Half-year Financial Report

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.

14th April 2026

D.W. SMART Chairman

CONSOLIDATED INCOME STATEMENT

	Notes	6 Months ended 31.1.26 (Unaudited)	6 Months ended 31.1.25 (Unaudited)	Year ended 31.7.25 (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
Other operating income		18	43	83
Administrative expenses		(2,353)	(2,403)	(4,932)
OPERATING LOSS BEFORE LOSS ON SALE AND NET SURPLUS ON VALUATION OF INVESTMENT PROPERTIES		(325)	(6)	(519)
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
Share of profits/(losses) in Joint Ventures		8	(16)	48
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
Taxation	5	(51)	(60)	(1,756)
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 ended 31.1.26 (Unaudited)	6 Months ended 31.1.25 (Unaudited)	Year ended 31.7.25 (Audited)
		£000	£000	£000
PROFIT FOR THE PERIOD		55	68	5,112
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
TOTAL OTHER COMPREHENSIVE INCOME		-	-	1,098
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX		55	68	6,210
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

			Notes	Share Capital	Capital Redemption Reserve	Retained Earnings	Total attributable to equity holders of parent	Non-controlling interest	Total Equity
				£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

			Notes	Share Capital	Capital Redemption Reserve	Retained Earnings	Total attributable to equity holders of parent	Non-controlling interest	Total Equity
				£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

 

			Notes	Share Capital	Capital Redemption Reserve	Retained Earnings	Total attributable to equity holders of parent	Non-controlling interest	Total Equity
				£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 ended 31.1.26 (Unaudited)	6 Months ended 31.1.25 (Unaudited)	Year ended 31.7.25 (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 ended 31.1.26 (Unaudited)	6 Months ended 31.1.25 (Unaudited)	Year ended 31.7.25 (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		(7,205)	11,409	7,379

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
OPERATING (LOSS)/PROFIT								(325)	(55)		5,248
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 Ended 31.1.26 (Unaudited)	6 Months Ended 31.1.25 (Unaudited)	Year Ended 31.7.25 (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 Ended 31.1.26 (Unaudited)	6 Months Ended 31.1.25 (Unaudited)	Year Ended 31.7.25 (Audited)
Profit attributable to Equity Shareholders of the Parent Company                                                                            £000	61	68	5,112
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

 

END