Profits rise at Coalfield
PROPERTY investment company Coalfield Resources is looking towards a bright future as it boosts profits.
The Sheffield-headquartered group’s only significant investment is a 24.9% stake in Rotherham-based Harworth Estates Property Group in which it takes an active investment management role.
In its interim results for the half year ended in June, the group announced it had made a profit from continuing operations before tax of £3.2m, an increase from a £0.1m loss this time last year, as it continued to focus efforts on delivering value from its investment in Harworth Estates.
Operating profit in the period was £15,000, compared to a £196,000 loss in the same period last year. The group’s share of profit from its investment in Harworth Estates in the first half of the year was £3.1m, compared to £0.3m in the equivalent period last year.
Coalfield Resources said Harworth Estates continues to perform in line with expectations and the group expects to be able to report further progress during the second half of 2014.
Jonson Cox, chairman of Coalfield Resources, said: “Our objective is to deliver value from our investment in Harworth Estates as it implements its strategy to maximise value across its portfolio.
“The first half of 2014, saw this strategy continue to deliver, generating a profit, and asset value growth, of £3.1m for CfR.
“Although we are only at an early stage in the process, we strongly believe the Harworth Estates team has laid the foundations for continued value realisation. When it is equipped with an improved capital structure, we believe further value can be realised both from the portfolio through organic growth and by adding value through selective brownfield property development and acquisition opportunities.
“We look forward to working alongside the Pension Protection Fund, our new co-shareholder of Harworth Estates, to optimise the model for the business and drive growth for the benefit of all shareholders.”
Coalfield Resources was, until December 2012, the parent company of the UK’s largest coal miner, UK Coal. In one of the most complex restructuring in UK corporate history, Coalfield Resources, which was previously known as UK Coal, split its operating business into two separate units – property and mining – and gifted 75% of the property business to the trustees of the mining business pension fund.
Looking ahead, the group said it continues to focus its efforts on achieving medium and long-term value realisation from its investment in Harworth Estates.
