TIDMATH
RNS Number : 4756O
ATH Resources plc
30 June 2010
+---------------------------------+---------------------------------+
| Press Release | 30 June 2010 |
+---------------------------------+---------------------------------+
ATH Resources plc
("ATH" or "the Group")
Interim Results
ATH Resources plc, one of the UK's largest coal producers, reports its Interim
Results for the six months ended 4 April 2010.
Highlights
+------+-------------------------------------------------------------+
| · | Turnover reduced by 4% to GBP34.4 million reflecting |
| | weather affected sales volumes down by 8% to 776,000 |
| | tonnes |
+------+-------------------------------------------------------------+
| · | Production volumes for the full year are expected to be |
| | 60,000 tonnes lower than previously expected at around 1.75 |
| | million tonnes |
+------+-------------------------------------------------------------+
| · | Average selling prices increased by 5% to GBP44 per tonne |
+------+-------------------------------------------------------------+
| · | Operating profit from core Surface Mining business of |
| | GBP0.1 million reflects weather affected sales volumes |
| | (2009: GBP3.5 million) |
+------+-------------------------------------------------------------+
| · | No contribution from ATH Regeneration business due to |
| | delays in obtaining planning permission for Langton |
+------+-------------------------------------------------------------+
| · | Loss before tax of GBP2.9 million (2009: Profit before tax |
| | GBP0.1 million) |
+------+-------------------------------------------------------------+
| · | New long term sales contracts agreed which, together with |
| | an improving coal market, increases expected average prices |
| | by 6% to GBP36 per tonne from long term contracts |
+------+-------------------------------------------------------------+
| · | Record level of Proved Reserves of 6.7 million tonnes at 30 |
| | June 2010, an increase of over a third on the 2009 year |
| | end, following recent planning successes at the Netherton |
| | site (1.9 million tonnes) and Duncanziemere, an extension |
| | to the Laigh Glenmuir mine (0.8 million tonnes) |
+------+-------------------------------------------------------------+
| · | Reinstatement of the interim dividend with proposed |
| | dividend of 1 pence per share (2009: nil) |
+------+-------------------------------------------------------------+
The Board also announces that it has received an approach to purchase ATH
Regeneration, the part of the Group which focuses on coal recovery, land
remediation and regeneration. The Board is reviewing the approach and
considering its merits and will make a further announcement in due course.
Commenting on the Interim Results, Tom Allchurch, Chief Executive of ATH, said:
"The business has taken longer than expected to recover following the
unprecedented adverse weather over the autumn and winter period. However, the
Group is now operating at expected levels of production and efficiency. Despite
the difficulties over this last winter, the Group has significantly advanced its
reserve base to its highest ever levels with planning successes at Netherton,
Duncanziemere and Langton.
"As the Group works through its newly improved contract base it will be able to
access a rapidly improving coal market leading to significant improvements in
future profitability."
- Ends -
For further information:
+-----------------------------------+---------------------------+
| ATH Resources plc | |
+-----------------------------------+---------------------------+
| Tom Allchurch, Chief Executive | Tel: +44 (0) 1302 760 462 |
+-----------------------------------+---------------------------+
| | www.ath.co.uk |
+-----------------------------------+---------------------------+
| Seymour Pierce Ltd | Tel :+44 (0) 20 7107 |
| | 8036 |
+-----------------------------------+---------------------------+
| John Cowie | www.seymourpierce.com |
+-----------------------------------+---------------------------+
+-----------------------------------+---------------------------+
| Media enquiries: | |
| Abchurch | |
+-----------------------------------+---------------------------+
| Sarah Hollins / Mark Dixon | Tel: +44 (0) 20 7398 7729 |
+-----------------------------------+---------------------------+
| mark.dixon@abchurch-group.com | www.abchurch-group.com |
| | |
+-----------------------------------+---------------------------+
CHAIRMAN'S STATEMENT
Trading results
Revenue in the six months to 4 April 2010 was GBP34.4 million (2009: GBP35.7
million) on sales of 776,000 tonnes of coal (2009: 845,000 tonnes). Loss before
tax was GBP2.9 million (2009: Profit before tax GBP0.1 million) and cash
generated from operations was GBP3.3 million (2009: GBP6.5 million). The loss
per share was 5.23 pence per share (2009: earnings per share 0.15 pence per
share).
The Surface Mining business suffered the effects of significant adverse weather
during the winter and generated an operating profit of GBP0.1 million (2009:
GBP3.5 million). ATH Regeneration, which is awaiting the opening up of the new
Langton site, delivered a reduced operating loss of GBP0.7 million (2009:
operating loss GBP1.5 million) as the cost base of the business was reduced.
Average selling prices continued to increase to over GBP44 per tonne (2009:
GBP42 per tonne) although sales volumes were adversely affected by both a very
wet autumn in 2009 and the worst winter frost and snowfall in 100 years at the
main operational base in East Ayrshire, Scotland. The adverse weather conditions
affected both the ability of the business to extract coal and logistics in
delivering the coal to customers. The weather conditions increased operating
costs and, together with the reduction in production volumes, contributed to an
increase in unit costs.
International coal prices recovered strongly over the last six months with
current spot prices in excess of $90 per tonne with further increases evident in
the future price index. The strength of the market has allowed the Group to
extend and renegotiate a number of long term coal supply agreements. The new
arrangements add a further 0.4 million tonnes to the Group's long term contract
base resulting in a total of 3.1 million tonnes under contract. The expected
average price under these contracts has increased by 6% to GBP36 per tonne
compared to the last period end.
Production levels are now at expected levels with plans in place to maximise
production from the Group's mines including the working of additional shifts and
other changes to working patterns and the deployment of additional production
and coal processing equipment. However, volumes for the full year are expected
to be 60,000 tonnes lower than previously expected at around 1.75 million
tonnes.
Development - Surface Mining
Following the period end, planning consent was received for Netherton, a site
close to the existing Skares Road site, adding Proved Reserves of 1.9 million
tonnes with an additional 2.1 million tonnes estimated potential reserve at the
mine subject to further investigation. In addition, as previously announced, a
further 0.8 million tonnes was added to Proved Reserves following the receipt of
planning consent at Duncanziemere, an extension to the Laigh Glenmuir mine.
Operations at the two mines will commence during the next financial year and
replace production from current mining operations.
Following the period end, an extension of 0.4 million tonnes to the Glenmuckloch
mine was added to Probable Reserves and a planning application was submitted
during June 2010.
Development - ATH Regeneration
ATH Regeneration received planning consent for the 0.5 million tonnes Langton
project following a successful appeal against an earlier refusal by Derbyshire
County Council and coal production from the site is expected to commence by
August 2010. Negotiations with a major generator for the sale of the coal from
the mine are well advanced.
ATH Regeneration - Australia
ATH Regeneration continues to pursue opportunities in Australia although
progress in securing a contract to construct and operate the first project has
been slower than expected. The Group is currently working with a large
international mining company to assess whether the construction of a processing
plant in Queensland is viable.
Reserves
Proved Reserves at 30 June 2010 increased by over a third from the last year end
to a record 6.7 million tonnes with additional planning consents received for
2.7 million tonnes in the Surface Mining business and 0.5 million tonnes in the
ATH Regeneration business. Proved Reserves represent around 3.5 years'
production at current levels.
Proved and Probable Reserves at 4 April 2010 were 7.5 million tonnes and at 30
June 2010 are 8.4 million tonnes.
Funding
During the six month period to 4 April 2010, bank loans and hire purchase
liabilities increased by GBP1.9 million to GBP41.2 million (4 October 2009:
GBP39.3 million). The Group agreed a new GBP30 million revolving credit facility
("RCF") in a club deal with HSBC and Yorkshire Bank in November 2009. Drawings
under the RCF at the period end, net of cash balances, were GBP21.2 million (4
October 2009: Net debt excluding hire purchase liabilities GBP19.8 million).
Hire purchase liabilities were GBP20.0 million (4 October 2009: GBP19.6
million). The changes to the financing structure of the Group led to a cash
inflow during the period of GBP9.1 million (2009: Net cash outflow GBP6.6
million).
The RCF extends for a three year period ending in November 2012. Maximum
permitted borrowings under the RCF are GBP30 million during the first year of
the new arrangements, GBP27.5 million during the second year and GBP22.5 million
during the final year.
The new arrangements secure attractive, long term funding for the Group and
provide a more appropriate capital structure to continue developing projects
within the UK.
In addition, a net GBP4.5 million was raised during the period through the
refinancing of hire purchase liabilities on the Group's mobile plant fleet.
Dividends
The Board is proposing to reinstate the interim dividend of 1 pence per share
(2009: nil), payable on 23 July 2010, to members on the share register at 9 July
2010.
Outlook
Coal prices have recovered strongly in the last six months despite somewhat
uncertain economic conditions, with future market indices indicating that market
prices will continue to increase well ahead of inflation over the next two to
three years. A record level of reserves will allow the Group to take advantage
of these favourable market conditions in future years.
David Port
Non-executive Chairman
30 June 2010
The information in this report relating to exploration results, mineral
resources or mineral reserves is based on information compiled by Mr. Peter
Morgan, a full-time employee of the Group, who is a Fellow of the Institute of
Materials, Minerals and Mining. Mr. Morgan has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration.
He has reviewed and consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears. A glossary of
terms is available on our website - www.ath.co.uk.
Condensed consolidated income statement
for the six months ended 4 April 2010
+---------------------------------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+---------------------------------------------+-----------+-----------+----------+
| | six | six | year |
| | months | months | |
+---------------------------------------------+-----------+-----------+----------+
| | ended | ended | ended |
+---------------------------------------------+-----------+-----------+----------+
| | 4 April | 29 March | 4 |
| | | | October |
+---------------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------------+-----------+-----------+----------+
| Note | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+----------+
| Revenue | 34,404 | 35,672 | 77,465 |
+---------------------------------------------+-----------+-----------+----------+
| Cost of sales | (30,509) | (28,810) | (58,581) |
+---------------------------------------------+-----------+-----------+----------+
| Gross profit | 3,895 | 6,862 | 18,884 |
+---------------------------------------------+-----------+-----------+----------+
| Other operating income | 16 | 97 | 109 |
+---------------------------------------------+-----------+-----------+----------+
| Administrative expenses | (5,228) | (5,320) | (10,367) |
+---------------------------------------------+-----------+-----------+----------+
| Operating (loss)/profit | (1,317) | 1,639 | 8,626 |
+---------------------------------------------+-----------+-----------+----------+
| Unrealised losses on derivative financial | (233) | - | - |
| contracts 7 | | | |
+---------------------------------------------+-----------+-----------+----------+
| Finance costs | (1,342) | (1,549) | (2,867) |
+---------------------------------------------+-----------+-----------+----------+
| (Loss)/profit before taxation | (2,892) | 90 | 5,759 |
+---------------------------------------------+-----------+-----------+----------+
| Taxation | 797 | (28) | (1,731) |
+---------------------------------------------+-----------+-----------+----------+
| (Loss)/profit for the period | (2,095) | 62 | 4,028 |
+---------------------------------------------+-----------+-----------+----------+
| | | | |
+---------------------------------------------+-----------+-----------+----------+
| Basic earnings per share | (5.23)p | 0.15p | 10.05p |
+---------------------------------------------+-----------+-----------+----------+
| Diluted earnings per share | (5.03)p | 0.15p | 10.05p |
+---------------------------------------------+-----------+-----------+----------+
There are no recognised gains and losses other than as stated in the income
statement.
Condensed consolidated balance sheet
As at 4 April 2010
+---------------------------------------------+-----------+----------+-----------+
| | Unaudited | Audited | Unaudited |
+---------------------------------------------+-----------+----------+-----------+
| | 4 | 4 | 29 |
| | April | October | March |
+---------------------------------------------+-----------+----------+-----------+
| | 2010 | 2009 | 2009 |
+---------------------------------------------+-----------+----------+-----------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+----------+-----------+
| ASSETS | | | |
+---------------------------------------------+-----------+----------+-----------+
| Non-current assets | | | |
+---------------------------------------------+-----------+----------+-----------+
| Goodwill | 7,657 | 7,657 | 7,657 |
+---------------------------------------------+-----------+----------+-----------+
| Property, plant and equipment | 72,737 | 78,661 | 79,820 |
+---------------------------------------------+-----------+----------+-----------+
| | 80,394 | 86,318 | 87,477 |
+---------------------------------------------+-----------+----------+-----------+
| Current assets | | | |
+---------------------------------------------+-----------+----------+-----------+
| Inventories | 21,037 | 19,626 | 20,088 |
+---------------------------------------------+-----------+----------+-----------+
| Trade and other receivables | 8,943 | 9,621 | 8,877 |
+---------------------------------------------+-----------+----------+-----------+
| Cash and cash equivalents | 3,838 | 370 | 162 |
+---------------------------------------------+-----------+----------+-----------+
| | 33,818 | 29,617 | 29,127 |
+---------------------------------------------+-----------+----------+-----------+
| Total assets | 114,212 | 115,935 | 116,604 |
+---------------------------------------------+-----------+----------+-----------+
| LIABILITIES | | | |
+---------------------------------------------+-----------+----------+-----------+
| Current liabilities | | | |
+---------------------------------------------+-----------+----------+-----------+
| Trade and other payables | (12,886) | (13,668) | (16,006) |
+---------------------------------------------+-----------+----------+-----------+
| Tax liabilities | (1,137) | (2,234) | (1,470) |
+---------------------------------------------+-----------+----------+-----------+
| Financial liabilities - borrowings | (7,070) | (19,374) | (19,111) |
+---------------------------------------------+-----------+----------+-----------+
| Final void provision | (3,437) | (3,337) | (2,224) |
+---------------------------------------------+-----------+----------+-----------+
| | (24,530) | (38,613) | (38,811) |
+---------------------------------------------+-----------+----------+-----------+
| Non-current liabilities | | | |
+---------------------------------------------+-----------+----------+-----------+
| Financial liabilities - borrowings | (38,177) | (20,346) | (25,657) |
+---------------------------------------------+-----------+----------+-----------+
| Final void provision | (14,011) | (15,123) | (14,413) |
+---------------------------------------------+-----------+----------+-----------+
| Deferred tax liabilities | (4,334) | (4,334) | (4,208) |
+---------------------------------------------+-----------+----------+-----------+
| Other provisions | (338) | (338) | (338) |
+---------------------------------------------+-----------+----------+-----------+
| | (56,860) | (40,141) | (44,616) |
+---------------------------------------------+-----------+----------+-----------+
| Total liabilities | (81,390) | (78,754) | (83,427) |
+---------------------------------------------+-----------+----------+-----------+
| Net assets | 32,822 | 37,181 | 33,177 |
+---------------------------------------------+-----------+----------+-----------+
| Equity | | | |
+---------------------------------------------+-----------+----------+-----------+
| Share capital | 200 | 200 | 200 |
+---------------------------------------------+-----------+----------+-----------+
| Share premium | 27,855 | 27,855 | 27,855 |
+---------------------------------------------+-----------+----------+-----------+
| Share-based payment reserve | 1,848 | 1,647 | 1,609 |
+---------------------------------------------+-----------+----------+-----------+
| Retained earnings | 2,919 | 7,479 | 3,513 |
+---------------------------------------------+-----------+----------+-----------+
| Total equity | 32,822 | 37,181 | 33,177 |
+---------------------------------------------+-----------+----------+-----------+
Condensed consolidated statement of changes in equity
for the six months ended 4 April 2010
+--------------------------------+---------+---------+-------------+----------+---------------+
| | Called | Share | Share-based | | Total |
| | up | | | | equity |
+--------------------------------+---------+---------+-------------+----------+---------------+
| | share | premium | payment | Retained | shareholders' |
| | | | | | |
+--------------------------------+---------+---------+-------------+----------+---------------+
| | capital | account | reserve | earnings | funds |
+--------------------------------+---------+---------+-------------+----------+---------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 28 September 2008 | 200 | 27,855 | 1,682 | 4,509 | 34,246 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Profit for the year | - | - | - | 4,028 | 4,028 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Dividends paid | - | - | - | (1,058) | (1,058) |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Reduction in share-based | - | - | (35) | - | (35) |
| payment reserve | | | | | |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 4 October 2009 | 200 | 27,855 | 1,647 | 7,479 | 37,181 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 28 September 2008 | 200 | 27,855 | 1,682 | 4,509 | 34,246 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Profit for the period | - | - | - | 62 | 62 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Dividends paid | - | - | - | (1,058) | (1,058) |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Reduction in share-based | - | - | (73) | - | (73) |
| payment reserve | | | | | |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 29 March 2009 | 200 | 27,855 | 1,609 | 3,513 | 33,177 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 4 October 2009 | 200 | 27,855 | 1,647 | 7,479 | 37,181 |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Loss for the period | - | - | - | (2,095) | (2,095) |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Dividends paid | - | - | - | (2,465) | (2,465) |
+--------------------------------+---------+---------+-------------+----------+---------------+
| Increase in share-based | - | - | 201 | - | 201 |
| payment reserve | | | | | |
+--------------------------------+---------+---------+-------------+----------+---------------+
| At 4 April 2010 | 200 | 27,855 | 1,848 | 2,919 | 32,822 |
+--------------------------------+---------+---------+-------------+----------+---------------+
Condensed consolidated cash flow statement
for the six months ended 4 April 2010
+---------------------------------------+----------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------------------------------+----------+-----------+-----------+----------+
| | | six | six | year |
| | | months | months | |
+---------------------------------------+----------+-----------+-----------+----------+
| | | ended | ended | ended |
+---------------------------------------+----------+-----------+-----------+----------+
| | | 4 April | 29 | 4 |
| | | | March | October |
+---------------------------------------+----------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+---------------------------------------+----------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash flows from operating activities | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash generated from operations | 6 | 3,253 | 6,540 | 17,777 |
+---------------------------------------+----------+-----------+-----------+----------+
| Interest paid | | (1,066) | (1,234) | (2,546) |
+---------------------------------------+----------+-----------+-----------+----------+
| Tax paid | | (300) | - | (813) |
+---------------------------------------+----------+-----------+-----------+----------+
| Net cash from operating activities | | 1,887 | 5,306 | 14,418 |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash flows from investing activities | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Proceeds from sale of property, plant | | 350 | 30 | 20 |
| and equipment | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Interest received | | - | 3 | 3 |
+---------------------------------------+----------+-----------+-----------+----------+
| Purchases of property, plant and | | (1,600) | (3,407) | (7,252) |
| equipment | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Net cash used in investing activities | | (1,250) | (3,374) | (7,229) |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash flows from financing activities | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Dividends paid | | (2,465) | (1,058) | (1,058) |
+---------------------------------------+----------+-----------+-----------+----------+
| Repayment of borrowings | | (14,533) | (2,669) | (5,344) |
+---------------------------------------+----------+-----------+-----------+----------+
| Payment of hire purchase liabilities | | (5,447) | (5,436) | (9,938) |
+---------------------------------------+----------+-----------+-----------+----------+
| New asset-backed finance raised | | 5,865 | 596 | 2,725 |
+---------------------------------------+----------+-----------+-----------+----------+
| New revolving credit facility | | 25,000 | - | - |
| drawdown | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Net cash from/(used in) financing | | 8,420 | (8,567) | (13,615) |
| activities | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Net increase/(decrease) in cash and | | 9,057 | (6,635) | (6,426) |
| cash equivalents | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash and cash equivalents at | | (5,219) | 1,207 | 1,207 |
| beginning of period | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
| Cash and cash equivalents at end of | | 3,838 | (5,428) | (5,219) |
| period | | | | |
+---------------------------------------+----------+-----------+-----------+----------+
Notes to the interim report
for the six months ended 4 April 2010
1 Basis of preparation
The Group has drawn up its interim report for the 26 week period ended 4 April
2010 (2009: 26 weeks ended 29 March 2009). The interim report is unaudited and
does not constitute statutory financial statements within the meaning of Section
434 of the Companies Act 2006.
The interim report has been prepared using policies that are consistent with
International Financial Reporting Standards ("IFRS") as adopted by the European
Union. As permitted, this report has not been prepared in accordance with IAS 34
'Interim Financial Reporting'.
The financial information relating to the year ended 4 October 2009 is an
extract from the latest published financial statements on which the auditors
gave an unqualified report that did not contain statements under Section 498 (2)
or (3) of the Companies Act 2006 and which have been filed with the Registrar of
Companies.
The directors are satisfied that the Group has sufficient resources to continue
in operation for the foreseeable future, a period of not less than 12 months
from the date of this report. Accordingly they continue to adopt the going
concern basis in preparing the financial statements.
The same accounting policies, presentation and methods of computation are
followed in the condensed set of financial statements as applied in the latest
published annual financial statements except as described below.
In the current year the Group has adopted IFRS 8 'Operating Segments'. This
standard supersedes IAS 14 'Segmental Reporting' and requires the Group to
report segmental information on the basis of internal reports which are
regularly reviewed by the Group board and used to allocate resources. The Group
has also implemented the changes required by IAS 1 'Presentation of Financial
Statements - a revised presentation' which requires amongst other matters the
inclusion of the Condensed Consolidated Statement of Changes in Equity as a
primary statement. This interim report reflects these requirements which relate
to disclosure matters only.
The Group has also adopted IAS 23 'Borrowing Costs' which requires borrowing
costs associated with property, plant and equipment to be capitalised with
effect from 5 October 2009. The impact on the interim report is not material.
The Group has taken the option allowed under the standard not to capitalise
costs associated with inventories that are manufactured, or otherwise produced,
on a repetitive basis.
The interim report was approved by the Board of Directors on 29 June 2010.
2 Earnings per share
Basic earnings per share is calculated by reference to the weighted average
number of ordinary shares in issue during the period of 40,075,158 (29 March
2009: 40,075,158; 4 October 2009: 40,075,158) and the profit for the period. The
diluted earnings per share takes account of share options outstanding to
employees as set out below:
+-------------------------------------------------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
| | | | |
+-------------------------------------------------+------------+------------+------------+
| | six | six | year |
| | months | months | |
+-------------------------------------------------+------------+------------+------------+
| | ended | ended | ended |
+-------------------------------------------------+------------+------------+------------+
| | 4 April | 29 March | 4 |
| | | | October |
+-------------------------------------------------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+-------------------------------------------------+------------+------------+------------+
| Weighted average number of shares in issue | 40,075,158 | 40,075,158 | 40,075,158 |
+-------------------------------------------------+------------+------------+------------+
| Weighted average number of dilutive share | 1,570,276 | - | - |
| options | | | |
+-------------------------------------------------+------------+------------+------------+
| Total number of shares for calculating diluted | 41,645,434 | 40,075,158 | 40,075,158 |
| earnings per share | | | |
+-------------------------------------------------+------------+------------+------------+
3 Taxation
Taxation for the six months ended 4 April 2010 has been provided at the
effective rate estimated to be applicable for the full year.
4 Segmental reporting
Following the adoption of IFRS 8 'Operating Segments', the Group has identified
reportable segments as those upon which the Board regularly bases its opinion
and assesses performance. The Group has deemed it appropriate to aggregate its
operating segments into two reported segments: Surface Mining and Regeneration.
The constituent operating segments have been aggregated as they have similar
economic characteristics, products and services, production processes, types of
customer, methods of distribution, and regulatory environment. This is
consistent with previous segmental reporting by the Group.
+---------------+----------+--------------+--------------+----+----+--------------+--------------+----+----+--------------+--------------+
| | Unaudited | | Unaudited | | Audited |
+---------------+----------------------------------------+----+----------------------------------+----+----------------------------------+
| | six months ended | | six months ended | | year ended |
+---------------+----------------------------------------+----+----------------------------------+----+----------------------------------+
| | 4 April 2010 | | 29 March 2009 | | 4 October 2009 |
+---------------+----------------------------------------+----+----------------------------------+----+----------------------------------+
| | Surface | ATH | | Surface | ATH | | Surface | ATH | |
| | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| | Mining | Regeneration | Consolidated | Mining | Regeneration | Consolidated | Mining | Regeneration | Consolidated |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Income | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
| statement | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Revenue | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Total revenue | 34,404 | - | 34,404 | 35,672 | - | 35,672 | 77,465 | - | 77,465 |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Result | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Segment | 90 | (699) | (609) | 3,479 | (1,520) | 1,959 | 11,764 | (2,376) | 9,388 |
| result | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Unallocated | | | (708) | | | (320) | | | (762) |
| corporate | | | | | | | | | |
| expenses | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| Operating | | | (1,317) | | | 1,639 | | | 8,626 |
| (loss)/profit | | | | | | | | | |
+---------------+----------+--------------+--------------+---------+--------------+--------------+---------+--------------+--------------+
| | | | | | | | | | | | |
+---------------+----------+--------------+--------------+----+----+--------------+--------------+----+----+--------------+--------------+
The line items in respect of interest, tax and retained profit are disclosed on
the face of the income statement and are reviewed on a combined basis. Revenue
arises from the sale of coal and originates from, and is primarily delivered
within, the UK.
+---------------------+----------+--------------+--------------+----------+-----+--------------+------------+-+----+----+--------------+--------------+
| | Unaudited | | Unaudited | | Audited |
+---------------------+----------------------------------------+----------+-----------------------------------+----+----------------------------------+
| | six months ended | | six months ended | | year ended |
+---------------------+----------------------------------------+----------+-----------------------------------+----+----------------------------------+
| | 4 April 2010 | | 29 March 2009 | | 4 October 2009 |
+---------------------+----------------------------------------+----------+-----------------------------------+----+----------------------------------+
| | Surface | ATH | | Surface | ATH | | Surface | ATH | |
| | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+--------------+---------+--------------+--------------+
| | Mining | Regeneration | Consolidated | Mining | Regeneration | Consolidated | Mining | Regeneration | Consolidated |
+---------------------+----------+--------------+--------------+----------------+--------------+--------------+---------+--------------+--------------+
| Balance sheet | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+----------+--------------+--------------+----------------+--------------+--------------+---------+--------------+--------------+
| Assets | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Segment assets | 97,788 | 12,819 | 110,607 | 100,726 | 14,223 | 114,949 | 100,110 | 12,861 | 112,971 |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Unallocated | | | 3,605 | | | 1,655 | | | 2,964 |
| corporate | | | | | | | | | |
| assets | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Consolidated | | | 114,212 | | | 116,604 | | | 115,935 |
| total assets | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Liabilities | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Segment | (64,523) | (2,549) | (67,072) | (68,436) | (3,184) | (71,620) | (65,975) | (2,473) | (68,448) |
| liabilities | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Unallocated | | | (14,318) | | | (11,807) | | | (10,306) |
| segment liabilities | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Consolidated | | | (81,390) | | | (83,427) | | | (78,754) |
| total | | | | | | | | | |
| liabilities | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Other | | | | | | | | | |
| information | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Capital | 1,473 | 127 | 1,600 | 2,916 | 719 | 3,635 | 6,437 | 1,043 | 7,480 |
| additions | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| Depreciation | 7,052 | 122 | 7,174 | 7,135 | 120 | 7,255 | 15,222 | 242 | 15,464 |
+---------------------+----------+--------------+--------------+----------------+--------------+------------+-----------+--------------+--------------+
| | | | | | | | | | | | | |
+---------------------+----------+--------------+--------------+----------+-----+--------------+------------+-+----+----+--------------+--------------+
5 Dividends
+------------------------------------------------+------------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+------------+-----------+---------+
| | six | six | year |
| | months | months | |
+------------------------------------------------+------------+-----------+---------+
| | ended | ended | ended |
+------------------------------------------------+------------+-----------+---------+
| | 4 | 29 | 4 |
| | April | March | October |
+------------------------------------------------+------------+-----------+---------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------+------------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+------------+-----------+---------+
| Declared and paid during the financial period | | | |
+------------------------------------------------+------------+-----------+---------+
| Final dividend for the year ended 28 September | - | 1,058 | 1,058 |
| 2008: 2.64 pence per share | | | |
+------------------------------------------------+------------+-----------+---------+
| Final dividend for the year ended 4 October | 2,465 | - | - |
| 2009: 6.15 pence per share | | | |
+------------------------------------------------+------------+-----------+---------+
| | 2,465 | 1,058 | 1,058 |
+------------------------------------------------+------------+-----------+---------+
| Proposed after the balance sheet date and not | | | |
| recognised as a liability | | | |
+------------------------------------------------+------------+-----------+---------+
| Final dividend for the year ended 4 October | - | - | 2,465 |
| 2009: 6.15 pence per share | | | |
+------------------------------------------------+------------+-----------+---------+
| Interim dividend for the year ended 3 October | 401 | - | - |
| 2010: 1.00 pence per share | | | |
+------------------------------------------------+------------+-----------+---------+
| | 401 | - | 2,465 |
+------------------------------------------------+------------+-----------+---------+
6 Reconciliation of profit BEFORE TAX to net cash generated from operations
+------------------------------------------------+------------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+------------+-----------+---------+
| | six | six | year |
| | months | months | |
+------------------------------------------------+------------+-----------+---------+
| | ended | ended | ended |
+------------------------------------------------+------------+-----------+---------+
| | 4 | 29 | 4 |
| | April | March | October |
+------------------------------------------------+------------+-----------+---------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------+------------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+------------+-----------+---------+
| (Loss)/profit before tax | (2,892) | 90 | 5,759 |
+------------------------------------------------+------------+-----------+---------+
| Finance costs | 1,342 | 1,549 | 2,867 |
+------------------------------------------------+------------+-----------+---------+
| Depreciation of property, plant and equipment | 7,174 | 7,255 | 15,464 |
+------------------------------------------------+------------+-----------+---------+
| (Profit)/loss on disposal of fixed assets | - | (12) | 22 |
+------------------------------------------------+------------+-----------+---------+
| Share-based payment expense/(credit) | 201 | (73) | (35) |
+------------------------------------------------+------------+-----------+---------+
| Unrealised losses on derivative financial | 233 | - | - |
| contracts | | | |
+------------------------------------------------+------------+-----------+---------+
| Operating cash flows before movements in | 6,058 | 8,809 | 24,077 |
| working capital | | | |
+------------------------------------------------+------------+-----------+---------+
| Increase in inventories | (1,411) | (5,121) | (4,659) |
+------------------------------------------------+------------+-----------+---------+
| Decrease in receivables | 678 | 2,255 | 1,512 |
+------------------------------------------------+------------+-----------+---------+
| (Decrease)/increase in payables and provisions | (2,072) | 597 | (3,153) |
+------------------------------------------------+------------+-----------+---------+
| Net cash generated from operations | 3,253 | 6,540 | 17,777 |
+------------------------------------------------+------------+-----------+---------+
7 Analysis of net debt
+------------------------------------------------+------------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+------------+-----------+----------+
| | six | six | year |
| | months | months | |
+------------------------------------------------+------------+-----------+----------+
| | ended | ended | ended |
+------------------------------------------------+------------+-----------+----------+
| | 4 | 29 | 4 |
| | April | March | October |
+------------------------------------------------+------------+-----------+----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------+------------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+------------+-----------+----------+
| Debt due within one year | - | (5,733) | (5,992) |
+------------------------------------------------+------------+-----------+----------+
| Debt due beyond one year | (25,000) | (12,056) | (8,542) |
+------------------------------------------------+------------+-----------+----------+
| Financial instrument liability | (233) | - | - |
+------------------------------------------------+------------+-----------+----------+
| Hire purchase contracts | (20,014) | (21,389) | (19,597) |
+------------------------------------------------+------------+-----------+----------+
| | (45,247) | (39,178) | (34,131) |
+------------------------------------------------+------------+-----------+----------+
| Cash and cash equivalents and bank overdraft | 3,838 | (5,428) | (5,219) |
+------------------------------------------------+------------+-----------+----------+
| | (41,409) | (44,606) | (39,350) |
+------------------------------------------------+------------+-----------+----------+
In November 2009 the Group refinanced its borrowings with HSBC Bank and
Yorkshire Bank under a Revolving Credit Facility over a 3 year period. Maximum
permitted borrowings under the facility are GBP30 million during the first year,
GBP27.5 million during the second year and GBP22.5 million during the final year
at an average rate of 3% over LIBOR. As part of the refinancing the Group was
obliged to obtain interest rate swaps to fix between 50% and 30% of the debt to
an average fixed rate of interest of 2.1%. In accordance with IAS 39 'Financial
Instruments: Recognition and Measurement' the swaps have been fair valued and
accrued on the balance sheet, and classified as due within one year, or greater
than one year depending on the maturity date of the swap in question.
8 Reconciliation of net cash flow to movement in net debt
+------------------------------------------------+------------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+------------+-----------+----------+
| | six | six | year |
| | months | months | |
+------------------------------------------------+------------+-----------+----------+
| | ended | ended | ended |
+------------------------------------------------+------------+-----------+----------+
| | 4 April | 29 March | 4 |
| | | | October |
+------------------------------------------------+------------+-----------+----------+
| | 2010 | 2009 | 2009 |
+------------------------------------------------+------------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+------------+-----------+----------+
| Increase/(decrease) in cash in the period | 9,057 | (6,635) | (6,426) |
+------------------------------------------------+------------+-----------+----------+
| Cash outflow from reduction in debt and hire | 19,982 | 8,105 | 15,281 |
| purchase financing | | | |
+------------------------------------------------+------------+-----------+----------+
| Change in net debt resulting from cash flow | 29,039 | 1,470 | 8,855 |
+------------------------------------------------+------------+-----------+----------+
| New hire purchase contracts | - | (228) | (228) |
+------------------------------------------------+------------+-----------+----------+
| New loans | (5,865) | (596) | (2,725) |
+------------------------------------------------+------------+-----------+----------+
| New revolving credit facility drawdown | (25,000) | - | - |
+------------------------------------------------+------------+-----------+----------+
| Unrealised losses on derivative financial | (233) | - | - |
| contracts | | | |
+------------------------------------------------+------------+-----------+----------+
| Movement in net debt in the period | (2,059) | 646 | 5,902 |
+------------------------------------------------+------------+-----------+----------+
| Net debt brought forward | (39,350) | (45,252) | (45,252) |
+------------------------------------------------+------------+-----------+----------+
| Net debt carried forward | (41,409) | (44,606) | (39,350) |
+------------------------------------------------+------------+-----------+----------+
9 Copies of the interim report
Copies of the interim report will be posted to shareholders in due course and
are available from the Group's Head Office at: Aardvark House, Sidings Court,
Doncaster DN4 5NU or by visiting the Group's website www.ath.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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