UK Coal posts pre-tax loss
Published Date:
28 August 2008
BRITAIN'S biggest coal miner UK Coal swung to a pre-tax loss in the first half, but said it remained on target to meet its profit expectations for the full year.
UK Coal, which has mining operations in Britain and a property portfolio, said the non-cash property valuation gains of last year were significantly reduced as a result of the current property downturn.
The company reported a pretax loss of £9.9m ($18.20m) for the six months to June 30, compared with a pre-tax profit of £40.6m a year ago.
Chris Millington at Numis Securities said the pre-tax loss, resulting from the company's deep mining operations, would be reversed in the second half.
The sharp increase in the price of coal, up 45 per cent from the start of the year to July, is set to boost cash flows for the company, which supplies around 15 perc ent of the coal burned in the UK.
Doncaster-based UK Coal said it would produce 5m tonnes of coal in the second half, compared with 3.7m in the first half.
Shares in UK Coal were down 1.6 percent at 419 pence in early trading
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Last Updated:
28 August 2008 8:53 AM
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Source:
n/a
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Location:
Yorkshire
