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RNS Number : 4238A Smart(J.)&Co(Contractors) PLC 14 April 2026
J. SMART & CO. (CONTRACTORS) PLC
INTERIM REPORT
FOR THE SIX MONTHS TO
31st JANUARY 2026
J. SMART & CO. (CONTRACTORS) PLC
CHAIRMAN'S REVIEW
INTERIM REPORT
Unaudited Group profit for the six months to 31st January 2026 amounted to
£106,000 compared with £128,000 for the corresponding period last year.
In accordance with our normal practice, there has been no revaluation of our
investment properties at the end of the half year. If a half year
revaluation had taken place, we believe that the valuation would have had a
positive effect on the headline figures, albeit not significantly due to
rental growth just counter-balancing voids in office properties.
Sales and reservations at our private housing development at Winchburgh, Canal
Quarter have been positive in the reporting period. However, the protracted
nature of overall sales on this development continues to adversely affect
profitability.
The residential development at Rosyth progresses well and the marketing of the
first phase of private housing for sale has just launched, with initial
interest promising, albeit with the backdrop of the effects of the Iran War on
consumer confidence and mortgage availability.
Negotiations are still ongoing for the Affordable Housing element at Rosyth,
but a site start date is not yet certain.
The speculative industrial development at Inchmuir Park, Bathgate is nearing
completion but delays with utility infrastructure may prolong the programme.
As mentioned in the Annual Report, there have been two substantial industrial
development sites acquired.
The first is through a new Joint Venture company, Smart (Manse 1) Limited with
Manse LLP. This Joint Venture Company purchased a site at McNeil Drive,
Eurocentral, North Lanarkshire extending to 10.50 acres, strategically located
just off Junction 6A on the M8. A planning application for two new
industrial/distribution units of 80,000 sq ft and 120,000 sq ft has recently
been submitted and timescales for the development will be confirmed in due
course.
The second is a site acquisition of a substantial industrial development site
extending to just over 16 acres at Duloch Park, Dunfermline, well located just
off Junction 3 of the M90. The site known as Axis Point, benefits from a
recently obtained planning consent providing 150,000 sq ft of industrial
accommodation over nine units of varying sizes. Again, timescales for this
development will be reported later.
No sooner had the rise in construction prices started to plateau, then the
Iran War commenced and we are already inundated with material price
increases. This and the ongoing protracted pre-contract process continues to
hamper both the viability of projects and site starts.
INTERIM DIVIDEND
The Board announces an interim dividend of 0.96p per share (2025, 0.96p) to be
paid on 1st June 2026 to shareholders on the register at the close of business
on 1st May 2026.
FUTURE PROSPECTS
It is uncertain as to what the long-term impact will be from the Iran War on
the UK economy, the development/construction sector and our operations, but in
the short-term it has already proved negative.
Consumer confidence in the housing market had been at an acceptable level, but
we have already seen the impact of the Iran War with no further reduction in
interest rates and the withdrawal of products in the mortgage market.
Our commercial property portfolio, whilst starting to experience voids in our
office properties, has seen continued rental growth, mainly in our industrial
properties. It remains to be seen what effect the Iran War will have on
investment yields.
Therefore, it is difficult to predict what the headline profit will be for the
year to 31st July 2026. We expected that property values may rise slightly
but the reverse may now prove to be the case. Profit erosion will continue
due to lack of external contracts, lack of recovery of overhead costs,
increase in material costs and the cost of holding private housing stock.
Lastly, I pay a well deserved tribute to two of my now former colleagues, who
have both recently retired.
John Sharp was our Chief Buyer and served your Company for 31 years with his
unstinting loyalty and good humour. We wish John a happy retirement and
tight lines.
Alasdair Ross leaves your Company having worked tirelessly and diligently for
37 years as a Quantity Surveyor, Chief Surveyor and as a Director for 14
years. His professionalism will be missed and we wish him well for a long
and enjoyable retirement.
D.W. SMART
14th April 2026 Chairman
CONSOLIDATED INCOME STATEMENT
6 Months 6 Months Year
ended ended ended
31.1.26 31.1.25 31.7.25
Notes (Unaudited) (Unaudited) (Audited)
£000 £000 £000
REVENUE 14,761 9,006 23,240
Cost of sales (12,751) (6,652) (18,910)
GROSS PROFIT 2,010 2,354 4,330
18 43
Other operating income 83
Administrative expenses (2,353) (2,403) (4,932)
OPERATING LOSS BEFORE LOSS ON SALE AND NET SURPLUS ON VALUATION OF INVESTMENT (325) (6) (519)
PROPERTIES
Loss on sale of investment properties held for sale - (49) (49)
Net surplus on valuation of investment properties - - 5,816
OPERATING (LOSS)/PROFIT (325) (55) 5,248
8 (16) 48
Share of profits/(losses) in Joint Ventures
Income from financial assets 22 19 43
Profit/(loss) on sale of financial assets 3 - (6)
Net surplus on valuation of financial assets 303 73 186
Finance income 101 113 1,361
Finance costs (6) (6) (12)
PROFIT BEFORE TAX 106 128 6,868
(51) (60) (1,756)
Taxation 5
PROFIT FOR PERIOD 55 68 5,112
PROFIT FOR PERIOD ATTRIBUTABLE TO:
EQUITY SHAREHOLDERS OF PARENT COMPANY 61 68 5,112
NON-CONTROLLING INTEREST (6) - -
55 68 5,112
EARNINGS PER SHARE ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE PARENT
COMPANY
7
Basic and diluted 0.16p 0.17p 13.07p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 Months 6 Months Year
ended ended ended
31.1.26 31.1.25 31.7.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
PROFIT FOR THE PERIOD 55 5,112
68
OTHER COMPREHENSIVE INCOME
Items that will not be subsequently reclassified to Income Statement:
Remeasurement gains on defined benefit pension scheme - - 1,464
Deferred taxation on remeasurement gains on defined benefit pension scheme - - (366)
TOTAL ITEMS THAT WILL NOT BE SUBSEQUENTLY RECLASSIFED TO INCOME STATEMENT - - 1,098
- - 1,098
TOTAL OTHER COMPREHENSIVE INCOME
55 68 6,210
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX ATTRIBUTABLE TO:
EQUITY SHAREHOLDERS OF PARENT COMPANY 61 68 6,210
NON-CONTROLLING INTEREST (6) - -
55 68 6,210
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Capital Redemption Reserve Retained Earnings Total attributable to equity holders of parent Non-controlling interest Total Equity
Notes
£000 £000 £000 £000 £000 £000
As at 1st August 2025 779 229 129,595 130,603 - 130,603
Profit/(loss) for the period - - 61 61 (6) 55
Other comprehensive income - - - - - -
Total comprehensive income/(loss) for period - - 61 61 (6) 55
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY
Shares purchased and cancelled (1) - (83) (84) - (84)
Transfer to Capital Redemption Reserve - 1 (1) - - -
Dividends 6 - - (890) (890) - (890)
Total transactions with owners (1) 1 (974) (974) - (974)
As at 31st January 2026 778 230 128,682 129,690 (6) 129,684
Share Capital Capital Redemption Reserve Retained Earnings Total attributable to equity holders of parent Non-controlling interest Total Equity
Notes
£000 £000 £000 £000 £000 £000
As at 1st August 2024 789 219 125,305 126,313 - 126,313
Profit for the period - - 68 68 - 68
Other comprehensive income - - - - - -
Total comprehensive income for period - - 68 68 - 68
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY
Shares purchased and cancelled (6) - (370) (376) - (376)
Transfer to Capital Redemption Reserve - 6 (6) - - -
Dividends 6 - - (889) (889) - (889)
Total transactions with owners (6) 6 (1,265) (1,265) - (1,265)
As at 31st January 2025 783 225 124,108 125,116 - 125,116
Share Capital Capital Redemption Reserve Retained Earnings Total attributable to equity holders of parent Non-controlling interest Total Equity
Notes
£000 £000 £000 £000 £000 £000
As at 1st August 2024 789 219 125,305 126,313 - 126,313
Profit for the period - - 5,112 5,112 - 5,112
Other comprehensive income - - 1,098 1,098 - 1,098
Total comprehensive income for period - - 6,210 6,210 - 6,210
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY
Shares purchased and cancelled (10) - (646) (656) - (656)
Transfer to Capital Redemption Reserve - 10 (10) - - -
Dividends 6 - - (1,264) (1,264) - (1,264)
Total transactions with owners (10) 10 (1,920) (1,920) - (1,920)
As at 31st July 2025 779 229 129,595 130,603 - 130,603
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 Months 6 Months Year
ended ended ended
31.1.26 31.1.25 31.7.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
NON-CURRENT ASSETS
Property, plant and equipment 2,839 2,743 3,026
Investment properties 86,877 70,988 79,401
Investments in Joint Ventures 121 49 113
Financial assets 1,995 1,263 1,693
Trade and other receivables 2,455 1,565 2,155
Retirement benefit surplus 25,784 23,040 25,784
Deferred tax assets 211 54 211
120,282 99,702 112,383
CURRENT ASSETS
Inventories 10,674 20,008 16,408
Contract assets 334 507 455
Corporation tax asset 408 390 700
Trade and other receivables 2,614 2,882 2,570
Monies held on deposit 54 52 53
Cash and cash equivalents 17,714 27,261 25,766
31,798 51,100 45,952
TOTAL ASSETS 152,080 150,802 158,335
NON-CURRENT LIABILITIES
Trade and other payables 500 - -
Deferred tax liabilities 12,194 9,828 12,107
Lease liabilities 211 212 212
12,905 10,040 12,319
CURRENT LIABILITIES
Trade and other payables 3,494 4,473 4,573
Lease liabilities 1 1 1
Bank overdraft 5,996 11,172 10,839
9,491 15,646 15,413
TOTAL LIABILITIES 22,396 25,686 27,732
NET ASSETS 129,684 125,116 130,603
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
Called up share capital 778 783 779
Capital redemption reserve 230 225 229
Retained earnings 128,682 124,108 129,595
129,690 125,116 130,603
Non-controlling interest (6) - -
129,684 125,116 130,603
CONSOLIDATED STATEMENT OF CASH FLOWS
6 Months 6 Months Year
ended ended ended
31.1.26 31.1.25 31.7.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit after tax 55 68 5,112
Tax charge 51 60 1,756
Profit before tax 106 128 6,868
Adjustment for:
Share of (profits)/ losses from Joint Ventures (8) 16 (48)
Depreciation 232 209 590
Unrealised valuation surplus on investment properties - - (5,816)
Loss on sale of investment properties - 49 49
Unrealised valuation surplus on financial assets (303) (73) (186)
Profit on sale of property, plant and equipment (12) (29) (83)
(Profit)/loss on sale of financial assets (3) - 6
Change in retirement benefits - - (123)
Interest received (101) (113) (1,361)
Interest paid 6 6 12
Change in inventories 5,734 (1,298) 2,302
Change in contract assets 121 437 489
Change in receivables (44) (447) (135)
Change in payables (1,079) (240) (140)
CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 4,649 (1,355) 2,424
Tax refund/(paid) 327 (195) (445)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 4,976 (1,550) 1,979
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment (63) (215) (897)
Additions to investment properties (4,922) (158) (183)
Expenditure on own work capitalised - investment properties
(2,554) (792) (3,364)
Proceeds of sale of property, plant and equipment 30 35 107
Proceeds of sale of investment properties held for sale - 14,150 14,150
Purchase of financial assets - (158) (518)
Proceeds of sale of financial assets 4 - 37
Increase on monies held on deposit (1) (1) (2)
Interest received 101 113 204
Loan to Joint Venture (300) (1,565) (2,155)
Loan to subsidiary from Non-controlling interest 500 - -
NET CASH (OUTFLOW)/INFLOW FROM INVESTING ACTIVITIES 7,379
(7,205) 11,409
CASH FLOWS FROM FINANCING ACTIVITIES
Interest costs on leases (6) (6) (12)
Purchase of own shares (84) (376) (656)
Dividends paid (890) (889) (1,264)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES
(980) (1,271) (1,932)
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (3,209)
8,588 7,426
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
14,927 7,501 7,501
CASH AND CASH EQUIVALENTS AT END OF PERIOD
11,718 16,089 14,927
NOTES TO INTERIM FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
J. Smart & Co. (Contractors) PLC is a company domiciled in the United
Kingdom. The condensed consolidated interim financial statements of the
Company for the six months ended 31st January 2026 comprise the Company and
its Subsidiaries, together referred to as the Group, and the Group's interest
in jointly controlled entities.
The condensed consolidated interim financial statements for the six months to
31st January 2026 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and with IAS 34: Interim
Financial Reporting under UK adopted International Accounting Standards.
The condensed consolidated interim financial statements for the six months to
31st January 2026 do not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The condensed consolidated interim financial
statements should be read in conjunction with the annual financial statements
for the year to 31st July 2025, which have been prepared in accordance with UK
adopted International Accounting Standards.
The statutory financial statements for the year to 31st July 2025 have been
filed with the Registrar of Companies and a copy may be obtained from
Companies House. These have been audited and contain an unqualified audit
opinion, did not draw attention to any matters by way of emphasis and did not
contain a statement under Section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements have not been audited
or reviewed by the Company's auditor. A copy of the interim financial
statements will be available on the Company's website www.jsmart.co.uk.
2. ACCOUNTING POLICIES
The condensed consolidated interim financial statements have been prepared
under the historical cost convention except where the measurement of balances
at fair value is required for investment properties, financial assets and
assets held by defined benefit pension scheme.
The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31st
July 2025, with the exception of the policies regarding the accounting for
pension scheme obligations and investment properties revaluations.
For the condensed consolidated interim financial statements, the assets and
liabilities of the pension scheme are estimated to be unchanged from the
values included at the previous year end. Also, in accordance with long
standing practice, the Group's investment properties are revalued annually on
31st July each year and therefore, no revaluation adjustment is made in the
condensed consolidated interim financial statements.
Standards, Amendments to Standards and Interpretations effective in period
There have been no new standards, amendments to standards and interpretations
relevant to the Group which were issued by the International Accounting
Standards Board that were mandatory for the Group for the first time in the
financial year to 31st July 2026.
Estimates and assumptions
The preparation of the condensed consolidated interim financial statements
requires management to make estimates and assumptions concerning the future
that may affect the application of accounting policies and the reported
amounts of assets, liabilities and income and expenses. Management believes
that the estimates and assumptions used in the preparation of these accounts
are reasonable. However, actual outcomes may differ from those anticipated.
Going concern
The financial statements have been prepared on a going concern basis. The
Directors have prepared a number of cashflows scenarios taking account of
trading activities around construction projects in hand and anticipated
projects, land acquisitions, rental income, investment property acquisitions
and disposals and other capital expenditure. In each scenario reviewed by
the Directors the Group remains cash positive with no reliance on external
funding and therefore remains net debt free. The net assets of the Group are
£129,684,000 at 31st January 2026 and the Group's net current assets amount
to £22,307,000. Taking all of the information the Directors currently have
they are of the opinion that the Group is well placed to manage its financial
and business risks and have a reasonable expectation that the Group has
adequate financial resources to continue in operational existence for a period
of at least twelve months from the date of approval of these financial
statements and therefore consider the adoption of the going concern basis as
appropriate for the preparation of these financial statements.
3. PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties which could have a material impact on
the Group's performance for the remainder of the current financial year remain
the same as those detailed in the Group's Annual Report and Financial
Statements for the year to 31st July 2025. The Directors regularly review
the risks and uncertainties facing the Group and their impact on the trading
performance of the Group and take appropriate actions to help mitigate their
impact on the Group's performance and future prospects.
4. SEGMENTAL INFORMATION
IFRS 8: Operating Segments requires operating segments to be identified on the
basis of internal reporting about components of the Group and they are
regularly reviewed by the chief operating decision maker to allow the
allocation of resources to the segments and to assess their performance. The
chief operating decision maker has been identified as the Board of
Directors. The chief operating decision maker has identified two distant
areas of activities in the Group being construction activities and investment
property activities.
All revenue from construction and investment property income arises from
activities within the UK and therefore the Board of Directors does not
consider the business from a geographical perspective. The operating
segments are based on activity and performance of an operating segment is
based on a measure of operating results.
Revenue Operating Profit/(Loss)
31.1.26 31.1.25 31.7.25
£000 £000 £000 £000
31st JANUARY 2026 (Unaudited)
Construction activities 11,027 (1,602) - -
Investment property activities 3,734 1,277 - -
14,761 (325) - -
31st JANUARY 2025 (Unaudited)
Construction activities 5,756 - (1,277) -
Investment property activities 3,250 - 1,222 -
9,006 - (55) -
31st JULY 2025 (Audited)
Construction activities 16,354 - - (3,097)
Investment property activities 6,886 - - 8,345
23,240 - - 5,248
(325) (55) 5,248
OPERATING (LOSS)/PROFIT
Share of results of Joint Ventures 8 (16) 48
Finance and investment income 429 205 1,590
Finance and investment costs (6) (6) (18)
PROFIT BEFORE TAX ON ORDINARY ACTIVITIES 106 128 6,868
5. TAXATION
The tax charge for the six months to 31st January 2026 is based on the
corporation tax rate at 25.00% (2025, 25.00%).
6. DIVIDENDS
6 Months 6 Months Year
Ended Ended Ended
31.1.26 31.1.25 31.7.25
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
ORDINARY DIVIDENDS
2024 Final Dividend of 2.27p per share - 889 889
2025 Interim Dividend of 0.96p per share - - 375
2025 Final Dividend of 2.29p per share 890 - -
890 889 1,264
The interim dividend of 0.96p per share for the year to 31st July 2026 will be
paid on 1st June 2026 to shareholders on the register at 1st May 2026.
7. EARNINGS PER SHARE
6 Months 6 Months Year
Ended Ended Ended
31.1.26 31.1.25 31.7.25
(Unaudited) (Unaudited) (Audited)
Profit attributable to Equity Shareholders of the Parent Company 61 68 5,112
£000
Basic and diluted Earnings per share 0.16p 0.17p 13.07p
Weighted average number of shares
38,843,018 39,233,025 39,111,456
Basic earnings per share are calculated by dividing the profit attributable to
equity shareholders of the Parent Company by the weighted average number of
shares in issue during the period.
During the six months to 31st January 2026 the Company purchased for immediate
cancellation 66,300 Ordinary Shares of 2p.
There is no difference between basic and diluted earnings per share.
8. FAIR VALUE ASSETS
The Group's investment properties, financial assets and assets held by defined
benefit pension scheme are measured at fair value after initial recognition.
Investment properties are only valued annually by the Directors at the year
end and not for the purposes of the interim financial statements. The Group
considers all of its investment properties fall within 'Level 3' of the fair
value hierarchy as described by IFRS 13: Fair Value Measurement. Level 3
valuations are those using inputs for the asset or liability that are not
based on observable market data. The main unobservable inputs relate to
estimated rental value and equivalent yield.
The Group's financial assets consisted entirely of equities of companies
listed on quoted markets which fall within 'Level 1' of the fair value
hierarchy. Assets held by defined benefit pension scheme consist of equities
and bonds of companies listed on quoted markets and cash which all fall within
'Level 1' of the fair value hierarchy. Level 1 valuations are those using
inputs which are quoted prices (unadjusted) in active markets for identical
assets or liabilities the Group can access at the period end date.
9. RELATED PARTY TRANSACTION
Related parties are consistent with those disclosed in the Group's Annual
Report and Statement of Accounts for the year to 31st July 2025.
Related party transactions, including salary and benefits provided to
Directors and key management, were not material to the financial position or
performance of the Group for the period.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors named below, confirm on behalf of the Board of Directors that to
the best of their knowledge that the condensed consolidated interim financial
statements for the six months to 31st January 2026 have been prepared in
accordance with IAS 34: Interim Financial Reporting under UK adopted
International Accounting Standards. The condensed consolidated interim
financial statements include a fair review of the information required by
Disclosure and Transparency Rules 4.2.7 and 4.2.8, being:
· an indication of important events that have occurred during the six
months to 31st January 2026 and their impact on the condensed consolidated
interim financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year, and
· material related party transactions in the six months to 31st January
2026 and any material changes in the related party transactions described in
the last annual report.
The Directors of the Company are listed in the Annual Report and Statement of
Accounts for the year to 31st July 2025. Alasdair H Ross retired as a
Director of the Company on 30th January 2026.
By order of the Board
D.W. SMART, Director J.R. SMART, Director
14th April 2026
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