The country’s largest producer of coal has announced profits for the first time in four years, despite still being over £200 million in debt. The company have remained positive and highlighted that they had reduced their total debt by £35m.
Jonson Cox, Chairman of UK Coal said the company had a good start to the year: “Production has improved and revenues over the period have increased 81% to £256.1m (2010 first half: £141.3m). Pre-tax profits have increased to £22.1m (2010 first half: £93.2m loss).
However, losses of around £270m over the last three years have left debt levels over £200m.
Mr Cox said: “Despite this relatively good half year, the Group still remains in a challenging financial position. Whilst we are making progress, particularly in tackling historically unreliable production, pension liabilities and rising employment costs, there remains much to do.
UK Coal has reduced debt through other means, such as the sale of property assets.£51.7m was made in the first half of 2010 and the bulk of this helped reduce Group debt to £207.3m by 25 June 2011.
Coal supplies around 30% of the fuel for the UK’s electricity.