TIDMSMJ
RNS Number : 7063U
Smart(J.)&Co(Contractors) PLC
26 October 2017
J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES
ACCOUNTS FOR THE YEARED 31st JULY 2017
PRELIMINARY STATEMENT
ACCOUNTS
Headline Group profit for the year before tax, including an
unrealised surplus in revalued property and a profit on the
unforeseen sale of property, was GBP4,037,000 compared with
GBP3,752,000 last year.
As forecast underlying profit before tax for the year of
GBP3,423,000 (including GBP613,000 profit from property sales) was
less than last year's figure of GBP3,616,000 (including GBP186,000
profit from property sales). In our view discounting the increase
in the revaluation of the commercial property portfolio provides a
truer reflection of Group performance.
The Board is recommending a Final Dividend of 2.17p making a
total of 3.12p which compares with 3.07p for the previous year. The
Final Dividend will cost the Company no more than GBP973,000.
TRADING ACTIVITIES
Group construction activities including private residential
sales decreased by 17%. Own work capitalised increased by 55% and
headline Group profit increased by 8%. If you disregard the
unexpected property sale headline Group profit would have decreased
by 9%. Underlying Group profit decreased by 5%.
Turnover in contracting was less than last year and the loss was
increased. As forecast private residential sales were less than the
previous year. Sales in precast concrete manufacture have increased
marginally, but profit has decreased.
The two large mixed social housing and private residential
developments at Seafield Street and Pilton Drive, Edinburgh are now
complete. The social housing contracts at Fleming Place, Edinburgh
continue to make progress, but will be fully complete by April
2018. A further social housing contract at Ferrymuir, South
Queensferry is to commence by April 2018, but this is by no means
certain due to the continuing and unwelcome drawn out statutory
approval process.
A mixed private housing and affordable housing development at
West Bowling Green Street, Edinburgh, started after the financial
year end, will provide 98 residential units and 4 commercial units.
First completions will not be achieved during the current financial
year.
The occupancy levels at our industrial estates, especially in
the smaller size bracket, continue to be robust. We have finally
encountered rental growth across all sizes of industrial units.
This has partly been caused by a dearth of new build industrial
development exacerbated in the Edinburgh area by a lack of
industrial land supply.
The second phases at Inchwood Park, Bathgate and West Edinburgh
Business Park, South Gyle, Edinburgh are progressing well and
letting prospects are encouraging. The joint venture industrial
development at Gartcosh, near Glasgow, has been delayed, but is
still likely to proceed.
The voids in our office properties were reduced by the sale of
CityWest, Robertson Avenue, Edinburgh. We launched a serviced
office centre at our multi-let office building at Links Place,
Leith, Edinburgh with our new subsidiary company, Smart Serviced
Offices Limited. This has taken time to let but has assisted in
attracting tenants to other vacant suites in the building.
FUTURE PROSPECTS
Work in hand in contracting, as alluded to above, is
considerably less than last year. All of our contracting work, in
the Housing Association sector, in the past five years has been
site acquisition led and due to increasing land values
opportunities in this regard have decreased. This, coupled with a
highly competitive tender market, means the likelihood of future
contracting work in this sector does not look promising at
present.
There will be no private housing sales this year. Property
valuation levels have improved since last year, but it remains to
be seen if this trend will continue. Planning applications will be
submitted this year for a residential development at Rosyth and a
third phase of industrial development at West Edinburgh Business
Park.
Due to reduced turnover, which will impact on the recovery of
fixed overhead costs, and the cost of redundancies it is likely
that underlying profit will be less than this year's underlying
profit.
DAVID W. SMART
Chairman
CONSOLIDATED INCOME STATEMENT
for the year ended 31st JULY 2017
2017 2016
Unaudited Audited
GBP000 GBP000
Group construction activities 25,419 30,682
Less: Own construction work capitalised (2,559) (1,655)
---------- ---------
REVENUE 22,860 29,027
Cost of sales (19,406) (25,260)
---------- ---------
GROSS PROFIT 3,454 3,767
Other operating income 6,090 5,520
Net operating expenses (6,925) (6,095)
---------- ---------
OPERATING PROFIT BEFORE PROFIT ON
SALE AND NET SURPLUS ON VALUATION
OF INVESTMENT PROPERTIES 2,619 3,192
Profit on sale of investment properties 613 186
Net surplus on valuation of investment
properties 614 136
OPERATING PROFIT 3,846 3,514
Share of profits in Joint Ventures 42 33
Income from available for sale financial
assets 32 14
Profit on sale of available for sale 22 -
financial assets
Finance income 95 191
PROFIT BEFORE TAX 4,037 3,752
Taxation (310) (264)
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS 3,727 3,488
---------- ---------
EARNINGS PER SHARE - BASIC AND DILUTED 8.26p 7.61p
---------- ---------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31st JULY 2017
2017 2016
Unaudited Audited
GBP000 GBP000
PROFIT FOR THE YEAR 3,727 3,488
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that may be subsequently reclassified
to the Income Statement:
Fair value adjustment of available
for sale financial assets 65 (10)
TOTAL ITEMS WHICH MAY BE SUBSEQUENTLY
RECLASSIFIED TO INCOME STATEMENT 65 (10)
---------- --------
Items that will not be subsequently
reclassified to the Income Statement:
Actuarial gain/(loss) recognised in
defined benefit pension scheme 3,306 (2,256)
Deferred taxation on actuarial (gain)/loss (680) 215
---------- --------
TOTAL ITEMS THAT WILL NOT BE SUBSEQUENTLY
RECLASSIFIED TO INCOME STATEMENT 2,626 (2,041)
---------- --------
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) 2,691 (2,051)
---------- --------
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR, NET OF TAX 6,418 1,437
---------- --------
ATTRIBUTABLE TO EQUITY SHAREHOLDERS 6,418 1,437
---------- --------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 31st July 2017
Capital Fair
Share Redemption Value Retained
Capital Reserve Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000
At 1st August 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
--------- ------------ --------- ---------- --------
Profit for the year - - - 3,727 3,727
Other comprehensive
income - - 65 2,626 2,691
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR - - 65 6,353 6,418
--------- ------------ --------- ---------- --------
TRANSACTIONS WITH OWNERS, RECORDED
DIRECTLY IN EQUITY
Shares purchased and
cancelled (10) - - (540) (550)
Transfer to capital
redemption reserve - 10 - (10) -
Dividends - - - (846) (846)
--------- ------------ --------- ---------- --------
TOTAL TRANSACTIONS
WITH OWNERS (10) 10 - (1,396) (1,396)
At 31st July 2017 (unaudited) 896 112 9 92,841 93,858
--------- ------------ --------- ---------- --------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31st JULY 2017
2017 2016
Unaudited Audited
GBP000 GBP000
NON-CURRENT ASSETS
Property, plant and equipment 1,431 1,382
Investment properties 64,799 64,728
Investments in Joint Ventures 305 263
Available for sale financial assets 1,000 326
Retirement benefit surplus 3,862 33
Deferred tax asset 58 41
---------- --------
71,455 66,773
---------- --------
CURRENT ASSETS
Inventories 2,881 2,684
Trade and other receivables 5,723 6,369
Monies held on deposit 2,536 5,519
Cash and cash equivalents 26,524 26,785
---------- --------
37,664 41,357
---------- --------
TOTAL ASSETS 109,119 108,130
---------- --------
NON-CURRENT LIABILITIES
Deferred tax liabilities 1,923 1,389
---------- --------
CURRENT LIABILITIES
Trade and other payables 4,385 5,134
Current tax liability 162 143
Bank overdraft 8,791 12,628
13,338 17,905
TOTAL LIABILITIES 15,261 19,294
---------- --------
NET ASSETS 93,858 88,836
---------- --------
EQUITY
Called up share capital 896 906
Capital redemption reserve 112 102
Fair value reserve 9 (56)
Retained earnings 92,841 87,884
---------- --------
TOTAL EQUITY 93,858 88,836
---------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31st JULY 2017
2017 2016
Unaudited Audited
GBP000 GBP000
Profit before tax 4,037 3,752
Share of profits from Joint Ventures (42) (33)
Depreciation 407 465
Unrealised valuation surplus on investment
properties (614) (136)
Profit on sale of property, plant
and equipment (39) (47)
Profit on sale of investment properties (613) (186)
Profit on sale of available for sale (22) -
financial assets
Change in retirement benefits (523) (817)
Interest received (86) (125)
Change in inventories (197) 3,051
Change in receivables 646 (1,861)
Change in payables (749) 1,134
---------- --------
2,205 5,197
Tax (paid)/received (454) 634
---------- --------
NET CASH FLOWS FROM OPERATING ACTIVITIES 1,751 5,831
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (487) (488)
Additions to investment properties (20) (45)
Expenditure on own work capitalised
- investment properties (2,559) (1,655)
Sale of property, plant and equipment 70 70
Sale of investment properties 3,735 525
Purchase of available for sale financial (674) -
assets
Proceeds of sale of available for
sale financial assets 87 1
Decrease/(increase) on monies held
on deposit 2,983 (2,017)
Interest received 86 125
Dividend from Joint Ventures - 37
NET CASH FLOWS FROM INVESTING ACTIVITIES 3,221 (3,447)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares (550) (704)
Dividends paid (846) (846)
---------- --------
NET CASH FLOWS FROM FINANCING ACTIVITIES (1,396) (1,550)
---------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 3,576 834
---------- --------
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 14,157 13,323
---------- --------
CASH AND CASH EQUIVALENTS AT OF
YEAR 17,733 14,157
---------- --------
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 2017
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 (IFRS) or the Companies
Act 2006 and accordingly does not itself comply with IFRS or the
Companies Act 2006.
The Group 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 unaudited consolidated financial
statements for the year to 31st July 2017 and the unaudited
financial information included in this preliminary statement and
the accounting policies disclosed in the 2016 Annual Report and
Statement of Accounts. The following standards, amendments to
standards and interpretations became mandatory for the first time
for the financial year to 31st July 2017 but these have had no
material impact on the financial statements:
-- IAS 1 (amended): Presentation of financial statements.
-- IAS 19 (amended): Employee Benefits.
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 2016 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. The 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. DIVIDS
2017 2016
GBP000 GBP000
Unaudited Audited
Ordinary dividends
2015 Final dividend of 2.10p per share,
after waivers - 425
2016 Interim dividend of 0.92p per
share - 421
2016 Final dividend of 2.15p per share, 418 -
after waivers
2017 Interim dividend of 0.95p per 428 -
share
---------- --------
846 846
The Company is proposing a final dividend of 2.17p per share for
the year to 31st July 2017 which will cost the Company no more than
GBP973,000.
The dividend if approved will be paid on 20th December 2017 to
shareholders on the Register at the close of business on 24th
November 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNOKRBBARURA
(END) Dow Jones Newswires
October 26, 2017 05:39 ET (09:39 GMT)
Smart (j.) & Co. (contra... (LSE:SMJ)
Historical Stock Chart
From Apr 2024 to May 2024
Smart (j.) & Co. (contra... (LSE:SMJ)
Historical Stock Chart
From May 2023 to May 2024