Coalfield Resources, the former parent of UK Coal Operations, has bounced back to profit after insolvency last year.
The company released their full year 2013 results, showing profit from continuing operations of £3.3 million, compared to £0.3 million in 2012. Coalfield Resources’ net assets stood at £55.2 million (2012: £47.9 million).
Coalfield Resources holds a 24.9% stake in Harworth Estates Property Group, in which it takes an active investment management role. The company divided its operations into a mining and property arm in 2012, leaving its mining operation, UK Coal, bank debt free.
Mining and property
Commenting on the results, Coalfield Resources chairman, Jonson Cox, explained why the company has moved its focus to the property business.
"Following the insolvency and further restructuring of the mining business in July 2013, Coalfield Resources' sole focus has been its role as active investor in Harworth Estates.
Coal price outlook
“Given the insolvency of the mines in 2013 […], the historical issues in the deep mining business, the negative outlook for coal prices and ongoing operational difficulties within the UK coal industry, Harworth Estates has undertaken contingency planning to protect and mitigate the impact of further mining difficulties including closure.”
As a result of further restructuring of the mining business, the company has relinquished its part in the governance of mines. The move has enabled Coalfield Resources to repay debts and move on to growing the value of its interest in the Harworth Estates Group.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/02042014/coalfield_resources_2013_profit_680/