The former parent company of the UK’s largest coal mining operation has announced a return to profit following a restructuring of the business.
Coalfield Resouces plc, the former parent of UK Coal Operations, posted pre-tax profits of £3.3m for the year ending 28 December 2013, up from a loss of £349,000 in 2012.
The company also saw revenues jump to £1.5m from just £8,000 the year previously.
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.
Jonson Cox, chairman of Coalfield Resources plc, said: “Over the first six months since our successful restructuring in December 2012, Coalfield Resources has worked on the forward-looking strategy for the Harworth Estates property business, while also assisting our former colleagues in the mining business with the events that followed the fire at Daw Mill in February.”
In 2012 Coalfield Resources split its operations into a mining and a property arm via a demerger. As a result, the mining business, UK Coal, was left free of bank debt.
UK Coal Operations sought a voluntary liquidation in May 2013, following a fire at the Daw Mill colliery in February 2013, one of the three deep mines it operated, which resulted in the loss of 650 jobs.
The business was subsequently rescued from insolvency through a restructuring carried out by PwC.
Cox added: “As a result of the further restructuring of the mining business, we have relinquished our part in the governance of the mines.
“With the recently announced rights issue enabling us to repay debt, Coalfield Resources is in a position to move forward and concentrate on developing the value of its investment in the Harworth Estates Group.”