13th Aug 2014 10:34
LONDON (Alliance News) - Former UK coal miner Coalfield Resources PLC Wednesday said it swung to profit in the first half, following a strong performance from its Rotherham-based property asset.
Coalfield Resources which has effectively become a property company after a restructuring, posted pretax profit of GBP3.2 million for the six months ended June 30, compared with a GBP65,000 loss a year earlier, while revenue dipped to GBP767,000 from GBP843,000.
Harworth Estate Property is Coalfield's only significant investment. Harworth, in which Coalfield holds a 25% stake, owns and manages 30,000 acres across 200 sites, including commercial, residential and tenancy projects. Wide Coal Pension Funds holds the remaining stake in the firm.
Harworth Estate reported pretax profit of GBP12.6 million during the first half, of which Coalfield's share was GBP3.2 million.
At an operating level, Coalfield said Harworth's major developments division continued its progress on bringing large consented sites to market. In addition, the strategic land division continued to invest in planning applications to deliver the next stream of sites for major developments.
Coalfield said at Logistic North, near Bolton, the first land disposal was completed to food retailer Aldi. The discount supermarket chain is constructing a 450,000 square foot distribution hub on the site. The company expects further progress on sales at this site during the second half of the year.
Overall, Coalfield siad its net asset stood at GBP247.3 million compared with GBP234.7 million at the end of December.
Financially, it said it has no debt and a positive cash balance.
Looking ahead, the company said Harworth Estate's first half results demonstrate the value that "is inherent within its property portfolio."
"While the majority of the portfolio remains relatively immature in planning terms, the mixture of brownfield sites with strong strategic locations, including transport and utilities infrastructure, means that a considerable amount of value can still be added by the work performed in advancing the sites through the planning process," Coalfield said.
Coalfield Resources shares were up 4.9% at 6.35 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Citius Resources