J. SMART & CO. (CONTRACTORS) PLC
ANNUAL REPORT
AND
STATEMENT OF ACCOUNTS
TO
31
s t
JULY 2025
86197 J Smart Annual Report Text.indd 186197 J Smart Annual Report Text.indd 1 15/12/2025 14:2515/12/2025 14:25
1
86197 J Smart Annual Report Text.indd 286197 J Smart Annual Report Text.indd 2 15/12/2025 14:2515/12/2025 14:25
1
DIRECTORS
DaviD W Smart, Chairman and Joint Managing Director
John r Smart, Joint Managing Director
alaSDair h roSS
Patricia Sweeney
Jane oliver
COMPANY SECRETARY
Patricia Sweeney
REGISTERED OFFICE
SUBSIDIARY COMPANIES
mcGowan anD comPany (contractorS) limiteD
c
ramonD real eState comPany limiteD
t
homaS menzieS (builDerS) limiteD
c
oncrete ProDuctS (KirKcalDy) limiteD
c. & w. a
SSetS limiteD
Smart ServiceD officeS limiteD
northrigg limiteD
Smart (manSe 1) limiteD
REGISTRARS AND TRANSFER OFFICE
equiniti limiteD,
a
SPect houSe,
S
Pencer roaD,
l
ancing,
bn99 6Da
BANKERS
banK of ScotlanD,
75 g
eorge Street,
e
Dinburgh,
eh2 3ew
AUDITOR
bDo llP,
chartereD accountantS,
30 S
emPle Street,
e
Dinburgh,
eh3 8bf
SOLICITORS
anDerSon Strathern llP,
58 m
orriSon Street,
e
Dinburgh,
eh3 8bP
J. Smart & Co. (Contractors) PLC
86197 J Smart Annual Report Text.indd 186197 J Smart Annual Report Text.indd 1 15/12/2025 14:2515/12/2025 14:25
2 3
J. Smart & Co. (Contractors) PLC
NOTICE IS HEREBY GIVEN that the ANNUAL GENERAL MEETING of the Company will be held at the Registered
Office, 28 Cramond Road South, Edinburgh on 22nd January 2026 at 12 noon, for the following purposes:
1. To receive and consider the Statement of Accounts for the year ended 31st July 2025 and the Report of the Directors
and the Independent Auditor’s Report.
2. To approve the Directors’ Remuneration Report for the financial year ended 31st July 2025 as set out on pages 72 to
77 in the Annual Report.
3. To declare a Final Dividend of 2.29p per share.
4. To re-elect John R Smart as a Director, who retires in accordance with provision 18 of the UK Corporate Governance
Code.
5. To re-elect Alasdair H Ross as a Director, who retires in accordance with provision 18 of the UK Corporate Governance
Code.
6. To re-elect Patricia Sweeney as a Director, who retires in accordance with provision 18 of the UK Corporate Governance
Code.
7. To re-elect Jane Oliver as a Director, who being appointed in the year, retires in accordance with provision 18 of the
UK Corporate Governance Code.
8. To re-appoint BDO LLP as the Company’s auditor.
9. To authorise the Directors to determine the remuneration of the Auditor.
10. To authorise the Company, via a special resolution, for the purposes of section 701 of the Companies Act 2006 to make
market purchases (as defined in section 693(4) of the Companies Act 2006) of its ordinary shares of 2p each (ordinary
shares) provided that:
(a) the Company does not purchase under this authority more than 10% of the nominal value of the Company’s issued
share capital at the date of this notice;
(b) the minimum price which the Company may pay for each ordinary share is 2p (exclusive of expenses); and
(c) the maximum price which the Company may pay for each ordinary share is the higher of:
(i) 105% (exclusive of expenses) of the average market value of the Company’s equity shares for the five
business days prior to the day the purchase is made according to the Daily Official List of the London
Stock Exchange; and
(ii) the higher of the price of the last independent trade and the highest current independent bid for an ordinary
share on the trading venue where the purchase is carried out.
This authority will expire at the earlier of 15 months from the date of passing of this resolution and the conclusion of the
next Annual General Meeting, except that the Company may enter into a contract to purchase ordinary shares which will
or may be completed or executed wholly or partly after this authority ends, the Company may purchase these ordinary
shares pursuant to any contract as if the authority had not ended. Under this authority any shares purchased by the
Company will be cancelled.
11. To transact any other business of an Annual General Meeting.
Explanatory notes providing information in relation to each of the proposed resolutions in this Notice of Meeting can be
found on the Company’s website www.jsmart.co.uk.
A member entitled to attend and vote at this Meeting is entitled to appoint one or more proxies to attend
and vote on a poll instead of him/her. A proxy need not be a member. Forms of proxy, if used, must be
lodged with the Registrars of the Company at least 48 hours before the time fixed for the Meeting. Forms of
proxy may also be lodged electronically by submitting a duly completed scanned copy of the proxy card to
proxyvotes@equiniti.com. You may not use the electronic address provided either in this Notice of Meeting or any
related documents (including the Form of Proxy) to communicate with the Company for any purpose other than that
expressly stated.
86197 J Smart Annual Report Text.indd 286197 J Smart Annual Report Text.indd 2 15/12/2025 14:2515/12/2025 14:25
2 3
J. Smart & Co. (Contractors) PLC
In accordance with section 311A of the Companies Act 2006, the contents of this Notice of Meeting, details of the total
number of shares in respect of which members are entitled to exercise voting rights at the Annual General Meeting
and, if applicable, any members’ statements, members’ resolutions or members’ matters of business received by the
Company after the date of this Notice will be available on the Company’s website.
Pursuant to section 319A of the Companies Act 2006, the Company must cause to be answered at the Annual General
Meeting any question relating to the business being dealt with at the Annual General Meeting which is put by a member
attending the meeting, except in certain circumstances, including if it is undesirable in the interests of the Company or
the good order of the Meeting that the question be answered or if to do so would involve the disclosure of confidential
information.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
Company Secretary
28 Cramond Road South,
Edinburgh
EH4 6AB
20th November 2025
86197 J Smart Annual Report Text.indd 386197 J Smart Annual Report Text.indd 3 15/12/2025 14:2515/12/2025 14:25
4 5
J. Smart & Co. (Contractors) PLC
CHAIRMAN’S REVIEW
ACCOUNTS
Headline Group profit for the year before tax including an unrealised surplus in revalued property and a surplus in
revalued financial assets was £6,868,000 compared with £2,365,000 last year.
As in previous years, our view is that disregarding the movement in the revaluation of the commercial property and
financial assets provides a truer reflection of the Group’s performance, which we refer to as underlying profit. The
underlying profit before tax for the year was £866,000, compared with last year’s figure of £1,248,000, as detailed in
note 10 to the financial statements.
The Board is recommending a Final Dividend of 2.29p, making a total of 3.25p. The Final Dividend will cost the
company no more than £890,000.
TRADING ACTIVITIES
Group construction activities, including residential sales, increased by 14%. Headline Group profit increased this
financial year, due to the rise in the value of the commercial property portfolio. Underlying profit before tax decreased
this year, mainly due to poor performance of some of our subsidiary companies and increased loss provisions in some
of our private housing developments.
All our construction sites and future developments continue to experience significant issues with delays in infrastructure,
utility and statutory approvals. The prolonging of programmes together with the relentless increase in the cost of
construction materials is still placing a downward pressure on trading margins.
There has been no change to the lack of contract work in the housing association sector, with no significant movement
by central government on raising funding levels.
Sales at the residential development at Clovenstone Gardens have been better than expected with the majority of the
private housing element being sold to local housing associations. The whole development will complete at the end of
this month, but for the reasons detailed above, profit margins will be worse than expected, despite the welcome sales.
The sales at Winchburgh, Canal Quarter, despite being sporadic in nature due to the lack of confidence by home buyers,
have been better than expected, with incentives, less than anticipated. There is less than a quarter of the units left to be
sold and sales prospects look promising. However, holding costs due to the prolonged sales period continue to erode
the profitability of this development.
As mentioned in the Interim Report, at the end of 2024 we entered into a new joint venture company, St Andrews 1413
Limited, with Knowe Properties Limited. The refurbishment of the 15 flats completed just after the financial year end
and all properties were let soon thereafter. The absence of the requirement for statutory/utility approvals contributed
to this contract experiencing next to no programme delays. I would like to pay tribute to all the people involved in
this project who, set with a tight completion deadline, managed to finish the project timeously with all properties
refurbished to a high standard, enabling all properties to be let on completion.
Construction of the speculative industrial development at Inchmuir Park, Bathgate continues to progress well.
Completion is still due in mid-2026, and it is too early to gauge the level of tenant interest.
The value of our commercial property portfolio has increased substantially, due to both rental growth and an
improvement in investment yields. Lettings of our industrial stock continue to improve as does rental growth. Our
office properties do not show the same rate of rental growth and lettings continue, albeit at a slower pace.
86197 J Smart Annual Report Text.indd 486197 J Smart Annual Report Text.indd 4 15/12/2025 14:2515/12/2025 14:25
4 5
J. Smart & Co. (Contractors) PLC
CHAIRMAN’S REVIEW (continued)
TRADING ACTIVITIES (continued)
A start was made just prior to the financial year end at our residential development at Primrose Lane, Rosyth. The
development will provide 107 residential units for private sale and 36 residential units as the obligatory Affordable
Housing element. This development is predominantly for detached and semi-detached homes, a sector of the housing
market we have not dealt in for a number of years. Major infrastructure works on the site are nearly complete and
construction of the first phase of units for private sale, 16 houses in total, is well underway. First completions will not
be until mid-2026, with sales marketing not due to commence until the New Year. Negotiations are on-going for the
Affordable Housing element with a Local Registered Social Landlord, and we are hopeful this contract may start in
mid-2026.
FUTURE PROSPECTS
We have less work in hand in our own private housing than we did last year.
Apart from the contract mentioned above at Primrose Lane, Rosyth, there are no real prospects of further external
contract work at present. The long awaited Housing (Scotland) Bill has finally been passed and we are hopeful we will
be able to bring forward one of our potential residential developments for new build private rent.
We will provide further detail in our Interim Report on two substantial industrial developments that both transacted
after the financial year end. One is through another Joint Venture and the other is a site acquisition.
There will be private housing sales this year, but not as many as the reported year and margins will be affected due to
the reasons outlined above.
Letting and rental levels in our commercial property portfolio will remain steady. Rental growth will occur in our
industrial properties, although not at such a marked rate as this year. It is difficult to predict whether investment yields
will decline or increase, but we expect our property values to remain at least static in the current financial year.
Work on our Sustainability Strategy progresses through the Sustainability Committee and the continued alignment
with the Task Force on Climate-Related Financial Disclosures (TCFD). We aim to be a leading developer/contractor
for low carbon and climate resilient developments by setting ambitious strategic objectives across the Group’s
property development, construction and internal operations at the Head Office. My continued thanks go to all on the
Sustainability Committee, all employees involved in sustainability matters and our consultant, Beyond Green.
It remains to be seen what impact the impending Budget will have on the economy and consumer confidence, which
is already at a low.
At this stage it is uncertain as to whether there will be a headline profit for the year to 31st July 2026.
It is with considerable regret and sadness that I pay tribute to Brian Sharp who passed away in July this year after
a brave battle with cancer. Brian served your Company for just under fourteen years and worked diligently as an
Architectural Technologist. Not only was he a valued colleague to all at the Company, but also a true friend to many.
Our thoughts continue to be with his friends and dear family.
DaviD W Smart
20th November 2025 Chairman
86197 J Smart Annual Report Text.indd 586197 J Smart Annual Report Text.indd 5 15/12/2025 14:2515/12/2025 14:25
6 7
The Directors present their Annual Report and Statement of Accounts of the Group for the year ended 31st July 2025.
CORPORATE GOVERNANCE
The Company is required, as a listed company on the London Stock Exchange, to prepare a report on Corporate Governance
in accordance with the Financial Reporting Council’s UK Corporate Governance Code (the Code). A copy of the Code can
be reviewed on the Financial Reporting Council’s website at www.frc.org.uk. The information required by the Code and
also the Disclosure and Transparency Rules and the Listing Rules can be found on pages 65 to 71.
RESULTS AND DIVIDENDS
The profit of the Group after tax for the year ended 31st July 2025 amounted to £5,112,000 (2024, £1,673,000).
During the year the Company paid on 27th January 2025 a final dividend for the year to 31st July 2024 of 2.27p per share
(2024, 2.27p) and paid on 2nd June 2025 an interim dividend for the year to 31st July 2025 of 0.96p per share (2024,
0.96p).
The Directors recommend a proposed final dividend for the year of 2.29p per share, making a total for the year of 3.25p.
This final dividend is subject to approval by the shareholders at the Annual General Meeting in January 2026 and has
not been included as a liability in these financial statements. If this dividend is approved it will be paid on 30th January
2026 to shareholders on the share register of the Company at the close of business on 19th December 2025.
DIRECTORS
The following were Directors of the Company during the financial year ended 31st July 2025 and as at the date of this
report:
− David W Smart
− John R Smart
− Alasdair H Ross
− Patricia Sweeney
− Jane Oliver – appointed 4th April 2025
Details of the Directors are given on page 64 of the financial statements.
APPOINTMENT AND REPLACEMENT OF DIRECTORS
The Company’s Articles of Association (the Company’s Articles) give the Directors the power to appoint or remove any
Director. Initial appointments must be approved by the Board of Directors but anyone so appointed must be re-elected by
ordinary resolution at the next Annual General Meeting of the Company. In accordance with the Company’s Articles, all
Directors, but excluding the Chairman, must retire annually and offer themselves for re-election at the Annual General
Meeting. Annual retirement of the Directors is also in accordance with provision 18 of the UK Corporate Governance
Code which is followed for all the Company’s Directors except for the Chairman.
DIRECTORS’ INTERESTS
Details of Directors’ interests in the ordinary share capital of the Company are given in the Directors’ Remuneration
Report. Details of changes in Directors’ interests between 31st July 2025 and 20th November 2025 are given on page 75
of the financial statements.
Other than the original employment contract received on joining the company, no Director has been issued with a
Director’s Service Contract on appointment as a director.
No Director has a material interest in any contract to which the Company or any Subsidiary Company was a party to
during the year. The Group finalised the construction of a commercial and industrial property of a company in which
David W Smart and John R Smart have a material beneficial interest. Refer to note 34(c) for details, all transactions are
at normal commercial rates.
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS 31st JULY 2025
86197 J Smart Annual Report Text.indd 686197 J Smart Annual Report Text.indd 6 15/12/2025 14:2515/12/2025 14:25
6 7
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
DIRECTORS’ POWERS
The Company’s Articles state that the Directors may exercise all of the powers of the Company which also includes the
right of the Directors to buy back the Company’s shares based on the authority given by the shareholders following the
passing of a special resolution at the Company’s 2024 Annual General Meeting.
INDEMNIFICATION OF DIRECTORS
In accordance with the Company’s Articles and to the extent permitted by law, Directors are granted an indemnity by the
Company in respect of liabilities incurred as a result of their office. The Directors are also indemnified against the cost
of defending any proceedings whether criminal or civil in which judgement is given in favour of the Director or in which
the Director is acquitted or the charge is found not proven. The Company has maintained Directors’ and Officers’ liability
insurance cover throughout the financial year.
CAPITAL MANAGEMENT AND SHAREHOLDER INFORMATION
The capital structure of the Company consists of issued share capital, reserves and retained earnings represented
predominantly by investment properties, working capital and cash.
The Company’s issued ordinary share capital as at 31st July 2025 comprises a single class of ordinary shares of 2p each.
Details of the issued share capital are shown in note 27 of the financial statements.
At the 2024 Annual General Meeting the Company was authorised by the shareholders to purchase, in the market, up to
10% of the Company’s issued share capital, as permitted under the Company’s Articles. This authority will expire at the
earlier of 15 months from the date of passing of the resolution granting the authority and the conclusion of the next Annual
General Meeting. The purpose of the market purchase is to enhance the earnings per share and/or the equity shareholders’
funds per share. The Directors are seeking renewal of this authority at the 2025 Annual General Meeting.
During the year the Company made market purchases of 521,939 ordinary shares of 2p under the existing authority, for
a total consideration of £656,000. The shares purchased were subsequently cancelled, and represented 1.32% of the
Company’s issued share capital at the start of the financial year. There were no purchases of shares in the year made
otherwise than through market purchases.
All members who hold ordinary shares are entitled to attend and vote at a General Meeting. On a show of hands at a
General Meeting every member present in person and every duly appointed proxy shall have one vote and on a poll, every
member present in person or by proxy shall have one vote for every ordinary share held or represented. The Company is
not aware of any agreements between shareholders that may result in restrictions on voting rights of shareholders. Rights
attached to ordinary shares may only be varied by special resolution at a General Meeting.
There are no specific restrictions on the transfer of securities in the Company, other than those imposed by prevailing
legislation and the requirements of the Listing Rules in respect of Company Directors. The Company is not aware of any
agreements between shareholders that may result in restrictions on the transfer of securities.
Details of substantial shareholders can be found in the Company’s Corporate Governance Report.
FINANCIAL INSTRUMENTS
The Group’s financial instruments consist of bank balances and cash, financial assets, trade receivables and trade payables.
The main purpose of the financial instruments are to provide working capital for the Group’s continuing activities and
provide funding for future activities whether in construction or property investment.
Given the nature of the Group’s financial instruments the main risk associated with these is credit risk, it is not exposed
to liquidity or interest rate risk as it does not have any net debt but it does suffer from low interest rates on the amount we
can earn on monies on deposit.
86197 J Smart Annual Report Text.indd 786197 J Smart Annual Report Text.indd 7 15/12/2025 14:2515/12/2025 14:25
8 9
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
FINANCIAL INSTRUMENTS (continued)
Credit risk
The Group’s credit risk is mainly mitigated due to the fact the majority of the Group’s revenue relates to private house
sales which are made on completion of a legal contract for the transfer of title and are to numerous customers. Other
construction contract sales are mainly to social housing providers and government local authorities who undertake projects
knowing funds are available to fulfil payment of contracts. With regards to rental income there is no concentration of
credit risk as exposure is spread over a number of tenants.
Regarding trade and other receivables, these amounts are accounted for at cost less a loss allowance for expected credit
losses which are assessed based on past default experience and debtors’ current financial position, as detailed in note 21
of the financial statements.
Liquidity risk
As the Group finances its operations through equity and reinvested profits and does not have any net bank borrowings it
has no exposure to liquidity risk.
Interest rate risk
As the Group has no net debt it has no exposure to interest rate risk other than in relation to interest earned on short term
deposits of surplus funds when interest rates remain low.
ARTICLES OF ASSOCIATION
The Company’s Articles can only be amended by a special resolution at a General Meeting. No amendments are proposed
to be made to the existing Company Articles at the 2025 Annual General Meeting.
LISTING RULES
Disclosures required in accordance with Listing Rules 6.6.1 and 6.6.6 are:
LR6.6.1(1) Capitalised interest There was no interest capitalised in the year to 31st July 2025.
LR6.6.1(3) Long term incentives The Group does not have any schemes for long term incentives.
LR6.6.1(4)(5) Director emolument waivers No current or future emoluments have been waived .
LR6.6.1(6)(7) Allotment of cash for equity None in the year.
securities
LR6.6.1(9) Contracts of significance No contracts in the year requiring disclosure.
LR6.6.1(10) Contracts by controlling No contracts in the year requiring disclosure.
shareholders Details of controlling shareholders is given on page 9.
LR6.6.1(11)(12) Dividend waivers No current or future dividends have been waived.
LR6.6.6(1) Directors’ interests Details of directors interests in the ordinary shares of the Company
LR6.6.7 are detailed in the Directors’ Remuneration Report on page 75.
LR6.6.6(2) Major shareholders’ interests Details of substantial shareholders are given in the Corporate
Governance Report on page 66.
LR6.6.6(3) Going concern and viability Disclosures are included in the Report of the Directors on page 12
statements and in the Strategic Report on page 20.
LR6.6.6(4) Buyback of share capital Disclosures are included in the Report of the Directors on page 7
and in note 27 of the financial statements.
LR6.6.6(5)(6) UK Corporate Governance Disclosures are given in the Corporate Governance Report on
Code Compliance pages 65 to 71.
LR6.6.6(7) Director’s service contract Disclosures are included in the Directors’ Remuneration Report
on page 73.
LR6.6.6(8) TCFD disclosures The TCFD report is included in the Strategic Report on pages
LR6.6.8-6.6.12 21 to 61.
LR6.6.6(9) Board of Directors diversity Details in the format required by LR6 Annex 1 are given in the
Strategic Report on page 63.
86197 J Smart Annual Report Text.indd 886197 J Smart Annual Report Text.indd 8 15/12/2025 14:2515/12/2025 14:25
8 9
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
CONTROLLING SHAREHOLDERS
As required by UKLR6.6.1R13(a) the Company confirms that it is compliant with UKLR6.2.3R in that the Company
is able to carry on its main business activities independently of its controlling shareholders, who are David W Smart
and John R Smart. There is a signed Shareholder Relationship Agreement between the Company and the controlling
shareholders. The Company has not and will not grant any security over its business in connection with funding of a
controlling shareholder nor did the Company require any external funding in the year to enable it to carry on its main
business activity. Also, the Company confirms that there were no contracts of significance between the Company or
Group and a controlling shareholder, other than their contract of employment nor was there any contract for the provision
of services to the Company or Group by a controlling shareholder.
Under UKLR6.6.2R, if an independent director declines to support the statement made in compliance with UKLR 6.6
1R(13)(a) then this fact requires to be disclosed. As the Company currently has no Non-Executive Directors then support
for this statement cannot be obtained.
CHANGE OF CONTROL
The Company is not party to any significant agreements which take effect, alter or terminate upon change of control of
the Company following a takeover bid. The Company does not have any agreements with any Director or employee that
would provide compensation for loss of office or employment, whether through resignation, purported redundancy or
otherwise resulting from a takeover bid.
POLITICAL DONATIONS AND POLITICAL EXPENDITURE
It is the policy of the Group not to make donations for political purposes to UK or EU Political Parties or incur UK or
EU Political Expenditure and accordingly neither the Company nor its Subsidiaries made donations or incurred such
expenditure in the year.
GREENHOUSE GAS EMISSIONS
This Energy and Carbon Report, prepared in accordance with The Companies (Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report) Regulations 2018, is commonly known as Streamlining Energy and Carbon
Reporting (SECR); it provides one lens to help us understand our carbon impacts and guide our actions to reduce our
emissions.
This report outlines our scope under SECR, the total energy used, and associated carbon emissions for the year ending
31st July 2025, a summary of actions taken in the year to reduce our emissions and further detail on the methodology used
to comply with SECR. We do not have responsibility for any emission sources that are not related to activities included in
our Annual Report and Statement of Accounts.
Our Scope for SECR
The SECR sets out the UK’s new mandatory reporting requirements for energy and carbon impacts of large UK
organisations, as defined by the Companies Act 2006. The Group is classed as large under the regulations. SECR requires
us to report the total annual energy consumption, and associated carbon emissions for our financial year.
Energy relates to all energy of any fuel type where we have direct or indirect control, known as Scope 1 and 2 emissions
under Greenhouse Gas Protocol (see methodology for further details). For the Group, relevant energy sources are
electricity and gas consumption to run our head office in Edinburgh and our office in Kirkcaldy, diesel and petrol used in
the delivery of our construction projects and property services and any business travel by personal car starting or ending
in the UK. All energy and emissions relate to our activities within the UK.
Our Impacts and Intensity Ratios
Based on the scope outlined above, our energy and carbon impacts for the current and prior year are summarised below.
These impacts show us our environmental performance and can form a baseline for us to compare ourselves to in the
future.
86197 J Smart Annual Report Text.indd 986197 J Smart Annual Report Text.indd 9 15/12/2025 14:2515/12/2025 14:25
10 11
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
GREENHOUSE GAS EMISSIONS (continued)
Consumption Greenhouse Gas Emissions
(MWh) (tCO2e)
Energy Source 2025 2024 2025 2024
Natural Gas 1,318 1,986 241 357
Petrol 42 17 10 4
Diesel 2,273 2,665 563 631
Gas Oil 15 - 4 -
Company Vehicles 8 13 2 3
Total Scope 1 3,656 4,681 820 995
Grid Electricity 499 498 93 103
Consumption of onsite Solar PV 10 - - -
Total Scope 2 509 498 93 103
Business Travel 31 32 10 11
Total 4,196 5,211 923 1,109
Intensity ratios
To understand our progress in improving our environmental performance, and to meet SECR requirements, we have
identified intensity ratios that help put our energy consumption and emissions into the context of our business. We have
chosen to use revenue and headcount - full time equivalent (FTE) employee numbers. Therefore, our intensity ratios for
energy are kWh/£m and kWh/FTE and emissions tCO
2e/£m and tCO2e/FTE. This allows us to compare our impact with
that of similar organisations in size and/or activities. For future years, we are currently streamlining data management to
enable us to report intensity ratios for each segment of our business.
Revenue £m MWh/£m tCO2e/£m FTE MWH/FTE tCO2e/FTE
2025 23.2 181 39.8 135 31.1 6.8
2024 22.0 237 50.4 140 37.2 7.9
In 2025, the Group had 5.5% increase in turnover while reducing FTE by 3.6%. Total energy consumption decreased by
19.5% and carbon emissions decreased by 16.8% driving down all intensity metrics.
These reductions were supported by operational changes, a reduction of 21% in investment property footprint, which
reduced gas heating requirements in common areas. Additionally, plant fuel use fell by 10%, driven by efficiency initiatives
and increased subcontracting of groundwork, which reduced the use of plant.
Given the nature of the development and construction business, fluctuations in intensity metrics between development
cycles are not unexpected. However, overall results indicate progress in operational efficiency and sustainability
performance.
Our Energy Efficiency Actions
Throughout the year we have taken action to reduce energy consumption and improve energy efficiency across our
construction activities, investment properties and office operations. A summary of energy saving actions and programmes
are detailed below:
Solar PV installation at Head Office
In 2024/2025, a 14 kWp solar PV system became operational at our head office. This installation, together with a
series of upgrades completed in 2023/2024, including the transition to LED lighting, the introduction of motion
sensors, and the installation of two EV charging points, has further strengthened the energy efficiency performance
of our head office.
Plant and Vehicle Fleet
We have continued our transition to look at and implement, where feasible, low-carbon alternatives for plant and
machinery. Through the use of battery storage for welfare facilities and site equipment, a proactive policy on
reducing idling time, and the replacement of company vehicles with hybrid models, we have reduced our carbon
intensity for plant fuel by 20% since 2024.
86197 J Smart Annual Report Text.indd 1086197 J Smart Annual Report Text.indd 10 15/12/2025 14:2515/12/2025 14:25
10 11
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
GREENHOUSE GAS EMISSIONS (continued)
Our Energy Efficiency Actions (continued)
Investment Properties
Across our investment property portfolio we are investing in energy efficiency measures that will benefit our tenants
as well as our energy consumption for common areas included in Scope 1 and 2 above. We are continuing to roll out
LED lighting upgrades when properties become vacant and have a programme to upgrade to smart meters where
possible, install solar PV on all new developments and existing properties where appropriate. Other measures
include investigating how to reduce heat loss from the building fabric and install heating controls for common areas.
We are continually investigating ways to improve the energy efficiency of heating and/or cooling systems within
our property portfolio.
The Group has conducted a comprehensive calculation of its carbon impact under the TCFD requirements and has
developed its net zero strategy and carbon reduction roadmap for coming year. Refer to our TCFD report on pages 21 to
61 of the financial statements.
Methodology
Overall, our methodology for preparing the energy and carbon report follows the principles set out in Environmental
Reporting Guidelines
1
, namely, relevance, completeness, consistency, and transparency. We have used the GHG Protocol
Corporate Accounting and Reporting Standard (revised edition) to data gathered to fulfil our requirement under these
regulations and emission factors from the UK Government GHG Conversion Factors for Company Reporting 2024
and 2025 as provided by the carbon reporting accounting software platform, Our Impacts and using location-based
methodology. In the reporting year, we did not have any certified renewable energy purchase contracts in place, and thus
market-based methodology has not been applied.
Our energy and carbon emissions are based on our UK operations for the year to 31st July 2025. Electricity and mains
gas data is taken from invoices and relates to our offices (individually metered) and vacant investment properties (based
on annual apportionment). Where gas consumption is recorded from volumetric meter readings the consumption has
been converted into kWh using our software program using the UK average gross calorific value 14.042kWh/kg and
the UK average network density 0.796kg/kwh. Fuels for construction plant and company vehicles are based on supplier
invoices and converted into kWh again using our software program based on fuel conversion factors published within UK
Government Conversion Factors for Company Reporting 2024
2
for fuel density and net calorific value.
For business travel, the Group’s financial records were reviewed for any expenses related to car hire, personal car mileage
claims and any other fuel consumption which we have direct or indirect control. The related kWh for mileage has been
calculated using the conversion factors provided in the GHG Conversion Factors for Company Reporting for the relevant
period for the vehicle type, market segment and fuel type.
Limitations
The energy data for gas and grid electricity data is based on invoice date and not actual consumption for the reporting
period; thus, there is a potential for incorrect data cut off, which may affect the energy consumption (MWh) and carbon
emissions (tCO
2 e) under Scope 1 and 2.
WASTE MANAGEMENT
We manage waste in accordance with the waste hierarchy and ensure compliance with all applicable environmental
legislation across all our operations. Construction waste is managed through site waste management plans which ensure
waste arising is minimised, reused or recycled. Waste reduction is considered at the building design stage and any waste
arising in construction is segregated into either on site or off site. Where possible, waste is reused on site and waste
to landfill is minimised with preference given to recycling or energy recovery. Training is provided to all staff and
subcontractors and waste champions are assigned to each site to ensure compliance with our waste policies and procedures.
1. Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance March 2019, published by HM Government
2. https://www.gov.uk/government/collection/government-conversion-factors-for-company-reporting
86197 J Smart Annual Report Text.indd 1186197 J Smart Annual Report Text.indd 11 15/12/2025 14:2515/12/2025 14:25
12 13
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
GOING CONCERN
The Group’s business activities, performance and principal risks and uncertainties are set out in the Strategic Report on
pages 14 to 63.
The Directors having assessed the business risks of the Company and Group as detailed in the Strategic Report on pages
18 to 20 confirm that they have a reasonable expectation that the Company and Group has adequate financial resources
without reliance on external funding to allow the Company and Group to continue in operational existence for a period of
at least twelve months from the date of approval of the financial statements. The Directors therefore consider the adoption
of the going concern basis as appropriate for the preparation of the Annual Report and Statement of Accounts.
The Directors have made this confirmation after reviewing the expected cash position of the Group under various
scenarios taking into account future trading activities around construction projects in hand and anticipated projects, land
acquisitions, rental income, investment property acquisitions and disposals and other capital expenditure. The Directors
prepare a number of cash flows to predict the cash position of the Group under these various scenarios. The aim of these
various cash flows is to ensure at all times regardless of the scenario the Group remains cash positive thus ensuring the
Group does not have to rely on external funding. The Group ensures that all companies within the Group are financially
supported by each other and where necessary dividends from cash and reserve positive subsidiaries are paid to the Parent
Company to allow that company to provide financial support to all subsidiary companies.
There continues to be issues around the increased cost of construction materials and labour costs resulting from global
market conditions, cost of living crisis, inflation rates and the impact of global conflicts. There continues to be a lack of
social housing contracts due to constraints on availability of funding to the social housing providers for social housing.
Delays in obtaining planning approval and confirmation of utility infrastructure on all type of construction developments
continue to negatively impact the progress on sites resulting in programme delays and increased costs.
Our investment property portfolio however, remains resilient in both the industrial and commercial sectors despite the
current economic climate. Rental income growth has been achieved this year and occupancy levels have remained
consistent, after accounting for loss of rent from the properties sold at Bellshill and Cardonald. There has also not been
any significant defaults in tenants paying rents and the Directors do not believe that this situation will significantly change
due to the types of investment properties held.
The impact of climate risks on the Company and Group’s business activities are also considered when looking at going
concern to ensure that the Company and Group are taking account of new construction materials and techniques which
are less carbon intensive were this is possible and to make improvements to our existing investment property portfolio
to lower their carbon impact. We are undertaking scenario analysis using a specially designed software package to fully
analyse the impact of climate changes in both our construction and investment property activities to enable us to take
informed decisions for the future. Full details of the Company and Group’s carbon strategic objectives and our Net Zero
Roadmap as detailed in our TCFD report on pages 21 to 61 will assist the Directors in making informed decisions about
the Company and Group’s future activities.
Although there are issues which have an impact on the finances and operations of the Company and Group the Directors
believe that as they can determine the construction work programmes to be undertaken and the management of the
investment property portfolio to ensure that the Company and Group are well placed to manage these financial and
operational risks.
FUTURE DEVELOPMENTS
It is not anticipated that the activities of the Company and its Subsidiaries, as described in the Strategic Report, will
substantially change in the foreseeable future.
86197 J Smart Annual Report Text.indd 1286197 J Smart Annual Report Text.indd 12 15/12/2025 14:2515/12/2025 14:25
12 13
J. Smart & Co. (Contractors) PLC
REPORT OF THE DIRECTORS (continued) 31st JULY 2025
EVENTS AFTER THE REPORTING PERIOD
There have been no events occurring after the Statement of Financial Position date that the Directors consider should be
brought to the attention of the shareholders.
AUDITOR
The Company’s auditor, BDO LLP, has expressed willingness to continue in office. Resolutions to re-appoint them as
the Company’s auditor and to authorise the Directors to determine their remuneration will be proposed at the Company’s
forthcoming Annual General Meeting.
CAUTIONARY STATEMENT
The Chairman’s Review on pages 4 and 5 and the Strategic Report on pages 14 to 63 have been prepared to provide
additional information to members of the Company to assess the Group’s strategy and the potential for the strategy to
succeed. It should not be relied on by any other party or for any other purpose.
This Annual Report and Statement of Accounts contain certain forward-looking statements relating to operations,
performance and financial status. By their nature, such statements involve risk and uncertainty because they relate to events
and depend upon circumstances that will occur in the future. There are a number of factors, including both economic and
business risk factors that could cause actual results or developments to differ materially from those expressed or implied
by these forward-looking statements. These statements are made by the Directors in good faith based on the information
available to them up to the time of their approval of this Report.
STATEMENT OF DISCLOSURE TO AUDITOR
The Directors who held office at the date of approval of the Report of the Directors, confirm that, so far as they are each
aware, there is no relevant audit information of which the Company’s Auditor is unaware; and each of the Directors has
taken all steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and
to establish that the Company’s Auditor is aware of that information.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
20th November 2025 Company Secretary
86197 J Smart Annual Report Text.indd 1386197 J Smart Annual Report Text.indd 13 15/12/2025 14:2515/12/2025 14:25
14 15
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT 31st JULY 2025
The Directors present their Strategic Report of the Group for the year ended 31st July 2025.
The purpose of the Strategic Report is to provide the members of the Company with information to allow them to assess
how the Directors have performed their duty to promote the success of the Company and Group.
OUR BUSINESS MODEL, STRATEGY AND OBJECTIVES
The Company was established in 1947 and was listed on the Scottish Stock Exchange in 1965 and was admitted to the
London Stock Exchange on 25th March 1973.
The main construction activity undertaken by the Group is that of social housing for several housing associations and
registered social landlords predominately in the Edinburgh area and construction of our own private housing for sale
which is undertaken by the Company, J. Smart & Co. (Contractors) PLC.
The Group has a portfolio of self-financed industrial and commercial properties which are owned and managed by
subsidiary company, C. & W. Assets Limited. The investment properties are located throughout the central belt of
Scotland but primarily in the Edinburgh area, this being the area of the country with which we are most familiar. Our
portfolio as at 31st July 2025 extends to almost 709,000 square feet.
The Group has six other subsidiaries, four of which are trading companies. Thomas Menzies (Builders) Limited carries out
small to medium sized building and civil engineering work for a variety of clients. McGowan and Company (Contractors)
Limited provides plumbing support to the main construction companies. Cramond Real Estate Company Limited, is the
investment holding company of the Group and holds the Group’s equity investments and monies on bank deposits. Smart
Serviced Offices Limited, which trades as Foxglove Offices, provides serviced office and co-working spaces in Leith.
Concrete Products (Kirkcaldy) Limited ceased to trade in the year to 31st July 2019 and was formally dissolved on 23rd
September 2025. Northrigg Limited is a property holding company.
The Group also has an interest in two Joint Venture Companies which was established for the purpose of property
development and letting. The Group has also entered into a joint venture, in the year, with Manse (Smart 1) Limited but
given the percentage shareholding and control in this new Joint Venture Company it is treated as a subsidiary undertaking.
The Group operates out of premises in Edinburgh and Kirkcaldy, with the centralised administration and finance function
being at the head office in Edinburgh. Full support is given by the company Directors and the finance staff to all Group
companies based at the two locations.
We maintain a core employee base which is beneficial to the growth and success of the Group due to the fact that they have
the expertise to ensure the construction activities of the Group are efficiently run, achieve a high level of quality of work
and retain control over operations. Employees who manage the Group’s investment property portfolio are fully aware of
current market conditions and ensure that there is appropriate marketing of the Group’s investment property portfolio. We
employ our own maintenance team thereby ensuring that our investment property portfolio is always in good condition
and ready for let.
Our objectives are to identify and exploit promising business opportunities as they arise to the benefit of the Group, its
shareholders and employees without over extending Group resources. While endeavouring to complete all our operations as
efficiently and to as high a standard as possible we do not set ourselves general performance yardsticks or volumetric targets.
To achieve these objectives our strategy is to continue to maintain and develop the relationships we have with social housing
providers and develop relationships with new and existing partners to establish new areas of construction opportunities,
retain our core workforce and only use specialist subcontractors with proven track records with the Group to ensure work
quality. We will continue to build both our residential properties and investment property portfolio within the central belt of
Scotland, being the area of the country with which we are most familiar. We will build up our resources to ensure the Group
has sufficient current working capital facilities and financing for future commercial and private residential developments.
In achieving our objectives we aim to generate value by creating long term and sustainable returns for our shareholders
by growing our income and profits and increasing the value of our investment portfolio and the net assets of the Group.
86197 J Smart Annual Report Text.indd 1486197 J Smart Annual Report Text.indd 14 15/12/2025 14:2515/12/2025 14:25
14 15
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
PERFORMANCE REVIEW
Construction activities
2025) 2024)
£000) £000)
Revenue . . . . . . . . . . . 16,354) 14.350)
Operating loss . . . . . . . . . . . (3,097) (3,968)
Construction revenue in the year has increased overall due to the progress of contracts in the year and number of private
house sales in the year.
Work has continued in the year on the social housing contract at our Clovenstone development, being the 24 flats for
Prospect Community Housing and was completed in October 2025 and handed over to the housing association. The work
on the private housing at this development has also progressed throughout the year and was completed in November
2025. The sale of all 45 flats have either occurred in the year or are due to conclude by the end of November 2025.
All the flats have been sold in 3 tranches to various social housing providers. For both the social housing and private
housing elements at this site the Directors considered the carrying value of the contract asset and inventory balances in
the financial statements and made required provisions against both amounts.
Sales continue to be made at our private housing development at Canal View, Winchburgh but not at the levels we had
anticipated this being due to continuing uncertainties in the housing market. In the year to 31st July 2025 we sold 21
properties, giving a total sold of 46 as at 31st July 2025 out of a total of 64 dwellings in the development. Post year end
we have sold a further 3 dwellings with a further 4 reserved. Due to the reduced sales prices and incentives introduced in
previous years and the duration of time since the completion of this housing development, the Directors considered the
carrying value of the inventory balance at the year end and made a required provision against the balance.
The work for a third party for a commercial and industrial property was finished in the year and handed over to the
customer.
Our civil engineering subsidiary, Thomas Menzies (Builders) Limited, has seen a decrease in revenue of £1,163,000 being
a decrease of 25% this is due to a lack of work. The level of revenue generated by this subsidiary is insufficient to cover
its overheads and therefore a significant loss was suffered by this company.
Full details of construction revenue is given in note 3 of the financial statements.
Construction material costs continue to remain high for various reasons, including global unrest, inflation rate increases
and the overall demand for goods and services causing increases in material and labour costs. The Group continues to
monitor costs on construction contracts, with the finance and surveyor teams liaising to ensure accurate recording of cost
to contracts and monitoring of actual costs against anticipated costs and anticipated revenue to ensure projects remain on
course and reviewing the impact on future costs to complete contracts. The Directors continue to fully appraise contracts,
at various stages, prior to acceptance to ascertain the likely outcome of the contract. These appraisals are conducted prior
to land bank acquisitions, commencement of construction and then during the lifetime of the contract to its completion.
Overheads continue to remain relatively constant in nature over time, however they have increased in monetary terms
due to inflationary increases. The Directors do continue to monitor these with a view to achieving any savings on costs
where possible. With our revenue levels the recoverability of overhead is difficult.
The increased material construction costs together with increased labour costs has resulted in margins being reduced and
the impact on the recoverability of overheads incurred by the Group has resulted in the operating loss incurred in the year.
86197 J Smart Annual Report Text.indd 1586197 J Smart Annual Report Text.indd 15 15/12/2025 14:2515/12/2025 14:25
16 17
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
PERFORMANCE REVIEW (continued)
Investment activities
2025) 2024
£000) £000
Revenue from investment properties . . . . . . . . 6,886) 7,670
Net surplus on valuation of investment properties . . . . . 5,816 994
Loss on sale of investment properties . . . . . . . (49) -
Operating profit from investment properties . . . . . . . 8,345) 4,634
Income from financial assets . . . . . . . . . 43) 49
Loss on sale of financial assets . . . . . . . . . (6) (123)
Net surplus on valuation of financial assets . . . . . . 186 123
Share of profit in Joint Ventures . . . . . . . 48 320
Overall revenue for investment properties has decreased in the year by 10%. Rental income has decreased by 6% which is
mainly due to loss of rent at the properties at Bellshill and Cardonald which were sold in at the start of the financial year.
There has been rental growth throughout the portfolio, mainly within our industrial properties, which has mitigated the loss
of rent from the properties sold and other vacancies which occurred in the year.
Throughout the year, as expected there have been movements of tenants in and out of properties but overall occupancy levels
have remained fairly static. Recoverability of rental income continues to remain high and the Group has suffered little in the
way of defaulting tenants.
Income from service charges and insurance receivable varies from year to year depending on actual expenditure incurred in
the year, overall in the year there has been a decrease of 30% in this income.
The sale of the two investment properties in the year at Bellshill and Cardonald, which at 31st July 2024 had been transferred
to Assets held for sale, resulted in a loss of £49,000 being recognised
This year the Group has earned a surplus on the revaluation of investment property portfolio of £5,816,000, due to combined
improvement in yields and increased rental.
Although there has been a significant increase in operating profit compared to the previous year this is due to the large surplus
on revaluation of investment property portfolio, if this was to be excluded then the Group has earned an operating profit of
£2,529,000 compared to £3,640,000. This decrease is due to the decrease in revenue of £784,000 and an increase in costs
mainly around non-domestic rates which the subsidiary C. & W. Assets Limited has to pay on all vacant properties following
the removal of the relief for vacant listed building properties.
Work commenced in the year on a new speculative industrial development at Whitehill Industrial Estate, Bathgate consisting
of four terraces of industrial units of 14,657 square feet each. Completion of the development will occur in the financial year
ending 31st July 2026.
Income from our financial assets has decreased from that of the previous year. There were a number of acquisitions in the
year to our portfolio of financial assets along with a number of disposals on which the Group suffered a loss of £6,000.
Improvements in the world financial markets resulted in a surplus of £186,000 on the fair value of our financial assets being
recorded this year.
The share of the results in our Joint Ventures is a profit of £48,000 which is significantly less than that of the previous year but
in that year there was a profit recognised on the sale of investment properties held by Gartcosh Estates LLP.
86197 J Smart Annual Report Text.indd 1686197 J Smart Annual Report Text.indd 16 15/12/2025 14:2515/12/2025 14:25
16 17
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
PERFORMANCE REVIEW (continued)
Group results and financial position
2025 2024
£000 £000
Profit before tax . . . . . . . . . . . 6,868 2,365
Net bank position . . . . . . . . . . . 14,980 7,552
Total assets . . . . . . . . . . . 158,335 146,498
Net assets . . . . . . . . . . . 130,603 126,313
Overall the Group has earned a profit before tax in the year which has significantly increased due to the impact of the
surplus on revaluation of the investment properties earned this year as opposed that of the previous year. However, if
the surplus on the revaluation of investment properties and financial assets are excluded then the profit before tax is
£866,000 compared to £1,248,000 in the previous year, as detailed in note 10 of the financial statements.
Construction activities continue to suffer operating losses but the level suffered this year has fallen. The profit earned
in investing activities has fallen due to loss of rental income and increased cost including the increased cost of rates of
vacant property rates.
Our net bank position, which comprises monies held on deposit, cash and cash equivalents and the netting of our bank
overdraft has increased in the year. This is due to the cash inflow from the sale of the investment properties at the start
of the financial year, we have incurred various other inflows and outflows relating to sale proceeds from sales of our
private housing and expenditure on construction activities on housing and investment properties for the Group property
portfolio. We also, provided loan financing to our new joint venture in the year to allow it to acquire and refurbish the
properties in St Andrews, Fife. Overall, the Group continues to be net debt-free.
The Group’s net assets have increased by £4,290,000, the main impact being the profits earned in the year, and the
movement in the Group’s pension scheme surplus of £2,744,000. The accounting for share buy backs and dividends
paid to shareholders in the year also impact on the net assets.
TOTAL DIVIDEND
The Directors are recommending a final dividend of 2.29p per share which taken with the interim dividend of 0.96p
already paid in the year gives a total dividend for the year of 3.25p (2024, 3.23p), which is an increase of 0.6% on the
dividend rate for 2024.
GREENHOUSE GAS EMISSIONS
The Group is required to report the greenhouse gas emissions for which it is responsible and on any environmental matters
which are material to the Group’s operations. Details of our emissions for the year to 31st July 2025 are set out in the
Report of the Directors on pages 9 to 11.
86197 J Smart Annual Report Text.indd 1786197 J Smart Annual Report Text.indd 17 15/12/2025 14:2515/12/2025 14:25
18 19
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties faced by the Group and the mitigating factors taken by the Group against these risks
are detailed below. The principal risks noted below are not all of the risks faced by the Group but are those risks which
the Group perceives as those which could have a significant impact on the Group’s performance and future prospects.
Area of principal risk or uncertainty
and impact
By focusing external construction
activities in the social housing sector,
which is a competitive market,
failure to win new contracts would
impact on our volume of work and
therefore the workforce required by
the Group.
Mitigating actions and controls
• Maintain long term relationships with social housing providers, resulting
from high standards of service, quality and post construction care thus
giving the Group an advantage over other builders when contracts are
awarded on criteria other than cost only.
• Identify potential build sites or include the provider within private housing
developments in relation to the element of affordable housing required.
• When workload is reduced workforce can be diverted to the Group’s own
commercial and private residential developments.
• Continue to acquire land for development for either private housing
developments or for resale to social housing providers as part of a construction
contract.
• Develop new areas of construction activities.
• Develop new joint venture opportunities.
Decline in home buyer confidence,
due to bank interest rates, availability
of affordable mortgages and cost of
living crisis resulting in stalling of
private house sales.
• Building developments in popular residential areas.
• Building high quality specification homes with attention to detail which
sets them apart from other new build homes and therefore make them more
attractive to buyers.
• Building a range of homes within a development thus providing choice to
buyers.
• Programming commencement of new build housing projects to market
conditions.
• Providing sales incentives.
• Considering the letting of built homes at market rates.
Social housing sector and the
housing market in general is highly
competitive with tight margins.
• We are an ‘all trades’ contractor who employs our own personnel in all
basic building trades who are supervised by site agents who are long serving
employees of the Group, and who have been promoted through their trades,
thus ensuring control of labour costs on contracts.
• We have invested heavily in plant and the maintenance thereof and therefore
limit our costs on contracts by utilising own plant as opposed to incurring
higher costs of hiring plant.
• Subcontractors employed by the Group are specialists in their fields and in the
main subcontractors have previously been used by the Group therefore quality
of work and reliability is known.
• In house architectural technicians and surveyors provide pre-contract design
advice to resolve potential technical problems with the build and therefore
potential costs.
• Detailed appraisals of contract pre-land acquisiton and pre-construction.
86197 J Smart Annual Report Text.indd 1886197 J Smart Annual Report Text.indd 18 15/12/2025 14:2515/12/2025 14:25
18 19
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
Area of principal risk or uncertainty
and impact
Reduction in rental demand for
investment properties may result in a
fall in property valuations.
Mitigating actions and controls
• Only commence speculative developments after careful assessment of the
market.
• Continue to invest in property sectors which are robust.
• Restricting our operations to the central belt of Scotland being the area of
the country with which we are most familiar.
• Continually maintain and refurbish existing properties to retain existing
tenants and attract new tenants and improvements to our properties for
improved economic and climate efficiencies.
• Provide necessary financial incentives to retain existing tenants at end of
current leases and attract new tenants.
Reduction in demand for UK real
estate from investors may result in a
fall in valuations within our investment
property portfolio, this could result in
delays in investment decisions which
could impact on our activities.
• The Directors regularly review the property market to ascertain if changes
in the overall market present specific risks or opportunities to the Group.
• Restricting our operations to the central belt of Scotland being the area of
the country with which we are most familiar.
Reduction of financial resources. • Ensure resources are not over committed and only undertake commercial
and private housing developments after due consideration of the financial
impact on the Group’s financial resources.
• Build up resources to ensure the Group has sufficient finance for working capital
requirements and financing of commercial and private housing developments.
• Spread cash reserves over several banks taking account of the strength of
the bank and interest rates attainable.
• Invest resources in equities also taking account of the security of the
investment and the yields attainable.
Political events and policies result in
uncertainty until final decisions have
been made and the impact of decisions
are known, this could result in delays
in investment decisions which could
impact on our activities. Including
Local Government processes slowing
down our ability to commence new
building projects.
• Before any decisions are taken by the Directors in any area of the Group’s
activities the level of uncertainty and range of potential outcomes arising
from political events and policies are considered.
• Monitor Government guidelines and new legislations announcements to
ensure the Group remains up to date with legislation.
• Continue to pursue contacts at Local Government to obtain necessary
consents and planning approval.
Failure to evolve business practices
and operations in response to climate
change.
• Continue to monitor all requirements relating to the construction industry
in relation to improvements in buildings to ensure they comply with current
and emerging requirements.
• Review of designs for new buildings to ensure they are as energy efficient
as possible.
• Procurement of building materials from sustainable sources.
• Investment in energy saving measures within our investment property
portfolio.
• Establishment of Sustainability Committee to develop the Group’s
sustainability strategy with the commitment to reduce the Group’s carbon
emissions in line with science-based carbon reduction targets.
• Employ the services of external specialists and consultants for their expertise.
PRINCIPAL RISKS AND UNCERTAINTIES (continued)
86197 J Smart Annual Report Text.indd 1986197 J Smart Annual Report Text.indd 19 15/12/2025 14:2515/12/2025 14:25
20 21
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
Area of principal risk or uncertainty
and impact
Unforeseen national and global
events including world conflicts and
natural disasters.
Impact of cost of living crisis,
increased inflation and bank interest
rates.
Mitigating actions and controls
• Establish strong relationships with suppliers and subcontractors to ascertain
impact on their potential supply chains.
• Build up financial resources to ensure the Group has sufficient funds for
future working capital requirements.
• Establish continuity plans for all areas of operations.
• Retain strong control over costs on construction contracts.
• Remunerate onsite and office based employees with competitive rates of
pay and benefits.
PRINCIPAL RISKS AND UNCERTAINTIES (continued)
Emerging risk
The Group faces a number of emerging risks which could have a significant impact on the Group’s performance and future
prospects. These risks are discussed by the Directors and appropriate actions taken to mitigate these risks as soon as they
are considered to be a principal risk of the Group.
VIABILITY STATEMENT
The Directors have assessed the viability of the Group over a three year period to July 2028, taking account of the Group’s
current financial strength, business model and strategy. The Directors have also taken account of the principal risks and
uncertainties facing the Group and the actions being taken to mitigate these risks as described above.
The assessment period of three years has been chosen as the Directors consider this period to be appropriate as it fits well
with the Group’s development and investment property cycles.
The Group’s financial planning process consists of cash flow projections based on the current financial position together
with current commitments and then assumptions on future developments and investment property acquisitions and
disposals.
As the Group is net debt-free the Directors are assessing the cash impact of their assumptions of future activity to ensure
that this position is maintained. The Directors vary their assumptions in terms of economic, investment and other factors
to different scenarios to assess the impact on the Group’s cash position. Even with these sensitivities applied the Group
remains net debt-free.
Based on this assessment the Directors have a reasonable expectation that the Group will continue in operation and meet
its liabilities as they fall due over the period to July 2028.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES
As a Group, J. Smart & Co. (Contractors) PLC already follow prudent principles in relation to our business activities. We
will continue to refine and re-focus our objectives to ensure compliance with the Task Force Climate-related Financial
Disclosures (TCFD) requirements and embed TCFD into our governance, strategy and risk mitigation going forward. We
support the essence of TCFD, and recognise the importance and impact of climate change, which is reflected within our
Sustainability Strategy.
Following the reporting of 2022/23 emissions data, we debriefed the process and from learnings we have reviewed our data
collection and preparation process and applied more specific emission factors to our carbon accounting methodology. To
provide the most accurate information possible, we have invested in two software platforms; Our Impacts by Eco Online and
Earth Scan by Mitigia. These along with improvements in data collection of our 2024 Greenhouse Gas Emissions and TCFD
metrics, provide a more robust and reliable basis for ongoing data analysis and monitoring performance. As a result of the
outcomes of data work in 2023/24, we have taken the decision to set the current year data as our baseline, against which all
future carbon impacts and metrics will be compared. The prior year was the Group’s initial disclosure under TCFD Metrics
and Targets pillar, and with the learnings we have decided it is not beneficial to allocate time, resources and costs to rest ate
2022/23 data.
The Board confirms that it has complied, where applicable, with the Listing Rule requirements as per UKLR 6.6.6(R)(8) for
the disclosures for TCFD. As identified last year, the Board recognised that some TCFD recommended disclosures required
further development. To develop and improve the disclosures within the relevant pillar, we have progressed our data
management practices through the introduction of comprehensive software, developed our Net Zero roadmap and enhanced
our scenario analysis capabilities.
Disclosure Alignment with
Compliance
Requirements
Actions Year
Recommendation
Disclosure: Disclose the organisation’s governance
around climate related risks and opportunities.
(a) Describe the board’s oversight of climate related
risks and o
pp
ortunities.
Full
(b) Describe the management’s role in assessing and
managing climate- related risks and opportunities.
Full
Disclosure: Disclose the actual and potential impacts
of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial
planning where such information is material.
Recommendation
(a) Describe the climate-related risks & opportunities
the organisation has identified over the short, medium,
and lon
g
term.
Full
(b) Describe the impact of climate-related risks &
opportunities on the organisation’s business strategy, &
financial planning
Partial Continue to progress our carbon reduction
target of 30% by 2030 to align to Science
Based targets initiative and reflect the
financial impacts of our Net Zero roadmap
into the Group's financial planning process.
A more detailed climate-related risk
assessment for material aspects of the business
will be conducted in 2025 The potential
impacts on financial performance will be
estimated where possible.
2025
86197 J Smart Annual Report Text.indd 2086197 J Smart Annual Report Text.indd 20 15/12/2025 14:2515/12/2025 14:25
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
21
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES
As a Group, J. Smart & Co. (Contractors) PLC (the Group) adheres to prudent principles across all areas of our business.
We remain committed to refining and re-focusing our objectives to ensure continued alignment with the recommendations
of the Task Force on Climate-related Financial Disclosures (TCFD).
We are embedding TCFD principles within our governance frameworks, strategic planning, and risk management
processes. We support the core purpose of the TCFD framework and acknowledge the significant impact of climate change,
reflected in our overarching Sustainability Strategy.
The Board confirms that, where applicable, it has complied with the TCFD disclosure requirements set out under UK
Listing Rule 6.6.6(R)(8). As noted in the prior year, the Board identified specific areas where further development was
required to fully align with certain TCFD recommended disclosures. In response, we have made meaningful progress in
2024/25, particularly in enhancing our risk management framework and assessing the financial impact of climate-related
risks and opportunities. These developments are evidenced through our updated Strategic Objectives, comprehensive
Scenario Analysis, and robust Climate Risk Assessment work. The progress towards compliance is reflected in the table
below.
Not Compliant Partially Compliant Fully Compliant
Disclosure and Recommendations Compliance Actions Year
Status
GOVERNANCE
Disclosure: Disclose the organisation’s
governance around climate-related risks and
opportunities.
(a) Describe the board’s oversight of climate-
related risks and opportunities. Page 23
(b) Describe the management’s role in assessing
and managing climate-related risks and
opportunities. Page 23
STRATEGY
Disclosure: Disclose the actual and potential
impacts of climate-related risks and opportunities
on the organisation’s businesses, strategy, and
financial planning where such information is
material.
(a) Describe the climate-related risks &
opportunities the organisation has identified
over the short, medium, and long term. Pages 27 to 29
(b) Describe the impact of climate-related The potential impacts on financial 2027
risks & opportunities on the organisation’s performance will be estimated
business strategy and financial planning Pages 27 to 29 where possible.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
22
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Disclosure and Recommendations Compliance Actions Year
Status
RISK MANAGEMENT
Disclosure: Disclose how the organisation
identifies, assesses, and manages
climate-related risks.
(a) Describe the organisation’s processes Continuing to refine and enhance our 2025
for identifying and assessing processes for assessing and managing
climate-related risks. climate-related risk, particularly the
impacts of financial planning and
Pages 31 to 34 data processing.
(b) Describe the organisation’s Development of implementation 2026
processes for managing climate-related plans for each strategy objective and to 2028
risks. associated risks. Progress of adaption
plans for risk mitigation, and relevant
metrics and targets will be reviewed
by the sustainability committee and
Pages 34 to 44 board
(c) Describe how processes for identifying,
assessing, and managing climate-related
risks are integrated into the organisation’s
overall risk management. Pages 31 & 32
METRICS AND TARGETS
Disclosure: Disclose the metrics and targets
used to assess and manage relevant
climate-related risks and opportunities
where such information is material.
(a) Disclose the metrics used by the
organisation to assess climate-related risks
and opportunities in line with its strategy
and risk management process. Page 49
(b) Disclose Scope 1, Scope 2, and if
appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks. Pages 56 & 57
(c) Describe the targets used by the
organisation to manage climate-related risks
and opportunities and performance against
targets. Pages 50 to 54
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
23
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Governance
2024/2025 focus: Set up a Working Group to identify further climate-related risks and opportunities. During the year
extensive work has been undertaken on climate-related risks, as outlined under Climate Risk Assessment on page 32.
The Group understands that climate change can present risks and opportunities to our business activities, our employees
and our other stakeholders. The Board oversees the Sustainability Strategy, which details risks, opportunities, and identifies
objectives. The Strategy also addresses the carbon impact of our construction activities, operations and investments. It
provides details of our objectives going forward, including our efforts to reduce our carbon impact and operate more
sustainably in all aspects of our business.
The Board met 4 times throughout the year where climate-related risks and opportunities were discussed, with actions
considered and implemented where appropriate. The Board Director responsible for climate related issues is our Chairman
and Joint Managing Director, David W Smart, and the Director who leads the delivery of the sustainability strategy is
Jane Oliver. Our Chairman oversees the internal management of J. Smart & Co. (Contractors) PLC’s climate-related
risks, opportunities and strategy-setting process, and receives updates on climate-related activities and developments
throughout the business. These updates are reported by the Sustainability Committee.
The Sustainability Committee is formed of representatives from across the business including the Joint Managing Director,
Development Director, and members of the Real Estate and HR Teams. The Committee collaborates to identify, assess,
and manage our response to climate-related risks and opportunities. The Committee works closely with employees
throughout our Group to implement and enhance programmes and policies addressing climate-related risks and
opportunities for J. Smart & Co (Contractors) PLC. The Committee reports to the Board quarterly with its
recommendations and provides progress updates on targets and objectives.
Our Board oversees the integration of climate-related opportunities and risks, including environmental and climate-related
impacts, into corporate risk assessment activities and audit functions.
2025/2026 focus: The Board will regularly review the progress and performance against the new strategic objectives
through the measurement and monitoring overseen by the Sustainability Committee.
#
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
24
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Strategy
2024/2025 focus: Continue to progress our carbon reduction target of 30% by 2030 to align to Science Based targets
initiative and use climate and emissions analysis software (EcoOnline and Earthscan) to assess the financial impacts of
the scenario analysis for physical risks and the potential government policy developments around transitioning to low
carbon-built environment.
Our strategy is guided by our commitment to long-term sustainable growth, creating value not only for our shareholders,
but also for our employees, partners, and the communities where we operate. We recognise that responsible business
practices and resource management are fundamental to the resilience and success of our Group. These principles underpin
our decision-making and shape how we identify and respond to both emerging risks and opportunities in an evolving
landscape.
The strategic objectives support the Group’s mission to be a leading developer/contractor for low carbon and climate
resilient developments by setting ambitious strategic objectives across the Group’s property development, construction
and internal operations. Objectives cover climate mitigation as outlined in our net zero roadmap to reduce carbon
emissions by 30% by 2030, aligned with the Science Based Targets initiative (SBTi); and climate adaption to deal with
physical risks under different climate scenarios and transition risks from changes in regulations, market, technology and
reputation. Incorporating climate mitigation and adaptation objectives into our strategy will ensure our business remains
resilient and competitive in a low-carbon economy.
During the year the Sustainability Committee and the Board conducted a comprehensive review of the impacts of climate
change on the Group’s strategy and operations. The review encompassed in-depth stakeholder materiality assessment,
assessing climate risks and opportunities across the different business segments and operations, and augmentation of our
net zero roadmap. As a result of the review, a more extensive set of objectives, than those set in 2023, along with defined
metrics and targets, are outlined on pages 31 and 32.
We have made further progress in integrating the impacts of climate-related risks and opportunities into our financial
planning processes. These considerations will increasingly form part of our cash flow modelling and Board-level risk
analysis discussions. At present, the financial impacts of identified climate-related risks and opportunities are based on
qualitative analysis which guides our future carbon-related financial decisions. We will continue to work on seeking data
to reliably quantify the financial impacts of the highest rated climate-related risks the Group is potentially exposed to.
Climate Scenario Analysis
Our Climate Scenario analysis is under constant development for the two scenarios of Paris aligned <2
o
C and > 2
o
C for
our current business activities and processes. For physical risk, we continue to invest in Earthscan climate software to
assess our exposure the six common risks of heat stress, precipitation, drought, flooding, wind risk and wildfire. Although
for transition risks conducting scenario analysis is more challenging, we review information provided by Committee on
Climate Change, Scottish Water Climate Change Adaptation Plan 2024 and Carbon Action Tracker, amongst other sources
to support analysis.
For scenario analysis of physical risks, Earthscan, a geospatial mapping tool, evaluates six physical risks for each of our
property assets, such as office buildings and Estates - as well as operational sites. This analysis spans three climate
scenarios:
• Business as usual
• Emissions peak by 2040
• Paris-aligned <2
o
C
These are evaluated across short-term (2025), medium-term (2030), and long-term (2050) horizons; consistent with the
time horizons in the climate risk assessment disclosures.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
25
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Strategy (continued)
Scenario analysis is also informed by engagement with various stakeholders as outlined below and on page 26, and from
the climate risk assessments conducted under the different climate scenarios as outlined above. As part of our overall
governance framework for assessing, managing and responding to changes in climate-related risks and opportunities and
the financial impacts, we will annually review our strategy and objectives and adjust as necessary.
2025/2026 focus: Implementation plans for each strategic objective, including ownership, specific timelines and actions.
Continue to obtain further information to support scenario analysis for transition risks
Stakeholder Assessment
Our new strategic objectives were informed from the in-depth stakeholder engagement we conducted during the year.
The engagement was conducted through desktop research, surveys, and interviews to assess the sustainability and climate
change matters most important to them. These matters were reviewed by the Sustainability Committee and their relative
impact on the Group’s operations, property development and construction activities were rated. The matrix below captures
the main themes which are weighted based on the relative importance of the stakeholder group to determine the impact
on our activities.
Ref Theme Description Relevant Stakeholders
1 Property location Provisions of properties in desirable Commercial Property
locations for transport, facilities, etc Tenants
2 Lease costs Affordable leases for the target market Commercial Property
that have low operating costs Tenants
3 Forward looking compliance TCFD Compliance regime and Banks
(TCFD) to secure funding reporting that we are proactively
managing and monitoring Climate
Change impacts
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
26
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Stakeholder Assessment (continued)
Ref Theme Description Relevant Stakeholders
4 Cost of transition to Net Zero Unclear regulatory and policy direction Major Suppliers and
with the cost of investing in low carbon Subcontractors
new technologies, fuels and materials
leading to a lack of action/ apathy
despite awareness.
5 Resource efficiency & recycling Reducing consumption of finite Employees
resources and getting the most out of
resources, including recycling/reuse
6 Gender equality and diversity, Ensuring that all employees are Employees and JV Partners
including social aspects of ESG supported fairly and can reach their
potential by minimising barriers
and unconscious bias
7 Sourcing of sustainable materials Managing supply chains to seek Employees, Major Suppliers
alternative materials with lower and Subcontractors
environmental impact, longer life
span, and locally sourced
8 Employee engagement and involvement Providing formal and informal forums Employees
for all employees to voice ideas and
concerns to act
9 Engaging with sustainable Collaboration with designs, materials, Major Suppliers and
construction methods costs and mitigate emissions and Subcontractors
adaption to climate change impacts
10 Tenant's commitment to Net Zero A clear expression of need to transition Commercial Property
to a low carbon business Tenants
11 Net Zero transition by 2030 A transparent and comprehensive Net Banks, Insurers, JV Partners
Zero roadmap that responds to risk and and Employees
opportunities, which outlines financial
impacts with transition to Net Zero
12 ESG practices /policies Overarching programme of corporate Banks, Insurers, JV Partners
governance that includes management, and Employees
policies and practices to reduce risks
and gain benefits
13 Paying a premium - “Eco” upgrades Willingness of tenants to pay a Commercial Property
premium for energy efficiency Tenants
14 Environmental benefits of property Provision of low-carbon properties Commercial Property
that support a tenant’s ESG policy Tenants
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
27
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Strategic Objectives to 2030
The strategic objectives, outlined in the table below, direct the Group’s actions for the next five years. These objectives
are formed from a comprehensive review of the stakeholder materiality assessment on page 26 and 27 climate related
risks impacting commercial property, construction, site activities and our internal operations on pages 34 to 44. The
strategic objectives are aligned to business segments; and for each objective we have identified how to measure progress
(metrics) and established targets, where possible.
We recognise that for several objectives a target is still to be set, which is partly due to establishing data collection and
baseline data to quantify a realistic though ambitious target.
Group and Head Office
Strategic Objective Progress measured by Target
1. Board regularly assess exposure • Quarterly review of metrics and climate risks 2026
to climate change risks and
financial impacts
2. High quality emissions data is prepared • % emissions data and relevant KPIs/metrics 50% by 2026
for Board and Sustainability Committee. prepared quarterly and considered reliable 75% by 2027
>90% by 2028*
3. Ensure our internal operational carbon • Operational Carbon intensity by GIFA** To Be
impact is aligned with the carbon kgCO
2
e/sqft) Confirmed
reduction of our developments
4. Maintain regular engagement with Key • % of key stakeholders engaged (major 25% by 2027
Stakeholders to proactively understand suppliers and subcontractors) 50% by 2028
key issues to ensure competitive supporting low carbon development 75% by 2029
advantage >75% by 2030
• % of selected key commercial property
tenants engaged, for leased floor area
> 10,000sqft
5. Staff understand low carbon progress • % of staff who can understand the key 25% by 2027
of J. Smart & Co. (Contractors) PLC aspects of climate change and how 50% by 2028
and its ambition J. Smart & Co. (Contractors) PLC 75% by 2029
are taking action. Conduct annual >75% by 2030
surveys with specific questions on strategy.
• % of employees who participate in
sustainability training and /toolbox talks/
presentations.
• Number of employee suggestions
shared with the Board.
.
By 2027, ¼ of
suggestions
received
presented to
Board.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
28
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Strategic Objectives to 2030 (continued)
Group and Head Office (continued)
Strategic Objective Progress measured by Target
6. Continuation of decarbonisation of • Investment Carbon intensity for Scope 1 and Further 10%
investment portfolio 2 emissions from external equity holdings from 2025
kgCO
2
e/$m invested) by 2027.
Further 10%
from 2027
by 2030.
7. Reduce carbon emissions to transition • Reduction for all emissions measured 30% by 2030
towards Net Zero as aligned to and reported as at 31 July 2024.
science-based targets
*subject to the provision of data from 3rd parties beyond our control
** Gross Internal Floor Area
Property Development and Construction
Strategic Objective Progress measured by Target
8. Strengthen climate resilience of • % GIFA for properties that have a flood risk 15 % by 2027
commercial developments with GIFA > rating: E in 2035, and adaptation 30 % by 2028
10,000sqft measures planned 50 % by 2029
• % GIFA for properties that have a heat stress >75% by 2030
risk rating: E in 2035 and adaptation
measures planned.
9. Rebalancing of developments to • Refurbed development as a proportion of 12% by 2030
including greater emphasis on all developments by GIFA (sqft) 20% by 2035
refurbishment developments
10. Continue to strengthen position in
• Embodied Carbon intensity by
Targets to be set
private housing development market
GIFA kgCO
2
e/sqft)
in 2026-2027
(flats/detached housing) while
reducing carbon intensity
• In use carbon intensity by GIFA kgCO
2
e/sqft)
• In use carbon intensity by GIFA kgCO
2
e/sqft)
• In use energy intensity by GIFA kWh/sqft)
11. Continue to strengthen position in • Embodied Carbon intensity Targets to be set
Commercial development market by GIFA kgCO
2
e/sqft) in 2026-2027
(offices/industrial) while reducing
• In use carbon intensity by GIFA kgCO
2
e/sqft)
carbon intensity
• In use energy intensity by GIFA kWh/sqft)
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
29
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Strategic Objectives to 2030 (continued)
Site Activities
Strategic Objective Progress measured by Target
12. Transition from fossil fuel to low • Carbon intensity tCO
2
e/£m of plant Targets to be set
carbon fuels for construction plant in 2026-2027
13. Improve the planning of the plant • Carbon intensity tCO
2
e/£m of plant Targets to be set
required to achieve greater energy in 2026-2027
efficiency
14. Improve strategic planning to • Waste generation for clearing Targets to be set
minimise waste generation from development land (tonnes/acre) in 2026-2027
developments • Waste generation for construction phase by
GIFA (tonnes/sqft)
• Waste diverted from landfill 99% by 2030
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
30
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Review of Strategic Objectives to 2025
The information below provides a status update on the objectives set out in the TCFD disclosures reported for the year
ending 31st July 2023.
Objective Target Actions/Status Outcome
Reduce the carbon 10% of total steel • Total steel purchased: 238 tonnes • We have exceeded
intensity of raw purchase is green by • Recycled (green) steel our 2025 target,
materials 2025. used: 76.16 tonnes. achieving 32%
green steel usage.
Monitor exposure to Assess and manage • Conducted a comprehensive • No assets are currently
flood risk for vacant flood risk using review of all Group property rated E or F for flood risk.
land sites Earthscan across all holdings—including leased
property holdings, assets, operational properties,
including vacant land, and vacant land, using the
using data-driven tools Earthscan platform to assess
to inform adaptation exposure to flood and
and mitigation measures climate-related risks.
where appropriate. • Risk Assessment Criteria:
For any assets rated E or F, we
will evaluate the financial and
commercial viability and
consider required resilience
measures.
Decarbonise investment Achieve a 10% • Proposed new investments are • Achieved: The carbon
portfolio reduction in the carbon aligned with our climate intensity of equity
intensity of the strategy and will continue investments has decreased
investment portfolio to support further reductions by 21% since 2023.
by 2025. in carbon intensity across the
portfolio.
Explore renewable Increase renewable • Feasibility Study Completed: • Review in progress to
energy strategy to energy generation A detailed assessment of evaluate the technical
property portfolio across our property suitable properties has identified feasibility,
portfolio to support a potential solar PV generation implementation strategy,
decarbonisation. capacity of 1,023 kWp across and associated cash
the portfolio. flow implications.
• Prioritisation of sites
based on roof suitability,
energy demand profiles,
and return on investment.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
31
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Review of Strategic Objectives to 2025 (continued)
Objective Target Actions/Status Outcome
Transition to low carbon Transition to • Explore the hire of modern, • Carbon intensity for plant
alternatives for plant and Hydrotreated Vegetable low-emission equipment fuel has fallen by 20%
machinery Oil (HVO) and battery as an alternative to purchase. since 2024.
storage for plant and • Ensure all procurement
welfare facilities to decisions to consider
reduce diesel and prioritise low-carbon
consumption by 40% alternatives.
by 2026.
Digital Transformation: Implement digital IT • Microsoft 365 Migration • Full migration to
to build upon & improve systems and provide • Training to be rolled out Microsoft 365 completed.
data management, data training to our to cover the full functionality • Awareness on how to use
analysis, digital working employees by 2025. of Microsoft 365. Microsoft 365.
practices and procure the • Full integration of EcoOnline • Enhanced data
relevant skill sets and EarthScan management, decision-
required to implement making and
environmental
compliance.
Continually strive Increase diversion • Implementation of a Waste • We achieved a 98.8%
towards Zero Waste to from landfill to Management Policy diversion from landfill.
landfill - Increase 22.5% by 2025. Clear procedures were
Diversion from Landfill established for handling,
to 22.5% by 2025 segregating, and disposing
of waste, aligning site operations
with best practices.
• Collaboration with Waste
Contractors: Improved data
granularity to better track waste
streams and classification.
Risk Management & Corporate Risk
2024/2025 focus: Continuing to refine and enhance our processes for assessing and managing climate-related risk,
particularly the impacts of financial planning and data processing.
Climate change is a principal risk in the Group Risk Register. We have formal ongoing processes to identify, assess and
analyse risks. These risks are fully explained in our risk section in our Principal Risks and Uncertainties section of the
Strategic Report on pages 18 to 20 of the financial statements.
For 2024/2025, we undertook comprehensive work to assess our climate-related risks and their implications for financial
planning; this is outlined below in our Climate Risk Assessment. While we acknowledge that this process is subject to
future quantification, we believe the understanding of impacts on financial position and performance for climate-related
risks assessed as HIGH. We consider ourselves fully compliant in this area.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
32
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Risk Management & Corporate Risk (continued)
The assessment work has been led by our Chairman and Joint Managing Director, David W Smart, with input from
members of the Board and specialists. Our holistic approach ensures that the assessment has captured expertise and
knowledge in both depth and breadth. The outcomes of this work have enabled a more systematic evaluation of risks and
opportunities, which the Board has reviewed and considered in its strategic decision-making and risk mitigation efforts.
As part of our ongoing commitment to enhancing the quality of data and analysis around climate-related risks, we have
continued our use of the EarthScan platform. Earthscan is an effective tool to understand our physical risk through
incredibly detailed information on our operational properties and our leased assets portfolio’s exposure to climate risk. It
brings together world-leading climate science, data modelling, and machine learning to help us comply with disclosure
requirements as well as informing investment decisions across time horizons and future climate scenarios.
We have maintained a strong focus on improving carbon emissions data, building on progress made in the prior year.
This has involved streamlining data collection across departments and enhancing internal processes for data validation
and consolidation.
In 2024/2025, the Sustainability Committee continued to produce a quarterly Sustainability Report, submitted to the Board
for review and discussion. This report provides updates on the Sustainability Risk Register & Opportunities, progress
against our Strategic Objectives and performance on our Key Metrics and Targets. The report highlights progress made,
identifies any barriers to achievement, and outlines areas where Board support or intervention may be required. This
structured reporting process enables a consistent and timely assessment of climate-related risks, objectives, and targets. It
ensures that emerging issues are identified promptly, and that the Group’s overall risk management approach remains
active, responsive, and continuously reviewed at Board level.
2025/2026 focus: We will continue to enhance our processes for assessing and managing climate-related risks, with a
particular focus on their impact on financial planning and long-term business resilience. This includes continued
development of climate scenario analysis and considers the impacts on strategic and financial decision-making. For the
highest-level climate risks, we will work on obtaining suitable data to reliably quantify the financial impacts of those risks,
and relevant adaptation measures.
Climate Risk Assessment
This section outlines further details about the climate risk assessment led by our Chairman and Joint Managing Director,
covering the time horizons, methodology and specific risks rated HIGH under the two climate scenarios. Through a series
of workshops, physical and transition risks were considered for the prioritized business areas: commercial property,
construction and site activities. The detailed assessment considered how both physical and transition risks impacted
construction programmes, use of materials, operation of plant, our workforce, movement of goods and people, suppliers
and subcontractors, as well as our tenants.
The time horizons, as summarised below, can differ by business segment and reflect the development of timescales and
cyclical nature of the business. We define time horizons as follows:
• Short relates to the standard development cycle from planning consent being granted to completion;
• Medium relates to site identification through purchase to the submission of planning application; and
• Long relates to expected period that investment properties are held.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
33
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Methodology
Assessing the risk of climate related hazards for physical and transition risks on the Group's activities used the risk matrix
outlined below.
In assessing risks, a rating for likelihood and expected impact were assigned to each identified risks for Commercial
Property, Construction and Site activities. The multiplication of likelihood and impact scores provided a risk rating score
(1-25). Furthermore, each risk was assessed if its impact was Acute (immediate and short-lived) or Chronic (likely to be
long- term irreversible trend) and allocated a risk type (physical or transition).
Likelihood:
1. Almost Impossible / Rare: Very unlikely to occur.
2. Unlikely: Could happen but not expected.
3. Possible / Occasional: Might happen from time to time.
4. Likely: Expected to happen in many situations.
5. Almost Certain: Very likely to occur.
Time
Horizon
Physical Risk Transition RisksPeriod
Short Unpredictable weather
events; and surface
water flooding
Government Policy & Market demands for low carbon commercial
properties.
Regulations relating to decarbonisation of transport & the expansion
of low emission zones.
Availability of low carbon materials & technologies that are
financially viable to meet market requirements.
Within 3
years
Medium Increase demand for
cooling from higher
summer temperatures,
and impacts of
flooding across the
business
Continuation of market expectations to use low carbon buildings.
Planning regulations for decarbonisation of the built environment.
Availability of low carbon materials & technologies that are
financially viable to meet market requirements.
3-10
years
Long Increase in extreme
weather events (100
return rate) more likely
by surpassing 2
o
C
To be assessed more fully in the coming year and relate to the market
valuation of investment properties traditionally held for 50 years.
The investment strategy will be reviewed in the coming year.
10-50
years
V#>*''-#
V5#!<.'"/#
19&/$;3#
# # # # #
T5#7;F9<I#
# # # # #
^5#6'"";><9#
# # # # #
R5#L3<;F9<I#
# # # # #
d5#N$&9#
# # # # #
# W#
Q3";@3;=;4$3/#
C#
`;3'&#
O#
-;@3;=;4$3/#
E#
`$B'&#
G#
[f/&9.9#
#
XRQ51T#
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
34
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Methodology
Impact:
1. Insignificant: No real disruption; little or no cost or downtime.
2. Minor: Small disruption; manageable with routine resources.
3. Moderate: Noticeable effect on operations or costs; requires supervisor involvement.
4. Major: Significant disruption or financial loss; needs formal management and mitigation.
5. Extreme: Major business impact; could threaten business continuity.
Risk Levels:
1. 1–6: Low (Acceptable) – No immediate action; monitor routinely.
2. 7–12: Medium – Monitor annually; and consider adaptation measures.
3. 13–25: High – Plan adaptation measures required within the next 5 years; assign Board ownership and track
progress.
Risk Assessment for a < 2°C Climate Change Scenario
The risks assessed as HIGH, under a 2°C climate change scenario are summarised in the table below. For each risk item,
the associated strategic objectives (SO) are cross-referenced to indicate how the risk is managed and monitored; an intensity
rating of Acute and/or Chronic is assigned; the risk type(s) and time horizon(s). For the intensity rating, Acute means
immediate but short lived where the Group will adapt to the initial change, whereas Chronic refers to a change that occurs
over time and will persist requiring continual adaptation.
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Surface Water
flooding -
existing
drainage
capacity can
manage flash
flooding- cost
of retrofit
drainage.
SO: 8
• Increase in capital
expenditure
• Reduce operational
cost through use
harvested rainwater
• Property asset value
may increase due to
robust flooding
management systems
and strengthened
climate resilience
• Potential revenue
increase through
reduced vacant
periods by making
properties more
attractive because of
climate resilience
Acute
RISK
TYPE
Flooding
TIME
HORIZON
Medium• Assess properties without
attenuation flood management
in place
• Investigate nature based
solutions, such as blue green
infrastructure (BGI), to reduce
peak flow
• Investigate voluntary SuDS
systems
• Using drainage system as
storage
• Investigate rain harvesting and
grey water systems to reduce
discharge flow levels
• For existing properties, retrofit
flood barriers
• Replace car park surfaces with
porous material
• Explore internal climate
resilience fund to help mitigate
costs of climate adaption
measures
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
35
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Commercial Property
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Water course
flooding -
location
specific, raising
water table and
flash flooding.
SO: 8
• Property asset value
may increase due to
robust flooding
management systems
and strengthened
climate resilience
• Potential maintenance
costs for flood
barriers etc
• Increase in capital
expenditure
Acute
RISK
TYPE
Flooding
TIME
HORIZON
Medium
Long
• For existing at risk properties,
retrofit flood barriers
• Investigate water pumping
mechanisms
• Seek specialist flood
management consultancy
services
• Explore internal climate
resilience fund to help mitigate
costs of climate adaption
measures
Changes in
Energy
Efficiency Regs
<1000m2
(multi-let
industrial
units).
SO: 9
• Increase in capital
expenditure
• Reduced risk of
stranded assets
• Potential to protect or
enhancing revenue
• Expenditure on
external consultancies
to perform EPCs
• May lead to more
frequent use of plant
and machinery, which
means increased hire
costs
• Potential lower risk
of asset obsolescence
from electric plant
• Electric plant will
lead to the installation
costs of charging
facilities
• Onsite battery storage
may lead to an
increase in insurance
premiums, due to
capital expenditure or
fire protection.
Chronic Policy/
Regulation
Medium• The Group plans to monitor
regulation and announcements
for changes to EPCs and to
adapt accordingly
• Explore renewable energy and
energy efficiency funding
opportunities
• Investigate Over cladding on
industrial units
• Explore internal climate
resilience fund to help mitigate
costs of climate adaption
measures
New
regulations (i.e.
ULEZ) could
result in
restrictions on
fossil fuel
powered plant
in urban areas
leading to
obsolescence.
SO: 9, 11
Acute
(initial
adaptation)
Chronic
(expected
continuous
change in
regulatory
thresholds)
Policy/
Regulation
Medium• Monitor Local Authority and
Scottish Government policy,
and plan for renew and
replacement programme of old
gas heating systems to balance
financial costs
• Continue to explore cleaner
alternate fuel use opportunities
• Higher proportion of electric
plant and machinery for
developments in Ultra Low
Emission Zone (ULEZ)
• Explore onsite renewable
opportunities in conjunction
with battery storage
• Explore internal climate
resilience fund to fund climate
adaption measures
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Commercial Property (continued)
36
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Increase in
energy use to
ensure
comfortable
working
environment.
SO: 9, 11
• PV will reduce
energy costs for
common areas
• Potential changes in
services charges to
tenants
• Increased capital
expenditure for solar
PV and energy
efficient equipment
and heating/cooling
systems
• Reduce the risk of
"stranded assets" that
are not suitable for
retrofit
• Divest outlying
uneconomic /
obsolete assets where
not cost effective to
upgrade / refurbish
Chronic
RISK
TYPE
Extreme
Heat +26
o
C
TIME
HORIZON
Short
Medium
• Review Retrofit programme to
include Air Source Heat Pumps,
heating dead zones, insulation,
Restriction on listed building
• Explore solar PV for common
areas in office buildings
• Installation of canopies to shade
certain areas
• Refurbishments, including air
handling systems, such as
Mechanical Ventilation Heat
Recovery
New build
offices
extended
/longer
programme;
more onerous
build
regulations
(insulation);
new
technologies for
passive cooling.
SO: 11
• n/a Acute Extreme
Heat +26
o
C
Long • Industrial - easier to manage
Offices - more complicated
• Monitor for changes in
regulation, and in the market,
and react accordingly
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
37
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Construction (continued)
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Requirements
for recycled
aggregates
SO: 10, 11, 14
• Potential to stockpile
quality recycled
aggregates to mitigate
supply/cost vagaries
• Increased
transportation costs
due to fewer suppliers
• Increased capital
expenditure for
internal crushing
infrastructure
• Increase risk and cost
of poor-quality
aggregate, which
could lead to a delay
in programme
• Increase in market
demand for recycled
aggregate could lead
to difficulty acquiring
materials for internal
crushing
Acute
RISK
TYPE
Market,
Reputation
Policy/
Regulation
TIME
HORIZON
Medium
Long
• Explore the expansion of the
internal production of recycled
aggregate
• Implement a more robust
monitoring regime on incoming
materials
• Perform independent material
testing
Potential
disruption to
supply of
timber,
impacted by
fires, disease,
drought, etc.
SO: 4
• Timber from different
regions could lead to
increased costs
• Engineered timber
bears an uncertainty
in cost
• Installation cost
impact on fire
resistance measures
Acute Market Medium
Long
• Review climate risk of forests of
timber suppliers
• Investigate multiple supply from
different regions
• Regular engagement and
collaboration with suppliers to
assess potential disruption
• Move to ‘fast-grown’ timber
when quality is not critical
Regulations
will drive
thresholds for
embodied
carbon for new
build in
Scotland
(tCO2e/m2)
SO: 10, 11, 14
• Lower carbon
materials may lead to
higher production
costs
• Time spent assessing
embodied carbon etc
• Increased workload
may require
recruitment and
training within
current teams
Acute
(initial
adaptation)
Chronic
(expected
continuous
change in
regulatory
thresholds
Market,
Reputation
Policy/
Regulation
Medium• Exploration of lower carbon
materials
• Assessing current embodied
carbon of representative
properties and compare to
expected regulatory thresholds
from other EU countries / RICS,
NET Build Council
• Regular monitoring of Scottish
Government Policy on Regs and
SPF and HFS industry bodies
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
38
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Construction (continued)
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Cost of Net
Zero Transition
for Major
Suppliers
SO: 4
• Time investment
required for supplier
engagement and
vetting
• May increase costs
for suppliers meeting
Net Zero criteria
• Market pressure on
low-carbon suppliers
could raise costs to
the Group
• Potential introduction
of carbon taxes – cost
will inevitably be
passed on to the
Group
Chronic
RISK
TYPE
Market
TIME
HORIZON
Medium• Multiple supply channels and
monitoring annually
• Continual engagement with
suppliers
• Expand supplier base to include
multiple suppliers
• Identify smaller suppliers that
may be under less pressure
• Include climate resilience and
low-carbon/Net Zero criteria in
supply vetting
• Review all key suppliers under
new vetting criteria
• Improve resource efficiency
Cost of Net
Zero Transition
for
Subcontractors
SO: 4
• Time investment
required for
subcontractors'
engagement and
vetting
• May increase costs
for contractors
meeting Net Zero
criteria
• Market pressure on
low-carbon
contractors could
raise costs to the
Group
• Increased workload
may require
recruitment and
training within
current teams
Chronic Market Medium• Maintain continual engagement
with subcontractors
• Develop multiple subcontractor
channels and monitor
performance annually
• Expand subcontractor base to
reduce dependency on a few key
players
• Identify smaller subcontractors
who may be under less market
pressure
• Integrate climate resilience and
low-carbon/Net Zero criteria
into subcontractor vetting
• Review all key subcontractors
under updated vetting criteria
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
39
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Construction (continued)
Business Area: Site Activities
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Despite RD
investment, the
timescales for
low carbon
solutions for
materials is not
short term, and
thus not
available to
support the
Group’s Net
Zero roadmap,
or at a suitable
cost
SO: 1
• Uncertain of costs
impact of markets
transition to meeting
regulation
requirements and
timescale
• Uncertain of asset
value impact of
markets transition to
meeting regulation
requirements and
timescale
• Volatility in
availability, quality
and efficacy of some
Net Zero/Low carbon
materials may result
in increased costs
Chronic
RISK
TYPE
Market,
Reputation
TIME
HORIZON
Short
Medium
• Continual monitoring of
developments and review Net
Zero plan as appropriate
• Expand supplier base
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Timescale
for the
development of
reservoirs to
assure water
availability for
construction
activities
SO: 1
• Operational costs of
managing and testing
grey water for
construction
• Capital expenditure
in treating grey water
for construction
• Mandatory metering
and increased cost of
water will result in
higher construction
costs
Chronic
RISK
TYPE
Drought
TIME
HORIZON
Medium • Investigate installation
greywater harvesting on site
• Little water used on site, there is
an impact on the supply of ready
mixed concrete
• Monitor government
infrastructure policy on water
investment
• Investigate water-efficiency
measures on construction sites
• Implement SuDS ponds /create
on-site reservoirs to reduce
water demand during
construction
• Engage suppliers (especially
concrete suppliers) to reduce
water usage in production and
delivery
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
40
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Site Activities (continued)
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Uncertainty
over
implementation
of water
scarcity
controls restrict
water use on
site
SO: 1
• Operational costs of
managing and testing
grey water for
construction
• Capital expenditure
in treating grey water,
rainwater harvesting
and recycling
wastewater for use
during construction
• Water use restrictions
could impact
suppliers which could
increase costs, impact
quality and
availability of
materials
Chronic
RISK
TYPE
Drought
TIME
HORIZON
Short
Medium
• Investigate installation
greywater harvesting on site
• Little water used on site; there is
an impact on the supply of ready
mixed concrete
• Monitor government policy on
water investment
• Investigate water-efficiency
measures on construction sites
• Implement SuDS ponds /create
on-site reservoirs to reduce
water demand during
construction
• Engage suppliers (especially
concrete suppliers) to reduce
water usage in production and
delivery
Trenches
subject to
flooding after
heavy rain
requiring great
use of pumps
out
SO: 12
• Cost of acquiring
better forecasting
data
• Capital expenditure
for raised material
storage
• Investment in
mitigation could
reduce the cost of
future downtime
Acute Flooding Short• Deploy bigger or additional
pumps to manage excess water
• Use temporary receptacles for
water storage during heavy rain
• Investigate suitability of SuDS
ponds for long-term water
management
• Invest in longer-term weather
forecasting for extreme rainfall
events
• Adopt modular construction
methods to reduce exposure
during wet periods
• Include contractual clauses to
protect against extreme-weather
delays
• Raise material storage areas to
prevent water damage
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Climate Risk Assessment (continued)
Business Area: Site Activities (continued)
41
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Uncertainty
over
implementation
of water
scarcity
controls restrict
water use on
site
SO: 1
• Operational costs of
managing and testing
grey water for
construction
• Capital expenditure
in treating grey water,
rainwater harvesting
and recycling
wastewater for use
during construction
• Water use restrictions
could impact
suppliers which could
increase costs, impact
quality and
availability of
materials
Chronic
RISK
TYPE
Drought
TIME
HORIZON
Short
Medium
• Investigate installation
greywater harvesting on site
• Little water used on site; there is
an impact on the supply of ready
mixed concrete
• Monitor government policy on
water investment
• Investigate water-efficiency
measures on construction sites
• Implement SuDS ponds /create
on-site reservoirs to reduce
water demand during
construction
• Engage suppliers (especially
concrete suppliers) to reduce
water usage in production and
delivery
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
42
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Risk Assessment >2 °C Climate Change Scenario
Under the > 2 °C climate scenario it is considered that the risks outlined above will remain as HIGH. However, the climate
risk register was reviewed for identified risks where the rating was 12 and the likelihood and impact was reassessed under
this scenario. The additional climate risks classified as HIGH are outlined in the table below.
Business Area: Commercial Property
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
New Build
Regs timeline is
challenging
across the value
chain
SO: 7, 8, 10, 11
• Increase in capital
expenditure
• Gaining consents will
take longer & cost
more
• More input required
from specialist
consultants.
• Property asset value
may increase due to
robust flooding
management systems
and strengthened
climate resilience
• Potential revenue
increase through
reduced vacant
periods by making
properties more
attractive due to
climate resilience
Acute
RISK
TYPE
Flooding
TIME
HORIZON
Medium• The Group plans to monitor
regulation and announcements
for relevant changes to Building
Regulations
• Engage with Industry Bodies to
mitigate impact of regulatory
changes
• Research/monitor availability of
no/low and carbon and recycled
materials
• Explore internal climate
resilience fund to help mitigate
costs of climate adaption
measures
Climate change
may exacerbate
fire risk and
thus planning
Regs/ Insurers
may demand
greater fire
suppression/
controls
SO: 8, 10, 11
• Property asset value
may increase due to
improvements in fire
suppression
procedures/controls
which could provide
strengthened climate
resilience
• Potential maintenance
costs for fire
suppression/control
equipment
• Increase in capital
expenditure
Chronic Fires Medium• Investigate retrofit opportunities
or existing at-risk properties
• Investigate rainwater
harvesting/storage opportunities
to provide water for suppression
systems.
• Seek specialist consultancy
services
• Explore internal climate
resilience fund to help mitigate
costs of climate adaption
measures
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
43
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Risk Assessment >2 °C Climate Change Scenario (continued)
Business Area: Construction
Business Area: Site Activities
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
All physical
risks impact
construction.
SO: 1
• High degree of
uncertainty in the
costs of materials
• Operational costs of
building and
managing multiple
suppliers
Chronic
RISK
TYPE
Fires,
Drought,
Flooding
Extreme
heat
TIME
HORIZON
Medium • Investigate multiple supply from
different regions
• Regular engagement and
collaboration with suppliers to
assess potential disruption
• Investigate material substitution
with less exposure to climate
change
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Drying out
ground
reducing shear
strength of
ground (leading
to collapsed
trench)
SO: 1
• Additional hire costs
for shutters
• Additional fuel and
labour costs for
excavations
Acute
RISK
TYPE
Drought
TIME
HORIZON
Medium• Monitor ground conditions
• Additional use of shuttering
• Battered back excavations
Change in HSE
guidance
around
managing the
exposure to
physical risk of
climate
extremes
SO: 1, 4, 5
• Potential increase in
cost from lower
productivity
• Increase in hire costs
for cooling
equipment
• Reduce labour
absences
Chronic Extreme
Heat +26
o
C
Reputation
Policy/
Regulation
Medium • Changes to activities and
programme to reduce work
demand during extreme heat
• Installation of portable cooling
in welfare and internal site areas
• Education and awareness
sessions to reduce risk of
dehydration and loss time
Workforce
ability to work
on site in
extreme heat
SO: 1, 4, 5
• Potential increase in
cost from lower
productivity
• Increase in hire costs
for cooling
equipment
• Reduce labour
absences
Chronic Extreme
Heat +26
o
C
Medium• Changes to activities and
programme to reduce work
demand during extreme heat
• Installation of portable cooling
in welfare & internal site areas
• Education and awareness
sessions to reduce risk of
dehydration and loss time
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
44
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Risk Assessment >2 °C Climate Change Scenario (continued)
Business Area: Site Activities (continued)
Resilience Strategies
As we continue through our TCFD reporting, we are progressing the resilience of our strategy to the impact of climate-
related risks, and the adaptation measures required. We are doing so by using the climate risk analysis tool from Earthscan.
Physical Climate Risk Assessment
We have assessed 6 physical risks where climate change may impact our property portfolio, held by C. & W. Assets
Limited and the Group’s own premises in central Scotland. The physical climate risks, based on Earthscan climate platform,
are summarised in the charts below for four time periods: Now (2025), Short Term (2030), Medium Term (2035), and
Long Term (2050). The risks for the time horizons are assessed under two climate scenarios: Business as Usual (BAU),
and Paris aligned (<2°C), resulting in eight models.
The Earthscan platform provides science-driven insights that enable us to manage the climate resilience of our existing
assets, supply chains, and future acquisitions. The ratings range from Excellent (A) to Extremely Poor (F). The ratings
serve as a benchmark for investigating climate mitigation and monitoring adaptation measures for those assets with a risk
rating of E or above for any physical risk; identified in our strategic objectives.
For each model the combined risk score is provided beneath each chart; the lower the score, the higher the combined risk.
RISK
ITEM
FINANCIAL
IMPACTS
INTENSITYADAPTATION
ACTIONS
Delays /damage
from the
installation of
large single
panels from
exposure to
wind (project
location
dependent)
SO: 1
• Potential increase in
cost from lower
productivity
• Costs from rework of
damaged panels,
including materials
• Increase panel costs
per m
2
due to smaller
panels
• Impact on plant hire
may be cost neutral;
longer hire time
offset by reduced
costs from smaller
crane.
Chronic
RISK
TYPE
Technology
Wind
TIME
HORIZON
Medium• Changes to activities and
programme
• Proactively monitor fortnightly
forecasts, and adjust programme
ahead of time
• Install smaller panels
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
C. & W. Assets Limited Properties
This section shows the physical climate risk ratings for 34 properties held by C. & W. Assets Limited.
Scenario: Business As Usual
45
X'D#\RSRV#
#
1'.>;39:#68I";4$<#N;"F#-4'&9\#OSV#
#
-8'&/#E9&.#\RS^S#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VP^#
#
`9:;(.#E9&.#\RS^V#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VOT#
#
#
7'3@#E9&.#\RSVS#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VS^#
#
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
46
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
C. & W. Assets Limited Properties (continued)
Scenario: Paris-aligned < 2 °C
X'D#\RSRV#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#O^S#
-8'&/#E9&.#\RS^S#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#ORS#
#
!
`9:;(.#E9&.#\RS^V#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#OSO#
7'3@#E9&.#\RSVS#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VPS#
#
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
47
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Company Operations in Central Scotland
This section shows the physical climate risk ratings for three properties used by head office, plant yard, and Thomas
Menzies (Builders) Limited.
Scenario: Business As Usual
X'D#\RSRV#
#
!
#
1'.>;39:#68I";4$<#N;"F#-4'&9\#OSO#
-8'&/#E9&.#\RS^S#
#
!
#
1'.>;39:#68I";4$<#N;"F#-4'&9\#VP^#
#
!
`9:;(.#E9&.#\RS^V#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VOV#
7'3@#E9&.#\RSVS#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VST#
#
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
48
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Company Operations in Central Scotland (continued)
Scenario: Paris-aligned < 2 °C
X'D#\RSRV#
#
!
#
1'.>;39:#68I";4$<#N;"F#-4'&9\#O^d#
#
-8'&/#E9&.#\RS^S#
#
#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#ORR#
!
!
`9:;(.#E9&.\#RS^V#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#OSP#
7'3@#E9&.\#RSVS#
!
1'.>;39:#68I";4$<#N;"F#-4'&9\#VP^#
#
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
49
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Metrics & Targets
2024/25 focus: Monitor our key metrics and targets. Continue to improve data gathering and analysis, through our
processes, and software packages Our Impacts and Earthscan.
As we refine our Net Zero Roadmap and advance our financial quantification and climate risk assessments throughout the
financial year, we expect to further develop and enhance this target. These efforts will be supported by ongoing
improvements to our business processes, practices, and actions.
The key metrics and targets we have set focus on reducing carbon emissions in the most significant areas of our greenhouse
gas (GHG) footprint, as outlined on page 56. We also maintain a strong focus on our investment portfolio, including both
directly held properties and unconsolidated equity investments. Further details are provided under the Metrics & Targets
section below.
As advised last year, data for the year ending 31st July 2024 will serve as our baseline. GHG emissions for the year ending
31st July 2025 are presented in the Greenhouse Gas Emissions Statement on pages 54 to 61 of the Annual Report and
Statement of Accounts. This includes Scope 1, 2, and 3 emissions, along with the SECR report detailed on pages 9 to 11
of the Annual Report and Statement of Accounts.
We aim to achieve our targets through the following key actions:
• Ongoing engagement with our supply chain to reduce the carbon intensity of materials and subcontracted services.
• Investment in energy efficiency measures and renewable energy generation across our property portfolio.
• Transitioning to a more balanced investment portfolio.
• Reducing emissions from site-based activities, including plant, equipment, and fuel use.
More details on our Net Zero Roadmap are outlined on pages 50 to 54.
Our metrics and targets have been established in line with mandatory requirements, that are relevant to the Group’s
activities. In line with new strategic targets to manage climate risk, as outlined on pages 27 to 29 these metrics will be
revised accordingly for the year ending 31st July 2026.
Metric Title Units 2025 2024
Baseline Year
Fixed Asset Investments (Carbon Intensity) tCO
2
e/$m invested 44.2 49.7
Waste Management % diversion from landfill 98.8% 21%
Energy (Property) kgCO
2
e/sqft 1.7 1.7
Materials (Construction) tCO
2
e/£m 149.2 91.1
Plant (Fuel Carbon Intensity) * tCO
2
e/£m of Construction Work 35.5 44.2
*some plant fuel emissions were misallocated to the company segment and not construction in 2024 and 2023. The prior
year comparison has been restated for the company and the construction segments.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
50
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Overview of Net Zero Roadmap
In 2024, the Group developed its initial Net Zero action plan through consultation with relevant departments and employees.
To further progress towards the interim target of 30% reduction by 2030, the Group focused on three key areas to identify
further emissions reductions. These areas are Construction Design and Materials, Site Activities, and Investment Property
energy use. The Net Zero Roadmap has been updated to reflect these changes and other amendments.
The following information, presented in summary, outlines the Group’s position in relation to its 2030 target and the
Science Based Target Initiative's (SBTi) near-term target of 2030, as well as the current net zero action plan and a
description of possible financial impacts.
Based on the identified carbon reduction measures (see below), the forecast emissions in 2030 are 6,421tCO
2
e (tonnes of
carbon dioxide equivalent); excluding decarbonisation of the UK electricity grid impact on Scope 2 and associated upstream
emissions as well as electricity consumption at leased assets (Downstream leased Assets in Scope 3). This is an absolute
reduction of 1,739tCO
2
e (21%) from baseline emissions in 2024 of 8,160tCO
2
e (as reported in TCFD 2024 disclosures).
To align with our interim Net Zero target of 30% we will need to reduce emissions by an additional 709tCO
2
e to 5,712tCO
2
e
in 2030. The table below provides a summary of carbon emissions with and without grid decarbonisation.
The expected decarbonisation of the UK electricity grid is not reflected in the roadmap. From our current estimate of a
67% (refer to limitation number 1) fall of the carbon intensity for the UK electricity grid, the current shortfall could reduce
by around 352tCO
2
e; resulting in a 26% fall in baseline emissions by 2030. Despite the uncertainty, we expect the UK
economy to decarbonise, and along with our strategic objectives, further reduce our supply chain emissions, especially
where we have control or significant influence. Furthermore, for the Group to claim carbon neutrality in 2030 would
require offsetting. This would entail paying compensation for the residual emissions (709tCO
2
e) at an estimated to cost of
between £6,700 and £30,000 depending on the scheme used. In this circumstance, the Board would consider the
creditability of schemes before making any financial commitment.
Forecast Without Grid Decarbonisation
Reduction from UK Grid
Decarbonisation in 2030
Forecast With Grid Decarbonisation
8,160
8,160
6,421
(352)
6,069
21.3%
26%
1,739
352
2,091
5,712
5,712
(709)
2024 2030 % (tCO2e) (tCO2e)
Carbon Emissions
(tCO
2
e)
Forecasted
Absolute Reduction
at 2030
J Smart Net Zero 30%
Target
in 2030
Shortfall
(tCO2e)
(357)
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
51
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Science-Based Targets
Science Based Targets (SBTs) are targets driven by science to achieve a Net Zero pathway to 2050, which is critical to
avoid runaway climate change. In simple terms, this means around a 25.6% reduction in carbon emissions by 2030
compared to the 2024 baseline, and effectively zero by 2050 to align to the 1.5
o
C global warming pathway by the end of
the century.
Science based targets are separated into two timeframes and reduction pathways:
I. Near Term between 2020 and 2030
II. Long Term by 2050
Our Net Zero Roadmap interim target was set in 2023 at 30% and is in line with the SBTi near-term target to 2030 and
within the 1.5
o
C pathway. In relation to SBTi, J Smart's revised Net Zero Roadmap is forecasted to fall short of the 2030
target by approximately 301tCO₂e. The table below provides a summary of carbon emissions with and without grid
decarbonisation. However, including the estimated impact of the grid decarbonisation, the forecast emissions in 2030
would be 50tCO
2
e ahead of the SBTi target.
The chart below summarises the reduction pathways for J. Smart & Co. (Contractors) PLC Forecast Reduction with and
without grid decarbonisation, J. Smart & Co. (Contractors) PLC Target Reduction at 30% by 2030, and SBTi 1.5
o
C
pathway.
From the chart above, the three pathways align to 2026, then the J. Smart & Co. (Contractors) PLC Forecast begins to
diverge from 2027 compared to the J. Smart & Co. (Contractors) PLC Target and SBTi pathways.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
52
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Current Net Zero Action Plan
The Net Zero Action plan and forecast emissions have been updated with the quantified emissions savings from priority
and long-term actions, as summarised in the table below, and excludes potential carbon reduction from decarbonisation
of the UK Grid. The table also includes the expected financial impact for the actions with the most significant carbon
reduction
Areas of Reduction and Actions
Change in Construction Methods
Increase use of UK Slate roof tiles instead of
concrete
Shift to Structural Fabricated Recycled Steel
Energy Awareness
Energy Efficient Equipment
Install LED at investment Properties
Improve Heating Systems
Radiant Heating to Small Industrial units
Replace Gas heating with Electric Heating
Upgrade Boilers Common Areas of leased
properties
Upgrade Old Gas boilers with efficient options
Decarbonisation of Equity Investment
Low Emission Fleet & Travel
Cycling and Car Club Scheme
Pool Electric Vehicle for Business travel
Replacing the Fleet with Hybrid/Electric
Onsite Renewables & Heat Recovery at Investment
Properties
Install ASHP in suitable properties
Install Solar PV in suitable properties
Install Mechanical Heat Ventilation Recovery
Recycled Materials
Replace Non-Recycled Steel with Recycled Steel
Purchase of recycled aggregates
Reduction in Emissions
(Location) (tCO
2
e)
(81)
(5)
(153)
(91)
(6)
(3)
(218)
(214)
Financial Impacts
• Increase in roofing costs for
locally sourced slate, and longer
installation time.
• Generally, cost neutral; however
for 100% recycled structures
design and supply costs are likely
to be higher
• Reduction in energy costs
• Capital expenditure for new
equipment offset by reduction in
energy costs for company and/ or
tenants
• Funding above current cashflow
forecasts may be required
• Potential impact on dividend
income and valuation of equity
holdings
• Lower fuel costs with onsite
charging capital expenditure for
purchasing fleet within normal
replacement programme
• Capital expenditure for new
equipment offset by reduction in
energy costs for company and/ or
tenants
• Funding above current cashflow
forecasts may be required
• Generally, cost neutral, though
consistent quality can impact
programme with rework
• Higher specification aggregates
cost 10% more than non-
recycled.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
53
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Current Net Zero Action Plan (continued)
Methodology & Limitations
Developing a carbon baseline and Net Zero roadmap balances time, resources, and the desired level of accuracy required
to calculate emissions for material impacts. The development of our roadmap has used reliable methodologies and
assumptions to achieve this balance.
The Net Zero Roadmap is based on using EcoOnline emissions data for the year ending 31st July 2024, and adding new
and verifiable carbon factors for any low-carbon activities, fuels, or materials not included in the emissions data. Where
possible raw data and non-spend based units are used to quantify the reduction from identified net zero actions listed in
the table above. Nevertheless, these forecasts are based on high level assumptions and estimates rather than on design
level plans.
Calculating emissions and building a Net Zero roadmap has limitations as follows:
1. The decarbonisation of the UK economy is expected to reduce the carbon intensity of the Group’s electricity use,
supply chain, and transport. However, the uncertainty around the impact of the UK Government's Net Zero policies
and targets by 2030 means decarbonisation is excluded from the current roadmap. The estimated 380tCO
2
e reduction
in emissions is based on available data provided by Digest of UK Energy Statistics (DUKES - Table 1) and the 2024
grid factor is adjusted based on overall downward trend in grid carbon intensity of the UK grid.
Areas of Reduction and Actions
Reduce Building Heat Loss at Investment
Properties
Replace Door and Windows common Areas
Upgrade Draught Proofing common Areas
Install Cavity Wall Insulation
Install Over cladding to Roof and Walls
Refurbishment of Buildings
Increase in GIFA refurbished developments to
rebalance the development portfolio
Smart Metering and Controls (Properties)
Building Management System & Heating controls
Install Smart Meters
Site Activities
Switch to HVO for plant fuel
Logistics planning to optimise loads & deliveries
Reduce double handling of materials
Reduce plant idling & Telehandler fuel use
Waste Reduction Initiatives
Other
Total forecast Reductions to 2030
Reduction in Emissions
(Location) (tCO
2
e)
(80)
(501)
(111)
(222)
(55)
(1,740)
Financial Impacts
• Capital expenditure for new
equipment offset by reduction in
energy costs for company and/or
tenants
• Funding above current cashflow
forecasts may be required
• Very dependent on the project,
though there will be lower fuel
costs of heavy plant, less capital
expenditure on new equipment.
• Capital expenditure for new
equipment offset by reduced in
energy costs for company and/ or
tenants
• Capital expenditure for separate
HVO storage and pump
• Cost of awareness programme for
plant energy use
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
54
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Current Net Zero Action Plan (continued)
Methodology & Limitations (continued)
2. The Carbon factors used were based on those provided within EcoOnline’s carbon accounting software and are
sourced from the UK Government and the US Environmental Protection Agency (EPA).
3. EPA carbon factors are used for spend-based data, which is based in USD$. The Group’s financial data (in GBP £)
is then converted into US dollars at the average monthly exchange rates. Therefore, future emission calculations are
subject to fluctuating foreign currency exchange rates. These factors have been used for Purchased Goods and
Services, Capital Goods, and Sub-contracted Services.
4. Some carbon emission calculations are based on spend, which may not be as accurate as using direct units of
measurement (e.g. tonnes of steel). For example, price inflation has not been considered in the Net Zero roadmap
and could impact future reporting of spend-based emissions.
5. Forecasted emissions in the Net Zero model are location-based and therefore do not reflect Market-Based
methodology. This is partly because we do not hold certified renewable electricity contracts for Scope 2 emissions.
6. The Net Zero forecasts exclude the emissions impact of capital expenditure required to implement some of the net
zero actions outlined in the table above.
7. The carbon baseline and Net Zero roadmap projections are based on information and data available and do not
include any verification of the supporting data. Therefore, the accuracy of reported emissions is dependent on the
systems to gather, record and retain data, as well as the degree of manual processing. Overall, there is a degree of
uncertainty in our Net Zero forecasts.
Greenhouse Gas Emissions Statement
The 2025 Annual Report and Statement of Accounts includes our comprehensive Greenhouse Gas Emissions Statement
for the year ending 31st July 2025. The statement includes the emission categories
1
which the Board considers to be
relevant to climate related risks, importance to stakeholders and material to the Group's activities during the year; and
where reliable data is available to calculate emissions. Where relevant, Scope 3 emissions also include upstream emissions
as calculated by the carbon accounting platform.
This statement outlines the carbon emission for the three business segments: Company, Construction and Property
Investment, along with an appropriate carbon intensity metric for each segment. This segmentation and analysis will enable
the Board to compare our performance year on year, assess the effectiveness of carbon reduction actions taken, and revise
the Net Zero roadmap.
Common with most carbon accounting and reporting the methodologies and the accuracy of reported emissions will mature
over time, and the Board will ensure key reporting principles of transparency, comparability, comprehensiveness, and
materiality are adhered to. Throughout the year the Group has invested in improving its data capture, processing and
carbon accounting methodologies, including the use of a carbon accounting software platform - Our Impacts - provided
by Eco online. These improvements have impacted our significant Scope 3 emissions categories, in particular, material
purchases and waste generation. The statement includes a summarised methodology, supplementary notes on each
emissions category and any limitations in the methodology.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
55
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Emissions Impact 2025
The chart below shows the profile of our total emissions for the 11 emissions categories
2
within our defined operational
boundary, covering Scopes 1, 2 and 3 and notably the three largest categories. The total emissions for the reporting period
are 8,588tCO
2
e (2024: 8,160tCO
2
e).
+
&++
!+++
!&++
#+++
#&++
$+++
,-./01"0234561-27
""
8915.9:";96
"
<:/01.-0-1=
"
>?@
A2761.501-27"391/.-9:6
""
@540271.9012."6/.B-0/6
"
A9C-19:";22D6
"
E5/:"F"<7/.;="G/:91/D
H961/
I56-7/66"1.9B/:
"
<3C:2=//"023351-7;
"
J/96/D"K66/16
"
L7B/613/716
"
[.;"";'3"#2/1WR95
[.;"";'3"#4$/9@'&I
!"#$%&!'!&()*++*#,+
#+#% #+#&
1.
As defined by the GHG Protocol: A Corporate Accounting and Reporting Standard (revised edition) for Scope 1, 2 and 3 emissions.
2.
The category for purchase goods and services has been subdivided into central overheads, construction materials and subcontractors, which all fall within the formal emissions category of Purchase
goods and services.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
56
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Segmental Analysis of the Group’s Greenhouse Gas Emissions
The table below outlines the emissions for each emission category included in the operational boundary for each business
segment and the total for the Group.
Relevant and Excluded Emission Categories
The Greenhouse Gas Emissions statement excludes relevant and potentially material emissions categories where data
availability and reliability were not adequate to include. The exclusions are primarily relating to the logistics from Tier 1
suppliers to our sites or central depot (upstream transportation and distribution), and the treatment of waste from the future
demolition of properties (end of life treatment of sold products).
Emissions Category
Notes
Company
Construction
Investment
Property
Group
Total
Group
Total
2025
2024
Direct Combustion 1 1 578 - 579 638
Natural Gas 2 52 9 180 241 357
Electricity 3 25 9 59 93 103
Construction materials 5 - 2,422 - 2,422 1,308
Purchased goods and services 4 590 140 603 1,333 1,523
Subcontractor services 6 - 1,945 - 1,945 1,895
Capital goods 7 28 192 47 267 258
Fuel and energy-related activities 8 98 65 51 214 249
Waste generated in operations 9 86 13 - 99 221
Employee commuting 11 230 - - 230 203
Downstream leased assets 12 - - 1,053 1,053 1,331
Investments 13 102 - - 102 65
Total Emissions 1,219 5,374 1,995 8,588 8,161
Breakdown by Scope (in tCO
2
e)
Scope 1 53 587 180 820 995
Scope 2 25 9 59 93 103
Scope 3 1,141 4,778 1,756 7,675 7,063
Total Emissions 1,219 5,374 1,995 8,588 8,161
Business travel 10 7 1 2 10 10
tCO
2
e tCO
2
e tCO
2
e tCO
2
e tCO
2
e
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
57
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Segmental Analysis of the Group’s Greenhouse Gas Emissions (continued)
Upstream Emissions Distribution and Tr a n sportation
For upstream logistics, the limitation is due to the availability of reliable data from suppliers and practical data collection
methods that are not unnecessarily time consuming.
Downstream Emissions for Sold Properties
For end-of-life treatment of properties the calculation of emissions arising from the future demolition of property sales in
the year is problematic because the properties have a useful life of around 50 years. Most materials would be recycled,
and there is a specific uncertainty around the final release of atmospheric emissions for recycled timber. In accordance
with Corporate Accounting and Reporting Standard (revised edition), sub-sets of downstream emissions relating to sold
products (categories: 9,10,11 and 12) should not be selectively excluded/included (section 6.4). Although categories 9
and 10 are not relevant to the Group’s activities, end of life emissions are and therefore, the estimated lifetime energy-
related emissions from the sale of residential properties in the year has been excluded from the emissions statement.
Explanation of Key Variations
• Direct Combustion: the reduction in plant fuel by 10% due to increased outsourcing of civils work for larger sites,
along with operational efficiencies.
• Natural Gas: the fall is associated with reduction in GIFA for investment properties with two estates being sold in
the year (refer to Methodology and Limitation note 4).
• Construction Materials & Subcontractors: the increase is a combination of factors including an increase in material
use (18%), greater spend on carbon intense materials (Asphalt), and a change in methodology for subsidiaries Thomas
Menzies (Builders) Limited and McGowan and Company (Contractors) Limited. In 2024, construction emissions
were based on spend-based emission factors, whereas in 2025 the improvements in data collection resulted in carbon
emissions being calculated from actual tonnage of materials purchased rather than spend (refer to Limitation note
5). The prior year's figures are not restated, and it is not practicable to do so.
• Downstream Leased Assets – the fall of 21% represents the reduction in the leased floor area of investment properties
over the year. Carbon emissions are based on average benchmarks and therefore the carbon emissions are directly
associated with leased floor area (refer to Methodology and Limitation note 2).
Carbon Intensity Metrics
The statement includes four intensity metrics, one for each business segment and an overall Group metric. The Group
metric is based on total revenue in £million, and for each business segment they are based on the underlying activity that
influences emissions for a given segment, as follows:
• Company is based on the number of full-time equivalent employees (FTE), which differs from the average employee
numbers provided in the notes to the accounts.
• Construction is based on the £ millions of work carried out, including the capitalisation of own work, if any. The
capitalisation of our own work is included as this fairly captures the underlying activities which influence carbon
emissions.
• Investment property is the current floor area (square feet) under lease, excluding common areas.
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
58
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Carbon Intensity Metrics (continued)
The Board considers these metrics to be appropriate and comparable for the sectors in which the Group operates. The
carbon intensity metrics are provided in the table below.
*some plant fuel emissions were misallocated to the company segment and not construction in 2024 and 2023. The prior year comparison has been
restated for the company and the construction segments.
The rise in the intensity ratios for the construction segment reflects the increase in emissions for construction, as noted
above, and is partly offset by a 14% increase in construction turnover. These impacts feed through to a slight increase in
the Group’s overall carbon intensity. Investment Property’s carbon intensity has remained constant with 2024 as the
underlying methodology is limited to energy benchmarks (kWh/sqft). Nevertheless, the cyclical nature of the construction
projects means year-on-year comparisons are limited. With our continued investment in data management, we can monitor
trends on a quarterly basis as outlined in the Governance section of TCFD.
Climate-Related Risks
From our strategic analysis and risk assessment as outlined on pages 32 to 44 of the financial statements, the most
significant emissions categories (% of total emissions for current and prior periods) with associated climate-related risks
are summarised as follows:
• Construction Activities - in relation to materials and subcontractors 51% (2024, 39%)
Risks are primarily associated with transition and regulatory risks in the Scottish building sector, the adoption of new
technologies, low carbon alternatives for steel, concrete, and insulation, to reduced embodied carbon of the built
environment. However, stakeholder engagement highlights that suppliers and subcontractors view the transition to net
zero as cost prohibitve with the necessary investment in low carbon solutions not coming on stream in the short term at a
suitable cost. Physical risks are medium to long term regarding the threat of fire, disease, and drought impacting the supply
of timber, and flooding of sites during construction and restraints on water use for construction during periods of prolonged
drought.
• General Purchases of Goods and Services 16% (2024, 19%)
At present, the transition risks are not considered to be significantly different to the general economy’s progress towards
a net zero future.
• Energy 11% (2024, 13%)
Fossil fuels used for heating, power, and transport across the company, the transition risks associated include the availability
of sufficient supply of renewable energy at a viable cost. The Group’s Net Zero roadmap aims to mitigate exposure to this
transition by reducing consumption and switching to renewable energy sources.
Metric
Carbon Intensity
(tCO
2
e/UoM)
2025 202420242025UoMSegment
9.0 9.5140135FTECompany
331 3081416Gross Revenue £mConstruction*
0.0032 0.0031781,744617,017sqftInvestment Property
376 3712223Revenue £mGroup Total
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
59
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Climate-Related Risks (continued)
• Leased Assets 12% (2024, 16%)
Physical risks relate to increasing surface water flooding risk and extreme heat in the context of Scotland. Properties may
need to adapt due to increased demand for cooling in periods of high summer temperatures by 2030. Transition risks
relating to the movement away from fossil fuels include the adoption of hybrid/electric vehicles, and expectations from
clients for energy efficient buildings that have lower running costs.
Planned adaptation actions for these risk areas have been considered as part of the Group’s climate risk management, as
outlined in these TCFD disclosures.
Methodology
The overall methodology for preparing this Greenhouse Gas Emissions statement follows the requirements outlined in
the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition) with supplementary
guidance provided by Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
The Group’s boundary is based on the equity method of consolidation.
For the current reporting period, the raw data from the Group records was entered into Our Impacts Platform, which then
calculated the GHG Emissions for the year. The carbon accounting methodologies used in the platform are audited annually
by PWC LLP, which we place assurance upon. The emissions factors used are generally based on the UK Governments
published for the relevant period: UK Government GHG Conversion Factors for Company Reporting for non-spend based
data, such as tonnes of materials, and where suitable supplier specific emissions factors based on verified Environmental
Product Declaration (EPD) for cradle to gate, for example recycled steel. For spend based data, emissions factors within
the platform are predominantly sourced from US Environmental Protection Agency Office of Research and Development
(US EPA ORD), 2024 publication, with GBP value converted into US dollar (kgCO
2
e/US$) in accordance with the platform
verified methodology.
Data sources are predominantly from the Group's accounting records, supplier and contractor records, and other Group
information as required. Specific assumptions and methods for each emissions category are outlined in the supporting
notes below.
Limitations
Notable limitations with the methodology and emissions data are as follows:
1. Emissions factors for Category 3.01 are spend-based which are sourced from the platform and therefore do not reflect
or adjust for any inflationary impacts in recent years. Spend-based emission factors are generic and do not represent
the actual emissions of the Group's supply chain and are based on sector averages and may have upto a +/- 60%
uncertainty.
2. For downstream leased assets, investment properties held by C.& W. Assets Limited, the emissions are based on
available benchmarks (kWh/Sqft)
1
and total tenant occupied floor area based on days leased in the reporting year. Any
energy use relating to vacant units is recorded in Scope 1 and Scope 2 emissions as the Group has direct control over
consumption for the vacant period. Given the complexity of data processing, there is a degree of uncertainty as to the
data accuracy.
We recognise these limitations, albeit unquantifiable, in the benchmark methodology, and will look to improve this
with more specific benchmarks or energy data in future years.
1
Energy benchmarks by kWh/m2 as provided in the platform or obtained from UK Government Non-Domestic National Energy Efficiency Data-Framework 2023
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
60
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Segmental Analysis of the Group’s Greenhouse Gas Emissions (continued)
Limitations (continued)
3. Although considered an immaterial impact on total GHG emissions, the energy data for gas and grid electricity data is
based on invoice date and not actual consumption for the reporting period; thus there is a potential for incorrect data
cut off.
4. The platform’s methodology to convert GBP spend into US dollars and then apply the granular set of US EPA emissions
factors (kgCO
2
e/US$) means exchange rates will impact the reported emissions.
5. The statement has been prepared on information and data available during the year, and its accuracy is dependent on
the underlying systems and process for record keeping and data management.
With the continual improvement in carbon accounting methodologies and availability of more specific data and recent
carbon factors the impact of these limitations will diminish over time. We are unable to practically estimate the material
impact of these limitations.
Notes to the Greenhouse Gas Emissions Statement
The notes below outline more specific areas of uncertainty for each emission category in the segmental analysis table
above.
1. The consumption of liquid fuels is predominately by construction plant and company vehicles based on delivery
invoices.
2. The consumption of mains supplied natural gas is based on supplier invoices and represents energy use for Group
offices and heating for common areas of Investment Properties where the Group has direct control over its use.
3. The consumption of grid electricity is based on supplier invoices for Group offices and for common areas of Investment
Properties where the Group has direct control over its use.
4. The category for purchased goods and services represents general overheads for the running of the Company and its
Subsidiaries and is based on the financial data used to prepare the financial statements. This report uses the US EPA’s
Environmentally Extended Input-Output (EEIO) factors, which are published in kgCO₂e per US dollar of final demand.
Emissions relating to the purchases of direct materials and subcontractor services in relation to the Group's construction
activities are calculated and disclosed separately (see notes 5 and 6 below).
5. Emissions for directly purchased materials are calculated based on a mixed method of quantity of raw material (i.e.
tonnage of concrete, m
3
of timber) and spend £ for the cradle to gate emissions. For the current reporting year, carbon
emissions calculated based on tonnage of materials equates to 77% (2024, 70%) of total material spend. Some emissions
factors within carbon accounting platform are sourced from Circular Ecology (2019) ICE V3.0.
6. Subcontractor emissions relate to the contractor providing major packages of work; and associated activities are matched
to the most suitable industry activity available in US EPA ORD (2024).
7. Emissions relate to capitalised spend on IT equipment, motor vehicles, plant & equipment, and the installation of the
solar PV system at the head office. Capital goods exclude any capitalisation of own work relating to Investment
Property. However, the carbon impact is included within other Scope 3 categories, namely purchase goods and services,
materials and subcontractor, as it is not practical to disaggregate this data and reclassify the £ 3,364,000 of capital
expenditure.
8. This category is based on the consumption of grid electricity (kWh) for transmission losses and distribution and upstream
emissions for both natural gas and grid electricity consumption (kWh) for Scope 1 and 2 emissions respectively, as
calculated by the carbon accounting platform.
9. Emissions relate to the waste management of construction waste and waste from arising from the head office; as waste
from Investment Properties is generated and managed by the lessee. Emissions are based on the tonnage for each waste
stream and final waste treatment.
J.Smart & Co. (Contractors) PLC
342!4%')#2%0/24CONTINUED
31st JULY 2025
86197 J Smart Annual Report Text.indd 7 24/11/2025 15:29
61
86197 J Smart Annual Report Text.indd 6 24/11/2025 15:29
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (continued)
Greenhouse Gas Emissions Statement (continued)
Notes to the Greenhouse Gas Emissions Statement (continued)
10. For business travel, emissions are calculated from monthly mileage claims and the vehicle type (market segment)
and emission factors per the carbon accounting platform.
11. In May 2025, the Group conducted a survey of all employees to ascertain the commuting travel patterns by mode
(car, bus, train, cycle and walk). The survey results were extrapolated to estimate the emissions for the FTE
employees.
12. Corporate Value Chain (Scope 3) Accounting and Reporting Standard (p124), states that ‘proper categorisation of
emissions from leased assets by lessors and lessees ensures that emissions in Scopes 1 and 2 are not double counted.
For example, if a lessee categories emissions from the use of purchased electricity as Scope 2, the lessor categories
the same emissions as Scope 3, and vice versa.’ In this regard, we reasonably expect that some leasees could consider
their direct energy consumption as their Scope 1 and 2 emissions based on their operational use. In addition, to
ascertain the appropriate classification of emissions related to Investment Properties between Scopes 1, 2 and 3
requires a more thorough examination of the ownership and operational control of underlying assets and activities
which generate emissions. For example, a leasee may own a heating system installed at an industrial unit and thus
could be treated as Scope 3, or in another scenario the leasee controls the purchases of certified renewable electricity.
For this reporting period, the emissions related to electricity and gas have been included in Scope 3 emissions.
13. Investments reflect Scope 1 and 2 emissions for equity investments managed by third-party fund managers and not
recorded in the Group's Scope 1 and 2 emissions. The emissions are allocated based on the investee emission ratio
of tCO
2
e/$million invested as of 31st July 2025 to the Group equity holding ($millions) in the investee. Carbon data
provided by fund managers is of 31st July 2025. The reported emissions for investments exclude any emissions
related to collective investments and debt investments where currently emission data is not available from fund
managers.
62 63
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
EMPLOYEES
The Group recognises the contribution of the staff to the success of the Group. The Group operates with a core employee
base who in the main have been with the Group for a considerable length of time and have gained a significant knowledge
of the sectors the Group operates in and of the companies within the Group. Where appropriate the Group promotes from
within whether that be the Directors, staff or site employees. The Group recognises the importance of retaining its core
staff to ensure its future success.
The Group does not have a specific Human Rights policy but it does have policies on recruitment and retention of
employees and communication with employees which are aimed at ensuring employees are fairly treated during their
employment with the Group.
The Group is committed to providing equal opportunities in recruitment and employment, full and fair consideration is given
to all applicants for employment and to all existing employees for promotion. Where employees become disabled during their
employment and are unable to fulfil current duties they are offered suitable alternative employment within the Group, if feasible.
It is the Group’s policy that there should be effective communication with employees at all levels, on matters which affect
their current jobs or future prospects and all Directors and senior staff members make themselves available to all staff
to discuss any matters of concern. In achieving this policy, the Directors are aware of the need to take account of the
practical and commercial considerations of the Group, and the needs of the employees.
A breakdown by gender of Directors, senior managers and all employees is given below:
Male Female
Directors 3 2
Senior Managers 6 1
Total Employees 124 18
86197 J Smart Annual Report Text.indd 6286197 J Smart Annual Report Text.indd 62 15/12/2025 14:2515/12/2025 14:25
62 63
J. Smart & Co. (Contractors) PLC
STRATEGIC REPORT (continued) 31st JULY 2025
EMPLOYEES (continued)
Numerical Diversity Data of Board of Directors at 31st July 2025
In accordance with Listing Rule UKLR6.6.6R our gender identity and ethnicity data as per the format set out in UKLR6
Annex 1R is detailed below. At the year end, the Board of Directors were asked to complete of diversity disclosure
questionnaire to confirm which categories in the tables below they identify with.
Number of senior
Number of positions on the Number in Percentage of
Board Percentage Board (CEO, CFO, executive executive
Gender Identity Members of the Board SID and Chair) management management
Men 3 60% 2 3 60%
Women 2 40% 1 2 40%
Not specified/
prefer not to say - - - - -
Number of senior
Number of positions on the Number in Percentage of
Board Percentage Board (CEO, CFO, executive executive
Ethnic background Members of the Board SID and Chair) management management
White British
or other White
(including minority
- white groups) 5 100% 3 5 100%
Mixed/Multiple
Ethnic Groups - - - - -
Asian/Asian British - - - - -
Black/African/
Caribbean/
Black British - - - - -
Other ethnic group,
including Arab - - -
- -
Not specified/
prefer not to say
- - - - -
As at 31st July 2025, our chosen reference date under UKLR 6.6.6R(9), the Company states it has met the target on board
diversity relating to 40% of the individuals on the Board being women and at least one woman on the Board holding a
senior position on the Board but has not met the target that at least one individual on the Board being from a minority
ethnic background. The Board of the Company comprises a relatively small number of individuals and therefore it is
difficult for the Company to comply with all the requirements of the Listing Rules in relation to board diversity.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
20th November 2025 Company Secretary
86197 J Smart Annual Report Text.indd 6386197 J Smart Annual Report Text.indd 63 15/12/2025 14:2515/12/2025 14:25
64 65
David W Smart, Chairman and Joint Managing Director Aged 52
Joined the Company in 1998
Appointed Director in 2010
Appointed Chairman and Joint Managing Director in 2017
John R Smart, Joint Managing Director Aged 55
Joined the Company in 2002
Appointed Director in 2013
Appointed Joint Managing Director in 2017
Alasdair H Ross Aged 63
Joined the Company in 1989
Appointed Director in 2012
Patricia Sweeney Aged 56
Joined the Company in 2011
Appointed Director in 2017
Jane Oliver
Joined the Company in 2000
Appointed Director in April 2025
J. Smart & Co. (Contractors) PLC
DIRECTORS
86197 J Smart Annual Report Text.indd 6486197 J Smart Annual Report Text.indd 64 15/12/2025 14:2515/12/2025 14:25
64 65
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE 31st JULY 2025
COMPLIANCE STATEMENT
This statement details how the Company has applied the principles and provisions as set out in the Financial Reporting
Council’s UK Corporate Governance Code issued July 2018 (the Code). A copy of the Code can be review on the
Financial Reporting Council’s website at www.frc.org.uk.
The Board recognises that it has not complied fully with the Code in the areas of appointment of Non-Executive Directors
and the establishment of Nomination, Audit and Remuneration Committees and the re-election of executive Directors. It
also has not complied with the principles relating to division of responsibilities, evaluation of the Board and individual
Directors. The Board considers that due to the nature of the Company including its size, lack of complexity and the
ownership of the Company that to follow all the principles of the Code would be onerous and would provide no discernible
benefit to the Company or shareholders. Full details and explanations of principles and provisions not complied with are
detailed below.
However, it is the intention of the Company to appoint Non-Executive Directors in the coming year with the intent to
establish the required Committees in future years and also from the Non-Executive Directors appointed identify one as
the Independent Director.
BOARD LEADERSHIP AND COMPANY PURPOSE
The Board of Directors (the Board) is committed to ensuring that it maintains good corporate governance of the Company
so as to achieve the long-term sustainable success of the Company. The Board remains committed to the principles
of openness, integrity and accountability in dealing with the Company’s affairs and believes it has always acted with
probity in the best interests of the Company, its employees, shareholders and stakeholders without recourse to guidance
or instruction from others and fully intends to continue to do so in the future.
The Board which is the executive management of the Company consists of the Chairman who is also one of the two Joint
Managing Directors and three other Executive Directors. The size of the Board results in efficient management of the
Company leading to the long-term sustainability and success of the Company and that the Directors fulfil their statutory
duties under S172 Companies Act 2006. The objectives of the Company as stated in the Strategic Report have been set by
the Board and are reviewed regularly to ensure that they are being met and that adequate financial and human resources
are available to meet these objectives.
The Directors are involved in the day to day management of the Company supported by senior management. The Directors
were all employees of the Company prior to their appointment as a director and therefore have the appropriate skills,
experience in their particular fields and knowledge of the Company and its culture to ensure that the Board discharges
its responsibilities effectively to ensure the continued success of the Company. The detailed involvement in the day to
day management ensures that the Directors interact daily with Company employees and encourage an open approach
to management allowing employees to raise any concerns they have directly with the Directors and ensures that actual
workplace policies and practices align to the Company’s values.
The Directors have ascertained the risks and uncertainties which could impact on the continuing success of the Company
and these are set out in the Strategic Report. The Directors have also established controls with the aim to mitigate these
risks as best as possible. The risks and the controls in place are regularly reviewed and steps are taken as necessary to
adapt the controls as it becomes apparent that changes are needed.
The Chairman always makes himself available to shareholders to answer any queries they may have throughout the year
on matters relating to the governance and performance of the Company and ensures that the views and concerns of the
shareholders are brought to the attention of the Board as a whole.
Decisions are taken by the Board quickly and effectively following ad hoc consultation among the Directors concerned
as matters arise. The Board takes the view that this direct and flexible approach is preferable to the more cumbersome
procedures prevalent in larger organisations and has made a considerable contribution to the Company’s continuing success
and ensures that this approach best serves the interests of the Company, its employees, shareholders and stakeholders.
The Board confirms that it will consider and authorise any conflicts of interest between the Directors and the Company
where there is no detrimental impact to the Company.
86197 J Smart Annual Report Text.indd 6586197 J Smart Annual Report Text.indd 65 15/12/2025 14:2515/12/2025 14:25
66 67
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
BOARD LEADERSHIP AND COMPANY PURPOSE (continued)
S172 COMPANIES ACT 2006
The Directors are aware of their responsibilities and duties under S172 Companies Act 2006 to promote the long-term
success of the Company for the benefit of its members whilst having regard to the matters as set out in section 172 (1)
(a)-(f) of the Companies Act 2006. The Directors consider the other stakeholders which are impacted by their decisions
are employees, suppliers, customers, tenants and local communities in which we operate. Whenever decisions are being
made by the Board they take into account the implications these will have on all of these stakeholders.
EMPLOYEES
As stated in the Strategic Report the employees of the Company are an important part of the success of the Company
and the Group overall. The Directors operate an open-door policy whereby any employee can discuss any matters arising
from their employment with any of the Directors. The Managing Directors visit all sites on a weekly basis which allows
all site-based staff to also communicate directly with the Directors on matters they wish to raise. The employees can also
raise any matters with Human Resources.
Health checks for all employees wishing to utilise the service continued in the year and through our private medical
insurance a Health & Wellbeing app is available to employees and regular updates are issued to all employees on
Wellbeing topics. A number of employees have undertaken training in mental first aid and these employees are known to
all employees who can contact them if required.
Employees are sent on relevant training courses to ensure their skills knowledge and training is up to date and particularly
on the sites that all health and safety issues remain a main focus.
We are committed to employing apprentices in the construction trades and currently we have 5 apprentices.
RELATIONS WITH SHAREHOLDERS
The Board has in the past and will continue to enter into dialogue with the shareholders wherever possible. The Chairman
is responsible for ensuring that the views and concerns of the shareholders are communicated to the Board. The Chairman
is also responsible for discussing governance and strategy matters with the shareholders.
We report our performance to the shareholders via our interim 6 monthly accounts, our preliminary announcement of the
year end results and the provision of the statutory financial statements.
All shareholders have the opportunity to attend the Annual General Meeting and to participate in questions and answers
with the Board on matters relating to the Company at the conclusion of the Meeting.
At the Annual General Meeting separate resolutions will be proposed on each substantially separate issue and the number
of proxy votes received for, against and withheld for each resolution will be announced.
SUBSTANTIAL SHAREHOLDERS
As at 31st July 2025 and 20th November 2025, the Company has been notified of the following holdings of substantial
voting rights in respect of the issued share capital of the Company:
As at 31st July 2025 Number %
Davd W Smart . . . . . . . 12,782,750 32.87
John R Smart . . . . . . . 12,782,750 32.87
Octet Investments Limited . . . . . . 1,872,400 4.81
Estate of A J Whitehead . . . . . . . 2,311,495 5.94
As at 20th November 2025
Davd W Smart . . . . . . . 12,782,750 32.91
John R Smart . . . . . . . 12,782,750 32.91
Octet Investments Limited . . . . . . 1,872,400 4.82
Estate of A J Whitehead . . . . . . . 2,311,495 5.95
86197 J Smart Annual Report Text.indd 6686197 J Smart Annual Report Text.indd 66 15/12/2025 14:2515/12/2025 14:25
66 67
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
BOARD LEADERSHIP AND COMPANY PURPOSE (continued)
S172 COMPANIES ACT 2006 (continued)
SUPPLIERS AND SUBCONTRACTORS
The Company and Group prefers to use key suppliers and subcontractors which it has existing working relationships with
and therefore is aware of the quality of products and services provided. We are committed to ensuring that all suppliers
and subcontractors are paid within the terms of their supply and are paid by electronic payments directly into their bank
accounts thus ensuring prompt payment.
Supplies of some materials have proven difficult to obtain and costs continue to increase, however, were possible we have
continued to place orders with the suppliers we would normally use and aim to use local suppliers and subcontractors as
much as possible.
CUSTOMERS AND TENANTS
Customers of construction activities tend to those which the Group has worked with in the past and we have built up
strong working relationships with them which has resulted in repeat work being awarded to the Group. We maintain
dialogue throughout contracts with our customers to ensure that they are aware of the progress of all contracts and any
issues which may arise can be resolved in a timely manner.
For our private housing customers we have a dedicated sales team based at the development sites who assist the customers
from their initial viewing of properties through to the handing over of the keys to their new home.
Our investment properties are maintained to a high standard with dedicated managers who regularly inspect them and
communicate with tenants regarding any issues they have.
With regards to rental payments from tenants we have continued to allow tenants who are having cash flow issues
resulting from the coronavirus pandemic and the cost of living crisis to make monthly payments as opposed to the normal
quarterly payments in advance. A number of our tenants have and continue to make use of this arrangement.
COMMUNITIES AND THE ENVIRONMENT
The Group supports the local community by financially supporting local and national charities and providing financial
support to local communities for gala days held for the benefit of the people living in the local area.
The Group complies with all local authority guidance and planning conditions to ensure that all building sites are safe for
employees, subcontractors and suppliers and do not interfere with surrounding neighbours.
As a private house builder we are committed to fulfilling our requirements to provide social housing and financially
contribute to local authorities under Section 75 Agreements for amenities and facilities required to support new housing
developments.
A Sustainability Committee has been established comprising of some executive Board members and senior members of
staff from various departments within the Group with the aim to ensure that the Company and Group review the impact of
climate change on all aspects of the Group’s operations and take appropriate actions to ensure that the impact of climate
change is minimised as much as possible.
The impact of our activities on Greenhouse Gas Emissions is disclosed in the Report of the Directors on pages 9 to 11 and
our Report on Task Force on Climate-Related Financial Disclosures is contained in the Strategic Report on pages 21 to 61.
86197 J Smart Annual Report Text.indd 6786197 J Smart Annual Report Text.indd 67 15/12/2025 14:2515/12/2025 14:25
68 69
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
DIVISION OF RESPONSIBILITY
As mentioned above the Chairman of the Board is also one of the Joint Managing Directors who collectively act as the
Chief Executive of the Company. Bearing in mind the size of the Company, the Board sees no value in splitting the role
of Chairman and Managing Director, a policy which has served the Company well over many years. The Chairman is
responsible for the leadership of the Board, ensuring that all the Directors receive accurate, timely and clear information
on issues arising at formal and ad hoc Board meetings, setting Board agendas and ensuring adequate time is given to
discussion of the agenda points.
It is the intention of the Company to appoint Non-Executive Directors in the coming year with the intent to establish
an Audit Committee for future years audits and once that Committee is established to also establish Remuneration and
Nomination Committees. From the Non-Executive Directors to be appointed one will be identify as the Independent
Director.
During the year the Board held 8 formal board meeting all of which were attended by those Directors who were Directors
for the entire year. Since Jane Oliver’s appointment as a Director on 4th April 2025, 2 formal board meetings were held
and she attended both of these meetings.
Also, during the year the Directors met regularly on an ad hoc basis to undertake the executive management of the
Company and take decisions on all material matters quickly and effectively but with due care and diligence and therefore
exercising full direction and control of the Company. All Directors openly express their views and make a valuable
contribution to the running of the Company.
Due to the makeup and operation of the Board there is no requirement to formally set out in writing the responsibilities of
the Chairman, Chief Executive or the Board.
All members of the Board have the ability to seek independent professional advice, at the Company’s expense, should they
consider it necessary to enable them to fulfil their duties as a director. All Directors have access to the advice and services
of the Company Secretary, who is responsible for ensuring that Board procedures are followed and that applicable rules
and regulations are complied with.
The Statement of Directors’ Responsibilities is set out on pages 78 and 79.
COMPOSITION, SUCCESSION AND EVALUATION
As the Company has no Non-Executive Directors it has not established a Nomination Committee for the appointment
of Directors. Nominations of new directors are submitted by the Chairman for approval by the Board. All Directors of
the Company are long-serving employees of the Company at the date of nomination and appointment which ensures
that their skills, experience and knowledge are retained within the Company and onto the Board. Although the Group
does not have a specific policy on diversity, due regard is taken of the benefits of all types of diversity onto the Board
when nominations are proposed and also takes into account the skills, experience and professional background of
nominees.
No formal tailored induction upon joining the Board is required given all members of the Board are long-term
employees. As all Board members are full-time employees of the Company they are fully committed to the Company
and are able to allocate sufficient time to the Company in discharging their duties and responsibilities effectively.
There is no formal system of performance evaluation of the Board or the Directors individually. Directors are encouraged
to receive any training they consider necessary to ensure they remain up-to-date with their skills and knowledge of the
Company’s business and that they remain aware of the risks associated with the Company and also are aware of the
regulatory, legal, financial and other developments to enable them to fulfil their roles effectively.
All Directors, with the exception of the Chairman, offer themselves annually for re-election.
As the Chairman is one of the Joint Managing Directors, then the Chair will not retire after the nine years recommended
in the Code.
86197 J Smart Annual Report Text.indd 6886197 J Smart Annual Report Text.indd 68 15/12/2025 14:2515/12/2025 14:25
68 69
AUDIT, RISK AND INTERNAL CONTROL
As the Company has no Non-Executive Directors it has not established an Audit Committee, it is therefore the responsibility
of the Board to ensure the independence and effectiveness of the external audit function. It is the intention of the Company to
appoint Non-Executive Directors in the coming year with the intent to establish an Audit Committee for future years audits.
The Company does not have an internal audit function. The Board reviews the need for this function regularly and has
concluded for the time being that no internal audit function is required.
RISK MANAGEMENT AND INTERNAL CONTROLS
The Directors have sole responsibility for the preparation of the Annual Report and Statement of Accounts which taken
as a whole is fair, balanced and understandable and provides the information necessary for the shareholders to assess the
Company’s performance, business model and strategy. The Directors are also responsible for the preparation of the Interim
Report and other price-sensitive public reports and to ensure that these reports are also fair, balanced and understandable.
The Board is responsible for and annually reviews the Group’s system of internal controls in relation to financial,
operational, compliance and risk management to ensure their continued effectiveness. The systems adopted by the Board
are designed to manage the risks of failure to achieve the Company’s business objectives as opposed to eliminate them,
as any system of control can only provide reasonable but not absolute assurance against material misstatement or loss.
The Strategic Report includes a description of the principal risks and uncertainties faced by the Group and the actions
undertaken by the Group to mitigate these risks.
The Board, in accordance with the Code, has reviewed the effectiveness of the internal controls from the commencement
of the accounting period to the date of approval of the Annual Report and Statement of Accounts. No significant failings or
weaknesses have been identified in that period. There has also been a continual process of identification by the Directors
of key areas of principal and emerging risks within the Group and appropriate action taken to mitigate and monitor such
risks. The Directors confirm that they have carried out a robust assessment of the principal and emerging risks facing
the Group, as detailed in the Strategic Report, including those which threaten the business model, future performance,
solvency and liquidity of the Group.
The main features of the Group’s internal control and risk management systems in relation to the financial reporting process are:
– contracts, development projects, land purchases and acquisition of property, plant and equipment are only
proceeded with after due consideration by the Directors;
− monthly reports for each contract and development project are prepared and reviewed by the Directors;
− subsidiary Company reports are prepared for consideration by the Directors; and
− treasury and cash management are undertaken by the Directors to ensure the Group remains net debt free.
The Board has identified that the interest in one of its two Joint Venture companies as a material investment. For the
two, both parties to the joint venture have equal interest in the joint venture and jointly manage it with the regular board
meeting being held attended by both joint venture parties to discuss construction progress and financial position. All
decisions are taken relating to the joint ventures between both parties. J. Smart & Co. (Contractors) PLC deals with the
day to day administration and accounting function of the joint ventures.
GOING CONCERN AND VIABILITY
In order to ensure the Company and Group have adequate resources to ensure the continuing operations of the Company
and Group for the foreseeable future the Directors consider current and future trading including investment property
acquisitions and disposals and cash requirements. The Directors take account of prevailing market conditions in all areas
of the Group’s activities and use their knowledge and experience relating to the Group’s investment property portfolio.
Currently our construction activities are continuing in line with current programmes and recoverability of rents from our
tenants remains high. The Directors’ opinion is that the Company and Group have adequate financial resources to allow
the Company and Group 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.
The Directors also consider the viability of the Group over a longer period than twelve months from the date of approval
of these financial statements, being a three-year period from the Statement of Financial Position date. The Directors’
statement on this review can be found in the Strategic Report.
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 6986197 J Smart Annual Report Text.indd 69 15/12/2025 14:2515/12/2025 14:25
70 71
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
AUDIT, RISK AND INTERNAL CONTROL (continued)
SIGNIFICANT JUDGEMENTS, KEY ASSUMPTIONS AND ESTIMATES
As there is no Audit Committee, it is the responsibility of the Board to consider areas of the financial statements where
there are significant areas of judgement regarding estimates and assumptions, which in turn have a significant effect on the
amounts recognised in the financial statements. In respect of the 2025 financial statements these areas were:
− Investment Property Valuations – the valuation of the investment property portfolio is completed by the Directors. The
valuation of the property portfolio is inherently subjective and requires significant judgements and assumptions to
be made especially around capitalisation yields and future rental streams. Details of impact on the value of the
investment property portfolio incorporated into the financial statements is given in note 15 of the financial statements.
The Directors appoint external valuers to value the portfolio to provide a sense check on their valuation. The valuations
are discussed with the Auditor.
− Long-term Contract Valuations and Provisions – the Directors consider contract performance to ensure appropriate
revenue recognition. Future revenue, contract performance and stage of completion of contracts are considered and loss
provisions determined and recognised where necessary. Both costs and revenues may require to be revised as future
events unfold and uncertainties are resolved, which would have a direct impact on overall performance of these
contracts.
− Retirement Benefit Surplus – the valuation of the retirement benefit obligation is dependent upon a series of assumptions
which are determined after the Directors take expert advice from the Group’s Actuary. Changes in these assumptions
could have a material affect on the surplus disclosed in the financial statements, details of the impact of changes in these
assumptions are given in note 31 of the financial statements.
The Board discusses fully all issues relevant to the above areas and obtains where possible information and advice from
external experts for consideration by the external Auditor and only when fully satisfied with the amounts associated with
each area are they incorporated into the financial statements.
RELATIONSHIP WITH EXTERNAL AUDITOR
As the Company does not have an Audit Committee, it is the responsibility of the Chairman and the Company Secretary
to maintain an appropriate relationship with the Group’s external Auditor and to review the scope and results of the audit
and its cost effectiveness. The Board is responsible for monitoring and ensuring that the Auditor’s independence and
objectivity is not compromised. The Board takes account of the external Auditor’s own policies and procedures regarding
their integrity and independence and the professional standards they have to adhere to. The Board monitors non-audit
services. The Board is responsible for setting the remuneration of the Auditor.
REMUNERATION
As the Company has no Non-Executive Directors it has not established a Remuneration Committee, it is therefore the
responsibility of the Chairman to fix the remuneration packages of the Directors which are based on the scope of their
duties and responsibilities.
The main components of Directors’ remuneration are detailed in the Directors’ Remuneration Report and consist of
basic salary, benefits and pension contributions based on basic salary only. There are no performance or incentive-based
elements to the Directors’ remuneration and there are no share award schemes in place.
The Chairman takes account of the remuneration packages of the workforce when determining the level of remuneration
of the Directors, benefits given are in line with those given to employees and all contributions for pension contributions
are at the same rates as those for employees.
No Director has a service contract other than their initial employment contract and therefore periods of notice and
termination payments are structured in accordance with current employment law.
86197 J Smart Annual Report Text.indd 7086197 J Smart Annual Report Text.indd 70 15/12/2025 14:2515/12/2025 14:25
70 71
J. Smart & Co. (Contractors) PLC
CORPORATE GOVERNANCE (continued) 31st JULY 2025
REMUNERATION (continued)
The remuneration policy, as approved by the shareholders at the 2024 Annual General Meeting, is regarded by the
Chairman as fulfilling the provisions of the Code for:
− Clarity – the policy is clear and understood by all Directors and by our shareholders who approved the policy.
− Simplicity – the remuneration package does not include any complex structures.
− Risk – as there are no performance-based elements to the remuneration it does not promote excessive risk taking by
the Directors.
− Predictability – as there are no performance-based elements to the remuneration the level of remuneration for the
Directors can be predicted with reasonable accuracy.
– Proportionality – remuneration levels are based on duties and responsibilities of the Directors and are not considered
to be excessive.
– Alignment to culture – as there are no incentive schemes the remuneration package is considered to be in line with
the Company’s values and strategy.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
20th November 2025 Company Secretary
86197 J Smart Annual Report Text.indd 7186197 J Smart Annual Report Text.indd 71 15/12/2025 14:2515/12/2025 14:25
72 73
ANNUAL STATEMENT
On behalf of the Board of Directors, I present the Directors’ Remuneration Report for the year ended 31st July 2025.
In addition to this statement the Report includes two other parts being the Policy Report and the Annual Report on
Remuneration, which have been prepared in accordance with the provisions of the Companies Act 2006 and Schedule 8 of
The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013. The Report
also meets the requirements of the UK Listing Authority’s Listing Rules and the Disclosure Guidance and Transparency
Rules.
The Policy Report has been developed taking account of the principles of the UK Corporate Governance Code 2018.
The shareholders approved the Policy at the 2024 Annual General Meeting and the policy was effective for three years
from that date.
The Annual Report on Remuneration will be subject to a vote at the 2025 Annual General Meeting. Our Auditor is
required to report to the shareholders on certain information contained in the Annual Report on Remuneration and that it
has been prepared in accordance with the Act and the Regulations. The information to be audited is appropriately marked.
There have been no substantial changes to Executive Directors’ remuneration in the year. Our policy continues to be to provide
remuneration packages that will retain and motivate the Directors to sustain the long term growth and value of the Company.
DaviD w Smart
20th November 2025 Chairman
THE POLICY REPORT
As stated in the Corporate Governance Statement the Company does not appoint Non-Executive Directors and therefore
the Company does not have a Remuneration Committee to set the Executive Directors’ Remuneration Policy. The
Chairman fulfils the function of the Remuneration Committee.
The Company’s remuneration policy is to provide remuneration packages that will retain and motivate the Directors to sustain
the long term growth and value of the Company and is based on the scope of their duties and responsibilities. The Directors
are not entitled to any performance related remuneration, long term incentive schemes or share options. The remuneration
of the Directors is not performance related therefore no element of their remuneration is based on performance measures.
The policy table below summarises the main components of Directors’ Remuneration:
ELEMENT PURPOSE AND STRATEGY OPERATION
BASE SALARY
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT 31st JULY 2025
To pay a fair salary commensurate with the individual’s
role, responsibilities and experience.
Reviewed annually in July taking account of the
individual’s role and experience and the salary increases
of employees throughout the Group as a whole. No
maximum level is set.
86197 J Smart Annual Report Text.indd 7286197 J Smart Annual Report Text.indd 72 15/12/2025 14:2515/12/2025 14:25
72 73
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT (continued) 31st JULY 2025
THE POLICY REPORT (continued)
ELEMENT PURPOSE AND STRATEGY OPERATION
BENEFITS
PENSION
The Chairman retains the right to make minor amendments to the above policy, to take account of regulatory, tax,
legislative or administrative changes without obtaining shareholder approval for these amendments.
No share options or long term incentive schemes are operated by the Company.
Directors are entitled to claim relevant expenses incurred by them in respect of their duties.
There are no provisions for the recovery of sums paid to Directors or the withholding of the payment of any sums to
Directors.
As all remuneration of Directors is fixed remuneration there is no need to illustrate, via a bar chart, the expected values
of proposed remuneration as it does not contain any elements based on performance and therefore is not subject to
change based on either the Company’s or Director’s performance.
APPROACH TO RECRUITMENT OF DIRECTORS
The Company’s approach to appointing new Executive Directors is to appoint from within the Company. As such
the remuneration of the Director has already been set by the Company and the package held by the employee prior to
appointment as a Director will remain in place. Consideration will be made of the increased duties and responsibilities
that will apply post appointment as a Director and revision to their base salary may be made to reflect this.
SERVICE CONTRACTS AND POLICY ON CESSATION
No Director has a service contract with the Company, other than their initial employment contract and therefore
periods of notice and termination payments are structured in accordance with current employment law. As a result of
there being no service contracts no report under Listing Rules 6.6.6(6)R is required.
CONSIDERATION OF EMPLOYMENT CONDITIONS ELSEWHERE IN COMPANY
The Chairman when considering the remuneration of the Executive Directors takes into account the remuneration
of employees across the Group as a whole. However, the Chairman does not consult directly with employees on the
remuneration of the Executive Directors but is mindful of salary increases which are applied across the Group as a
whole.
To provide appropriate levels of retirement benefits. Depending on when a Director first became an
employee of the Company will determine whether they
are members of the Company’s Defined Benefit Pension
Scheme or Defined Contribution Scheme.
Company contributions to the Defined Benefit Scheme
are currently 35.4% of base salary. Contribution levels
are set in agreement between the scheme trustees and
the Company and can therefore vary from time to time.
Company contributions to the Defined Contribution
Scheme are currently a minimum of 10% of base salary.
To provide support to enable the Directors to carry out
their duties effectively.
Benefits include cash in lieu of a company car and
private medical insurance. No maximum level is set
as the costs of providing benefits fluctuate over time;
however the costs are monitored to ensure they remain
reasonable.
86197 J Smart Annual Report Text.indd 7386197 J Smart Annual Report Text.indd 73 15/12/2025 14:2515/12/2025 14:25
74 75
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT (continued) 31st JULY 2025
THE POLICY REPORT (continued)
CONSIDERATION OF SHAREHOLDER VIEWS
The Chairman considers all views and concerns he receives from shareholders especially at the Annual General Meeting
when shareholders have the opportunity to ask questions of the Board on all matters relating to the Company including
Directors’ Remuneration, or at any other time throughout the year.
Although no direct communication was held by the Chairman with major shareholders prior to shaping the Remuneration
Policy he believes that it is a responsible approach to remuneration and its policies in the past and for the future as
evidenced by the level of approval of the of the Directors Remuneration Policy and 2024 Directors’ Remuneration Report
at the 2024 Annual General Meeting, details of which are given in the Annual Report on Remuneration below.
| Taxable | |||||||||||
Salary | Benefits 1 | Pension | Total | ||||||||
£000 | £000 | £000 | £000 | ||||||||
David W Smart | 90 | 6 | 96 | 88 | |||||||
2025 | . | . | . | . | . | . | . | 137 | 11 | 48 2 | 196 |
2024 | . | . | . | . | . | . | . | 132 | 11 | 51 2 | 194 |
| John R Smart | |||||||||||
2025 | . | . | . | . | . | . | . | 137 | 11 | 17 | 165 |
2024 | . | . | . | . | . | . | . | 132 | 11 | 16 | 159 |
| Alasdair H Ross | |||||||||||
2025 | . | . | . | . | . | . | . | 137 | 11 | 73 2 | 221 |
2024 | . | . | . | . | . | . | . | 132 | 11 | 58 2 | 201 |
| Patricia Sweeney | |||||||||||
2025 | . | . | . | . | . | . | . | 137 | 11 | 17 | 165 |
2024 | . | . | . | . | . | . | . | 132 | 11 | 16 | 159 |
| Jane Oliver | |||||||||||
2025 | . | . | . | . | . | . | . | 38 | 3 | 16 2 | 57 |
2024 | . | . | . | . | . | . | . | - | - | - | - |
86197 J Smart Annual Report Text.indd 7486197 J Smart Annual Report Text.indd 74 15/12/2025 14:2515/12/2025 14:25
74 75
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT (continued) 31st JULY 2025
Accrued pension | Accrued pension | ||||||||
as at 31 July 2025 | as at 31 July 2024 | ||||||||
£000 | £000 | ||||||||
David W Smart | . | . | . | . | . | . | . | 58 | 54 |
Alasdair H Ross | . | . | . | . | . | . | . | 73 | 67 |
Jane Oliver | . | . | . | . | . | . | . | 36 | - |
STATEMENT OF DIRECTORS’ SHAREHOLDING AND SHARE INTERESTS (AUDITED INFORMATION)
The Company has no policy that Directors are required to own shares in the Company.
The interests of the Directors in the ordinary shares of the Company, including beneficial interests, are shown in the table
below:
Beneficial holdings
(including interests of the Director’s connected persons)
4 Dec er 2020 31 July 2025 31 July 2024
or date of appointntment
David W Smart . . . . . 782,750 12,782,750 12,782,750
John R Smart . . . . . 782,750 12,782,750 12,782,750
Alasdair H Ross . . . . . 150,000 150,000 150,000
Patricia Sweeney . . . . . 150,000 150,000 150,000
Jane Oliver . . . . . 150,000 - -
There have been no changes in any Directors’ beneficial holdings between 31st July 2025 and 20th November 2025.
86197 J Smart Annual Report Text.indd 7586197 J Smart Annual Report Text.indd 75 15/12/2025 14:2515/12/2025 14:25
76 77
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT (continued) 31st JULY 2025
ANNUAL REPORT ON REMUNERATION (continued)
PERFORMANCE GRAPH
The graph below shows a comparison of the total shareholder return for the Company’s shares for each of the last ten
financial years against the total shareholder return for the companies comprised in the FTSE EPRA/NAREIT UK index
which the Company deems to be the most relevant to the Company as it includes companies in the same sector as the
Company.
The graph compares the value of £100 invested in J. Smart & Co. (Contractors) PLC, including re-invested dividends.
Total Shareholder Return over the last ten financial years
GROUP MANAGING DIRECTORS TOTAL REMUNERATION
The following table details each of the Managing Directors their single figure of remuneration over the last ten financial
years:
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
David W Smart 179 196 194 121 100 144 179 177 154 148 166
John R Smart 140 165 159 150 144 140 140 136 133 130 126
John M Smart 86 115 115 119 133
ANNUAL PERCENTAGE CHANGE IN REMUNERATION OF DIRECTORS AND EMPLOYEES
The following table compares the annual percentage change in base salary and benefits between the Directors and the
average for all other employees.
Directors All other employees
% change % change % change % change
in salary in benefits in salary in benefits
2024-2025 +3.96 +3.00 +6.03 +3.00
2023-2024 +5.84 +3.00 +6.23 +2.00
2022-2023 +7.34 +4.00 +16.94 +3.00
2021-2022 +3.09 +2.00 +10.35 +3.00
2020-2021 +0.25% No change +3.00 +3.00
All Directors are paid the same level of base salary and receive the same level of benefits, therefore the percentage change
as shown above relates to all Directors, with the exception of Jane Oliver who on her appointment in the year as a Director
received a base salary increase of 32.89% and benefits increase of 8.84%.
86197 J Smart Annual Report Text.indd 7686197 J Smart Annual Report Text.indd 76 15/12/2025 14:2515/12/2025 14:25
76 77
J. Smart & Co. (Contractors) PLC
DIRECTORS’ REMUNERATION REPORT (continued) 31st JULY 2025
ANNUAL REPORT ON REMUNERATION (continued)
RELATIVE IMPORTANCE OF SPEND ON PAY
The following table compares the total spend on remuneration of all employees of the Group, including Executive
Directors, and the total amounts paid in distributions to shareholders for the years to 31st July 2025 and 31st July 2024:
Difference in Difference as a
2025 2024 spend percentage
£000 £000 £000 %
Remuneration of employees . . . 8,953 7,848 1,105 (14.1
Total distributions paid . . . 1,920 2,179 (259) 11.9
(being dividends and share buy backs)
IMPLEMENTATION OF EXECUTIVE DIRECTOR REMUNERATION POLICY FOR 2026
After taking into consideration Group employees’ salary increases for the year to 31st July 2026, an increase of 3.5% of
base salary was awarded to all Directors except Jane Oliver who received an increase of 5.0%.
Base salary from 1st July 2025 Base salary from 1st July 2024
£ £
David W Smart . . . . . . . 141,300 136,500
John R Smart . . . . . . . 141,300 136,500
Alasdair H Ross . . . . . . . 141,300 136,500
Patricia Sweeney . . . . . . . 141,300 136,500
Jane Oliver . . . . . . . 120,192 86,538
CONSIDERATIONS BY THE DIRECTORS OF MATTERS RELATING TO DIRECTORS’ REMUNERATION
The Chairman is responsible for determining Directors’ Remuneration. No advice was sought in the year in considering
Directors’ Remuneration.
SUMMARY OF SHAREHOLDER VOTING AT THE 2024 ANNUAL GENERAL MEETING
The 2024 Directors’ Remuneration Report was put to the shareholders for their approval at the 2024 Annual General
Meeting. The resolution was passed on a show of hands.
Details of the proxy votes lodged, including those at the discretion of the Chairman, are as follows:
Total number % of votes cast
of votes
For . . . . . . . . . 26,622,512 100
Against . . . . . . . . . - -
Total votes cast (excluding votes withheld) . . . . . 26,622,512 100
Votes withheld . . . . . . . . . -
Total votes cast (including votes withheld) . . . . . 26,622,512
Votes withheld are not included in the proxy figures as they are not recognised as a vote in law.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
20th November 2025 Company Secretary
86197 J Smart Annual Report Text.indd 7786197 J Smart Annual Report Text.indd 77 15/12/2025 14:2515/12/2025 14:25
78 79
J. Smart & Co. (Contractors) PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES 31st JULY 2025
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND STATEMENT OF ACCOUNTS
The Directors are responsible for preparing the Annual Report and Statement of Accounts in accordance with
international accounting standards in conformity with the requirements of the Companies Act 2006 and applicable law
and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors
are required to prepare the Group financial statements and have elected to prepare the company financial statements
in accordance with international accounting standards in conformity with the requirements of the Companies Act
2006. Under company law the Directors must not approve the financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Group and Company and of the profit or loss for the Group and
Company for that period. The Directors are also required to prepare financial statements in accordance with UK
adopted international accounting standards.
In preparing these financial statements, the Directors are required to:
− select suitable accounting policies and then apply them consistently;
– make judgements and accounting estimates that are reasonable and prudent;
– state whether they have been prepared in accordance with international accounting standards in conformity with
the requirements of the Companies Act 2006, subject to any material departures disclosed and explained in the
financial statements;
– state whether they have been prepared in accordance with UK adopted international accounting standards,
subject to any material departures disclosed and explained in the financial statements;
– prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company
will continue in business; and
– prepare a Report of the Directors, a Strategic Report and Directors’ Remuneration Report which comply with the
requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the Annual
Report and Statement of Accounts, taken as a whole, are fair, balanced, and understandable and provides the information
necessary for shareholders to assess the Group’s performance, business model and strategy.
WEBSITE PUBLICATION
The Directors are responsible for ensuring the Annual Report and Statement of Accounts are made available on a
website. Financial statements are published on the Company’s website in accordance with legislation in the United
Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in
other jurisdictions. The maintenance and integrity of the Company’s website is the responsibility of the Directors. The
Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
86197 J Smart Annual Report Text.indd 7886197 J Smart Annual Report Text.indd 78 15/12/2025 14:2515/12/2025 14:25
78 79
J. Smart & Co. (Contractors) PLC
STATEMENT OF DIRECTORS’ RESPONSIBILITIES (continued) 31st JULY 2025
DIRECTORS’ RESPONSIBILITES PURSANT TO DTR4
The Directors confirm to the best of their knowledge:
− The financial statements have been prepared in accordance with UK adopted international accounting standards
and give a true and fair view of the assets, liabilities, financial position and profit and loss of the Group and
Company.
– The Annual Report and Statement of Accounts includes a fair review of the development and performance of
the business and the financial position of the Group and Company, together with a description of the principal
risks and uncertainties that they face.
BY ORDER OF THE BOARD OF DIRECTORS
Patricia Sweeney
20th November 2025 Company Secretary
86197 J Smart Annual Report Text.indd 7986197 J Smart Annual Report Text.indd 79 15/12/2025 14:2515/12/2025 14:25
80 81
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT 31st JULY 2025
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF J. SMART & CO. (CONTRACTORS) PLC
OPINION ON THE FINANCIAL STATEMENTS
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at
31st July 2025 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with UK adopted international accounting
standards;
• the Parent Company financial statements have been properly prepared in accordance with UK adopted international
accounting standards; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of J. Smart & Co. (Contractors) PLC (the ‘Parent Company’) and its subsidiaries
(the ‘Group’) for the year ended 31st July 2025 which comprise the Consolidated Income Statement, Consolidated
Statement of Comprehensive Income, Consolidated and Company Statement of Changes in Equity, Consolidated and
Company Statement of Financial Position, Consolidated and Company Statement of Cash Flows and notes to the financial
statements, including a summary of significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law and UK adopted international accounting standards and as regards the Parent
Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion. Our audit opinion is consistent with the additional report to the Board. .
INDEPENDENCE
We were appointed by the Board to audit the financial statements for the year ending 31st July 2021 and subsequent financial
periods. The period of total uninterrupted engagement including retenders and reappointments is five years covering the
years ending 31st July 2021 to 31st July 2025. We remain independent of the Group and the Parent Company in accordance
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance
with these requirements. The non-audit services prohibited by that standard were not provided to the Group or the Parent
Company.
86197 J Smart Annual Report Text.indd 8086197 J Smart Annual Report Text.indd 80 15/12/2025 14:2515/12/2025 14:25
80 81
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Group and
the Parent Company’s ability to continue to adopt the going concern basis of accounting included:
• Evaluation of the Directors’ assessment in respect of the Group’s ability to continue as a going concern for at least
twelve months from the date of this Annual Report. This included checking the mathematical accuracy of the models
used;
• Evaluation and challenge of the Directors’ key assumptions, cash flow projections and judgements made in respect to
their going concern assumption. We did this by considering the appropriateness of the assumptions and judgements
made by the Directors, based on our understanding of the business and challenging the Directors as to the accuracy
of these assumptions and judgements relative to the equivalent metrics actually achieved in the recent history of the
Group’s performance. We challenged these based on our understanding of the business in respect to construction
contracts won, ability to deliver these within agreed timeframes and the probability of the cash flows materialising.
We evaluated the Directors’ sensitivity analysis for appropriateness and performed our own sensitivity analysis based
on our own assumptions and judgements comparing results to the Directors’ outcomes;
• We performed stress tests to identify key areas that would cause the Group to fail and assessed the likelihood of these.
We performed these sensitivities by identifying what key indicators such as revenue, cash and profit would need to
reduce by before the Group would no longer have the ability to repay its debts as they became due. We considered
new construction contracts and private housing sales to be some of the main assumptions made by management and
sensitised these by assuming reduced trading profit to determine whether the Group had sufficient cash and reserves
to absorb any such reasonable downside scenarios;
• We performed procedures to identify unrecorded liabilities that may exist in the Group. These procedures included
inspection of Director meeting minutes, post year end payments and invoice sampling, inspection of correspondence
with management’s legal advisors including obtaining confirmation of no material claims or litigations of which we
were not aware. This included testing the Directors’ ability to forecast by comparing previous forecasts to actual
outturns and current year forecasts to post year end positions achieved and corroborating evidence such as quoted
costs, especially in relation to construction contracts to identify any potentially material forecasting errors.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Group and the Parent Company’s ability to continue as
a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the Parent Company’s reporting on how it has applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the
Directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant
sections of this report.
86197 J Smart Annual Report Text.indd 8186197 J Smart Annual Report Text.indd 81 15/12/2025 14:2515/12/2025 14:25
82 83
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
OVERVIEW
2025 2024
Key audit matters Revenue recognition ✓ ✓
Valuation of defined benefit pension
scheme obligations (including assumptions used) ✓ ✓
Valuation of investment properties ✓ ✓
Materiality Group financial statements as a whole
£1,590,000 (2024: £1,300,000) based on 1% (2024:0.89%) of total assets
AN OVERVIEW OF THE SCOPE OF OUR AUDIT
Our Group audit was scoped by obtaining an understanding of the Group and its environment, the applicable financial
reporting framework and the Group’s system of internal control. On the basis of this, we identified and assessed the
risks of material misstatement of the Group financial statements including with respect to the consolidation process. We
then applied professional judgement to focus our audit procedures on the areas that posed the greatest risks to the Group
financial statements. We continually assessed risks throughout our audit, revising the risks where necessary, with the aim
of reducing the Group risk of material misstatement to an acceptable level, in order to provide a basis for our opinion.
The Group manages its operations from a central location in the UK and has common financial systems, processes and
controls covering all significant components over which we will be performing audit procedures as part of the Group
audit.
In assessing the risk of material misstatement in the Group financial statements, and to ensure we obtained adequate
quantitative coverage of significant categories of balances in the Annual Report and Statement of Accounts, we determined
that two significant components, J. Smart & Co. (Contractors) PLC and Thomas Menzies (Builders) Limited, represented the
principal business units within the Group. A full scope audit was undertaken on these components by the Group audit team.
Additionally, in assessing the risk of material misstatement in the Group financial statements, we have scoped in further
components consisting of C. & W. Assets Limited, Cramond Real Estate Company Limited, and St Andrews 1413
Limited. Having determined that the risks of material misstatement to the Group financial statements associated with
these components could be isolated to specific financial statement areas, a full scope audit was not performed, with
targeted testing performed instead on those balances determined to be of risk.
As part of performing our Group audit, we have determined the components in scope as follows:
• J. Smart & Co. (Contractors) PLC – full scope audit performed
• Thomas Menzies (Builders) Limited – full scope audit performed
• C. & W. Assets Limited – targeted testing performed on rental income, investment property, accounts payable,
accounts receivable, cash, and taxation.
• Cramond Real Estate Company Limited – targeted testing performed on investments and cash.
• St Andrews 1413 Limited (Joint Venture Company) – targeted testing performed on investment property.
For components in scope, as noted above, we used a combination of risk assessment procedures and further audit
procedures to obtain sufficient appropriate evidence. These further audit procedures included:
• procedures on the entire financial information of the component, including performing substantive procedures; and
• procedures on one or more classes of transactions, account balances or disclosures.
86197 J Smart Annual Report Text.indd 8286197 J Smart Annual Report Text.indd 82 15/12/2025 14:2515/12/2025 14:25
82 83
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
AN OVERVIEW OF THE SCOPE OF OUR AUDIT(continued)
Procedures performed at the component level
For the purpose of our Group audit, the Group consisted of 10 components in total, being the Parent Company, 7
subsidiaries and 2 joint ventures. These were comprised of 10 legal entities. No Group components were made up of more
than one legal entity.
Procedures were performed on the entire financial information of all the components listed as being in scope, except
for C. & W. Assets Limited, Cramond Real Estate Company Limited, and St Andrews 1413 Limited, where testing was
performed to address the risk of material misstatement in the financial statement areas listed above.
The Group engagement team has performed all procedures directly, and has not involved component auditors in the Group
audit.
Procedures performed centrally
We considered there to be a high degree of centralisation of financial reporting and commonality of controls and similarity
of the Group’s activities and business lines in relation to all relevant financial statement areas. We therefore designed and
performed procedures centrally in these areas.
The Group operates a centralised IT function that supports IT processes for certain components. This IT function was
subject to specified risk-focused audit procedures, predominantly the testing of the relevant IT general controls.
Changes from the prior year
We performed procedures on one or more classes of transactions, account balance or disclosures of Cramond Real Estate
Limited and St Andrews 1413 Limited which represented a change from the prior year.
CLIMATE CHANGE
Our work on the assessment of potential impacts on climate-related risks on the Group’s operations and financial
statements included:
• Enquiries and challenge of management to understand the actions they have taken to identify climate-related risks
and their potential impacts on the financial statements and adequately disclose climate-related risks within the Annual
Report;
• Our own qualitative risk assessment taking into consideration the sector in which the Group operates and how climate
change affects this particular sector; and
• Review of the minutes of Board meetings and other papers related to climate change and performed a risk assessment
as to how the impact of the Group’s commitment as set out in the Strategic Report may affect the financial statements
and our audit.
We challenged the extent to which climate-related considerations, including the expected cash flows from the initiatives
and commitments have been reflected, where appropriate, in the Management’s going concern assessment and viability
assessment.
We also assessed the consistency of managements disclosures included as ‘Statutory Other Information’ in the Strategic
Report with the financial statements and with our knowledge obtained from the audit.
Based on our risk assessment procedures, we did not identify there to be any Key Audit Matters materially affected by
climate-related risks and related commitments.
86197 J Smart Annual Report Text.indd 8386197 J Smart Annual Report Text.indd 83 15/12/2025 14:2515/12/2025 14:25
84 85
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
KEY AUDIT MATTER
How the scope of our audit addressed the key audit matter
REVENUE
RECOGNITION
(Note 1 and 3)
The Group’s revenue is
generated from construction and
investment property activities.
These activities result in revenue
that is derived from construction
contracts, the sale of private
housing and investment property
rental revenue.
Revenue from construction
contracts (disaggregated
into Social Housing, Civil
Engineering, Industrial and
General Construction in note 3)
is recognised based on different,
individual, commercial contract
terms. This includes areas of
judgement such as when to
recognise the right to revenue
arising from the value of work
performed based on valuations
and the identification and
recognition of losses in respect to
loss making contracts.
Given the nature and complexity
of construction revenue and its
importance to the activities of the
business, we considered there to
be a significant risk of material
misstatement arising in respect of
the completeness, accuracy, cut-
off and existence of incomplete
construction revenue contracts.
As a result, we considered
the revenue recognition from
incomplete construction revenue
contracts to be a key audit
matter.
We reviewed the revenue accounting policies and practices
as well as the basis of material recognition estimates for
consistency of application and whether they were in accordance
with the requirements of the applicable accounting standards.
We tested the Group’s material revenue streams individually
according to their characteristics, performing detailed testing,
as articulated in the following paragraphs below, of a sample
of contracts during the year based on pre-determined metrics
(related to contribution to revenue and profit) designed to
address higher risk contracts and areas of judgement. As a
result of our procedures, 100% of the incomplete construction
contract were tested.
We engaged in detailed discussions with the relevant
Commercial Directors and other key individuals in ascertaining
and verifying the judgements made for each contract selected
for testing. This included testing the recoverability of contract
balances and trade debtors, certification of works and billing by
matching the year end balance to post year end receipts, where
material. As part of this process, we critically assessed and
challenged the recognition of revenue and profit by reference
to costs incurred to total costs as well as valuations performed
at year end in comparison to our site attendance and other
corroborating evidence such as the revenue contract agreement,
testing of material variations and claims, as well as year-end
payment certificates and cash received.
Through our audit work we obtained an understanding of the
key estimates taken by management around these contracts
and sought detailed explanations and support for judgements
taken, in particular where material claims for variations
had been recognised. We then obtained evidence to support
recoverability of these variations or claims by reference to
customer agreement as well as cash payment of these variations
and, where appropriate, consulted with management’s experts
(in the form of Quantity Surveyors and Commercial Directors)
to gain an understanding of the basis for the judgements made.
We assessed the competence and expertise of management’s
surveyors. We reviewed legal correspondence relating to
significant claims and variations to identify evidence contrary
to our understanding and management’s judgements noting that
there were none. Our revenue and contract profit recognition
testing focused on the timing of and amounts recognised in
respect of any variable revenue to check that it is improbable
that a significant reversal of amounts recognised will occur.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement (whether
or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the
allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
86197 J Smart Annual Report Text.indd 8486197 J Smart Annual Report Text.indd 84 15/12/2025 14:2515/12/2025 14:25
84 85
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
KEY AUDIT MATTER
How the scope of our audit addressed the key audit matter
REVENUE
RECOGNITION
(Note 1 and 3)
(continued)
We agreed the calculations underlying the estimate of costs
to complete in relation to ongoing contracts to supporting
agreements and documentation.
For a sample of projects, we carried out site visits to improve
our understanding of the projects and their risk.
As part of testing of construction contracts, we also
agreed a sample of applications for payment to customer
correspondence and agreed a sample to cash receipt.
We checked that costs had been appropriately allocated to
a particular contract, including the application of payroll,
subcontractor and purchasing costs by sampling all costs in the
year and checking that the corroborative evidence obtained in
relation to these samples supported the allocation of the costs to
the particular contract being tested.
As part of our detailed testing, we reviewed post year end
performance of contracts to corroborate estimates taken at
the year-end in respect of costs expected to be incurred and
challenged assumptions which appeared inconsistent with
actual post year end performance. This included assessing the
reliability of management estimates considering the positions
adopted in previous years compared to actual outturn.
Key observations
Based on our procedures we found management’s judgements
in respect of revenue recognition to be appropriate.
KEY AUDIT MATTERS (continued)
86197 J Smart Annual Report Text.indd 8586197 J Smart Annual Report Text.indd 85 15/12/2025 14:2515/12/2025 14:25
86 87
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
KEY AUDIT MATTER
How the scope of our audit addressed the key audit matter
VALUATION
OF DEFINED
BENEFIT
PENSION
SCHEME
OBLIGATIONS
(including
assumptions
used)
(Note 1 and 31)
The Group has a defined
benefit pension scheme.
The pension valuation
is dependent on market
conditions and key
assumptions made by
management, relating to
investment markets, discount
rate, inflation expectations and
life expectancy assumptions.
The Group has recognised the
full scheme surplus of assets
over the scheme obligations
which represents another area
of significant judgement.
The valuation of the defined
benefit pension scheme
obligation, which reduces the
surplus, represented a key
audit matter given that the
setting of the assumptions
is complex and requires
the exercise of significant
management judgement
with the support of third
party actuaries. The related
sensitivities of any changes in
assumptions are disclosed in
note 31.
In testing the valuation of the pension obligation, we
utilised pension actuarial experts to review the key actuarial
assumptions used, both financial and demographic and, in
conjunction with our experts, considered the appropriateness
of the methodology utilised to derive these assumptions.
We benchmarked the scheme assumptions against publicly
available published data. Specifically, we challenged the
discount rate, inflation and mortality assumptions applied in
the calculation with the assistance of our pension experts in
benchmarking the assumptions applied against comparable
third party data and assessing the appropriateness of the
assumptions in the context of the Group’s own position. We
performed sensitivity analysis on the assumptions determined
by the Directors.
We considered the recoverability of the surplus to gain
assurance that the Group has an unconditional right to recover
the net asset. We have seen legal confirmation that confirmed
that the Group has unconditional right to the scheme surplus
and challenged this by reference to the Trust Deed, to
determine whether this is appropriate.
We considered the competence, independence and ability
to perform the work of the third-party actuaries used by
management by obtaining independence confirmations as well
as checking that they are qualified actuaries.
We assessed the disclosure of the net pension asset and the
related assumptions and sensitivities in the financial statements
against the relevant accounting framework and the findings of
our work.
Key observations
We have not identified any evidence to suggest that the
methodology and assumptions applied in relation to
determining the pension valuation are not within an acceptable
range.
KEY AUDIT MATTERS (continued)
86197 J Smart Annual Report Text.indd 8686197 J Smart Annual Report Text.indd 86 15/12/2025 14:2515/12/2025 14:25
86 87
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
KEY AUDIT MATTER
How the scope of our audit addressed the key audit matter
VALUATION OF
INVESTMENT
PROPERTIES
(Note 1 and 15)
The Group has a significant
portfolio of investment property.
Judgement is required by
management in terms of the
assessment of the effect on the
valuation of the individual nature
of each property, its location,
expected future rental income,
tenure and tenancy profiles,
prevailing market yields and
comparable market conditions.
Input inaccuracies or
unreasonable bases used in these
assumptions could result in a
material misstatement in the
financial statements.
This area represented a key audit
matter given that the setting of
these assumptions is complex
and requires the exercise
of significant management
judgement with the support of
third party valuation experts.
We audited the investment property portfolio, with the
assistance of our experts, who are independent 3rd party
RICS valuers. Our independent experts reviewed a sample of
the investment property portfolio valuations in order to assess
the key assumptions used, considered the appropriateness of
the methodology utilised to derive these assumptions and the
appropriateness of the valuation technique used.
We performed detailed testing on a sample of properties,
agreeing the key aspects such as the nature of each property,
its location, expected future rental income, tenure and
tenancy profiles and prevailing market yields to corroborating
documentation, to check that the valuations are based
on accurate and reliable information in relation to those
properties.
All properties at year end were agreed to the prior year listing
to confirm the completeness of the portfolio. We performed
further tests such as inspection of Director meeting minutes to
identify any unrecorded disposals. A sample of properties was
physically inspected by our audit experts.
We considered the competence, independence and ability to
perform the work of the third party valuation experts used
by management by obtaining independence confirmations as
well as checking that they are qualified valuers.
Assumptions made by management in their valuation, such
as rental amounts and yields, were challenged by agreeing a
sample of these assumptions to corroborating evidence in the
form of rental contracts and engagement of our own experts
to assist in reviewing these, to consider whether they are
appropriate.
The completeness and accuracy of disclosure in the financial
statements were checked with reference to our knowledge
obtained during the audit and the requirements of the relevant
accounting standards.
Key observations
We have not identified any evidence to suggest that the
methodology and assumptions applied in relation to
determining the investment properties valuation are not
within a tolerable range. Based on our procedures we found
management’s valuation in respect of investment properties to
be appropriate.
KEY AUDIT MATTERS (continued)
86197 J Smart Annual Report Text.indd 8786197 J Smart Annual Report Text.indd 87 15/12/2025 14:2515/12/2025 14:25
88 89
OUR APPLICATION OF MATERIALITY
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements.
We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic
decisions of reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower
materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these
levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and
the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance
materiality as follows:
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
Group financial statements
2025 2024 2025 2024
£197,000£536,000£1,300,000£1,580,000Materiality
0.42% of total assets at
the year end
1% of total assets at
the year end
0.89% of total assets at
the year end
1% of total assets at
the year end
Basis for determining
materiality
We consider this to be the principal
consideration in assessing the financial
performance of the Parent Company as
the Parent Company considers total assets
to be the key performance indicator which
demonstrates less volatility than other
performance measures.
We consider this to be the principal
consideration in assessing the financial
performance of the Group as the Group
considers total assets to be the key performance
indicator, which demonstrates less volatility
than other performance measures.
Rationale for the
benchmark applied
Parent company financial statements
£138,000£375,000£910,000£1,106,000
Performance
materiality
The rationale for the percentage applied
was determined based on the expected
total value of known and likely misstatements,
our knowledge of the Parent Company’s
internal controls and management’s attitude
towards proposed adjustments.
The rationale for the percentage applied
was determined based on the expected
total value of known and likely misstatements,
our knowledge of the Group’s internal
controls and management’s attitude
towards proposed adjustments.
Rationale for the
percentage applied
for performance
materiality
70% of Materiality70% of MaterialityBasis for determining
performance
materiality
86197 J Smart Annual Report Text.indd 8886197 J Smart Annual Report Text.indd 88 15/12/2025 14:2515/12/2025 14:25
88 89
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
OUR APPLICATION OF MATERIALITY (continued)
Component performance materiality
For the purposes of our Group audit opinion, we set performance materiality for each component of the Group, apart from
the Parent Company whose materiality and performance materiality are set out above, based on a percentage of between
4.5% and 56% (2024: 46.2% ) of Group performance materiality dependent on a number of factors including the relative
size of components, whether significant changes occurred at the component, the disaggregation of financial information
across the Group, the control environment, the public interest in any given component, whether the component was a
source of significant Group risks and our assessment of the risk of material misstatement of those components. Component
performance materiality ranged from £49,700 to £624,000 (2024: £560,000).
Reporting threshold
We agreed with the Board that we would report to them all individual audit differences in excess of £47,700, (2024:
£39,000). We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative
grounds.
OTHER INFORMATION
The Directors are responsible for the other information. The other information comprises the information included in the
document entitled Annual Report and Statement of Accounts other than the financial statements and our Auditor’s Report
thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
CORPORATE GOVERNANCE STATEMENT
The UK Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and
that part of the Corporate Governance Statement relating to the Parent Company’s compliance with the provisions of the
UK Corporate Governance Statement specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.
GOING CONCERN
AND LONGER-TERM
VIABILITY
• The Directors’ statement with regards to the appropriateness of adopting the going concern
basis of accounting and any material uncertainties identified set out on page 12; and
• The Directors’ explanation as to their assessment of the Group’s prospects, the period this
assessment covers and why the period is appropriate set out on page 20.
• The Directors’ statement on whether they have a reasonable expectation that the Group will
be able to continue in operation and meet its liabilities set out on page 20.
OTHER CODE
PROVISIONS
• Directors’ statement on fair, balanced and understandable set out on page 69;
• Board’s confirmation that it has carried out a robust assessment of the emerging and
principal risks set out on pages 18 to 20;
• The section of the Annual Report that describes the review of effectiveness of risk
management and internal control systems set out on page 69.
86197 J Smart Annual Report Text.indd 8986197 J Smart Annual Report Text.indd 89 15/12/2025 14:2515/12/2025 14:25
90 91
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
OTHER COMPANIES ACT 2006 REPORTING
Based on the responsibilities described below and our work performed during the course of the audit, we are required by
the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease
operations, or have no realistic alternative but to do so.
STRATEGIC
REPORT AND
REPORT OF THE
DIRECTORS
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Report of the Directors for the
financial year for which the financial statements are prepared is consistent with the
financial statements; and
• the Strategic Report and the Report of the Directors have been prepared in accordance
with applicable legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its
environment obtained in the course of the audit, we have not identified material misstatements
in the Strategic Report or the Report of the Directors.
DIRECTORS’
REMUNERATIONS
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly
prepared in accordance with the Companies Act 2006.
CORPORATE
GOVERNANCE
STATEMENT
In our opinion, based on the work undertaken in the course of the audit the information about
internal control and risk management systems in relation to financial reporting processes and
about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure
Guidance and Transparency Rules sourcebook made by the Financial Conduct Authority (the
FCA Rules), is consistent with the financial statements and has been prepared in accordance
with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and its
environment obtained in the course of the audit, we have not identified material misstatements
in this information.
In our opinion, based on the work undertaken in the course of the audit information about the
Parent Company’s Corporate Governance Code and practices and about its administrative,
management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and
7.2.7 of the FCA Rules other than as laid out on page 68.
We have nothing to report arising from our responsibility to report if a Corporate Governance
Statement has not been prepared by the Parent Company.
MATTERS ON
WHICH WE ARE
REQUIRED TO
REPORT BY
EXCEPTION
We have nothing to report in respect of the following matters in relation to which the
Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns
adequate for our audit have not been received from branches not visited by us; or
• the Parent Company financial statements and the part of the Directors’ Remuneration
Report to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
86197 J Smart Annual Report Text.indd 9086197 J Smart Annual Report Text.indd 90 15/12/2025 14:2515/12/2025 14:25
90 91
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent
to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Non-compliance with laws and regulations
Based on:
• Our understanding and accumulated knowledge of the Group and its subsidiaries and the industry in which it operates;
• Discussion with management and those charged with governance; and
• Obtaining an understanding of the Group’s policies and procedures regarding compliance with laws and regulations, we
considered the significant laws and regulations to be the applicable accounting framework, UK corporate tax, VAT and
employment tax legislation.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on
the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified
such laws and regulations to be the Health and Safety legislation, UK Companies Act 2006, industry related regulations
impacting the construction industry, and the Listing Rules.
Our procedures in respect of the above included:
• Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and
regulations;
• Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and
regulations;
• Review of financial statement disclosures and agreeing to supporting documentation;
• Involvement of tax specialists in the audit; and
• Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment
procedures included:
• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
• Obtaining an understanding of the Group’s policies and procedures relating to:
o Detecting and responding to the risks of fraud; and
o Internal controls established to mitigate risks related to fraud.
• Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
• Review journals of material magnitude, reviewing the types of journals posted by personnel and, reviewing the
relationships between financial statements areas impacted by journals to revenue and investment property.
• Considering remuneration incentive schemes and performance targets and the related financial statement areas impacted
by these; and
• Involvement of our forensics specialists in identifying key risk areas susceptible to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls,
revenue recognition (completeness, accuracy, cut-off and evidence) relating to incomplete construction contract revenue and
construction related activities such as supplier changes, petty cash misappropriation, manipulation of expense accounts and
related collusion.
86197 J Smart Annual Report Text.indd 9186197 J Smart Annual Report Text.indd 91 15/12/2025 14:2515/12/2025 14:25
92 93
J. Smart & Co. (Contractors) PLC
INDEPENDENT AUDITOR’S REPORT (continued) 31st JULY 2025
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (continued)
Fraud (continued)
Our procedures in respect of the above included:
• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular
in relation to the recognition of revenue, the assumptions and estimates used in the valuation of investment property
and private housing inventory, and the defined pension benefit scheme net asset (for more information on how we
audited these areas, refer to the “Key audit matters” section above). We sought to identify any areas of management
bias by corroborating these estimates and judgements and challenging management as to their appropriateness based
on third party empirical evidence, recalculating management’s estimate, following up on information in relation to
estimates to the date of issue as well as in some cases developing our own estimate range and comparing this to
management’s estimate;
• Designed targeted audit tests to address the areas identified at the planning stage with our forensic specialists which
included:
o testing of unusual cash payments identified through use of our data analytics software to corroborating evidence;
o comparison of bank accounts between suppliers and payroll in order to identify any duplicates;
o reviewing supplier transactions to identify unusual items and testing those items that meet a pre-determined
threshold to corroborating evidence;
o testing supplier changes to corroborating evidence to identify unauthorised or potentially fraudulent changes;
o reviewing petty cash movements in order to identify any large or unusual items which could be indicative of
potentially fraudulent payments and testing these to corroborating evidence where identified.
• In response to the risk of fraud in revenue recognition relation to cut-off, we performed the procedures set out in the
key audit matters section of the report;
• Identifying and testing journal entries to corroborating evidence, in particular journal entries posted with specific
keywords, rounded journals and an unpredictable sample of journals; and
• Testing payroll calculations and payments to identify potential fraud and in order to incorporate unpredictability into
our testing by checking those processors of payroll only received what is contractually due to them with reference to
their employment contracts.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members
who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-
compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that
the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error,
as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are
inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is
from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our Auditor’s Report.
USE OF OUR REPORT
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s members those
matters we are required to state to them in an Auditor’s Report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
aliStair rae (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
Edinburgh, UK
20th November 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)
86197 J Smart Annual Report Text.indd 9286197 J Smart Annual Report Text.indd 92 15/12/2025 14:2515/12/2025 14:25
92 93
Notes | 2025 | 2024 | ||||||||||
£000 | £000 | |||||||||||
| REVENUE | . | . | . | . | . | . | . | . | 3 | |||
Cost of sales | . | . | . | . | . | . | . | . | ( | ( | ||
GROSS PROFIT | . | . | . | . | . | . | . | . | ||||
Other operating income | . | . | . | . | . | . | 4 | |||||
Administrative expenses | . | . | . | . | . | . | ( | ( | ||||
| OPERATING LOSS BEFORE LOSS ON SALE OF INVESTMENT | ||||||||||||
| PROPERTIES AND NET SURPLUS ON VALUATION | ||||||||||||
| OF INVESTMENT PROPERTIES | . | . | . | . | . | . | ( | ( | ||||
Loss on sale of investment properties | . | . | . | . | . | ( | ||||||
Net surplus on valuation of investment properties | . | . | 15 | |||||||||
OPERATING PROFIT | . | . | . | . | . | . | 6 | |||||
Share of profit in Joint Ventures | . | . | . | . | . | 16(a) | ||||||
Income from financial assets | . | . | . | . | . | . | 7 | |||||
Loss on sale of financial assets | . | . | . | . | . | . | ( | ( | ||||
Net surplus on valuation of financial assets | . | . | . | 17 | ||||||||
Finance income | . | . | . | . | . | . | . | 8 | ||||
Finance costs | . | . | . | . | . | . | . | 8 | ( | ( | ||
PROFIT BEFORE TAX | . | . | . | . | . | . | . | 10 | ||||
Taxation | . | . | . | . | . | . | . | . | . | 9 | ( | ( |
PROFIT FOR YEAR ATTRIBUTABLE TO EQUITY SHAREHOLDERS | . | |||||||||||
| EARNINGS PER SHARE | ||||||||||||
Basic and diluted | . | . | . | . | . | . | . | 12 |
J. Smart & Co. (Contractors) PLC
CONSOLIDATED INCOME STATEMENT
for the year ended 31st July 2025
86197 J Smart Annual Report Text.indd 9386197 J Smart Annual Report Text.indd 93 15/12/2025 14:2515/12/2025 14:25
94 95
J. Smart & Co. (Contractors) PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31st July 2025
Notes | 2025 | 2024 | |||||||||
£000 | £000 | ||||||||||
PROFIT FOR THE YEAR | . | . | . | . | . | . | . | ||||
| OTHER COMPREHENSIVE INCOME | |||||||||||
| Items that will not be subsequently reclassified to Income Statement: | |||||||||||
Remeasurement gains on defined benefit pension scheme | . | . | 31 | ||||||||
| Deferred taxation on remeasurement gains | |||||||||||
on defined benefit pension scheme | . | . | . | . | . | 25 | ( | ( | |||
| TOTAL ITEMS THAT WILL NOT BE SUBSEQUENTLY | |||||||||||
RECLASSIFIED TO INCOME STATEMENT | . | . | . | . | . | ||||||
TOTAL OTHER COMPREHENSIVE INCOME | . | . | . | . | |||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX | . | ||||||||||
ATTRIBUTABLE TO EQUITY SHAREHOLDERS | . | . | . | . |
86197 J Smart Annual Report Text.indd 9486197 J Smart Annual Report Text.indd 94 15/12/2025 14:2515/12/2025 14:25
94 95
J. Smart & Co. (Contractors) PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
as at 31st July 2025
| Capital | ||||||||||||
Share | Redemption | Retained | ||||||||||
Capital | Reserve | Earnings | Total | |||||||||
£000 | £000 | £000 | £000 | |||||||||
At 1st August 2023 | . | . | . | . | . | . | . | |||||
Profit for the year | . | . | . | . | . | . | . | |||||
Other comprehensive income | . | . | . | . | . | . | ||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | . | . | . | |||||||||
| TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY | ||||||||||||
Shares purchased and cancelled | . | . | . | . | . | ( | ( | ( | ||||
Transfer to Capital Redemption Reserve | . | . | . | . | ( | |||||||
Dividends | . | . | . | . | . | . | . | . | ( | ( | ||
TOTAL TRANSACTIONS WITH OWNERS . | . | . | . | . | ( | ( | ( | |||||
At 31st July 2024 | . | . | . | . | . | . | . | |||||
Profit for the year | . | . | . | . | . | . | . | |||||
Other comprehensive income | . | . | . | . | . | . | ||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | . | . | . | |||||||||
| TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY | ||||||||||||
Shares purchased and cancelled | . | . | . | . | . | ( | ( | ( | ||||
Transfer to Capital Redemption Reserve | . | . | . | . | ( | |||||||
Dividends | . | . | . | . | . | . | . | . | ( | ( | ||
TOTAL TRANSACTIONS WITH OWNERS . | . | . | . | . | ( | ( | ( | |||||
At 31st July 2025 | . | . | . | . | . | . | . | . |
86197 J Smart Annual Report Text.indd 9586197 J Smart Annual Report Text.indd 95 15/12/2025 14:2515/12/2025 14:25
96 97
J. Smart & Co. (Contractors) PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
as at 31st July 2025
Capital
Share Redemption Retained
Capital Reserve Earnings Total
£000 £000 £000 £000
At 1st August 2023 . . . . 802 206 33,236 34,244
Loss for the year . . . . . - - ( (49) (49)
Other comprehensive income . . . - - 1,352) 1,352)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR - - 1,303 1,303)
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY
Shares purchased and cancelled . . (13) - (889) (902)
Transfer to Capital Redemption Reserve . - 13 (13) -
Dividends . . . . . - - (1,277) (1,277)
TOTAL TRANSACTIONS WITH OWNERS . . (13) 13 (2,179) (2,179)
At 31st July 2024 . . . . . 789 219 32,360 33,368
Profit for the year . . . . - - 1,519 1,519
Other comprehensive income . . . - - 1,098)
1,098)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR - - 2,617) 2,617)
TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY
Shares purchased and cancelled . . (10) - (646) (656)
Transfer to Capital Redemption Reserve . - 10 (10) -
Dividends . . . . . - - (1,264) (1,264)
TOTAL TRANSACTIONS WITH OWNERS . . (10) 10 (1,920) (1,920)
At 31st July 2025 . . . . . 779 229 33,051 34,065
86197 J Smart Annual Report Text.indd 9686197 J Smart Annual Report Text.indd 96 15/12/2025 14:2515/12/2025 14:25
96 97
J. Smart & Co. (Contractors) PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31st July 2025
Notes | 2025 | 2024 | |||||||||||
£000 | £000 | ||||||||||||
| NON-CURRENT ASSETS | |||||||||||||
Property, plant and equipment | . | . | . | . | . | . | 13 | ||||||
Investment properties | . | . | . | . | . | . | . | 15 | |||||
Investments in Joint Ventures | . | . | . | . | . | . | 16 | ||||||
Financial assets | . | . | . | . | . | . | . | . | 17 | ||||
Trade and other receivables | . | . | . | . | . | . | 21 | ||||||
Retirement benefit surplus | . | . | . | . | . | . | 31 | ||||||
Deferred tax assets | . | . | . | . | . | . | . | 25 | |||||
| CURRENT ASSETS | |||||||||||||
Assets held for sale | . | . | . | . | . | . | . | 18 | |||||
Inventories | . | . | . | . | . | . | . | . | 19 | ||||
Contract assets | . | . | . | . | . | . | . | . | 20 | ||||
Corporation tax asset | . | . | . | . | . | . | . | 2 | |||||
Trade and other receivables | . | . | . | . | . | . | 21 | ||||||
Monies held on deposit | . | . | . | . | . | . | 22 | ||||||
Cash and cash equivalents | . | . | . | . | . | . | 22 | ||||||
TOTAL ASSETS | . | . | . | . | . | . | . | . | |||||
| NON-CURRENT LIABILITIES | |||||||||||||
Deferred tax liabilities | . | . | . | . | . | . | . | 25 | |||||
Lease liabilities | . | . | . | . | . | . | . | 26 | |||||
| CURRENT LIABILITIES | |||||||||||||
Trade and other payables | . | . | . | . | . | . | 23 | ||||||
Lease liabilities | . | . | . | . | . | . | . | 26 | |||||
Bank overdraft | . | . | . | . | . | . | . | 22 | |||||
TOTAL LIABILITIES | . | . | . | . | . | . | . | ||||||
NET ASSETS | . | . | . | . | . | . | . | . | |||||
| EQUITY | |||||||||||||
Called up share capital | . | . | . | . | . | . | . | 27 | |||||
Capital redemption reserve | . | . | . | . | . | . | 27 | ||||||
Retained earnings | . | . | . | . | . | . | . | 27 | |||||
TOTAL EQUITY | . | . | . | . | . | . | . | . |
The financial statements on pages 93 to 139 were approved by the Board of Directors and authorised for issue
on 20th November 2025 and were signed on its behalf by:
DaviD w Smart John r Smart
Director Director
Company Number SC025130
86197 J Smart Annual Report Text.indd 9786197 J Smart Annual Report Text.indd 97 15/12/2025 14:2515/12/2025 14:25
98 99
J. Smart & Co. (Contractors) PLC
COMPANY STATEMENT OF FINANCIAL POSITION
as at 31st July 2025
Notes 2025 2024
£000 £000
NON-CURRENT ASSETS
Property, plant and equipment . . . . . . 14 2,628 2,267
Investments in Subsidiaries and Joint Ventures . . . 16 615 615
Trade and other receivables . . . . . . 21 2,519 364
Retirement benefit surplus . . . . . . 31 25,784 23,040
Deferred tax assets . . . . . . 25 2 -
31,548 26,286
CURRENT ASSETS
Inventories . . . . . . . . 19 16,040 18,330
Contract assets . . . . . . . . 20 233 427
Trade and other receivables . . . . . . 21 4,440 808
Corporation tax asset . . . . . . . 1,348 1,256
Cash and cash equivalents . . . . . . 22 - -
22,061 20,821
TOTAL ASSETS . . . . . . . . 53,609 47,107
NON-CURRENT LIABILITIES
Deferred tax liabilities . . . . . . . 25 6,624 5,837
CURRENT LIABILITIES
Trade and other payables . . . . . . 23 2,939 3,667
Bank overdraft . . . . . . . 22 9,981 4,235
12,920 7,902
TOTAL LIABILITIES . . . . . . . 19,544 13,739
NET ASSETS . . . . . . . . 34,065 33,368
EQUITY
Called up share capital . . . . . . . 27 779 789
Capital redemption reserve . . . . . . 27 229 219
Retained earnings . . . . . . . 27 33,057 32,360
TOTAL EQUITY . . . . . . . . 34,065 33,368
A separate Statement of Comprehensive Income for the Company has not been presented as permitted by
Section 408 of the Companies Act 2006. The profit for the Company is £1,519,000 (2024, loss £49,000).
The financial statements on pages 93 to 139 were approved by the Board of Directors and authorised for issue
on 20th November 2025 and were signed on its behalf by:
DaviD w Smart John r Smart
Director Director
Company Number SC025130
86197 J Smart Annual Report Text.indd 9886197 J Smart Annual Report Text.indd 98 15/12/2025 14:2515/12/2025 14:25
98 99
J. Smart & Co. (Contractors) PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31st July 2025
Notes | 2025 | 2024 | |||||||||||
£000 | £000 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ) | ||||||||||||
Profit after tax | . | . | . | . | . | . | . | . | |||||
Tax charge for year | . | . | . | . | . | . | |||||||
Profit before tax | . | . | . | . | . | . | . | . | |||||
| Adjustments for: | |||||||||||||
Share of profits from Joint Ventures | . | . | . | . | 16(a) | ( | ( | ||||||
Depreciation | . | . | . | . | . | . | . | . | 13 | ||||
Unrealised surplus on valuation of investment properties | . | . | 15 | ( | ( | ||||||||
Loss on sale of investment properties | . | . | . | . | |||||||||
Unrealised surplus on valuation of financial assets | . | . | . | 17 | ( | ( | |||||||
Profit on sale of property, plant and equipment | . | . | . | 4 | ( | ( | |||||||
Loss on sale of financial assets | . | . | . | . | . | . | |||||||
Change in retirement benefits | . | . | . | . | . | . | 31 | ( | ( | ||||
Interest received | . | . | . | . | . | . | . | 8 | ( | ( | |||
Interest paid | . | . | . | . | . | . | . | . | 8 | ||||
Change in inventories | . | . | . | . | . | . | . | ( | |||||
Change in contract assets | . | . | . | . | . | . | ( | ||||||
Change in receivables | . | . | . | . | . | . | . | ( | ( | ||||
Change in payables | . | . | . | . | . | . | . | ( | |||||
CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES | . | . | ( | ||||||||||
Tax paid | . | . | . | . | . | . | . | . | ( | ( | |||
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES | . | ( | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Additions to property, plant and equipment | . | . | . | . | 13 | ( | ( | ||||||
Additions to investment properties | . | . | . | . | . | 15 | ( | ( | |||||
Expenditure on own work capitalised - investment properties | . | 15 | ( | ( | |||||||||
Proceeds of sale of property, plant and equipment | . | . | . | ||||||||||
Proceeds of sale on investment properties | . | . | . | 18 | |||||||||
Purchase of financial assets | . | . | . | . | . | . | 17 | ( | ( | ||||
Proceeds of sale of financial assets | . | . | . | . | . | ||||||||
Monies held on deposit | . | . | . | . | . | . | ( | ( | |||||
Interest received | . | . | . | . | . | . | . | 8 | |||||
Interest paid | . | . | . | . | . | . | . | 8 | ( | ||||
Loan (to)/repaid from Joint Venture | . | . | . | . | . | 34 | ( | ||||||
Return of capital contribution to Joint Ventures | . | . | . | 16(a) | |||||||||
Dividend received from Joint Venture | . | . | . | . | . | 16(a) | |||||||
NET CASH INFLOW FROM INVESTING ACTIVITIES | . |
86197 J Smart Annual Report Text.indd 9986197 J Smart Annual Report Text.indd 99 15/12/2025 14:2515/12/2025 14:25
100 101
Notes | 2025 | 2024 | |||||||||||
£000 | £000 | ||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Interest costs on leases | . | . | . | . | . | . | . | 8 | ( | ( | |||
Purchase of own shares | . | . | . | . | . | . | . | 27 | ( | ( | |||
Dividends paid | . | . | . | . | . | . | . | . | 11 | ( | ( | ||
NET CASH OUTFLOW FROM FINANCING ACTIVITIES | . | . | . | ( | ( | ||||||||
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | . | . | 28 (b) | ( | |||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | . | . | 28 (a) | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | . | . | . | 28 (a) |
J. Smart & Co. (Contractors) PLC
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
for the year ended 31st July 2025
86197 J Smart Annual Report Text.indd 10086197 J Smart Annual Report Text.indd 100 15/12/2025 14:2515/12/2025 14:25
100 101
J. Smart & Co. (Contractors) PLC
COMPANY STATEMENT OF CASH FLOWS
for the year ended 31st July 2025
Notes 2025) 2024)
£000) £000)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) after tax . . . . . . . 1,519 (49)
Tax credit . . . . . . . . (229) (482)
Profit/(loss) before tax . . . . . . . 1,290 (531)
Adjustments for:
Depreciation . . . . . . . . 14 390 255
Profit on sale of property, plant and equipment . . . (63) (79)
Write off investment in subsidiary . . . . . - 668
Dividend received from Subsidiaries and Joint Ventures . . 34 (2,500) (2,311)
Change in retirement benefits . . . . . 31 (123) (154)
Interest received . . . . . . . (1,160) (1,134)
Change in inventories . . . . . . . 2,290 (950)
Change in contract assets . . . . . . 194 (427)
Change in receivables . . . . . . . (3,632) 5,680
Change in payables . . . . . . . (728) 1,074
CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES . . (4,042) 2,091
Tax received . . . . . . . . 556 599
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES . (3,486) 2,690
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment . . . . 14 (770) (1,453)
Proceeds of sale of property, plant and equipment . . . 82 98)
Interest received . . . . . . . 3 145)
Investment in subsidiary . . . . . . - (575)
Loan (to)/repaid from Joint Venture . . . . . 34 (2,155) 3,010
Return of capital contribution to Joint Ventures . . . 16 (a) - 1,040
Dividend received from subsidiaries and Joint Ventures . . 2,500 2,311
NET CASH (OUTFLOW)/INFLOW FROM INVESTING ACTIVITIES . . . (340) 4,576
CASH FLOWS FROM FINANCING ACTIVITIES
Purchase of own shares . . . . . . . 27 (656) (902)
Dividends paid . . . . . . . . 11 (1,264) (1,277)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES . . . (1,920) (2,179)
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS . . 29 (b) (5,746) 5,087
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR . . 29 (a) (4,235) (9,322)
CASH AND CASH EQUIVALENTS AT END OF YEAR . . . 29 (a) (9,981) (4,235)
86197 J Smart Annual Report Text.indd 10186197 J Smart Annual Report Text.indd 101 15/12/2025 14:2515/12/2025 14:25
102 103
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS 31st JULY 2025
86197 J Smart Annual Report Text.indd 10286197 J Smart Annual Report Text.indd 102 15/12/2025 14:2515/12/2025 14:25
102 103
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10386197 J Smart Annual Report Text.indd 103 15/12/2025 14:2515/12/2025 14:25
104 105
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10486197 J Smart Annual Report Text.indd 104 15/12/2025 14:2515/12/2025 14:25
104 105
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10586197 J Smart Annual Report Text.indd 105 15/12/2025 14:2515/12/2025 14:25
106 107
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10686197 J Smart Annual Report Text.indd 106 15/12/2025 14:2515/12/2025 14:25
106 107
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10786197 J Smart Annual Report Text.indd 107 15/12/2025 14:2515/12/2025 14:25
108 109
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10886197 J Smart Annual Report Text.indd 108 15/12/2025 14:2515/12/2025 14:25
108 109
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 10986197 J Smart Annual Report Text.indd 109 15/12/2025 14:2515/12/2025 14:25
110 111
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 11086197 J Smart Annual Report Text.indd 110 15/12/2025 14:2515/12/2025 14:25
110 111
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| Operating | |||||||||||||||
| Revenue | Profit / (Loss) | ||||||||||||||
| 2025 2024 | 2025 | 2024 | |||||||||||||
£000 | £000 | £000 | £000 ) | ||||||||||||
Construction activities | 16,354 | 14,350) | (3,097) | (3,968) | |||||||||||
Investment property activities | 6,886 | 7,670) | 8,345 | 4,634 | |||||||||||
23,240 | 22,020) | 5,248 | 666 | ||||||||||||
Share of results of Joint Ventures | . | . | . | . | . | . | . | 48 | 320 | ||||||
Finance and investment income | . | . | . | . | . | . | . | 1,590 | 1,518 | ||||||
Finance and investment costs | . | . | . | . | . | . | . | (18) | (139) | ||||||
PROFIT ON ORDINARY ACTIVITIES BEFORE TAX | . | . | . | . | . | 6,868) | 2,365 | ||||||||
The Group had sales from construction activities from one customer amounting to £1,945,000 | (2024, | sales from | |||||||||||||
| construction activities from two customers amounting to £4,269,000 and £1,671,000 respectively). | |||||||||||||||
| OTHER SEGMENTAL INFORMATION | Non-Current Assets | Segment | Segment | ||||||||||||
Additions | Depreciation | Assets | Liabilities | ||||||||||||
| 2025 | £000 | £000 | £000 | £000 | |||||||||||
Construction activities | . | . | . | . | . | . | 897) | 544 | )52,451) | 20,646) | |||||
Investment properties activities | . | . | . | . | 3,547) | 46 | 106,588) | 7,903) | |||||||
Joint Ventures | . | . | . | . | . | .) | . | -) | -) | 113) | -) | ||||
159,152) | 28,549) | ||||||||||||||
Allocation of corporation tax creditor | . | . | . | . | . | . | (817) | (817) | |||||||
158,335) | 27,732) | ||||||||||||||
| 2024 | |||||||||||||||
Construction activities | . | . | . | . | . | . | 1,554) | 409 | )49,959) | 14,898) | |||||
Investment properties activities | . | . | . | . | 1,854) | 46 | 97,562) | 6,375) | |||||||
Joint Ventures | . | . | . | . | . | .) | . | –) | -) | 65) | -) | ||||
147,586) | 21,273) | ||||||||||||||
Allocation of corporation tax creditor | . | . | . | . | . | . | (1,088) | (1,088) | |||||||
146,498) | 20,185) | ||||||||||||||
. . . . .
. . . .
86197 J Smart Annual Report Text.indd 11186197 J Smart Annual Report Text.indd 111 15/12/2025 14:2515/12/2025 14:25
112 113
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| Disaggregation of Revenue | 2 0 2 5 ) | 2024) | ||||||||||||
| Construction activities | £ 0 0 0 ) | £000 | ||||||||||||
Social housing | . | . | . | . | . | . | . | . | . | 1,945) | 1,617) | |||
Civil engineering | . | . | . | . | . | . | . | . | . | 3,482) | 4,646) | |||
Industrial | . | . | . | . | . | . | . | . | . | . | 60) | 2,079) | ||
Commercial | . | . | . | . | . | . | . | . | . | 2,081) | 2,232) | |||
General construction | . | . | . | . | . | . | . | . | . | 35) | 59) | |||
Private house sales | . | . | . | . | . | . | . | . | . | 8,751) | 3,717) | |||
16,354) | 14,350) | |||||||||||||
| Investment properties activities | ||||||||||||||
Rental income | . | . | . | . | . | . | . | . | . | 5,958) | 6,366) | |||
Service charges and insurance receivable | . | . | . | . | . | . | 913) | 1,299) | ||||||
Sundry income | . | . | . | . | . | . | . | . | . | . | 15) | 5) | ||
6,886) | 7,670) | |||||||||||||
Total Revenue | 23,240) | 22,020) | ||||||||||||
| The transaction price allocated to unsatisfied performance obligations in respect of construction activities at 31st | ||||||||||||||
| July 2025 are as set out below. | ||||||||||||||
Social housing | . | . | . | . | . | . | . | . | . | . | 1,102) | 2,509) | ||
Civil engineering | . | . | . | . | . | . | . | . | . | 359) | 604) | |||
Industrial | . | . | . | . | . | . | . | . | . | . | -) | 59) | ||
Commercial | . | . | . | . | . | . | . | . | . | . | -) | 734) |
86197 J Smart Annual Report Text.indd 11286197 J Smart Annual Report Text.indd 112 15/12/2025 14:2515/12/2025 14:25
112 113
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
4. OTHER OPERATING INCOME 2025) | 2024) | ||||||||||||
£ 0 0 0 ) | £000 | ||||||||||||
Profit on disposal of property, plant and equipment | . | . | . | . | . | 83) | 114) | ||||||
Other income | . | . | . | . | . | . | . | . | . | -) | 49 ) | ||
83) | 163) |
5. STAFF COSTS AND DIRECTORS’ REMUNERATION 2018) 2017)
Group | Company | ||||||||
2025 | 2024 | 2025) | 2024) | ||||||
£000 | £000 | £000) | £000) | ||||||
| Staff costs during the year amounted to: | |||||||||
Wages, salaries and short term benefits | . | . | 7,354 | 6,385 | 5,438) | 4,543) | |||
Social security costs | . | . | . | . | . | 901 | 756 | 679) | 560) |
Post-employment benefits | . | . | . | . | 698 | 707 | 537) | 505 ) | |
8,953 | 7,848 | 6,654) | 5,608) |
The average monthly number of employees during the year was made up as follows:
No. | No. | No.) | No.) | ||||||
Construction and related services | . | .. | . | 119 | 118 | 80) | 77) | ||
Office and management | . | . | . | . | 23 | 22 | 18) | 16 ) | |
142 | 140 | , | 98) | 93) |
| Group and Company | |||||||||||
2025) | 2024) | ||||||||||
| Directors’ remuneration: | £000) | £000) | |||||||||
Salaries and short term benefits | . | . | . | . | . | . | . | . | 633) | 572) | |
Social security costs | . | . | . | . | . | . | . | . | . | 86) | 74) |
Post-employment benefits | . | . | . | . | . | . | . | . | . | 131) | 126) |
850) | 772) |
86197 J Smart Annual Report Text.indd 11386197 J Smart Annual Report Text.indd 113 15/12/2025 14:2515/12/2025 14:25
114 115
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2025) | 2024) | ||||||||||||
| This is stated after charging: | £000) | £000) | |||||||||||
Staff costs (note 5) | . | . | . | . | . | . | . | . | . | . | 8,953) | 7,848) | |
Hire of plant and machinery | . | . | . | . | . | . | . | . | . | 414) | 646) | ||
Ground rents | . | . | . | . | . | . | . | . | . | . | . | 92) | 87) |
Depreciation of owned assets | . | . | . | . | . | . | 590) | 455) | |||||
| Auditor’s remuneration | |||||||||||||
Audit of these financial statements | . | . | . | . | . | . | . | . | 80) | 69) | |||
| Amounts receivable by the auditor in respect of: | |||||||||||||
Audit of the financial statements of subsidiaries pursant to legislation | . | . | 98) | 94 | |||||||||
Audit of the financial statements of Joint Venture companies | . | . | . | 13) | 6 |
Dividend income from financial assets | . | . | . | . | . | . | 43) | 49 |
86197 J Smart Annual Report Text.indd 11486197 J Smart Annual Report Text.indd 114 15/12/2025 14:2515/12/2025 14:25
114 115
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2025) | 2024) | ||||||||||
£000) | £000) | ||||||||||
| UK Corporation Tax | |||||||||||
Current tax on income for the year | . | . | . | . | . | . | . | - | 225) | ||
Corporation tax under provided in previous years | . | . | . | . | . | - | (28) | ||||
) | - | 197) | |||||||||
Deferred taxation (note 25) | . | . | . | . | . | . | . | . | 1,756 | 495 | |
1,756 | 692 | ||||||||||
| Current Tax Reconciliation | |||||||||||
Profit on ordinary activities before tax | . | . | . | . | . | . | 6,868 | 2,365) | |||
Share of profit of Joint Ventures | . | . | . | . | . | . | (48) | (320) | |||
6,820) | 2,045) | ||||||||||
Current tax at 25.00% (2024, 25.00%) | . | . | . | . | . | . | 1,705) | 511) | |||
| Effects of: | |||||||||||
Expenses not deductible for tax purposes | . | . | . | . | . | . | 144) | 440) | |||
Non taxable income including revaluation surplus | . | . | . | . | . | (55) | (621) | ||||
Chargeable gains | . | . | . | . | . | . | . | . | . | - | 380) |
Adjustments to corporation tax charge in respect of prior years | . | . | . | - | (28) | ||||||
Adjustments to deferred tax charge in respect of prior years | . | . | . | - | 5 | ||||||
Deferred tax not recognised | . | . | . | . | . | . | . | . | (38) | 5 | |
1,756 | 692 |
86197 J Smart Annual Report Text.indd 11586197 J Smart Annual Report Text.indd 115 15/12/2025 14:2515/12/2025 14:25
116 117
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2025) | 2024) | ||||||||||
£000) | £000) | ||||||||||
Profit before tax | . | . | . | . | . | . | . | . | 6,868) | (2,365) | |
Surplus on valuation of investment properties | . | . | . | . | (5,816) | ((994) | |||||
Surplus on valuation of financial assets | . | . | . | . | . | (186) | (123) | ||||
| 866) | 1,248) |
2023 | Final Dividend of 2.27p per share, | . | . | . | . | . | . | -) | 898) |
2024 | Interim Dividend of 0.96p per share | . | . | . | . | . | . | -) | 379) |
2024 | Final Dividend of 2.27p per share | . | . | . | . | . | . | 889) | -) |
2025 | Interim Dividend of 0.96p per share | . | . | . | . | . | . | 375) | -) |
1,264) | 1,277) |
Profit attributable to Equity shareholders | £000 | . | . | . | . | . | 5,112) | 1,673) | ||
Basic Earnings per share | . | . | . | . | . | . | . | . | 13.07 p | 4.22p |
86197 J Smart Annual Report Text.indd 11686197 J Smart Annual Report Text.indd 116 15/12/2025 14:2515/12/2025 14:25
116 117
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Land and | Plant,) | ||
buildings | equipment) | ||
Freehold | and vehicles) | Total) | |
| Cost: | £000 | £000) | £000) |
At 1st August 2024 | 2,150 | 4,760 | 6,910 |
Additions | 31 | 866 | 897 |
Disposals | - | (415) | (415) |
At 31st July 2025 | 2,181 | 5,211 | 7,392 |
| Depreciation: | |||
At 1st August 2024 | 262 | 3,905 | 4,167 |
Provided during year | 91 | 499 | 590 |
Disposals | - | (391) | (391) |
At 31st July 2025 | 353 | 4,013 | 4,366 |
| Net book value: | |||
At 31st July 2025 | 1,828 | 1,198 | 3,026 |
At 31st July 2024 | 1,888 | 855 | 2,743 |
| Cost: | |||
At 1st August 2023 | 1,204 | 5,186 | 6,390 |
Additions | 1,377 | 177 | 1,554 |
Transfer to Investment Properties | (431) | - | (431) |
Disposals | - | (603) | (603) |
At 31st July 2024 | 2,150 | 4,760 | 6,910 |
| Depreciation: | |||
At 1st August 2023 | 595 | 4,125 | 4,720 |
Provided during year | 90 | 365 | 455 |
Transfer to Investment Properties | (423) | - | (423) |
Disposals | - | (585) | (585) |
At 31st July 2024 | 262 | 3,905 | 4,167 |
| Net book value: | |||
At 31st July 2024 | 1,888 | 855 | 2,743 |
At 31st July 2023 | 609 | 1,061 | 1,670 |
86197 J Smart Annual Report Text.indd 11786197 J Smart Annual Report Text.indd 117 15/12/2025 14:2515/12/2025 14:25
118 119
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Land and) | Plant,) | ||||
buildings) | equipment) | ||||
Freehold) | and vehicles) | Total) | |||
| Cost: | £ 0 0 0 ) | £000) | £000) | ||
At 1st August 2024 | 2,046 | 2,465 | 4,511 | ||
Additions | 31 | 739 | 770 | ||
Disposals | - | (339) | (339) | ||
At 31st July 2025 | 2,077 | 2,865 | 4,942 | ||
| Depreciation: | |||||
At 1st August 2024 | 155 | 2,089 | 2,244 | ||
Provided during year | 91 | 299 | 390 | ||
Disposals | - | (320) | (320) | ||
At 31st July 2025 | 246 | 2,068 | 2,314 | ||
| Net book value: | |||||
At 31st July 2025 | 1,831 | 797 | 2,628 | ||
At 31st July 2024 | 1,891 | 376 | 2,267 | ||
| ) | |||||
| Cost: | |||||
At 1st August 2023 | 669 | 2,923 | 3,592 | ||
Additions | 1,377 | 76 | 1,453 | ||
Disposals | - | (534) | (534) | ||
At 31st July 2024 | 2,046 | 2,465 | 4,511 | ||
| Depreciation: | |||||
At 1st August 2023 | 65 | 2,439 | 2,504 | ||
Provided during year | 90 | 165 | 255 | ||
Disposals | - | (515) | (515) | ||
At 31st July 2024 | 155 | 2,089 | 2,244 | ||
| Net book value: | |||||
At 31st July 2024 | 1,891 | 376 | 2,267 | ||
At 31st July 2023 | 604 | 484 | 1,088 |
86197 J Smart Annual Report Text.indd 11886197 J Smart Annual Report Text.indd 118 15/12/2025 14:2515/12/2025 14:25
118 119
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Land and) | Land and) | ||||||||||
buildings) | buildings | Right-of-use) | |||||||||
Freehold) | Leasehold | Asset) | Total | ||||||||
£000) | £000 | £000 | £000) | ||||||||
| Cost or valuation: | |||||||||||
At 1st August 2024 | . | . | . | . | . | 60,426) | 9,399) | 69, | 2132 | 70,038) | |
Additions | . | . | . | . | . | . | 3,547 | -) | - | 3,547) | |
Surplus on valuation | . | . | . | . | 4,466 | 1,350 | -) | 5,816 | |||
At 31st July 2025 | . | . | . | . | . | 68,439) | 10,749) | 213) | 79,401) | ||
| Cost or valuation: | |||||||||||
At 1st August 2023 | . | . | . | . | . | 71,991) | 9,185) | 213 | 81,389 | ||
Additions | . | . | . | . | . | . | 1,846) | -) | - | 1,846 | |
Transfer from Property, Plant and Equipment | . | 8 | -) | - | 8 | ||||||
Transfer to Assets Held for Sale | . | . | . | (14,199)) | -) | - | (14,199) | ||||
Surplus on valuation . | . | . | . | . | 780 | 214 | -) | 994 | |||
At 31st July 2024 | . | . | . | . | . | 60,426) | 9,399) | 213) | 70,038) |
86197 J Smart Annual Report Text.indd 11986197 J Smart Annual Report Text.indd 119 15/12/2025 14:2515/12/2025 14:25
120 121
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Estimated Rental Value | Equivalent Yield | ||||||
£ per sq ft | % | ||||||
£000 | Low | Average | High | Low | Average | High | |
| Fair Value at 31st July 2025 | |||||||
| Investment | |||||||
Commercial | 21,080 | 11.00 | 17.50 | 24.00 | 8.27 | 10.35 | 13.50 |
Industrial | 58,108 | 4.75 | 8.87 | 13.00 | 7.00 | 8.98 | 10.09 |
| Fair Value at 31st July 2024 | |||||||
| Investment | |||||||
Commercial | 21,136 | 11.00 | 16.70 | 22.40 | 8.50 | 10.19 | 13.39 |
Industrial | 48,689 | 4.75 | 7.82 | 10.89 | 6.55 | 9.07 | 10.97 |
5% change in estimated | 25bps change in equivalent | ||||
rental value | yield | ||||
Increase | Decrease | Decrease | Increase | ||
£000 | £000 | £000 | £000 | £000 | |
| Fair Value at 31st July 2025 | |||||
| Investment | |||||
Commercial | 21,080 | 1,133 | (1,133) | 609 | (578) |
Industrial | 58,108 | 2,857 | (2,857) | 1,974 | (1,847) |
| Fair Value at 31st July 2024 | |||||
| Investment | |||||
Commercial | 21,136 | 1,130 | (1,130) | 609 | (578) |
Industrial | 48,689 | 2,516 | (2,516) | 1,665 | (1,619) |
86197 J Smart Annual Report Text.indd 12086197 J Smart Annual Report Text.indd 120 15/12/2025 14:2515/12/2025 14:25
120 121
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| Group | ||||||||||
2025 | 2024 | |||||||||
£000 | £000 | |||||||||
As at 1st August 2024 | . | . | . | . | . | . | . | . | 65 | 1,496 |
Repayment of capital contribution in Joint Venture | . | . | . | . | - | (1,040) | ||||
| Group’s share of profit and total | ||||||||||
comprehensive income | . | . | . | . | . | . | . | . | 48 | 320 |
Dividend received in year | . | . | . | . | . | . | . | . | - | (711) |
As at 31st July 2025 | . | . | . | . | . | . | . | . | 113 | 65 |
2025 | 2024 1 | |||||||||||
£000 | £000) | |||||||||||
Non-Current assets | . | . | . | . | . | . | . | . | . | 4,990 | -) | |
Current assets | . | . | . | . | . | . | . | . | . | . | 172 | 270) |
Of which are cash and cash equivalents | . | . | . | . | . | . | . | 130) | 123) | |||
Non-Current liabilities | . | . | . | . | . | . | . | . | . | (4,351) | - | |
Of which are financial liabilities excluding trade and other payables and provisions | . | . | (4,310) | - | ||||||||
Current liabilities | . | . | . | . | . | . | . | . | . | (707) | (140) | |
Of which are financial liabilities excluding trade and other payables and provisions | . | . | -) | -) | ||||||||
Net assets | . | . | . | . | . | . | . | . | . | . | 104 | 130) |
Group’s interest in net assets | . | . | . | . | . | . | . | . | 52 | 65) | ||
Revenue | . | . | . | . | . | . | . | . | . | . | -) | -) |
Other Operating Income | . | . | . | . | . | . | . | . | - | 8) | ||
Profit and total comprehensive income | . | . | . | . | . | . | 104 | 640 | ||||
Group’s share of profit and total comprehensive income | . | . | . | . | 52 | 320 |
86197 J Smart Annual Report Text.indd 12186197 J Smart Annual Report Text.indd 121 15/12/2025 14:2515/12/2025 14:25
122 123
2025) | 2024) | |
£000) | £000) | |
Aggregate carrying amount of individually immaterial joint ventures | 61 | -) |
| Aggregate carrying amount of the Group’s share of: | ||
Loss after tax and total comprehensive loss | (4) | -) |
| Registered in and | |||
Principal Country | J. Smart & Co. (Contractors) PLC | ||
Name of Joint Venture | of Operation | Interest in Joint Venture | |
Gartcosh Estates LLP | Scotland | 50% | |
St Andrews 1413 Limited | Scotland | 50% | |
Name of Joint Venture | Jointly managed with | Issued Share capital | |
Gartcosh Estates LLP | Fusion Assets Limited | Partnership Interest | |
S t A n d r e w s 1 4 1 3 L i m i t e d | K n o w e P r o p e r t i e s L i m i t e d | 1 , 0 0 0 o r d i n a r y 1 p s h a r e s | |
| split equally and ranking | |||
equally in all respects | res | ||
2 0 2 5 ) | 2024) | ||||||||||||
£ 0 0 0 ) | £000) | ||||||||||||
At 1st August 2024 and 31st July 2025 | . | . | . | . | . | . | 615) | 615) | |||||
As at 1st August 2024 | . | . | . | . | . | . | . | . | . | 615) | 708) | ||
Capital contribution to subsidiary | . | . | . | . | . | . | . | - | 575) | ||||
Write off of cost of investment in subsidiary | . | . | . | . | . | . | - | (668) | |||||
As at 31st July 2025 | . | . | . | . | . | . | . | . | . | 615) | 615) |
1p shares
86197 J Smart Annual Report Text.indd 12286197 J Smart Annual Report Text.indd 122 15/12/2025 14:2515/12/2025 14:25
122 123
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Company Name | Nature of business |
McGowan and Company (Contractors) Limited | Plumbing contractors |
Cramond Real Estate Company Limited | Investment holding |
Thomas Menzies (Builders) Limited | Civil engineering contractors |
Concrete Products (Kirkcaldy) Limited | Non trading |
C. & W. Assets Limited | Investment property company |
Smart Serviced Offices Limited | Serviced office and co-working space provider |
Northrigg Limited | Investment property company |
Smart (Manse 1) Limited | Dormant |
| Group | ||||||||||||||
2 0 2 5 ) | 2024) | |||||||||||||
£ 0 0 0 ) | £000) | |||||||||||||
| Listed investments | ||||||||||||||
At 1st August 2024 | . | . | . | . | . | . | . | . | . | 1,032) | 1,225) | |||
Additions | . | . | . | . | . | . | . | . | . | . | 518) | 51) | ||
Disposals | . | . | . | . | . | . | . | . | . | . | (43) | (367) | ||
Change in fair value | . | . | . | . | . | . | . | . | . | 186 | 123 | |||
At 31st July 2025 | . | . | . | . | . | . | . | . | . | 1,693) | 1,032) |
86197 J Smart Annual Report Text.indd 12386197 J Smart Annual Report Text.indd 123 15/12/2025 14:2515/12/2025 14:25
124 125
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| Group | ||||||||||
2 0 2 5 ) | 2024) | |||||||||
£ 0 0 0 ) | £000) | |||||||||
Transfer from Investment Properties | . | . | . | . | . | . | . | -) | 14,199) |
Group | Company | ||||||||||
2 0 2 5 ) | 2024) | 2025) | 2024) | ||||||||
£ 0 0 0 ) | £000) | £000) | £000) | ||||||||
Work in progress | . | . | . | . | . | 13,444) | 15,553) | 13,444) | 15,553) | ||
Land held for development | . | . | . | . | 2,903) | 3,088) | 2,565) | 2,750) | |||
Raw materials and consumables | . | . | . | 61) | 69) | 31) | 27) | ||||
16,408) | 18,710) | 16,040) | 18,330) |
20. CONTRACT BALANCES
The timing of revenue recognition results in amounts due from customers for construction contracts. Those
which have not yet been invoiced are disclosed as Contract Assets and once invoiced they are disclosed as
Trade Receivables (note 21). The Group does not receive deposits or payments in advance for contracts and
therefore has no Contract Liabilities to disclose. The Group did not incur costs to obtain contracts.
)
Contract Assets | . | . | . | . | . | . | 455) | 944) | 233) | 427) |
As at 1st August 2024 | . | . | . | . | . | 944) | 33) | 427) | - | |
Transfers from contract assets recognised at the beginning of the year to trade receivables | . | . | (944) | (33) | (427) | - | ||||
Increase related to services provided in the year | . | 455) | 944) | 233 | 427) | |||||
As at 31st July 2025 | . | . | . | . | . | 455) | 944) | 233 | 427) |
86197 J Smart Annual Report Text.indd 12486197 J Smart Annual Report Text.indd 124 15/12/2025 14:2515/12/2025 14:25
124 125
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
NON-CURRENT ASSETS: | Group | Company | ||||||||||
2 0 2 5 ) | 2024) | 2025) | 2024) | |||||||||
£ 0 0 0 ) | £000) | £000) | £000 | |||||||||
Loan to Joint Venture Companies | . | . | . | 2,155) | -) | 2,155) | -) | |||||
Loans to Subsidiary Companies | . | . | . | - | - | 364 | 364 | |||||
2,155) | -) | 2,519) | 364) | |||||||||
| CURRENT ASSETS: | ||||||||||||
Trade receivables | . | . | . | . | . | 1,348 | 966 | 809 | 395 | |||
Amounts owed by Subsidiaries . | . | . | . | - | - | 3,367 | 67 | |||||
Other receivables | . | . | . | . | . | 641 | 964 | 82 | 221 | |||
Prepayments and accrued income | . | . | . | 581 | 505 | 182 | 125 | |||||
2,570 | 2,435 | 4,440 | 808 |
| The ageing of past due but not impaired trade debtors is as follows: | |||||||||
Less than 30 days | . | . | . | . | . | 939 | 886 | 522 | 395 |
30 to 60 days | . | . | . | . | . | 337 | 48 | 287 | - |
Greater than 60 days | . | . | . | . | . | 72 | 32 | - | - |
1,348 | 966 | 809 | 395) |
86197 J Smart Annual Report Text.indd 12586197 J Smart Annual Report Text.indd 125 15/12/2025 14:2515/12/2025 14:25
126 127
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Cash and cash equivalents comprise the following: Group | Company | ||||||||||
2 0 2 5 | 2024 | 2025 | 2024 | ||||||||
£000 | £000 | £000 | £000 | ||||||||
Cash at bank and on hand | . | . | . | . | 11,057 | 5,552 | -) | -– | |||
Short term available deposits | . | . | . | . | 14,709 | 7,380 | -) | -– | |||
25,766 | 12,932 | -) | -– | ||||||||
Bank overdrafts | . | . | . | . | . | (10,839) | (5,431) | (9,981) | (4,235) | ||
Cash and cash equivalents | 14,927 | 7,501 | (9,981) | (4,235) |
Trade payables | . | . | . | . | . | . | 1,195 | 1,015 | 811 | 721 |
Amounts owed to Subsidiaries . | . | . | . | - | - | 133 | 81 | |||
Other taxes and social security costs | . | . | . | 283 | 473 | 223 | 729 | |||
Other creditors and accruals | . | . | . | . | 2,743 | 2,993 | 1,772 | 2,136 | ||
Deferred income | . | . | . | . | . | 352 | 232 | - | - | |
4,573 | 4,713 | 2,939 | 3,667 |
86197 J Smart Annual Report Text.indd 12686197 J Smart Annual Report Text.indd 126 15/12/2025 14:2515/12/2025 14:25
126 127
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 12786197 J Smart Annual Report Text.indd 127 15/12/2025 14:2515/12/2025 14:25
128 129
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| DEFERRED TAX ASSETS | |||||||
| Trading | |||||||
and | Other | Other | |||||
Capital | Timing | Timing | |||||
Losses | Difference | Total | Difference | ||||
£000 | £000 | £000 | £000 | ||||
At 1st August 2023 | 13 | - | 13 | - | |||
Credited to Income Statement | 41 | - | 41) | - | |||
At 31st July 2024 | 54 | - | 54 | - | |||
Credited to Income Statement | 155 | 2) | 157) | 2) | |||
At 31st July 2025 | . | . | . | 209 | 2 | 211 | 2) |
| DEFERRED TAX LIABILITIES | |||||||||
GROUP | Valuation | ||||||||
Accelerated | Retirement | Surplus on | Other | ||||||
Capital | Benefit | Investment | Timing | ||||||
Allowances | Obligations | Properties | Differences | Total | |||||
£000 | £000 | £000 | £000 | £000 | |||||
At 1st August 2023 | . | 241 | 5,000 | 3,583 | 18 | 8,842 | |||
Charged/(credited) to Income Statement | 16 | 310 | 216 | (6) | 536 | ||||
Charged to Equity | . | . | . | –) | 450 | - | -) | 450 | |
At 31st July 2024 | . | . | 257 | 5,760 | 3,799 | 12 | 9,828 | ||
(Credited)/charged to Income Statement | (24) | 320 | 1,616 | 1 | 1,913 | ||||
Charged to Equity | . | . | . | -) | 366 | -) | -) | 366) | |
At 31st July 2025 | . | . | . | 233 | 6,446 | 5,415 | 13 | 12,107 | |
COMPANY | Accelerated | Retirement | Other | ||||||
Capital | Benefit | Timing | |||||||
Allowances | Obligations | Differences | Total | ||||||
£000 | £000 | £000 | £000 | ||||||
At 1st August 2023 | . | . | . | . | . | 58 | 5,000 | 9 | 5,067 |
Charged/(credited) to Income Statement | . | . | 16 | 310 | (6) | (320 | |||
Charged to Equity | . | . | . | . | . | - ) | 450 | -) | 450 |
At 31st July 2024 | . | . | . | . | . | 74 | 5,760 | 3 | 5,837 |
Charged/(credited) to Income Statement | . | . | 104 | 320 ) | (3) | 421) | |||
Charged to Equity | . | . | . | . | . | - ) | 366 | -) | 366) |
At 31st July 2025 | . | . | . | . | . | 178 | 6,446 | - | 6,624 |
86197 J Smart Annual Report Text.indd 12886197 J Smart Annual Report Text.indd 128 15/12/2025 14:2515/12/2025 14:25
128 129
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
| Group | ||||||||||||
| Amounts payable under leases: | 2025 | 2024) | ||||||||||
Within one year | . | . | . | . | . | . | . | . | . | 1 | 1) | |
In two – five years exclusively . | . | . | . | . | . | . | . | . | 1 | 1) | ||
After five years | . | . | . | . | . | . | . | . | . | . | 211) | 211) |
Present value of lease liabilities . | . | . | . | . | . | . | . | . | 213) | 213) | ||
Due for settlement within one year (shown in current liabilities) | . | . | . | . | 1) | 1) | ||||||
Due for settlement after one year (shown in non-current liabilities) | . | . | . | 212) | 212) |
| SHARE CAPITAL | 2025 | 2024 | |||||||
| Issued and fully paid ordinary shares of 2p each | Number | £000 | Number | £000 | |||||
At 1st August 2024 | . | . | . | . | . | 39,411,170 | 789 | 40,043,920 | 802 |
Purchased and cancelled | . | . | . | . | (521,939) | (10) | (632,750) | (13) | |
At 31st July 2025 | . | . | . | . | . | 38,889,231 | 779 | 39,411,170 | 789 |
86197 J Smart Annual Report Text.indd 12986197 J Smart Annual Report Text.indd 129 15/12/2025 14:2515/12/2025 14:25
130 131
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2 0 2 5 | 2024 | ||||||||||||
£000 | £000 | ||||||||||||
Cash and cash equivalents | . | . | . | . | . | . | . | . | 25,766 | 12,932 | |||
Bank overdraft | . | . | . | . | . | . | . | . | . | . | (10,839) | (5,431) | |
Net position | . | . | . | . | . | . | . | . | . | . | 14,927 | 7,501 |
At 1st | Cash | At 31st | |||||||||||
August 2024 | Flow | July 2025 | |||||||||||
£ 0 0 0 | £000 | £000 | |||||||||||
Cash and cash equivalents | . | . | . | . | . | . | 12,932 | 12,834 | 25,766 | ||||
Bank overdraft | . | . | . | . | . | . | . | . | (5,431) | (5,408) | (10,839) | ||
Net funds | . | . | . | . | . | . | . | . | 7,501 | 7,426 | 14,927 |
| Lease | |||||||||||
| Liabilities | |||||||||||
| £000 | |||||||||||
As at 1st August 2024 | . | . | . | . | . | . | . | . | . | 213 | |
Cash flows | . | . | . | . | . | . | . | . | . | . | -) |
As at 31st July 2025 | . | . | . | . | . | . | . | . | . | 213 | |
As at 1st August 2023 | . | . | . | . | . | . | . | . | . | 213 | |
Cash flows | . | . | . | . | . | . | . | . | . | . | -) |
As at 31st July 2024 | . | . | . | . | . | . | . | . | . | 213 |
2 0 2 5 | 2024 | ||||||||||||
£000 | £000 | ||||||||||||
Cash and cash equivalents | . | . | . | . | . | . | . | . | - | - | |||
Bank overdraft | . | . | . | . | . | . | . | . | . | (9,981) | (4,235) | ||
Net position | . | . | . | . | . | . | . | . | . | . | (9,981) | (4,235) |
(b) ANALYSIS OF NET FUNDS At 1st | Cash | At 31st | ||||||||||||
August 2024 | Flow | July 2025 | ||||||||||||
£ 0 0 0 | £000 | £000 | ||||||||||||
Cash and cash equivalents | . | . | . | . | . | . | . | 2,9 - | (- | - | ||||
Bank overdraft | . | . | . | . | . | . | . | . | (4,235) | (5,746) | (9,981) | |||
Net funds | . | . | . | . | . | . | . | . | . | (4,235) | (5,746) | (9,981) |
86197 J Smart Annual Report Text.indd 13086197 J Smart Annual Report Text.indd 130 15/12/2025 14:2515/12/2025 14:25
130 131
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 13186197 J Smart Annual Report Text.indd 131 15/12/2025 14:2515/12/2025 14:25
132 132
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2 0 2 5 | 2024 | |||||||||||
Valuation method | . | . | . | . | . | . | . | . | Projected Unit | Projected Unit | ||
Discount rate | . | . | . | . | . | . | . | . | . | 5.6% | 5.0% | |
Inflation rate - Retail price index | . | . | . | . | . | . | 3.0% | 3.2% | ||||
Inflation rate - Consumer price index | . | . | . | . | . | . | 2.5% | 2.7% | ||||
Salary increases | . | . | . | . | . | . | . | . | . | 3.0% | 3.2% | |
Pension increases | . | . | . | . | . | . | . | . | 1.9% – 3.3% | 2.0% – 3.4% |
Man currently aged 65 | . | . | . | . | . | . | . | . | 20.7 | 20.6 |
Woman currently aged 65 | . | . | . | . | . | . | . | 24.0 | 23.9 | |
Man currently aged 45 | . | . | . | . | . | . | . | . | 22.0 | 21.9 |
Woman currently aged 45 | . | . | . | . | . | . | . | 25.4 | 25.3 |
| Increase in scheme liabilities | |||||||||
2025 | 2024 | ||||||||
Change in assumption | £000 | £000 | |||||||
Discount rate | Decrease of 0.25% | . | . | . | . | . | . | 541 | 640 |
Inflation rate | Increase of 0.25% | . | . | . | . | . | . | 176 | 203 |
Mortality rate | Increase in life expectancy of 1 year | . | . | . | 1,212 | 1,394 |
86197 J Smart Annual Report Text.indd 13286197 J Smart Annual Report Text.indd 132 15/12/2025 14:2515/12/2025 14:25
133 133
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
Valuation | Valuation | Valuation | |||||||
2025 | 2024 | 2023 | |||||||
£000 | £000 | £000 | |||||||
| EQUITIES | |||||||||
UK | . | . | . | . | . | . | 9,484 | 10,499 | 11,377 |
Overseas | . | . | . | . | . | 23,394 | 23,082 | 20,253 | |
Multi-asset diversified funds | . | . | . | 3,434 | 3,857 | 2,173 | |||
Absolute return funds | . | . | . | . | 866 | 785 | 3,025 | ||
| BONDS | |||||||||
Government | . | . | . | . | . | 5,060 | 3,677 | 3,672 | |
Corporate | . | . | . | . | . | 4,750 | 3,219 | 2,984 | |
OTHER Cash | . | . | . | . | . | . | 1,912 | 2,875 | 1,068 |
Fair value of scheme assets | . | . | . | 48,900 | 47,994 | 44,552 | |||
Present value of scheme liabilities | (23,116) | (24,954) | (24,554) | ||||||
Scheme surplus | . | . | . | . | . | 25,784) | 23,040) | 19,998 | |
Deferred taxation | . | . | . | . | (6,446) | (5,760) | (5,000) | ||
Net pension scheme surplus | . | . | . | 19,338) | 17,280) | 14,998 |
86197 J Smart Annual Report Text.indd 13386197 J Smart Annual Report Text.indd 133 15/12/2025 14:2515/12/2025 14:25
134 135
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2 0 2 5 | 2024 | ||||||||||||
£000 | £000 | ||||||||||||
| Analysis of amounts charged to operating loss: | |||||||||||||
Current service cost | . | . | . | . | . | . | . | . | . | (220) | (265) | ||
Past service cost | . | . | . | . | . | . | . | . | . | - | - | ||
Total service cost | . | . | . | . | . | . | . | . | . | (220) | (265) | ||
| Analysis of amounts charged to net finance income: | |||||||||||||
Interest income | . | . | . | . | . | . | . | . | . | . | 2,373 | 2,364 | |
Interest costs | . | . | . | . | . | . | . | . | . | . | (1,216) | (1,278) | |
1,157 | 1,086 | ||||||||||||
| Movement in present value of defined benefit obligations: | |||||||||||||
At 1st August 2024 | . | . | . | . | . | . | . | . | . | 24,954 | 24,554 | ||
Service cost | . | . | . | . | . | . | . | . | . | . | 220 | 265 | |
Interest cost | . | . | . | . | . | . | . | . | . | . | 1,216 | 1,278 | |
Charges paid | . | . | . | . | . | . | . | . | . | . | -) | -) | |
Employee contributions | . | . | . | . | . | . | . | . | 24 | 26 | |||
Benefit payments | . | . | . | . | . | . | . | . | . | (1,464) | (1,854) | ||
Actuarial movements due to scheme experiences | . | . | . | . | . | ()(277) | 118 | ||||||
Actuarial movements due to changes in demographic assumptions . | . | . | - | (439) | |||||||||
Actuarial movements due to changes in financial assumptions | . | . | . | (1,557) | 1,006 | ||||||||
At 31st July 2025 | . | . | . | . | . | . | . | . | . | 23,116 | 24,954 |
86197 J Smart Annual Report Text.indd 13486197 J Smart Annual Report Text.indd 134 15/12/2025 14:2515/12/2025 14:25
134 135
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2 0 2 5 | 2024 | |||||||||||||
£ 0 0 0 | £000 | |||||||||||||
| Movement in fair value of scheme assets: | ||||||||||||||
At 1st August 2024 | . | . | . | . | . | . | . | . | . | 47,994 | 44,552 | |||
Interest income | . | . | . | . | . | . | . | . | . | 2,373 | 2,364 | |||
Employer contributions . | . | . | . | . | . | . | . | . | 343 | 419 | ||||
Employee contributions . | . | . | . | . | . | . | . | . | 24 | 26 | ||||
Benefits paid | . | . | . | . | . | . | . | . | . | . | (1,464) | (1,854) | ||
Charges paid | . | . | . | . | . | . | . | . | . | . | -) | -) | ||
Return on plan assets excluding amount shown in interest income | . | . | . | (370) | 2,487 | |||||||||
At 31st July 2025 | . | . | . | . | . | . | . | . | . | 48,900 | 47,994 | |||
| Movement in scheme surplus: | ||||||||||||||
At 1st August 2024 | . | . | . | . | . | . | . | . | . | 23,040 | 19,998 | |||
Current service cost | . | . | . | . | . | . | . | . | . | (220) | (265) | |||
Past service cost | . | . | . | . | . | . | . | . | . | - | - | |||
Contributions | . | . | . | . | . | . | . | . | . | . | 343 | 419 | ||
Net finance income included in finance income | . | . | . | . | . | 1,157) | 1,086 | |||||||
Actuarial remeasurement of pension scheme liability | . | . | . | . | 1,464) | 1,802) | ||||||||
At 31st July 2025 | . | . | . | . | . | . | . | . | . | 25,784) | 23,040 | |||
| Analysis of the actuarial gain included in the statement of comprehensive income: | ||||||||||||||
(Loss)/gain on scheme assets excluding amounts shown in interest income | . | (370) | 2,487 | |||||||||||
Changes in assumptions underlying present value of scheme liabilities | . | . | 1,834 | (685)) | ||||||||||
At 31st July 2025 | . | . | . | . | . | . | . | . | . | 1,464) | 1,802 | |||
| History of experience gains and losses: | ||||||||||||||
| (Loss)/gain on scheme assets | ||||||||||||||
Amount (£000) | . | . | . | . | . | . | . | . | . | . | (370) | 2,487 | ||
Percentage of market value of scheme assets | . | . | . | . | . | . | 0.8% | 5.2% | ||||||
| Changes in assumptions underlying present value of scheme liabilities | ||||||||||||||
Amount (£000) | . | . | . | . | . | . | . | . | . | . | 1,834) | (685) | ||
Percentage of market value of scheme liabilities | . | . | . | . | . | . | 7.9% | 2.7% | ||||||
| Total amounts included in Consolidated Statement of Comprehensive Income | ||||||||||||||
Amount (£000) | . | . | . | . | . | . | . | . | . | . | 1,464) | 1,802 | ||
Percentage of market value of scheme liabilities | . | . | . | . | . | . | 6.3% | 7.2% |
86197 J Smart Annual Report Text.indd 13586197 J Smart Annual Report Text.indd 135 15/12/2025 14:2515/12/2025 14:25
136 137
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
86197 J Smart Annual Report Text.indd 13686197 J Smart Annual Report Text.indd 136 15/12/2025 14:2515/12/2025 14:25
136 137
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2 0 2 5 | 2024 | |||||||||||||
£ 0 0 0 | £000 | |||||||||||||
Within one year | . | . | . | . | . | . | . | . | . | . | 96 | 88 | ||
In two – five years exclusively . | . | . | . | . | . | . | . | 275 | 275 | |||||
After five years | . | . | . | . | . | . | . | . | . | . | 67 | 106 | ||
438 | 469 |
Within one year | . | . | . | . | . | . | . | . | . | . | 5,768 | 5,065 |
Within one and two years | . | . | . | . | . | . | . | . | 4,872 | 4,436 | ||
Within two and three years | . | . | . | . | . | . | . | . | 3,745 | 3,534 | ||
Within three and four years | . | . | . | . | . | . | . | . | 2,279 | 2,956 | ||
Within four and five years | . | . | . | . | . | . | . | . | 1,445 | 1,829 | ||
After five years | . | . | . | . | . | . | . | . | . | . | 4,130 | 3,904 |
22,239 | 21,724 |
86197 J Smart Annual Report Text.indd 13786197 J Smart Annual Report Text.indd 137 15/12/2025 14:2515/12/2025 14:25
138 139
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2025 | 2024 | 2025 | 2024 | |||||||
£000 | £000 | £000 | £000 | |||||||
Sale of goods and | Purchase of goods and | |||||||||
SUBSIDIARY | services to Subsidiaries | services from Subsidiaries | ||||||||
McGowan and Company (Contractors) Limited | . | . | 139 | 142 | 798 | 419 | ||||
Cramond Real Estate Company Limited | . | . | . | - | - | - | - | |||
Thomas Menzies (Builders) Limited | . | . | . | . | 80 | 82 | 40 | 26 | ||
Concrete Products (Kirkcaldy) Limited | . | . | . | - | - | - | - | |||
C. & W. Assets Limited . | . | . | . | . | . | 2,833 | 4,473 | - | - | |
Smart Serviced Offices Limited | . | . | . | . | 122 | 125 | - | - | ||
Northrigg Limited | . | . | . | . | . | . | - | - | - | - |
Amounts owed | Amounts owed | |||||||||
SUBSIDIARY | by Subsidiaries | to Subsidiaries | ||||||||
McGowan and Company (Contractors) Limited | . | . | - | - | 133 | 81 | ||||
Cramond Real Estate Company Limited | . | . | . | - | - | - | - | |||
Thomas Menzies (Builders) Limited | . | . | . | . | - | 5 | - | - | ||
Concrete Products (Kirkcaldy) Limited | . | . | . | - | - | - | - | |||
C. & W. Assets Limited . | . | . | . | . | . | 3,367 | 61 | - | - | |
Smart Serviced Offices Limited | . | . | . | . | 1,340 | 1,190 | - | - | ||
Northrigg Limited | . | . | . | . | . | . | 364 | 365 | - | - |
86197 J Smart Annual Report Text.indd 13886197 J Smart Annual Report Text.indd 138 15/12/2025 14:2515/12/2025 14:25
138 139
J. Smart & Co. (Contractors) PLC
NOTES TO THE ACCOUNTS (continued) 31st JULY 2025
2025 | 2024 | |||||||||||
£000 | £000 | |||||||||||
David W Smart | . | . | . | . | . | . | . | . | . | . | 413 | 413 |
John R Smart | . | . | . | . | . | . | . | . | . | . | 413 | 413 |
Alasdair H Ross | . | . | . | . | . | . | . | . | . | . | 5 | 5 |
Patricia Sweeney . | . | . | . | . | . | . | . | . | . | 5 | 5 | |
Jane Oliver | . | . | . | . | . | . | . | . | . | . | - | - |
David W Smart | . | . | . | . | . | . | . | . | . | . | 10 | 11 |
John R Smart | . | . | . | . | . | . | . | . | . | . | 1 | 52 |
Alasdair H Ross | . | . | . | . | . | . | . | . | . | . | - | - |
Patricia Sweeney . | . | . | . | . | . | . | . | . | . | - | - | |
Jane Oliver | . | . | . | . | . | . | . | . | . | . | - | - |
86197 J Smart Annual Report Text.indd 13986197 J Smart Annual Report Text.indd 139 15/12/2025 14:2515/12/2025 14:25