28th Mar 2014 13:45
LONDON (Alliance News) - Coalfield Resources PLC Friday said it swung to a pretax profit in its full-year 2013 as Harworth brought the company's first revenues as a property company.
Coalfield Resources, which was until December 2012, the parent company of one of the UK's largest coal miners, UK Coal, posted a pretax profit of GBP3.3 million from a pretax loss of GBP349,000 in 2012 as revenues jumped significantly to GBP1.5 million from GBP8,000.
Following insolvency and a restructuring during the year after a major fire at one of its mines, Coalfield Resources has effectively become a property company through its 24.9% shareholding in Harworth Estates Property Group Ltd, the property business it owns jointly with its former mining companies pension fund.
The company said its share of profit from Harworth was GBP3.1 million and its net asset value has increased by 6% to GBP235 million from GBP222 million at the end of 2012.
Coalfield Resources said that while it is aware of the challenges inherent in moving forward from its mining heritage, the Board remains confident of the ability of Harworth Estates to deliver and grow shareholder value.
The company added that it has put in place contingency planning to protect and mitigate against potential impact of a further mining insolvency or closure.
Coalfield Resources shares were down 1.6% to 6.15 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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