UK Coal reports four-fold profit increase on higher demand
Power generation and mining company UK Coal has reported a 292 per cent rise in pre-tax profit to £69 million for the year to December 31st 2007.
The company said it saw a major jump in surface mines' operating profit due to increased sites, output and selling prices. Operating profit for the division was £8.5 million in 2007, compared to £0.5 million the previous year.
Power generation operating profit also increased sharply, up 39 per cent to £4.3 million.
David Jones, chairman, said: "UK Coal has delivered another year of substantial progress in all our businesses. Pre-tax profits grew almost fourfold to £69 million; earnings per share increased 412 per cent to 59.9 pence; and assets per share increased 46 per cent to £2.28."
The demand and price environment for coal has improved notably in the last year, Mr Jones added, and has created "a more positive backcloth than at any time in UK Coal's corporate life".
UK Coal is also one of Britain's largest brownfield site property developers, as well as the country's biggest producer of coal.
The company said that although there has been much publicity about downward pressure on UK commercial property values, the longer term outlook for property in the UK, with its structural shortage of land for development, remains positive.