Interim Management Statement

RNS Number : 5289G

UK Coal PLC

13 May 2011

 





13 May 2011

UK COAL PLC ("UK COAL")

Interim Management Statement

UK COAL today issues its Interim Management Statement for the period from the beginning of the current financial year, 26 December 2010, to today's date.

The following information is as announced in our 2010 full year financial results on 19 April 2011.

Production in the first quarter to the end of March was steady and in line with expectations at 2.1 million tonnes (2010: 1.0 million tonnes), of which 1.6 million tonnes was from deep mines (2010: 0.8 million tonnes) and 0.5 million tonnes was from surface mines (2010: 0.2 million tonnes).

The installation of the new faces at both Kellingley and Thoresby has progressed well and both are now ready for operation.  As previously announced, we have extended the life of the current panel at Daw Mill by several months to offset the risk of delay in the installation of its new panel.

Harworth Estates, UK COAL's property business, continues to progress with the disposal of some of its surplus agricultural and other land.  We sold 1,500 acres of agricultural land in Q1 with gross proceeds of £10.5 million.  These disposals consisted principally of two significant agricultural estates: 590 acres at Stockley Hill, Lancashire and 279 acres from our Sandy Lane site in Staffordshire. The proceeds after costs of sale have been applied to reduce overall levels of debt.

At the end of the first quarter 2011, net debt, including generator loans/prepayments but excluding restricted cash balances, was £220.7 million, of which generator balances were £102.9 million.  The total net debt compares with £242.4 million at December 2010 and is stated after the benefit of £10.5 million of receipts from property sales.  As we announced on 19 April, we have renewed and extended certain bank facilities since the year end, with Lloyds Banking Group replacing GE Capital in respect of approximately one third of our revolving credit facility, making Lloyds Banking Group the sole bank on this line.  The earliest expiry of any of our main banking facilities is now 31 July 2012.  We have also extended the maturity of the £10 million loan facility with Peel Holdings Limited, which provides increased headroom from the Group, to 31 July 2012.

Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 26 December 2010 to 13 May 2011 which have affected UK COAL and its financial position.

Enquiries:

Analysts and Investors:

Jonson Cox,

Executive Chairman, UK Coal PLC              Tel: [phone]

David Brocksom,

Group Finance Director, UK Coal PLC          Tel: [phone]

Media:

Rupert Pittman, Cardew Group                  Tel: [phone]

Jamie Milton, Cardew Group                     Tel: [phone]

 

END

 

 

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