UK Coal’s performance "unacceptable" – Cox
UK Coal is guilty of three years of “unacceptable performance”, according to executive chairman Jonson Cox, after the company recorded a pre-tax loss of £124.6m.
Group revenue grew by 11% to £351.2m and the company’s operating loss fell from £93.1m to £74.3m in 2010.
Mr Cox said: “These results follow pre-tax losses of £129.1 million in 2009 and £15.6 million in 2008, bringing us to three years of unacceptable performance in a row. The board is determined to arrest the trend of under-delivery and to seek value for our shareholders.
“The viability of UK Coal over the medium term depends on appropriately rewarding the equity capital required to finance the business. The board fully appreciates that investors deserve a far better return than they have experienced over recent years. Over the last three months we have taken some immediate and difficult steps to improve performance, while a full strategic plan is developed.”
Mr Cox joined the company in November and said that over the last three months the company had taken a series of measures to improve performance.
These included scrapping a pay rise for all staff that would have cost £5m, the cutting of allowances and job cuts at head office that should reduce costs by £12m in 2011. It also intends to close UK Coal’s final salary pensions schemes.
The company raised £24m from the sale of property and action was taken to overcome problems with developing a new face at the Daw Mill mine.
UK Coal also announced the appointment of Keith Heller as a non-executive director. Mr Heller was the chief executuve of English, Welsh and Scottish Railways before its sale to DB Schenker Rail.
