Planning approvals lift UK Coal

PLANNING permission approvals on UK Coal property have helped to offset any downward pressures on market valuation.

During 2008, consent was given for more than 1,200 homes and around 1.5 million sq ft of business space.

Applications have also been submitted for a further 4,500 homes and 840,000 sq ft of commercial space.

“We are expecting a valuation of the group’s property portfolio as of December of around £422m compared to £411m in December 2007 and £438m in June,” it said.

The Doncaster-based coal mining group manages around 46,500 acres through its Harworth Estates division. Much of this land is on the site of former collieries in Yorkshire and the North East.

However, it is developing a 1,000-acre site at Cutacre, Bolton, part of which is ear-marked for a mixed-use business park.

Manchester-based Peel Holdings has a 27% stake in UK Coal and is also working with the group on the development of windfarms on its land.

Full year production and sales of coal are expected to be broadly in line with expectations at 7.9 million tonnes – a like-for-like match excluding UK Coal’s Maltby operation.

Overall net debt (excluding restricted cash balances) as of December 2008 was around £140m (December 2007 £104m), better than expected following the release of £10m of previously restricted cash balances.