Updates

UK Coal - Selling prices to rise sharply in H2

October 2008

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First half results from UK Coal had been well flagged by its previous trading update and while its pretax loss of Â£9.9m might be unexpected to some this reflects its normal practice of filling in the very low priced long-term sales contracts in H1. This leaves the way clear for it to achieve the much higher open market prices in the second half, with analysts now expecting blended average prices for the year of Â£1.92 / KJ. In terms of production UK Coal still expects to generate 8.7m tonnes this year. Meanwhile, the revaluation of Harworth Estates, its property division, produced a 5% gain to Â£438m, which is creditable in what remains a tough market. While Numis has left this year's forecasts for eps of 43p unchanged, it has re ...

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