THE coal firm that has taken control of some of East Ayrshire’s abandoned sites made huge profits last year - despite the challenging market conditions.

Hargreaves took over mines at Duncanziemere, Netherton and House of Water - following the collapse of Aardvark and Scottish Coal - with a view to extracting coal and using some of the money to restore them.

And while the scheme to mine, make cash and then clean up some of the mess has been controversial they have had their proposals, up to now, approved by East Ayrshire Council.

In their financial report for last year, they confirmed: 'The Scottish operation delivered first year coal revenues of £50.5m during the year and generated an operating profit of £5.8m. This result reflected the sale of 845,000 tonnes, marketed and sold through our E&C business, at just over £5 operating profit per tonne, as expected, and also benefited from some restoration activity during the year and the sale of surplus mining assets. We are also pleased to be contributing to significant restoration efforts at a number of key sites.’ The Group is managed through four divisions: Production, Energy & Commodities, Transport and Industrial Services and made an overall six percent profit across their whole business.

PROFITABILITY Commenting on the results, Chairman Tim Ross said: “This year was challenging for Hargreaves. In difficult market conditions it is testament to the strength of the Group that we are able to announce a six per cent increase in profits. The Group achieved strong profitability on all measures. The review of strategy that the Board has commenced will ensure the Group is positioned to minimise risk and optimise shareholder value in response to rapidly evolving markets. The disposal of Imperial Tankers for £26.9m, completed earlier this month, is an encouraging first step.” The surface mining operations across Scotland, particularly East Ayrshire, were deemed the most challenging aspect over the year ending May 31.

In their financial report, they state: 'We have already delivered significant improvement at sites such as Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife.

“At these sites we have utilised world class heavy plant and equipment and expertise to deliver on our contractual commitments. Restoration services have been provided on time and to the highest standards.

“Our specialised heavy duty equipment is providing the maximum possible impact for the money available. Even at sites where there is minimal or no restoration funding available, such as Duncanziemere, Netherton and House of Water, we are working to extract remaining reserves of coal whilst providing the greatest possible improvement to site conditions and environmental impact.

CHALLENGES 'Although it has been a challenging year for our surface mining operations on a number of fronts we are pleased with the progress made in developing our Scottish operations. Notwithstanding these challenges, the Scottish business finished the year strongly and the Group is pleased with the current production run rates that are being achieved.’ Underlying Profit before Tax from Continuing Operations increased by £2.9m from £52.2m to £55.1m. Reported Profit before Tax was £52.1m compared with £43.1m in 2013. All divisions performed robustly in the financial year, which was despite a slow start for our surface mining operations in Scotland, exacerbated by poor weather and by the impact of challenging coke markets on profits of the Monckton and German coke trading operations.