Harworth Group PLC · LSE:HWG
Harworth — Coalfield Resources — Investor Presentation (August 2013)
14 slides from Harworth's investor presentation, Aug 27, 2013
Slide 1: Investors Presentation
Investors Presentation 27 August 2013 Jonson Cox, Chairman Jeremy Hague, Finance Director Coalfield Resources plc is the listed entity which, following the restructuring of UK Coal plc, now only holds an actively managed investment in Harworth Estates
Slide 2: Agenda
Agenda 1. Current position of Coalfield Resources plc (CfR) 2. Balance sheet position 3. Interim update 4. Harworth Estates : the potential 5. Strategic options for CfR & Harworth Estates 6. The Rights Issue 27 August 2013 Presentation to Investors & Analysts 2
Slide 3: Current structure – CfR post July 2013 restructure
Current structure – CfR post July 2013 restructure • No equity interest Pension or liability for Fund governance of UK Coal Mining business 24.9% CfR plc 75.1% equity Blenkinsopp pension • Running and equity indemnity (supported by employee costs HEMPL guarantee and Running costs security) affirmed
Slide 4: Current position – Coalfield Resources (CfR plc)
Current position – Coalfield Resources (CfR plc) • CfR plc sole active investment is 24.9% stake in Harworth Estates - £50.6m (Jun 13) – Mining restructure completed in July 13 and completes the removal of any CfR responsibility or liability for mining • Short-term bank facility (LBG) in place until
Slide 5: CfR & Harworth Estates balance sheets
CfR & Harworth Estates balance sheets Coalfield Resources plc as at Jun-13 Harworth Estates Group as at Dec-12 Assets £m Assets £m Non-current assets Non-current assets Investments in associates 50.6 Intangible assets 0.7 Total non-current assets 50.6 Investment property 260.1 Investments in joint v
Slide 6: CfR interim update – June 2013
CfR interim update – June 2013 • Net assets of £46.4m • Net assets per share 15.5p (pre Rights Issue) • Harworth Estates Group net assets £223.1m – CfR investment 24.9% • Loss in period £1.7m – non cash write off in respect of mining debts • Governance links to mining business relinquished Net asset
Slide 7: Harworth Estates: The Potential
Harworth Estates: The Potential • Sites comprise coalfield land (both deep and surface mining, covering 30,000 acres) and rights to current mines • Track record - residential, commercial, renewables and waste management • Track record of cash realisation (over £80m Jan 2011 to Dec 2012) and valuatio
Slide 8: Harworth Estates : Portfolio
Harworth Estates : Portfolio 27 August 2013 Presentation to Investors & Analysts 8
Slide 9: Harworth Estates : Six divisions
Harworth Estates : Six divisions Harworth Estates has six divisions: Division • Strategic Land: growing Strategic Major Business Natural Ops & value through beneficial Land Developments Parks Resources Recycling Legacy planning consents and 44 sites 5 major sites 15 sites 46 sites strategic developm
Slide 10: Harworth Estates : Divisional value drivers
Harworth Estates : Divisional value drivers There are three distinct drivers of value for Harworth Estates: Division Strategic Major Business Natural Ops & • capital growth; Land Developments Parks Resources Recycling Legacy • income generation; and Improve Planning Optimising service & • liability
Slide 11: Harworth Estates : Strategic
Harworth Estates : Strategic Base valuation Division Total Strategic Major Business Natural Ops & Legacy & of £260m Land Developments Parks Resources Recycling Overheads Dec 2012 (Dec 2012) Valuation* £58m £89m £63m £58m £(7)m £260m • Robust base plan to deliver growth in assets over 5 years – Base
Slide 12: Strategic options for CfR and Harworth Estates
Strategic options for CfR and Harworth Estates • Coalfield Resources plc is an active investor with two directors and currently chairs the Harworth Estates Board • Opportunity to discuss potential options with other Harworth Estates shareholder – Potential disposal of all or part of their 75.1% shar
Slide 13: CfR Rights Issue
CfR Rights Issue • Seeking net £5m • £3.6m to discharge loan and balance of December 2012 restructuring fees; any excess providing additional working capital (any costs not covered by Harworth Estates funding) • Peel underwritten & provided irrevocable undertaking – Irrevocable undertakings from Pee
Slide 14: Disclaimer
Disclaimer • These presentation slides may contain forward-looking statements with respect to the business, performance and financial condition of Coalfield Resources plc. By their nature, these statements may involve uncertainty since future events and circumstances can cause results and developmen
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