UK Coal optimistic after third quarter

UK Coal is cautiously optimistic about the future after recording strong production figures for the third quarter and is preparing to appoint a new executive chairman.

The company saw like-for-like deep mine production rise 40% in the last three months while surface mine output grew by two thirds as the new Potland Burn and Park Wall North operations came on stream.

However the company warned that delays in opening its Huntingdon Lane site was likely to reduce its surface mine production under target for the year.

Its property division has received planning permission for 150 homes in South Normanton and is expecting a further decision on plans for a major residential, retail and industrial development in North Nottinghamshire by the end of the year.

The company has accepted offers on 5,000 out of 8,000 acres of agricultural land it is looking to sell which are expected to generate more than £24m. Offers have been received on a futher 2,000 acres.

Debts at the firm at the end of September were £265m, up £40m from the same point last year although UK coal expects its property sales and fourth quarter performance to make inroads into that.

On its hunt for an executive chairman, announced in July, the company said today the board expected to make an announcement “in the near future”.