31st Oct 2013 13:14
LONDON (Alliance News) - Property and construction firm J Smart & Co PLC reported an increase in profit for the full-year, despite construction work dropping 20%.
The company which specialises in the construction of public works, commercial buildings and private housing in Scotland, posted pretax profit of GBP829,000 for the period ended July 31, up from GBP55,000 a year earlier, boosted by property sales.
Group revenue, however, declined 19% to GBP18.4 million, from GBP22.6 million in 2012, attributed to private dwelling sales falling on the previous year and "static" sales in pre-cast concrete manufacture.
Revenue in contracting was less than last year and the firm warned that although there is work in the pipeline it seems clear that revenue in contracting during the current year will approximate to half that of last year.
J Smart said although its mixed-use Roberston Avenue development in Edinburgh is almost complete the office block is so far unlet and residential sales are "currently proceeding satisfactorily".
Overall, occupancy levels at its established industrial and commercial properties remain stable, while the firm is seeing increased interest in its recent unlet developments.
Despite this, the company said it was too early to forecast the outcome of the current year with any degree of accuracy.
"However, notwithstanding that leased property values and occupation levels are currently stable and residential sales satisfactory, it is evident that the anticipated reduction in contracting turnover will significantly limit the recovery of overhead costs, leading to a substantial impairment in profitability for the current year", the firm said.
The board recommended a final dividend of 2.01 pence making a total for the year of 2.93 pence which compares with 2.90 pence for the previous year.
The stock was trading at 84.75 pence Thursday morning, down 0.25 pence or 0.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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