Revenue falls at UK Coal
UK Coal today said its interim results, which have seen revenues fall, reflected low first quarter production but that its deep mines were now performing in line with expectations.
The Doncaster-based firm, in which Manchester-based property giant Peel Holdings owns a 28.3% stake, posted group sales of £141.3m compared to £159.8m in the first of 2009.
The company reported an operating loss on pre non-trading exceptionals and property revaluation of £51.3m and a loss before tax of £93.2m, compared to £81.5m over the same period last year.
Total net debt, excluding restricted cash, was £257m compared to £181.9m in December 2009.
The group said that production at its Kellingley and Thoresby operations was up 100% and 50% respectively compared to the first half of 2009 and that Daw Mill is now back to historic production levels.
Chairman David Jones said: “Our half year results are in line with the guidance we have given. They reflect the challenges we faced in completing the transition of our deep mining business, which we set out in our 2009 annual report and which led to a substantial drop in production in the first quarter of this year.
“With the transition completed, however, production in the second quarter rose sharply and is now living up to our expectations and demonstrating the benefits of the substantial investments we have made. We are therefore able to confirm our guidance for full year production of 7.6m tonnes, approaching three times the half year total.”
