30th Oct 2006 15:44
Smart(J.)&Co(Contractors) PLC30 October 2006 J SMART & CO (CONTRACTORS) PLC AND SUBSIDIARY COMPANIES ACCOUNTS FOR THE YEAR ENDED 31st JULY 2006 PRELIMINARY STATEMENT ACCOUNTSThis is the first year in which the accounts have to be prepared in accordancewith the International Financial Reporting Standards. Group profits for the yearbefore tax turned out at £13,760,000 which compares with the restated figure forthe previous year of £15,991,000. Both of these figures include unrealised gainsin revalued property as required by the new accounting regime. If the impact ofrevalued property on the figures is disregarded then a truer reflection of GroupPerformance emerges in the form of £7,005,000 profit before tax (including£899,000 profit from property sales) for the year under review which wouldcompare with a figure for the previous year of £5,514,000 (including £131,000profit from property sales).The Board is recommending a Final Dividend of 9.80p nett making a total for theyear of 12.80p nett which compares with 12.40p nett for the previous year. Afterwaivers by members holding approximately 51% of the shares, the Dividends willcost the Company £630,000.Profit adjusted for pension scheme deficit, dividends paid and fair valuereserve when added to opening shareholders' funds brings the total equity of theGroup to £84,080,000. TRADING ACTIVITIESGroup turnover increased by 18%, own work capitalised was again negligible andother operating income decreased by 4%. Total Group profits decreased by 14%.Underlying Group profits excluding unrealised gains in revalued propertyincreased by 27%.Turnover and profits in contracting increased. Sales and profits in privatehousing declined. Sales in precast concrete manufacture remained static, howevercontinued pressure on sales and prices slightly increased losses.We have commenced construction of a second large industrial unit at CardonaldBusiness Park, Glasgow and a large prelet industrial unit in Helen Street,Glasgow. Demolition and facade retention are progressing at Bridgeside Works, amixed commercial and residential development in McDonald Road, Edinburgh. Theupgrading and refurbishment operation at our large office development in LinksPlace, Edinburgh referred to in last year's review is in full swing and isattracting favourable tenant and market reaction.The fourth and last phase of our joint venture development with EDI (Industrial)Ltd at A1 Industrial Estate, Edinburgh comprising two industrial units, one ofwhich is prelet, is now underway.Phase three of our joint venture development with EDI at Starlaw IndustrialEstate, Livingston, is now complete and let. Both of the A1 and Starlawdevelopments are currently being marketed as investment sales.Negotiations are still proceeding for two pre-lets at Prestonfield Park,Edinburgh, our joint venture with Walker Group. FUTURE PROSPECTSWe anticipate commencing our second office development for lease/sale atGlenbervie Business Park near Stirling in the next calendar year. Rental incomeis expected to decrease.The amount of contracting work in hand is less than at this time last year. Asbefore the majority of this work has been obtained on a negotiated and/or designand construct basis and the balance by traditional competitive tender. Turnoverin contracting is expected to be down. Private house sales are again notexpected to be significant this year.Subject to the effect of unrealised gains in revalued property, profit fromproperty sales and unforeseen or exceptional circumstances, it is anticipatedthat profit for the current year will be less than last year. J. M. SMART Chairman CONSOLIDATED INCOME STATEMENT for the year ended 31st JULY 2006 Restated 2006 2005 £000 £000 Revenue 26,149 22,180Own workcapitalised 98 20 --------------- -------------- 26,247 22,200 Cost of sales (21,378) (17,915) --------------- --------------- Gross Profit 4,869 4,285 Otheroperatingincome 5,819 6,065Net operatingexpenses (5,307) (5,289) --------------- --------------- OperatingProfit beforeprofits onsale and netrevaluationgains oninvestmentproperties 5,381 5,061 Profit arisingon sale ofinvestmentproperties 899 131Net gain onvaluation ofinvestmentproperties 5,546 10,036 --------------- --------------- OperatingProfit 11,826 15,228 Share ofprofits inJoint Ventures 1,651 848Income frominvestments 84 49Loss on saleof investments (40) -Decrease inamount writtenoffinvestments - 40Finance income 382 131Finance costs (143) (305) --------------- --------------- Profit beforetax 13,760 15,991 Taxation (3,131) (4,277) --------------- --------------- Profitattributableto equityshareholders 10,629 11,714 =============== =============== Earnings pershare - Basicand Diluted 105.43p 116.19p =============== =============== CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE for the year ended 31st July 2006 Restated 2006 2005 £000 £000 Actuarial lossrecognised ondefinedbenefitpensionschemes (1,538) (1,035)Deferredtaxation onactuarial loss 461 310 --------------- --------------- Net deficitrecogniseddirectly inequity (1,077) (725)Profit for theperiod 10,629 11,714 --------------- --------------- Totalrecognisedincome andexpense forthe period 9,552 10,989 =============== =============== Attributableto equityshareholders 9,552 10,989 =============== =============== STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Share Capital Fair Value Retained Total Reserve Earnings £000 £000 £000 £000At 1st August2004 1,008 - 63,193 64,201TotalrecognisedIncome andExpense - - 10,989 10,989Dividends - - (593) (593) --------------- --------------- --------------- --------------- At 31st July2005 1,008 - 73,589 74,597 Adoption ofIAS 32 and 39 - 296 73 369 --------------- --------------- --------------- --------------- Opening equityrestated afteradoption ofIAS 32 and 39 1,008 296 73,662 74,966 =============== =============== =============== =============== TotalrecognisedIncome andExpense - - 9,552 9,552Fair valueadjustment netof tax - 177 - 177Dividends - - (615) (615) --------------- --------------- --------------- --------------- At 31st July2006 1,008 473 82,599 84,080 =============== =============== =============== =============== CONSOLIDATED BALANCE SHEET as at 31st July 2006 Restated 2006 2005 £000 £000 Non-current assetsProperty,plant andequipment 2,567 1,428Investmentproperties 77,436 75,985Investments inJoint Ventures 4,604 3,172Financialassets 1,499 -Otherreceivables 2,796 1,656Deferred taxasset 2,531 2,108 --------------- --------------- 91,433 84,349 --------------- --------------- Current assetsInventories 2,305 4,924Trade andotherreceivables 2,704 2,766Otherinvestments - 1,038Cash and bank 10,251 2,014 --------------- --------------- 15,260 10,742 --------------- --------------- Total Assets 106,693 95,091 =============== =============== Non-current liabilitiesRetirementbenefitobligations 8,201 7,028Deferred taxliabilities 9,734 8,876 --------------- --------------- 17,935 15,904 --------------- --------------- Current liabilitiesTrade andother payables 3,332 3,917Current taxliabilities 1,346 673 ------------ --------------- 4,678 4,590 ------------- --------------- TotalLiabilities 22,613 20,494 =============== =============== Net Assets 84,080 74,597 =============== =============== EquityCalled upshare capital 1,008 1,008Fair valuereserve 473 -Retainedearnings 82,599 73,589 --------------- --------------- Total Equity 84,080 74,597 =============== =============== CONSOLIDATED CASH FLOW STATEMENT year ended 31st July 2006 Restated 2006 2005 £000 £000 Profit beforetax 13,760 15,991Share ofprofits fromJoint Ventures (1,651) (848)Depreciation 488 434Unrealisedrevaluationgains oninvestmentproperties (5,546) (10,036)Gain on saleof property,plant andequipment (14) (23)Gain on saleof investmentproperties (899) (131)Loss/(Gain) onsale ofinvestments 40 (22)Amountswritten backto investments - (40)Change inretirementbenefits (365) (56)Interestreceived (353) (5)Interestreceived byJoint Ventures (7) (3)Interest paid 1 38Interest paidby JointVentures 143 99Proceeds ofsale ofinvestments - 114Purchase ofinvestments - (250)Change ininventories 1,619 (359)Change inreceivables -current 62 (690)Change inreceivables -non current (1,140) (176)Change inpayables (588) 110 --------------- --------------- 5,550 4,147Tax paid onprofits (1,520) (1,299) --------------- --------------- Net cash flowfrom operatingactivities 4,030 2,848 --------------- --------------- Cash flows from investing activitiesPurchase ofproperty,plant andequipment (662) (385)Purchase ofinvestmentproperties (26) (308)Expenditure onown workcapitalised (98) 69Sale ofproperty,plant andequipment 50 386Sale ofinvestmentproperties 5,119 (20)Purchase ofinvestments (369) -Proceeds ofsale ofinvestments 456 -Interestreceived 353 5Interest paid (1) (38) --------------- --------------- Net cashfrom/(used in)investingactivities 4,822 (291) --------------- --------------- Cash flows from financing activitiesDividends paid (615) (593) --------------- --------------- Net cash usedin financingactivities (615) (593) --------------- --------------- Increase incash, cashequivalentsand bank 8,237 1,964 --------------- --------------- Cash, cashequivalentsand bank atbeginning ofperiod 2,014 50 --------------- --------------- Cash, cashequivalentsand bank atend of period 10,251 2,014 =============== =============== NOTES TO THE PRELIMINARY STATEMENT 1. Basis of Preparation This preliminary statement is an abridged version of the Company's fullconsolidated accounts, which have not yet been filed with the Registrar ofCompanies and have not yet been reported on by the Company's auditors. The financial information included in this preliminary statement does notinclude all of the disclosures required by IFRS and accordingly does not itselfcomply with IFRS. The financial information for the year ended 31st July 2005 is derived from thestatutory accounts for that year which were submitted to the Registrar ofCompanies and upon which the Company's auditor provided an unqualified auditreport and which did not contain a statement under S237 of Companies Act 1985.The financial information has been restated for the year ended 31st July 2005 inaccordance with IFRS. 2. Dividends 2006 2005 £000 £000Ordinary dividends2006 Interimdividend of3.00p pershare 147 -2005 Finaldividend of9.50p pershare 468 -2005 Interimdividend of2.90p pershare - 1432004 Finaldividend of9.15p pershare - 450 --------------- --------------- 615 593 =============== =============== The Company is proposing a final dividend of 9.80p per share for the year to31st July 2006 which after waivers by members holding approximately 51% of theshares will cost the Company £483,000. The dividend if approved will be paid on 18th December 2006 to shareholders onthe Register at the close of business on 1st December 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Smart (J) & Co