J. Smart & Co Reports Decline in Interim Profits Amid Rising Costs

J Smart & Co (Contractors) ( (GB:SMJ) ) has issued an update.

J. Smart & Co (Contractors) PLC reported an unaudited group profit of £128,000 for the six months ending January 31, 2025, a decline from the previous year’s £205,000. Despite better-than-expected sales at its Winchburgh development, profitability remains challenged by rising construction costs and prolonged pre-contract processes. The company is progressing with several projects, including a speculative industrial development and a joint venture for flat refurbishments. The board maintains an interim dividend of 0.96p per share, while expressing uncertainty about future economic conditions and their impact on the housing market. The appointment of Jane Oliver as Development Director is expected to bolster the company’s strategic direction.

Spark’s Take on GB:SMJ Stock

According to Spark, TipRanks’ AI Analyst, GB:SMJ is a Neutral.

The stock of J Smart & Co (Contractors) is characterized by strong revenue growth and a stable balance sheet. However, concerns over profitability margins and negative cash flows weigh on its financial health. The technical indicators suggest bearish sentiment, and valuation metrics indicate potential overvaluation. Improvements in cash flow and profitability could enhance its attractiveness.

To see Spark’s full report on GB:SMJ stock, click here.

More about J Smart & Co (Contractors)

J. Smart & Co (Contractors) PLC operates in the construction industry, focusing on residential and industrial developments. The company is involved in private housing projects, industrial unit developments, and joint ventures for property refurbishments, with a market focus on both private sales and rentals.

YTD Price Performance: -8.00%

Average Trading Volume: 5,572

Technical Sentiment Signal: Buy

Current Market Cap: £44.86M

Find detailed analytics on SMJ stock on TipRanks’ Stock Analysis page.