, plant and equipment	(493)		(758)
Purchase of investment properties	(2,044)		(6)
Sale of property, plant and equipment	64		69
Sale of investment properties	-		6,188
Expenditure on own work capitalised - investment properties	(1,533)		(550)
Expenditure on own work capitalised - properties under construction	(2,517)		(1,607)
Purchase of available for sale financial assets	(580)		(639)
Proceeds of sale of available for sale financial assets	11		145
Interest received	602		1,257
Interest paid	(1)		(7)
Net cash (used)/from investing activities	(6,491)		4,092
Cash flows from financing activities
Dividends paid	(739)		(647)
Net cash used in financing activities	(739)		(647)
(Decrease)/increase in cash, cash equivalents and bank	(5,931)		1,922
Cash, cash equivalents and bank at beginning of period	18,390		16,468
Cash, cash equivalents and bank at end of period	12,459		18,390

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

	2009		2008
	£000		£000
Ordinary dividends
2007 Final dividend of 10.15p per share	-		500
2008 Interim dividend of 3.00p per share	-		147
2008 Final dividend of 10.50p per share	517		-
2009 Interim dividend of 4.50p per share	222		-
	739		647

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.

 

END

 

 

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