Coalfield Resources property arm makes profit after shake-up

15th Aug 2013 12:49

The coal miner and property developer formerly known as UK Coal, Coalfield Resources, said its property arm is doing well following a shake-up in which its former mining operations were hived off.Coalfield, which owns 24.9% of Harworth Estates Group, said the property business made a first half profit of £1.4m, of which Coalfield's share was £300,000, and should make more progress in the second half.Coalfield split the mining and property businesses as part of a restructuring last December, leaving it focused on Harworth, which is re-developing former UK collieries such as Rossington and Waverley in South Yorkshire.UK Coal collapsed following a major fire at the company's Daw Mill pit in Warwickshire in February and a further restructuring was carried out which resulted in the remaining mines being taken over with the backing of Britain's pension rescue scheme, the Pension Protection Fund.Coalfield, which has ended its role in running the mines, made a first half loss of £1.7m due mainly to write-offs of mining debts and unrecoverable restructuring fees. It has announced a £5.0m rights issue to repay a bank loan taken out in May.Chairman Jonson Cox said: "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 Harworth Estates." Shares in Coalfield jumped nearly a quarter or 1.2p to 6.25p by 13:14 in London.PW