J Smart & Co (Contractors) PLC on Friday upped its full year dividend, despite reported a fall in profit during financial year 2022.

The Edinburgh, Scotland-based construction contractor reported that pretax profit fell 45% to £8.2 million in the 12 months to July 31, from GB14.8 million a year before.

J Smart said this was due to the level of the surplus on valuations of investment properties compared to the previous year, and an ‘unprecedented’ rise in yields for the company’s prime industrial stock. This was partially offset by the level of profit on sales of investment properties recorded this year, being £6.1 million up sharply from £37,000 in 2021.

Revenue in financial year 2022 was down to £7.4 million from £10.4 million, due to an increase in aborted site acquisitions and a lack of tender work being acquired in the Housing Association sector.

Cost of sales narrowed to £5.9 million from £9.0 million.

Meanwhile, trading activity on continuing operations has decreased ‘substantially’ this financial year because of an ‘exceptional’ increase in the value of the commercial property portfolio last year, and higher prices of construction materials.

J Smart has issued a full-year dividend of 3.23p. This is up slightly from 3.22p the previous year.

Chair David W Smart said headline profit will drop in financial 2023 as ‘rents and yields have already started to plateau and property values in our sectors may drop’, despite lettings expected to continue in J Smart’s commercial property portfolio.

J Smart shares were untraded at 158.00p on Friday afternoon in London.

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