Statement re Sale of Agricult

RNS Number : 1591X

UK Coal PLC

01 December 2010

 



UK COAL PLC

Sale of Agricultural Land

UK COAL PLC (UK COAL or the Group) announces that it has exchanged contracts to sell approximately 1,355 acres of agricultural land, together with associated buildings to H.W. Martin (Farms) Limited, a privately owned business.

The consideration is £7.0 million payable in cash on completion. In addition, further consideration may become payable in the event that development of the land takes place subsequent to the disposal. The right to mine any potential coal in the ground has been retained where appropriate.

The disposal is part of the previously announced programme to dispose of around 8,000 acres of the Group's surplus agricultural land from which we expect to receive proceeds of over £24 million before the end of the year; this transaction takes the current position to £11m.

The proceeds will be used to reduce the Group's indebtedness and bank facilities.  These land holdings had an asset value of £6.4 million at 26 December 2009 and generated £0.1 million of net rental income for the year ended 26 December 2009.

Enquiries:

Analysts and investors:

David Brocksom, Group Finance Director Tel: [phone]

Media:

Citigate Dewe Rogerson

Anthony Carlisle Tel: [phone].   Mobile: [phone]

 

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