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9 Jun 2011 13:10
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9 June 2011
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UK Coal Plc ("UK Coal" or the "Company")
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AGM Statement
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Speaking to UK Coal shareholders at today's Annual General Meeting, Chairman Jonson Cox said that the Strategic Recovery Review to determine methods of addressing the Company's deep-rooted problems had been completed in line with the timetable established by the Board. The management action required by the Review is already underway.
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The objectives of the Recovery Plan include:
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Β·; Stabilization of the mining operations to achieve consistent levels of production;
Β·; Delivery of the safety improvement plan;
Β·; Implementation of clear, focused cost control and discipline across the business;
Β·; Revised terms of employment and more flexible working patterns;
Β·; Agreement of the level and form of pension provision;
Β·; A more robust and reliable commercial strategy;
Β·; Continued debt reduction.
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As announced in the Interim Management Statement on 13 May, first quarter output from all mining operations was 2.1 million tonnes. Since the end of March, output has continued in line with expectations.
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Harworth Estates continues to sell surplus agricultural and other land. We announce today that contracts have been exchanged to sell approximately 764 acres of agricultural land to Taylor Wimpey UK Limited for a cash consideration of Β£10 million payable on completion. We anticipate that Taylor Wimpey will seek development opportunities for this land which may result in further consideration becoming payable to the Company in the future. The proceeds will be used to reduce the Group's indebtedness and bank facilities. These land holdings had an asset value of Β£12.6m at 25 December 2010 and generated Β£0.057 million of net rental income for the year ended 25 December 2010.
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This latest transaction brings sales of property for the year to date to Β£33.6 million, which amounts to 10% of the property net assets as at 25 December 2010 (and a total of Β£54.6m since 30 November 2010).
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END
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Enquiries:
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Cardew Group
Rupert Pittman, Jamie Milton 0207 930 0777
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