TIDMSMJ
RNS Number : 6252N
Smart(J.)&Co(Contractors) PLC
27 October 2016
J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES
ACCOUNTS FOR THE YEARED 31st JULY 2016
PRELIMINARY STATEMENT
ACCOUNTS
Headline Group profit for the year before tax, including an
unrealised surplus in revalued property as required by the
International Financial Reporting Standards was GBP3,752,000
compared with GBP3,544,000 last year. If the impact of revalued
property is disregarded, then a truer reflection of Group
performance emerges in the form of an underlying profit before tax
for the year under review of GBP3,616,000 (including GBP186,000
profit from property sales) which compares with the figure for
underlying profit last year of GBP3,755,000 (including GBP1,318,000
profit from property sales and joint venture property sales).
The Board is recommending a Final Dividend of 2.15p nett making
a total for the year of 3.07p nett which compares with 3.02p nett
for the previous year. After waivers by members holding over 50% of
the shares, the Final Dividend will cost the Company no more than
GBP421,000.
TRADING ACTIVITIES
Group construction activities carried out including private
residential sales increased by 42%. Disregarding private
residential sales Group construction activities increased by 23%.
Own work capitalised increased by 125%. Group revenue increased by
39% and headline Group profit before tax increased by 6%.
Underlying Group profit before tax excluding the unrealised surplus
in revalued property decreased by 4%.
Turnover in contracting was more than last year and the loss was
reduced. As forecast private residential sales were more than the
previous year. Sales and profit in precast concrete manufacture
increased.
The two large mixed social housing and private residential
developments at Seafield Street and Pilton Drive, Edinburgh,
continue to make satisfactory progress. A third phase of social
housing at Pilton Drive and a further social housing contract at
Fleming Place (adjacent to Seafield Street) have commenced.
Occupancy levels at our industrial estates continue to be
satisfactory. A joint venture industrial development at Gartcosh
near Glasgow is contemplated. Although interest in our commercial
office premises has improved, take up of voids is still slow.
FUTURE PROSPECTS
Work in hand in contracting is slightly less than at this time
last year and there is little prospect of more work in the short
term. Accordingly, turnover in this sector will be down on last
year. Prices remain competitive.
Private residential sales will be less than last year. It is by
no means certain that current property valuation levels will be
maintained at the end of the current financial year.
At this early stage it is difficult to make an informed forecast
of the outcome for the current year. However, bearing in mind the
foregoing circumstances and that the reduced turnover will impair
the recovery of fixed overhead costs, it seems unlikely that the
profit for the current year will match last year's profit.
J. M. SMART
Chairman
CONSOLIDATED INCOME STATEMENT
for the year ended 31st JULY 2016
2016 2015
Unaudited Audited
GBP000 GBP000
Group construction activities 30,682 21,556
Less: Own construction work capitalised (1,655) (737)
---------- ---------
REVENUE 29,027 20,819
Cost of sales (25,260) (18,061)
---------- ---------
GROSS PROFIT 3,767 2,758
Other operating income 5,520 5,241
Net operating expenses (6,095) (5,839)
---------- ---------
OPERATING PROFIT BEFORE PROFIT ON SALE AND NET
SURPLUS/(DEFICIT) ON VALUATION OF INVESTMENT
PROPERTIES 3,192 2,160
Profit on sale of investment properties 186 60
Net surplus/(deficit) on valuation of investment
properties 136 (211)
OPERATING PROFIT 3,514 2,009
Share of profits in Joint Ventures 33 1,306
Income from available for sale financial assets 14 28
Profit on sale of available for sale financial
assets - 1
Finance income 191 200
PROFIT BEFORE TAX 3,752 3,544
Taxation (264) (546)
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS 3,488 2,998
---------- ---------
EARNINGS PER SHARE - BASIC AND DILUTED 7.61p 6.45p
---------- ---------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31st JULY 2016
2016 2015
Unaudited Audited
GBP000 GBP000
PROFIT FOR THE YEAR 3,488 2,998
OTHER COMPREHENSIVE LOSS
Items that may be subsequently reclassified to
the Income Statement:
Fair value adjustment of available for sale financial
assets (10) (46)
TOTAL ITEMS WHICH MAY BE SUBSEQUENTLY RECLASSIFIED
TO INCOME STATEMENT (10) (46)
---------- --------
Items that will not be subsequently reclassified
to the Income Statement:
Actuarial loss recognised in defined benefit pension
scheme (2,256) (1,003)
Deferred taxation on actuarial loss 215 201
---------- --------
TOTAL ITEMS THAT WILL NOT BE SUBSEQUENTLY RECLASSIFIED
TO INCOME STATEMENT (2,041) (802)
---------- --------
TOTAL OTHER COMPREHENSIVE LOSS (2,051) (848)
---------- --------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF
TAX 1,437 2,150
---------- --------
ATTRIBUTABLE TO EQUITY SHAREHOLDERS 1,437 2,150
---------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 31st July 2016
Capital
Share Redemption Fair Value Retained
Capital Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000
At 1st August 2014 936 72 - 87,474 88,482
Profit for the year - - - 2,998 2,998
Other comprehensive loss - - (46) (802) (848)
TOTAL COMPREHENSIVE (LOSS)/INCOME
FOR THE YEAR - - (46) 2,196 2,150
--------- ------------ ----------- ---------- --------
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN
EQUITY
Shares purchased and cancelled (17) - - (814) (831)
Transfer to capital redemption
reserve - 17 - (17) -
Dividends - - - (852) (852)
--------- ------------ ----------- ---------- --------
TOTAL TRANSACTIONS WITH OWNERS (17) 17 - (1,683) (1,683)
--------- ------------ ----------- ---------- --------
At 31st July 2015 919 89 (46) 87,987 88,949
--------- ------------ ----------- ---------- --------
Profit for the year - - - 3,488 3,488
Other comprehensive loss - - (10) (2,041) (2,051)
TOTAL COMPREHENSIVE (LOSS)/INCOME
FOR THE YEAR - - (10) 1,447 1,437
--------- ------------ ----------- ---------- --------
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN
EQUITY
Shares purchased and cancelled (13) - - (691) (704)
Transfer to capital redemption
reserve - 13 - (13) -
Dividends - - - (846) (846)
--------- ------------ ----------- ---------- --------
TOTAL TRANSACTIONS WITH OWNERS (13) 13 - (1,550) (1,550)
At 31st July 2016 906 102 (56) 87,884 88,836
--------- ------------ ----------- ---------- --------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31st JULY 2016
2016 2015
Unaudited Audited
GBP000 GBP000
NON-CURRENT ASSETS
Property, plant and equipment 1,382 1,382
Investment properties 64,728 63,231
Investments in Joint Ventures 263 267
Available for sale financial assets 326 337
Retirement benefit surplus 33 1,472
Deferred tax asset 41 27
---------- --------
66,773 66,716
---------- --------
CURRENT ASSETS
Inventories 2,684 5,735
Trade and other receivables 6,369 4,508
Current tax asset - 995
Monies held on deposit 5,519 3,502
Cash and cash equivalents 26,785 26,047
---------- --------
41,357 40,787
---------- --------
TOTAL ASSETS 108,130 107,503
---------- --------
NON-CURRENT LIABILITIES
Deferred tax liabilities 1,389 1,830
---------- --------
CURRENT LIABILITIES
Trade and other payables 5,134 4,000
Current tax liability 143 -
Bank overdraft 12,628 12,724
17,905 16,724
TOTAL LIABILITIES 19,294 18,554
---------- --------
NET ASSETS 88,836 88,949
---------- --------
EQUITY
Called up share capital 906 919
Capital redemption reserve 102 89
Fair value reserve (56) (46)
Retained earnings 87,884 87,987
---------- --------
TOTAL EQUITY 88,836 88,949
---------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31st JULY 2016
2016 2015
Unaudited Audited
GBP000 GBP000
Profit before tax 3,752 3,544
Share of profits from Joint Ventures (33) (1,306)
Depreciation 465 450
Unrealised valuation (surplus)/deficit on investment
properties (136) 211
Profit on sale of property, plant and equipment (47) (47)
Profit on sale of investment properties (186) (60)
Profit on sale of available for sale financial
assets - (1)
Change in retirement benefits (817) (846)
Interest received (125) (117)
Change in inventories 3,051 711
Change in receivables (1,861) 2,595
Change in payables 1,134 (143)
---------- --------
5,197 4,991
Tax received/(paid) 634 (233)
---------- --------
NET CASH FLOWS FROM OPERATING ACTIVITIES 5,831 4,758
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (488) (483)
Additions to investment properties (45) (236)
Expenditure on own work capitalised - investment
properties (1,655) (737)
Sale of property, plant and equipment 70 78
Sale of investment properties 525 1,000
Purchase of available for sale financial assets - (383)
Proceeds of sale of available for sale financial
assets 1 3,997
Increase on monies held on deposit (2,017) (3,502)
Interest received 125 117
Dividend from Joint Ventures 37 2,327
NET CASH FLOWS FROM INVESTING ACTIVITIES (3,447) 2,178
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares (704) (831)
Dividends paid (846) (852)
---------- --------
NET CASH FLOWS FROM FINANCING ACTIVITIES (1,550) (1,683)
---------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 834 5,253
---------- --------
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 13,323 8,070
---------- --------
CASH AND CASH EQUIVALENTS AT END OF YEAR 14,157 13,323
---------- --------
NOTES TO THE PRELIMINARY STATEMENT
1. BASIS OF PREPARATION
The financial information set out in this unaudited preliminary
statement does not constitute the Group's statutory financial
statements. The financial statements for the year to 31st July 2016
have not yet been filed with the Registrar of Companies and have
not yet been reported on by the Company's auditors.
The unaudited financial information included in this preliminary
statement does not include all of the disclosures required by
International Financial Reporting Standards (IFRSs) or the
Companies Act 2006 and accordingly does not itself comply with
IFRSs or the Companies Act 2006.
The Group prepares its annual consolidated financial statements
in accordance with IFRSs 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 2016 and the unaudited financial information
included in this preliminary statement and the accounting policies
disclosed in the 2015 Annual Report and Statement of Accounts.
There have been no new IFRSs or amendments to existing standards
which impact the Group's financial statements in the year to 31st
July 2016.
The unaudited consolidated financial statements are prepared
under the historical cost convention with the exception of
investment properties and available for sale financial assets which
are recognised at fair value and, are prepared on a going concern
basis.
The financial information for the year to 31st July 2015 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, did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying its report and did
not contain a statement under S498 (2) or S498 (3) of the Companies
Act 2006.
2. DIVIDENDS
2016 2015
GBP000 GBP000
Unaudited Audited
Ordinary dividends
2014 Final dividend of 2.04p per share, after
waivers - 428
2015 Interim dividend of 0.92p per share - 424
2015 Final dividend of 2.10p per share, after 425 -
waivers
2016 Interim dividend of 0.92p per share 421 -
---------- --------
846 852
The Company is proposing a final dividend of 2.15p per share for
the year to 31st July 2016 which, after waivers, will cost the
Company no more than GBP421,000.
The dividend if approved will be paid on 21st December 2016 to
shareholders on the Register at the close of business on 25th
November 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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