UK Coal completes £20m deal

UK Coal has sold subsidiary Harworth Power (Generation) in a £20m deal.

The business has been sold to Red Rose Infrastructure which is operated from Birmingham by asset manager Capital Dynamics.

Harworth Power generates power from coal mine methane and has assets at UK Coal’s Kellingley, Thoresby, Harworth and Stillingfleet mines. The power is either used on site by UK coal or exported to the national grid.

Last year, the business had an operating profit of £2.4m on revenues of £5.5m.

Doncaster-based UK Coal is in the process of going through a major overhaul which will see some assets sold as it tries to reduce borrowing and improve the company’s capital position.

Details of the deal emerged today as UK Coal held its annual general meeting.