ATH Resources swings to loss; gets approach for unit

The Doncaster-based firm, the third-biggest coal producer in the UK, lowered its full-year production-volume outlook, but said it planned to reinstate its interim dividend with a payment of 1 pence.

ATH, which competes with Anglo American and UK Coal, forecast full-year production volumes to be 60,000 tonnes lower than its prior view.

In April, the company had said a delay in starting a new tip washing and reclamation plant at Langton, Nottinghamshire, would reduce its full-year production from ATH Regeneration by nearly 50,000 tonnes and result in slightly lower-than-expected trading for the group.

The company expects market prices of coal to rise well ahead of inflation over the next two to three years.

For the six months to April 4, ATH reported a pretax loss of 2.9m, compared with a profit of 90,000 a year ago.

Revenue fell 3.6 per cent to 34.4m.