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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| UK Coal | UKC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 8.20 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 8.20 | 8.20 |
| Top Posts |
|---|
Posted at 10/12/2012 11:38 by crosswire CATEGORY: SMALL CAPS NEWS SECTOR: MININGUK Coal shares jump on completion of restructuringMon 10 Dec 2012UKC - UK CoalLatest PricesName Price %UK Coal 8.00p +10.34% Mining 18,775 -0.07%LONDON (SHARECAST) - Shares in UK Coal rose strongly on Monday morning following news that the company had completed its restructuring. The group confirmed that the restructuring of the business, which began on March 14th, had been completed and announced a raft of changes to its board of directors UK Coal will be renamed Coalfield Resources PLC later on Monday. The company's operations have been restructured into two separate businesses comprising the Mining Division, under UK Coal Mine Holdings Limited, and the Property Division, under Harworth Estates Property Group Limited. Control of the Mining Division has passed to a newly established Employee Benefit Trust which holds shares representing 67% of the voting, and 10% of the economic rights in Mine Holdings for the benefit of current and future employees of the Mining Division. The company retains 90% of the economic, and 33% of the voting, rights in Mine Holdings, but the company's and EBT's shareholding both rank behind the debt to the Pension Funds. The company owns 24.9% of Harworth Estates, with 75.1% having passed to the Pension Funds in return for a £30m cash injection and their support to the mines. As a result of the restructuring, multiple changes were made to the board of directors. Among the many changes detailed by the company, David Brocksom, Finance Director of the company, will step down on December 31st although he will continue to remain available under contract for some months to ensure a successful transition. Owen Michaelson has stepped down as a director of the company to become the Chief Executive of Harworth Estates with immediate effect. Gareth Williams has also stepped down as a director of the company to take on the role of Managing Director of Mine Holdings in the short term. Gareth will leave the group on February 28th. Jonson Cox, Chairman of UK Coal, said: "The restructuring has helped to safeguard 2,500 highly skilled and well-paid jobs, a skilled supply chain, and created a funding plan for the £450m pension deficit that UK Coal has been burdened with. Without this restructuring, the costs would have fallen by now to the British taxpayer and the Pension Protection Fund." Shares had risen 10.34% to 8p by 10:34. MF |
Posted at 06/12/2012 16:35 by jacks13 strutt - if the £30m is used to release value in the property portfolio by obtaining planning consents etc. then the increase in asset values/cash on the Propco balance sheet will be reflected in UK Coal's balance sheet, to the tune of 24.9%. As mysticmagic says the holding in Propco is akin to an 'associate company' holding so that UK Coal will take its percentage of Propco's assets, liabilities and profits and add them to its own when reporting. As regards cashing in the property assets, if UK Coal no longer operates the mines, nor has any pension funds liabilities then the need to raise cash is no longer an imperative.I don't hold these at the moment but I am considering getting back in if or when I can see that there is value to be had. Two things concern me. 1. It's my understanding that all holders of the same class of shares have to be treated equally. So for the pension trustees to be getting an assurance of the first £5m of any dividend indicates that they may be getting a senior class of shares and UK Coal a different and subordinate class. So the chances of a dividend payment for UK Coal appears to be off the agenda, but more importantly it leads to my second concern... 2. If the trustees are able to issue by way of an open offer or rights issue more shares in the company without the say so of UK Coal then existing shareholders holdings could become severely diluted in due course. |
Posted at 06/12/2012 14:55 by strutt12 Magic,The Trustees are getting 75.1% to remove the pension liability from Mine Holdings, they are injecting £30 Million into Propco for working capital, they have the controling interest in the business so they will say if any money will come our way. In the past UKC has used the money raised from land sales to bolster their accounts and to lower the amount of money they are losing, this will not be available to Mine holdings going forward. Propco will be the company with tangable assets, of which we will have no control over. Therefore how do you value the business after the restructuring? |
Posted at 06/12/2012 09:11 by mysticmagic I believe that the 30 million is part of the deal which sees the trustees getting 75% of the property portfolio.The way I have understood it is that the property portfolio in essence no longer belongs to us. What will happen is that we (UKC)) will receive 24.9% of property profits each year in the same way that it would be if we had bought a stake in an external company. In my opinion once the dust settles we will have a bullish share. We are guaranteed 24.9% of property profits each year as well as the revenues from HPG. I.E. It will receive 20% of all future revenues generated from the sites at Kellingley, Thoresby and Harworth and will receive 10% of all future revenues generated from Stillingfleet. As for the mines, I believe one of two things will happen. They loss makers will be phased out with the exception possibly of Daw Mill. I am of the opinion that it has purposely been run into the ground and once the restructuring has taken place it will start to 'produce' again. That is a personal opinion though. Even if this does not happen our shares should rise significantly within the next 18 months as we will be on the whole generating profit. |
Posted at 04/12/2012 18:45 by jacks13 strutt - it looks like UKC Group will act as custodian of the interests belonging to UKC shareholders, 24.9% of the Propco assets and earnings will show up on the UKC accounts. |
Posted at 04/12/2012 14:59 by strutt12 "As part of the proposed plan to address the pension deficit, it is intended that the Pension Trustees will receive a direct 75.1 per cent. stake in the Property Division (through a shareholding in Propco) in consideration for a £30 million cash contribution. The existing Shareholders will be entitled to the benefit of the remaining 24.9 per cent. This stake would be held by the Shareholders, through the Company, which would no longer guarantee the pension liability but has agreed that the first £5 million of shareholders' dividend income would be paid to the Mining Sections. The Company made strenuous attempts to secure an option for Shareholders to subscribe part of the equity of the Property Division, but one of the primary conditions of the Pension Funds to agree with the Restructuring was to have a controlling shareholding in the Property Division."Can anyone tell me whether this means they are receiving additional shares, how many and at what price? Thanks |
Posted at 05/11/2012 16:41 by dazzaa Jeffian Doesn't make a basket case just yet and can't be worse than Mouchels at least UKC has assets to dispose. I'm always willing to have a pot shot if I can punt on MCH!! Do we you how much land is available and is there an idea of values inherent. Dazza |
Posted at 05/11/2012 12:48 by dashton42 UKC gets a mention (unsurprisingly) in today's FT Markets Live: |
Posted at 19/9/2012 18:00 by muckshifter Freddie,I used to know lots about UKC sites as I visited many opencast sites in the past, but that is some time ago now. To get a feel for what I'm saying, I suggest you go to UKCoal's website, look under businesses - surface mining - and then look at the sites listed under restored, operational, future, etc (they used to have lots of info there). You will probably see lots of multi hundred Hectare sites (1Hectare = 2.4Acres) to be restored to country parks etc, and photos of wild Northumberland countryside. Bear in mind that these categories will only cover those sites for which planning is underway or they are worked or complete - there will probably be far more similar land held for the future which is not mentioned there. One example of what I've been saying, from (fallible) memory, is Cutacre, where the site was 1000 acres and land for prospective development is 250 acres. This ties in well with the norms of the past, where approx 25% of the site area was taken up by the overburden heap / soils heaps, and did not therefore get excavated - hence no settlement problem. Hope that helps. Regards. |
Posted at 20/3/2012 16:18 by warbaby43 Not a pretty tale, this Statement. It had been indicated at the Shareholder Presentations that a restructuring was pretty certain to come at some point and, indeed, many investors had been looking forward to seeing finally resolved the illogicality of a mining company sitting alongside a property company. It is, therefore, particularly unfortunate that the backdrop is now so difficult.At least, though, it would appear that the bank is at least conditionally on board, with thanks probably being due not only to David Brocksom but also to the continuing presence of Peel with its 29%+ shareholding. In fact it is likely that other investors should in no small measure be grateful to John Whittaker given the additional credibility his presence gives the company. However, the major holders of UKC debt are now the generators and the sort of deal Jonson Cox can cut with them, if any, is likely to have a determining impact on the business. Unfortunately, there is currently a surplus of coal supply in Europe and the rest of the world, with ARA stuck below $100 and $20+ behind where it was just a few months ago. With China currently absent from the spot market, no sustained rise is expected until its return, probably later in the year, and this is reflected in the futures market, ie: Q2 12 $99.70 Q3 12 $104.05 Q412 $107.70 Q1 13 $110.45 2013 $113.00 However, even despite our LibDem government being seemingly bent on the longer term extermination of coal power generation, UK generators will still need to have some regard to the security of their coal supply and as can be seen from this view from major energy consultancy Wood Mackenzie, thermal coal supply is expected to tighten and prices to remain high in the longer term: Even in a contracting market, therefore, UK generators are likely to wish to see preserved for the short and medium terms, their largest and most economic local supplier. With regard to the epicentre of UKC's present troubles, Daw Mill, it would seem most unlikely that this latest visit to the Really Really Absolutely Last and Final Chance Saloon is going to turn out any differently, and mention of 2014 seems something of a red herring. At current prices the eleven week 175,000 t shortfall amounts to over £11m and with normal costs exceeding £2m per week, such a situation is plainly unsustainable without UKC going completely bust well inside the year. May would seem the far more likely date for closure unless the mine can show signs of being able to consistently produce at or very close to the 40kt per week required for any degree of profitability Unfortunately, collectively Daw Mill seems unable and unwilling to face up to the desperation of its situation. However, the other contributing factor to Daw Mill's chronic present difficulties has been the apparently flawed mining plan which led the pit into the cul de sac of having to mine against the stress resulting in very difficult roof conditions and then shear from a very difficult face. This plan would have been drawn up and validated under the previous management round about, I would guess, 2008 or 2009 but was then allowed to remain in place apparently unchallenged and unaltered. If indeed it is the case, as seemed to be indicated at the last Shareholder Presentation, that the mining plan was so flawed, then no doubt at some stage Jonson Cox is going to require an external audit not only into how and why the plan came into being and how and why it was allowed to remain in place until after a point of no return, but also into the process at all UKC mines of how mining plans are drawn up and, just as importantly, how and by whom they are internally audited and signed off. Daw Mill undoubtedly represents a crisis for UKC as a company, but as all the management textbooks tell us, every such crisis presents an opportunity to confront those changes which have long been resisted and delayed, so here arrives a moment of truth for every level of management in UKC but will they have the nous, the grip and the conviction to seize it. All shareholders can do is hope enough of them stand up to be counted. |
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