CHARLIE GIBSON | EDISON
There’s no shock in this set of results. The company was hurt by low coal prices and output problems at a couple of their mines. I think it’s a good decision to sell their agricultural estate as coal and property do not sit in the same vehicle and at the moment the company is a hybrid.
DAVID BUICK | BGC PARTNERS
It’s not a surprise as the UK cannot compete with producers in Eastern Europe, the Far East and Russia. The cost of coalmining is high, as is the capital required. It’s a sensible decision by management to look into a merger, otherwise it will keep haemorrhaging money.
JEREMY BATSTONE-CARR | CHARLES STANLEY
We’ve got used to importing coal and other carbon related products from abroad, so it’s difficult for UK Coal. We don’t expect its operating conditions to improve anytime soon as global economic activity is going to ebb. UK Coal should be more cautious with its general outlook.