Final Results

J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES

ACCOUNTS FOR THE YEAR ENDED 31st JULY 2013

PRELIMINARY STATEMENT

ACCOUNTS

Profit for the year was again adversely affected by a reduction in the value of our property portfolio as dictated by the International Financial Reporting Standards. Headline profit turned out at £829,000 which compares with a headline profit of £55,000 last year. 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 for the year under review of £3,956,000 (including £2,244,000 profit from property sales and a contribution from joint ventures relating to property sales) which compares with the figure for underlying profit last year of £4,097,000 (no property sales). As forecast in the interim report, once property sales are stripped out of the figures, underlying profit is well below that of last year.

The Board is recommending a Final Dividend of 2.01p nett making a total for the year of 2.93p nett which compares with 2.90p nett for the previous year. After waivers by members holding over 50% of the shares, the Final Dividend will cost the Company £430,000.

Profit adjusted for pension scheme surplus, dividends paid and fair value reserve adjustment when added to opening shareholders' funds brings the total equity of the Group to £91,125,000.

TRADING ACTIVITIES

Group construction work carried out decreased by 20%, own work capitalised decreased by 33%. Group revenue decreased by 19% and headline Group profit increased fifteenfold. Underlying Group profit excluding the unrealised reduction in revalued property decreased by 3%.

Turnover in contracting was less than last year and a loss was sustained. Private dwelling sales were down on the previous year, although there has been a revival in sales since July 2013. Sales in precast concrete manufacture remained static, although the loss was reduced.

The Robertson Avenue development in Edinburgh is all but complete and while the office block is so far unlet, residential sales are currently proceeding satisfactorily.

Occupancy levels at our established industrial and commercial properties remain stable and we are seeing increased interest in our recent unlet developments.

FUTURE PROSPECTS

Work in hand in contracting is less than at this time last year and while there is work in the pipeline it seems clear that turnover in contracting during the current year will approximate to half that of last year.

Residential sales are currently promising. We are about to commence Phase I of an industrial development at South Gyle, Edinburgh. South Gyle is a very well established industrial and commercial area where we believe letting prospects are favourable.

It is 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.

CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2013

1. Group Revenue excludes the share of Joint Ventures' revenue of £6,523,000 (2012, £67,000).

2. 2012 Revenue and Cost of sales have been amended to revise income recognition on private housing in accordance with the requirements of IAS18 Revenue. There is no impact on the reported profit.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31st JULY 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

as at 31st July 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31st JULY 2013

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31st JULY 2013

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 2013 and the financial information included in this preliminary statement and the accounting policies disclosed in the 2012 Annual Report and Statement of Accounts.

The 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.

The financial information for the year to 31st July 2012 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 S498 of the Companies Act 2006.

2. Dividends

The Company is proposing a final dividend of 2.01p per share for the year to 31st July 2013 which, after waivers, will cost the Company £430,000.

The dividend if approved will be paid on 23rd December 2013 to shareholders on the Register at the close of business on 29th November 2013.