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Doncaster developer with a chequered past has reported £12.9 million profits

Doncaster’s Coalfield Resources, now a brownfield property developer (but previously in mining) has reported profit of £12.9 million before tax.

Net assets have increased to £55.2m (2012: £47.9m). This is mainly as a result of the increase in the investment in Harworth Estates which is now £53.4m (2012: £50.3m)

Harworth Estates is responsible for projects such as the Waverely brownfield development.

Coalfield Resources plc was, until December 2012, the parent company of the UK’s largest coal miner, UK Coal.

Now with a 24.9% share in Harworth Estates Group, the firm has effectively become a brownfield developer.

In one of the most complex restructuring in UK corporate history, Coalfield Resources, which was previously known as UK Coal plc, split its operating business into two separate units - property and mining.

Consequent upon this restructuring, Coalfield Resources has effectively become a property company through its 24.9% shareholding in Harworth Estates Property Group Limited, the property business it owns jointly with its former mining companies pension fund.

Since the December restructuring, the former mining business suffered a major fire at one of its mines which caused a failure of that business. The mining business has subsequently further restructured. Coalfield Resources no longer has any equity interest in the mining business.

Coalfied’s chairman said: “I am pleased to report on the first full year of Coalfield Resources plc, following the de-merger in December 2012 of the former UK Coal plc’s mining and property businesses (the 2012 Restructuring).

“Since the 2012 Restructuring, our shareholding in Harworth Estates, a brownfield property developer, has been the principal source of value.

“Our focus has been our role as active, minority investor, working alongside the majority Pension Fund investor.

“Our small team provides Board leadership, and financial, legal and governance services to Harworth Estates on behalf of both investors. Both investors are entirely aligned as long term seekers of value from the property portfolio.

This was posted in Bdaily's Members' News section by Clare Burnett .