Coalfield Resources focuses on property investment
COALFIELD Resources, which is now focused on its stake in property business Harworth Estates Group, has seen a half-year loss following the restructure of mining firm UK Coal.
The Doncaster-based group made a loss of £1.7m in the six months to June 29 which was mainly due to the write off of mining debts and restructuring fees not recoverable.
The group had net assets of £46.4m at the half year end and net assets per share of 15.5p.
UK Coal originally finalised a restructure last December which saw the creation of two divisions covering mining and property with the company renamed Coalfield Resources.
Last month the business, whose future had been threatened by the devastating fire that closed the Daw Mill deep mine in February as well and a major pensions deficit, went into administration as part of a further restructuring process.
The company retained ownership of 24.9% of the property division, Harworth Estates, with the remainder passed to pension funds in return for a £30m cash injection and their support for the mining business.
Harworth had assets including investment properties valued at £260.1m at the end of June.
Coalfield Resources has secured a bank facility of up to £5m to cover short term funding and has announced a rights issue to repay the loan and provide additional working capital.
Chairman Jonson Cox, said: “Over the first six months since our successful restructuring in December 2012, Coalfield Resources has worked on the forward-looking strategy for the Harworth Estates property business, while also assisting our former colleagues in the mining business with the events that followed the fire at Daw Mill in February.
“As a result of the further restructuring of the mining business, we have relinquished our part in the governance of the mines. With the recently announced rights issue enabling us to repay debt, Coalfield Resources is in a position to move forward and concentrate on developing the value of its investment in the Harworth Estates Group.”
