For the year ended 31 December 2016, your company achieved earnings before interest, tax, depreciation and amortisation (EBITDA) of £2.4million (2015: £1.4 million) and operating profit before depreciation, fair value adjustments and exchange movements (Adjusted EBITDA) of £1.5million (2015: £1.7 million).
In 2017 we continue to make strong progress in developing our new opencast reserves at Black Wattle and coal prices have improved significantly. We therefore remain highly confident about the prospects for our South African coal mining operations and their ability to contribute to our group earnings and cash generation. A fuller explanation on the performance of our mining operations for the year can be found within the Mining Review and Financial & Performance Review sections of this report. The company’s UK retail property portfolio, which underpins the group and which is managed actively by London & Associated Properties Plc, continues to perform well, with average rental yields for the portfolio remaining stable during the year. A fuller explanation of the portfolio’s valuation results and financial position are discussed in the Financial & Performance Review and Directors report. Looking forward, management will continue to look for opportunities to strengthen and develop the company’s UK retail property portfolio. Finally, your directors have decided to hold the dividend at the 2015 level and will recommend to you, our shareholders, a final dividend of 3p (2015: 3p) payable on Friday 28 July 2017 to shareholders registered at the close of business on 7 July 2017 making the total for the year 4p (2015: 4p). Based on the 2016 year end share price, this represents a 5.4% yield, which is at the high end of the mining sector. On behalf of the Board and shareholders, I would like to thank all of our staff for their hard work during the course of the year.
Sir Michael Heller
26 April 2017