Interim Results

Smart(J.)&Co(Contractors) PLC
27 April 2004


J. SMART & CO. (CONTRACTORS) PLC

CHAIRMAN'S REVIEW

INTERIM REPORT

Unaudited Group profits for the six months to 31st January 2004 amounted to
£2,391,000 compared with profits of £2,172,000 for the corresponding period last
year.

Turnover for the six month period under review was slightly less than the
corresponding period last year and the Board anticipates that turnover for the
full year will similarly be slightly less than last year.

INTERIM DIVIDEND

The Board announces an interim dividend of 2.90p per share (2003, 2.90p) to be
paid on 12th July 2004 to shareholders on the register at the close of business
on 18th June 2004. After waivers by members holding approximately 50% of the
shares the interim dividend will cost the Company £143,000.

FUTURE PROSPECTS

The amount of work in hand in contracting is more than at this time last year
and at the end of last year. Most of this work has been obtained on a negotiated
and/or design and construct basis. However margins are tight and a dearth of
current enquiries does not augur well for our workload next year.
There have been occasional signs recently of renewed interest in industrial and
commercial floorspace, however it is too early to predict if this will translate
into a sustained demand.

Private house sales continue to prosper. As forecast in the last annual report,
profit for the current full year is well on course to exceed last year's profit
before the exceptional item.

                                                                   J. M. SMART
27th April 2004                                                       Chairman



PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS TO 31st JANUARY 2004

                                     6 months         6 months            year
                                   to 31-1-04       to 31-1-03      to 31-7-03
                                  (Unaudited)      (Unaudited)       (Audited)
                                        £'000            £'000           £'000

TURNOVER                                8,956            9,261          18,847
Own Work Capitalised                    1,517            1,030           1,653
                                       --------         --------        --------
                                       10,473           10,291          20,500
Other Operating Income                  2,624            2,546           5,708
                                       --------         --------        --------
                                       13,097           12,837          26,208
                                       --------         --------        --------

OPERATING PROFIT                        2,225            2,306           4,486

Share of operating profit in
Joint Ventures                            159              127             239
                                       --------         --------        --------
                                        2,384            2,433           4,725

Interest payable/receivable,
dividends received and
decrease/increase in amount
written off investments                     7             (261)           (309)
                                       --------         --------        --------

PROFIT ON ORDINARY ACTIVITIES
BEFORE EXCEPTIONAL ITEM                 2,391            2,172           4,416

EXCEPTIONAL ITEM (Note 2)                   -                -           1,601
                                       --------         --------        --------

PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                         2,391            2,172           6,017

TAXATION (Note 3)                         718              652           1,612
                                       --------         --------        --------

PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                          1,673            1,520           4,405

INTERIM DIVIDEND OF 2.90p PER
SHARE                                     143              143             565
(2003, 2.90p) (Note 4)
                                       --------         --------        --------

RETAINED PROFIT                         1,530            1,377           3,840
                                       --------         --------        --------

EARNINGS PER SHARE                      16.60p           15.08p          43.69p
                                       --------         --------        --------

Notes:

   1.  The figures for the year to 31st July 2003 are abridged. Full accounts
       for that year have been filed with the Registrar of Companies and contain
       an Auditor's unqualified report.

   2.  The exceptional item relates to profit on sale of land held for
       development.

   3.  Taxation on ordinary activities is calculated as Corporation Tax at 30%
       (2003, 30%).

   4.  Certain shareholders holding approximately 50% of the shares have waived
       their rights to the interim dividend and the dividends paid for the year
       to 31st July 2003. The interim dividend will be paid on 12th July 2004 to
       shareholders on the register at 18th June 2004.

   5.  Copies of the interim report are being sent to all shareholders. Further
       copies are available for members of the public at the Company's
       registered office (28 Cramond Road South, Edinburgh EH4 6AB).



BALANCE SHEET AS AT 31st JANUARY 2004

                                      6 months        6 months           year
                                    to 31-1-04      to 31-1-03     to 31-7-03
                                   (Unaudited)     (Unaudited)      (Audited)
                                         £'000           £'000          £'000
FIXED ASSETS
Intangible assets                            1               1              1
Tangible assets                         66,496          61,267         64,954
                                        --------        --------       --------
                                        66,497          61,268         64,955
Investment in Joint Ventures:
Share of gross assets                    3,930           3,818          3,922
Share of gross liabilities              (3,477)         (3,516)        (3,586)
                                        --------        --------       --------
                                        66,950          61,570         65,291
                                        --------        --------       --------
CURRENT ASSETS
Stocks and work in progress              3,231           9,458          5,200
Debtors: Amounts falling due
within one year                          2,431           2,352          2,093
Debtors: Amounts falling due
after one year                           1,480           1,480          1,480
Investments                                675             538            668
Cash at bank and in hand                    25               1            225
                                        --------        --------       --------
                                         7,842          13,829          9,666

CREDITORS: Amounts falling
due within one year                     (4,144)         (6,943)        (3,839)
                                        --------        --------       --------
NET CURRENT ASSETS                       3,698           6,886          5,827
                                        --------        --------       --------

TOTAL ASSETS LESS CURRENT
LIABILITIES                             70,648          68,456         71,118

CREDITORS: Amounts falling
due after more than one year            (1,000)         (6,000)        (3,000)

PROVISIONS FOR LIABILITIES
AND CHARGES                               (124)           (115)          (124)
                                        --------        --------       --------
                                        69,524          62,341         67,994
                                        --------        --------       --------

CAPITAL AND RESERVES
Called up share capital                  1,008           1,008          1,008
Revaluation reserve                     24,117          20,927         24,117
Profit and Loss account                 44,399          40,406         42,869
                                        --------        --------       --------
SHAREHOLDERS' FUNDS                     69,524          62,341         67,994
                                        --------        --------       --------



CASH FLOW STATEMENT FOR THE SIX MONTHS TO 31st JANUARY 2004

                                     6 months         6 months            year
                                   to 31-1-04       to 31-1-03      to 31-7-03
                                  (Unaudited)      (Unaudited)       (Audited)
                                        £'000            £'000           £'000

OPERATING ACTIVITIES
Operating profit                        2,225            2,306           4,486
Exceptional Item                            -                -           1,601
Depreciation                              188              214             468
Gain on sale of tangible
fixed assets                              (16)              (5)            (17)
Interest received on
investments                                29                -              20
Dividends received                         17               18              39
Proceeds of sale of
investments                                34              126             126
Purchase of investments                     -              (38)            (99)
Decrease/(Increase) in stocks
and work in progress                    1,968           (1,358)          2,900
Increase in debtors                      (338)            (381)           (122)
Increase/(Decrease) in
creditors                                 897           (2,477)         (2,728)
                                       --------         --------        --------

NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES               5,004           (1,595)          6,674

Interest received                          38                4               4
Interest paid                             (46)            (186)           (298)

Corporation tax paid                   (1,023)            (464)         (1,007)

Purchase of tangible fixed
assets                                   (220)            (264)           (421)
Grants received                             -                7               7
Sales of tangible fixed
assets                                     22                8              58
Expenditure on own work
capitalised                            (1,542)          (1,030)         (1,653)
Capitalised Professional Fees               -                -              (4)

Dividends paid                           (433)            (419)           (562)
                                       --------         --------        --------
MOVEMENTS IN NET FUNDS IN THE
PERIOD                                  1,800           (3,939)          2,798

Term loan repaid                       (2,000)               -          (3,000)
                                       --------         --------        --------

DECREASE IN CASH IN THE
PERIOD                                   (200)          (3,939)           (202)
                                       --------         --------        --------

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