News Archive

09 December 2009

Preliminary Results

ATH Resources plc, one of the UK's largest coal producers, reports its preliminary results for the 53 week period ended 4 October 2009.

Highlights

• Turnover up 1% to £77.5 million (2008: £76.9 million) despite lower sales volumes  of 1.8 million tonnes of coal (2008: 2.0 million tonnes)
• Average selling price increased by 13% to £43 per tonne
• Profit before interest and tax reduced by 28% to £8.6 million (2008: £11.9 million) due to the lack of production from ATH Regeneration
• Successful planning appeal at Langton after the year end, allowing 0.5 million tonnes ATH Regeneration project  to commence in 2010
• Profit before interest and tax increased in Mining business by 20% to £11.8 million (2008: £9.8 million)
• Earnings per share reduced by 34% to 10.1 pence per share (2008: 15.3 pence per share)
• EBITDA in excess of £24 million (2008: £25 million)
• Full year dividend increased by 2.5% to 6.15 pence per share (2008: 6 pence per share), with final dividend of 6.15 pence per share (2008: 2.64 pence per share) incorporating deferred interim dividend (2008: interim dividend 3.36 pence per share)
• Refinance of Group bank debt following the year end securing three year revolving credit facility, set initially at £30 million
• New mine of 1.8 million tonnes included in probable reserves with the potential for an additional 1.5 million tonnes additional reserve subject to geological assessment
• Proven coal reserves up 4% to 4.7 million tonnes (2008: 4.5 million tonnes) with total reserves unchanged at 8.2 million tonnes (2008: 8.2 million tonnes)

Commenting on the preliminary results, Tom Allchurch, Chief Executive of ATH Resources, said:
“The last year has been a challenging one for the Group with an absence of production, as expected, from our coal tip reclamation and regeneration business. However, our Mining business grew strongly, debt levels were reduced and proven reserves increased. With ATH Regeneration’s successful planning appeal at Langton resulting in a return to production in 2010, I am looking forward to further significant debt reductions and returning to growth over the next few years.”

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