This is one I wrote up a while back and after interims, has today put out a brief year end trading update. This one to be honest, was dull if good value at the time and since then it has certainly been dull as the shares have not really gone anywhere apart from a brief visit to the 900 pence region and have sat there like a pudding as I feared they might.
In the update today they say profits have remained resilient in three of their divisions and that trading is in line with management's expectations. However, they go onto say that demand and pricing for coking coal remained difficult in the second half. They also talk about a production shortfall of £3 million to £5 million in the production division as a result. This was caused by start up delays in the first half and wet weather early in the second half. Not sure how this squares with their in line statement or market expectations - perhaps they have made it up elsewhere? Looks like MR. Market has taken it negatively as he has taken about 4% off the price first thing.
Finally they talk about discussions with Government continuing to progress over potential support from Hargreaves to deliver an orderly closure plan for UK Coal. The share still look cheap on 6x and a 3% yield which should go to 5x and 5% if they hit forecasts in the next couple of years, but then it is involved in coal mining after all. Still you pay your money and take your choice and although this is not one of my better quality selections, I'll choose to run it as part of a diversified income portfolio as patience is not only a virtue but can also be quite rewarding in investing. It is also now near the bottom of it recent trading range so if the coal mining aspect doesn't put you off it might be worth a look if you can raise the enthusiasm and as they say where there's muck there's brass.