ATH Resources plc Annual Report and Accounts 2007
delivering growth
ATH Resources plc
Annual Report and Accounts 2007 ATH Resources plc (“ATH”) operates surface 
coal mines and a coal recovery, land remediation 
and regeneration business. ATH is the third largest 
coal producer in the UK and supplies coal to the 
electricity supply, industrial and house coal markets.
Throughout the development, mining and 
reclamation process, ATH focuses on the restoration 
and rehabilitation of the sites and land is returned to 
various uses including agriculture, forestry, nature 
conservation and other forms of development.
ATH Resources plc became a public company 
in June 2004 when the Company was listed on 
AIM. The Company intends to grow organically 
and will pursue suitable complementary acquisitions 
which meet strict, pre determined criteria.
 01 Highlights
 02 Chairman’s statement
 06 Chief executive’s statement
 14 Financial review
 16  Board of directors
 17  Directors’ report
 20  Corporate governance report
 22  Remuneration committee report
 25  Independent auditors’ report
 26  Consolidated profit and loss account
 27 Consolidated balance sheet
 28  Company balance sheet
 29  Consolidated cash flow statement
 30  Accounting policies
 33  Notes to the financial statements
 45 Notice of annual general meeting
 47  Form of proxy
 IBC  Corporate information 
 IBC  Company diary 2008 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
01
2007
strengthening 
our performance
HigHligHts
Turnover up 30% to £70.5 million (2006 restated: 
£54.1 million) on sales of 2.2 million tonnes of 
coal (2006: 1.8 million tonnes)
EBITDA up 31% to £25.1 million (2006 restated: 
£19.2 million)
Profit before interest and tax up 27% to 
£10.3 million (2006 restated: £8.1 million)
Earnings per share up 11% to 13.1 pence per 
share (2006 restated: 11.8 pence per share)
Final proposed dividend of 8.24 pence 
per share (2006: 7.89 pence per share)
Proven and probable coal reserves up 9% 
to 8.6 million tonnes (2006: 7.9 million tonnes)
HigHligHts Post year end
Successful appeal for development of ATH’s 
Muir Dean project in Fife which will enable 
ATH to mine 2 million tonnes of coal
Application for a 1 million tonne extension 
at Grievehill was approved by the Local 
Planning Authority in November 2007
sales volume (million tonnes)
2.2
1.8
1.5
2.2
sales Price (£/tonne)
32
30
27
32
earnings Per sHare (Pence)
13.08
11.77
10.86
13.08
05 06 07
05 06 07
05 06 07 page
02
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
cHairman’s statement
delivering:
It is pleasing to report a year of record 
production resulting in the Group 
selling its ten millionth tonne of coal 
since commencing operations in 1998. 
Business progress
The Group continues to build on the strategy 
of growing the business organically and by 
acquisition. It is pleasing to report a year 
of record production resulting in the Group 
selling its ten millionth tonne of coal since 
commencing operations in 1998. The Surface 
Mining business opened two new mines in the 
year and commissioned the full length of its 
16km conveyor network linking the new mines 
to the railhead.
The land regeneration and coal tip washing 
business, re-branded as ATH Regeneration, 
is fully integrated within the Group and continues 
to perform ahead of expectations. A number 
of exciting new opportunities, to exploit the 
business’ intellectual property and market 
potential in both the UK and Australia, are 
being actively pursued. 
development
Following the year end, the Board was 
delighted to hear that the Group was 
successful in its appeal on the Muir Dean 
site in Fife. The planning process has been 
an extended one, given the appeal, and the 
Group is now looking forward to working 
with the local community in opening the 
site later in 2008. 
Turnover: £70.5 million 
(2006 restated: £54.1 million)
EBITDA: £25.1 million 
(2006: £19.2 million)
PBIT: £10.3 million 
(2006 restated: £8.1 million)
Total dividend: 11.6 pence 
(2006: 11.25 pence)
EPS: 13.08 pence 
(2006 restated: 11.77 pence) www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
03
Planning consents for new reserves remain 
a key issue for the Group. The business is 
awaiting final approval for an extension to 
the Grievehill mine from the Scottish Executive 
Planning Department (“SEPD”). The Board is 
confident that confirmation of SEPD’s decision 
will be received within the necessary timeframe 
for the Group to meet its production plans in 
2007/08.
Board of directors
During the year, Steven Beaumont replaced 
Richard Croston as Group Finance Director. 
In addition, the Director nominated by The 
Alchemy Plan, Ivana Ridler, left Alchemy and 
became an Independent Non-executive Director. 
Following the year end, Group Marketing 
Director John Hodgson, one of the three 
founding Directors, retired from the Board. 
John will continue as a Director of the 
Surface Mining business. His commitment 
and dedication to the business has been 
fundamental to the success of ATH and 
the Board is grateful for his contribution 
over the last nine years.
strategy
There is a growing recognition of the value 
and importance of UK produced coal in creating 
a balanced and secure portfolio of energy supply 
within the UK. With this background the Group 
will continue to develop the business organically 
and through acquisition, exploiting new 
opportunities especially in the Regeneration 
business, to build on the reserve base.
david Port
Non-executive Chairman
Coal is loaded at the Group’s dedicated rail 
loading facility at Crowbandsgate in East Ayrshire 
for delivery to energy generating customers.
The Group celebrated selling its ten millionth 
tonne of coal by commissioning this unique 
piece of human artwork, involving children 
from three local East Ayrshire and Dumfries 
and Galloway schools.
t here is a growing recognition 
of the value and importance of 
uK produced coal in creating a 
balanced and secure portfolio 
of energy supply within the uK.
“ Header
page
04
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Strong, steady underlying 
organic growth coupled with 
targeted strategic acquisitions 
are key to the continuing 
success of the Group. Header
page
05
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
ATH Resources plc
Strong, steady underlying organic growth coupled with targeted strategic acquisitions are 
key to the continuing success of the Group. With over £70 million invested in plant, land and 
the new ATH Regeneration business over the last three years, the Group is now well positioned 
to reap the benefits of strong international coal prices.
The Group’s solid operational base and development expertise enables it to deliver strong 
financial performance and an increasing reserves base. page
06
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
cHief executive’s statement
increasing:
The Group delivered a year of 
continued growth, reporting record 
sales up 30% to £70.5 million 
(2006 restated: £54.1 million). 
review of the period
The Group delivered a year of continued 
growth, reporting record sales up 30% to 
£70.5 million (2006 restated: £54.1 million), 
with profit before interest, tax, depreciation 
and goodwill amortisation growing by over 
30% to a record high of £25.1 million 
(2006 restated: £19.2 million). Operating 
cash flow of £23.6 million was generated to 
fund the continued expansion of the business.
operational review
Surface Mining
The Surface Mining business continues to 
grow steadily in line with the Group’s strategy. 
During the year, the Group brought two new 
mines at Glenmuckloch and Laigh Glenmuir 
into production and both mines operated 
ahead of expectations. In addition, 16km 
of overland conveyors linking the sites to the 
rail loading facility at Crowbandsgate were 
constructed with the assistance of a £2.2 million 
Freight Facilities Grant provided by the Scottish 
Executive. The conveyors, which can handle 
up to 500 tonnes of coal per hour, remove over 
50,000 lorry loads of coal from local roads and 
significantly reduce the environmental impact 
of these sites.
The Grievehill mine finished production 
on existing reserves in November 2007. 
An application for a further one million tonne 
extension was approved by the Local Planning 
Authority in November 2007 and ratification 
of this decision by the SEPD is awaited, 
with mining expected to re-commence 
in February 2008.  www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
07
In addition to Grievehill, a Surface Mining 
planning application was submitted for Rigg 
in Dumfries and Galloway for 1.3 million tonnes 
and an extension of 0.7 million tonnes to the 
Glenmuckloch mine was identified. During 
2008, the Group expects to submit at least 
two further new planning applications for 
2.1 million tonnes of surface mine reserves. 
The Surface Mining business has an 
estimated 7.9 million tonnes of proven 
and probable reserves. Subject to the 
approval of the Grievehill extension these 
are sufficient to satisfy production at current 
capacity levels for over three and a half years. 
This is approximately double the reserve life 
that the Company had when it came to 
the Stock Market.
Regeneration
ATH Regeneration continues to operate 
ahead of expectations at its coal washing 
plant at Grimethorpe utilising its unique 
natural medium coal recovery techniques. 
Coal is being extracted from the coal tip at 
rates and qualities higher than anticipated at 
the time of acquisition in 2006. Coal recovery 
at Grimethorpe is expected to cease during 
2008 with the site entering a period of restoration.
In March 2007, the Group acquired 12.3 acres 
of development land at Pinxton in Derbyshire 
to facilitate the access and washing of the 
Langton coal tip which was part of the 2006 
acquisition. A planning application has been 
submitted and the operations are expected 
to commence in 2008.
Several new tip washing opportunities 
have been identified and negotiations with 
prospective partners where the necessary 
planning permission is in place are ongoing 
on two further projects. On agreement of terms 
with these partners, 1.3 million tonnes would 
be added to either the reported proven 
reserves or future order book. Progress is 
also being made on two further tip washing 
operations expected to commence in the UK 
in the next two years. 
In addition, a number of projects are being 
actively pursued in Australia. The Directors 
have identified a clear opportunity to build a 
presence in this much larger coal production 
market, where the Group’s successful coal 
recovery techniques are not presently employed.
France
The Group continues to pursue its 
development opportunities in France. 
The Administrative Court in Toulouse has 
found in the Group’s favour on litigation 
brought against the French State after their 
refusal of applications to transfer concessions 
at Bertholene in 1997. The Directors hope that 
this ruling will have significance in progressing 
the French State’s determination of the Group’s 
long outstanding application for a concession 
at Commentry.
Site preparation for a new coal processing plant 
installed at Garleffan. All coal produced is cleaned 
and sorted into different grades prior to despatch 
to customers.
The construction of the conveyor was carefully 
planned to preserve the local environment and 
historic sites. The conveyor was placed on a 
specially made bridge to ensure there was no 
damage to historic lime kilns.
the group has a dual 
strategy of growing coal 
reserves organically...whilst 
continuing to identify suitable 
complementary acquisitions.
“ ATH Resources plc
Annual Report and Accounts 2007
page
08 www.ath.co.uk
The Surface Mining business 
proudly commissioned its 
overland conveyor this year. 
Surface Mining
The Surface Mining business proudly commissioned its overland conveyor this year. The 16km 
conveyor system quietly and efficiently transports coal from the mines to the Company’s rail 
loading facility in East Ayrshire. Through this innovation the majority of the Company’s coal 
can reach its power station customers without using the road system – a saving of hundreds 
of thousands of lorry journeys over the next few years – providing a beneficial community and 
environmental solution.
With imports of coal at record levels, the Company plays an important role in producing local 
coal to the high environmental standards necessary in our modern and sophisticated economy.
The business plays an active part in the local communities in which it operates and has donated 
over £2 million to local community schemes over the last ten years. page
09
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk page
10
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Surface Mining business
cHief executive’s statement
operational review continued
Reserves 
The Group has a dual strategy of growing 
coal reserves organically from its existing 
portfolio whilst continuing to identify suitable 
complimentary acquisitions. Estimated 
reserves of recoverable coal (proven and 
probable) grew by 9% during the year to 
8.6 million tonnes (2006: 7.9 million tonnes) 
despite a year of record production. Current 
planning activity levels will continue to replace 
mined coal with new reserves, securing 
production for the foreseeable future.
Market
Demand for coal in the UK was exceptional 
during 2006 and, as expected returned to 
near previous normal levels in 2007. UK coal 
production meets approximately one third of 
demand, with the balance being imported 
predominantly from Russia, South Africa 
and Colombia. 
International coal prices are at an all time high, 
largely due to soaring demand from China, 
India and smaller developing countries in the 
Far East, leading to severe logistical difficulties, 
particularly at Australian ports that are struggling 
to cope with the required throughputs. 
The conveyor’s modular design ensures 
the system operates quietly and efficiently, 
minimising the environmental impact.
The Skares Road site, having been mined since 
1998, has some fully restored sections which 
include a designated wetland area inhabited by 
aquatic birds and animals.
t he group brought two new 
mines at glenmuckloch 
and laigh glenmuir 
into production.
“
coal reserves at 30 september 2007
  Proven Probable Total 
  Tonnes Tonnes Tonnes 
site  000 000 000
Skares Road  340 — 340
Laigh Glenmuir  360 — 360
Grievehill  60 1,060 1,120
Glenmuckloch  2,510 700 3,210
Muir Dean  — 2,275 2,275
Rigg  — 600 600
t otal surface mining  3,270 4,635 7,905
Grimethorpe  220 — 220
Langton  — 475 475
t otal regeneration  220 475 695
group reserves  3,490 5,110 8,600
The information in this report relating to exploration results, mineral resources 
or mineral reserves is based on information compiled by Mr Peter Morgan, a full 
time employee of the Group, who is a fellow of the Institute of Materials, Minerals 
and Mining. Mr Morgan has sufficient experience which is relevant to the style 
of mineralisation and type of deposit under consideration. He has reviewed and 
consents to the inclusion in the report of the matters based on his information 
in the form and context in which it appears. A glossary of terms is available on 
our website – www.ath.co.uk. www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
11
Although there is currently resistance among 
UK electricity generators to pay these higher 
international coal prices to indigenous producers, 
the Directors expect an outcome that will 
satisfy both producer and generator. 
Consequently, the Directors anticipate a 
prolonged period of higher UK coal prices 
in the medium term. These higher prices for 
coal are already starting to benefit the Group 
as long term supply contracts are renewed. 
The Group holds supply agreements with 
a number of major UK electricity generators. 
These cover the supply of 3.1 million tonnes 
of coal up to 2011. New contract agreements 
have recently been secured for a further 
1.3 million tonnes at a price in 2009/10 
15% above the legacy contract. 
Health and safety
The Board understands the potentially hazardous 
nature of the work undertaken in the Group’s 
operations and takes very seriously its 
responsibilities for health and safety.
Each operational site has a nominated 
and qualified Health and Safety Manager 
and employees are regularly trained in the 
Group’s processes which aim to exceed 
HSE best practice. 
staff
The Board recognises the critical importance 
of its employees in the Group’s continued 
growth and success. The business has a 
skilled, innovative and highly motivated 
workforce approaching a total of 400 and 
the Group continues to deliver structured 
and targeted training programmes to ensure 
staff are competent to carry out their duties.
The Board joins me in thanking all of our 
employees for the efforts they have made 
during the past year of trading.
summary
These strong results reflect a busy period 
for the Group in growing the reserve base 
and identifying important future opportunities, 
particularly for ATH Regeneration in the UK 
and Australia. The Board looks forward to 
delivering value from these opportunities and 
further strengthening the Group’s market position.
t om allchurch
Chief Executive
Regeneration business
The former coal tip at Barnburgh has been 
restored to a mixed wildlife landscape and has 
the Transpennine Way running through the site.
Previously derelict coal tips are restored to various 
uses, including the regeneration of land for use in 
commercial developments. 
atH regeneration 
continues to operate 
ahead of expectations.
“ page
12
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
ATH Regeneration is pre-eminent 
in the field of colliery tip reclamation, 
restoration and regeneration.  page
13
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
ATH Regeneration
Utilising its unique and innovative technology ATH Regeneration is pre-eminent in the field 
of colliery tip reclamation, restoration and regeneration. With end uses such as commercial 
development, infrastructure projects and nature conservation, the Company provides the 
most sustainable as well as the most efficient long term reclamation solutions.
The Company continues to play a vital role in meeting the challenge of regenerating the 
derelict coalfields landscape from the nation’s industrial past to a rejuvenated environment 
with an emphasis on biodiversity and nature conservation in amongst employment and residential 
uses. Whilst remaining at the forefront of UK coalfield regeneration, the Company is now 
seeking to develop opportunities to apply its technology and expertise further afield. page
14
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
financial review
continuing:
The results are presented for the 
52 week period to 30 September 2007 
against a similar period to 1 October 2006 
and incorporate a full year’s trading of 
ATH Regeneration, acquired during 2006. 
The results are presented for the 52 week 
period to 30 September 2007 against a similar 
period to 1 October 2006 and incorporate a full 
year’s trading of ATH Regeneration, acquired 
during 2006.
t urnover
The Group’s turnover for the year was 
£70.5 million (2006 restated: £54.1 million) 
on sales of 2.2 million tonnes (2006: 1.8 million). 
The average coal price was £32 per tonne 
(2006: £30 per tonne).
Turnover on Surface Mining was £57.3 million 
(2006 restated: £48.2 million) and on Regeneration 
was £13.2 million (2006 restated: £5.9 million).
The increase in turnover from Surface 
Mining reflects the greater resources available 
following the opening of the Glenmuckloch 
and Laigh Glenmuir mines to complement 
existing production and the cessation of coaling 
at the Garleffan site in 2006. Regeneration 
provided a full year of production.
The increase in average coal prices reflects 
a full year contribution from Regeneration 
and new contracts with power generators.
Profit before interest and tax
Profit before interest and tax (“PBIT”) was 
£10.3 million (2006 restated: £8.1 million) 
and earnings before interest, tax, depreciation 
and amortisation (“EBITDA”) was £25.1 million 
(2006 restated: £19.2 million).
Return on capital employed of 16% 
(2006 restated: 15%) reflects good cost 
control and careful management of capital 
within the business.
three year trading summary
   Restated Restated 
  2007 2006 2005
Sales (million tonnes)  2.2 1.8 1.5
Average sales price/tonne (£)  32 30 27
  £000 £000 £000
Turnover  70,508 54,126 39,103
Profit before interest and tax  10,263 8,127 6,126
Net interest  (2,425) (984) (698)
Profit before tax  7,838 7,143 5,428
T ax  (2,640) (2,470) (1,840)
Profit after tax  5,198 4,673 3,588
Dividend  4,466 4,335 2,334
Net assets  31,487 30,022 29,208
Dividend per share (pence)  11.25 10.92 6.72
Earnings per share (pence)  13.08 11.77 10.86
Dividend cover  116% 108% 154% www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
15
interest
Net interest of £2.4 million (2006 restated: 
£1.0 million) was charged in the year. Following 
current and prior year plant acquisitions, hire 
purchase interest charges increased to 
£1.1 million (2006 restated: £0.6 million) and 
£0.3 million (2006 restated: £Nil) was charged 
in respect of the unwinding of the discount 
on restoration provisions. Additional investment 
in the asset base and the Regeneration 
acquisition in 2006 resulted in an increase 
in bank loan and overdraft interest charges 
of £1.0 million (2006 restated: £0.4 million).
corporation tax
The effective rate of tax was 34% (2006 restated: 
35%) compared with a standard rate of tax 
of 30%. The difference between the actual 
and standard rate is primarily due to the 
amortisation of acquired goodwill which 
is not allowable against tax.
dividends
The Board is recommending a final dividend 
of 8.24 pence per share (2006: 7.89 pence), 
payable on 18 January 2008, subject to approval 
by the members at the Annual General Meeting 
to be held on 15 January 2008, to members 
on the share register at 21 December 2007.
On approval, the total dividend will be 
11.6 pence per share, an increase of 3% 
on the 2006 figure of 11.25 pence. Under UK 
Accounting rules the proposed final dividend 
has not been accrued as a liability in these 
financial statements.
earnings per share
Earnings per share was 13.08 pence 
(2006 restated: 11.77 pence), an 11% increase 
overall. Fully diluted earnings per share, taking 
into account shares expected to be issued under 
employee option schemes, was 12.88 pence 
(2006 restated: 11.61 pence).
net assets
Net assets were £31.4 million (2006 restated: 
£30.0 million). Investment in fixed assets was 
£12.0 million, with £5.0 million on plant and 
machinery, including the conveyor, £2.3 million 
to acquire development land at Pinxton and 
£4.7 million on the development of new 
Surface Mining assets.
Cash flows
The Group continues to generate strong cash 
flows from its operations with a net cash inflow 
on operations of £23.6 million (2006 restated: 
£17.6 million). Cash outflows on fixed assets, 
£7.1 million (2006 restated: £7.8 million) 
and hire purchase payments, £8.2 million 
(2006 restated: £5.5 million) reflect the Group’s 
capital investment programme. A one-off 
corporation tax payment of £3.9 million relating 
to a pre-acquisition liability of Regeneration 
was made during the year. Overall, net cash 
outflow was £5.3 million (2006 restated: 
£1.2 million).
Net debt at 30 September 2007 was 
£31.6 million (2006 restated: £31.4 million). 
Debt repaid during the year was replaced 
by new hire purchase agreements and bank 
loans. Gearing, defined as net debt divided by 
capital employed, was 50% (2006 restated: 51%).
financing
Following the year end, the Group renegotiated 
its banking facilities with the Royal Bank of 
Scotland in order to take advantage of new 
investment opportunities in both the Surface 
Mining and Regeneration businesses.
The new arrangements include three year loan 
facilities totalling £15 million replacing existing 
term loans of £3 million. Further loans have 
been agreed in principle to finance the capital 
investment required to bring future projects 
and mines into production. 
frs 20 ‘share-based payment’
The Group adopted FRS 20 ‘Share-based 
payment’ in the year which is treated as 
a change in accounting policy under UK 
accounting rules, requiring both current 
and prior year figures to be restated.
On implementation of this new standard, 
the Group’s PBIT was reduced by £0.5 million 
in both 2007 and 2006.
international financial reporting 
standards (“ifrs”)
The Group will fully implement IFRS 
during 2008. Both the Interim Accounts to 
March 2008 and full year Financial Statements 
to September 2008 will be prepared on this 
basis with full comparative information.
The Group has not quantified the full potential 
impact on its earnings of IFRS but the key 
areas identified are noted below.
IFRS 3 ‘Business combinations’
This standard will require the goodwill 
arising on consolidation of the Group’s 
results to cease being charged to profit. 
Instead, the goodwill balance will be subject 
to an annual impairment test.
IFRS 12 ‘Income taxes’
This standard will require a deferred tax 
provision to be created for all differences 
between fair values of assets and liabilities 
and their tax bases which would not normally 
be required under current practice.
steven Beaumont
Finance Director page
16
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Board of directors
01 02
03 04 05
06 07
01 david Port
Non-executive Chairman
David Port qualified as a Chartered Management 
Accountant whilst with National Freight Company 
Limited where he rose to become Group Chief 
Accountant and Divisional Finance Director. 
Following three years at Northern Foods Plc as 
Finance Director of the dairy division, he joined 
British Fuels Limited as Finance Director and rose 
to Chief Executive and Chairman, leading the 
management buyout from British Coal during the 
privatisation process and disposing of the business 
profitably in a trade sale in 1997. From 1997 to 
2001 David was Executive Chairman of Sylvan 
International Limited, a £200 million turnover 
timber business with operations in France. David 
is currently Chairman of Petrol Express Limited, 
Executive Chairman of GNE Limited, Non-executive 
Director of Voller Energy plc, Non-executive Chairman 
of Leach Colour Limited, and Non-executive Chairman 
of WMT Limited. David has been Non-executive 
Chairman of the Group since its establishment 
in 1998.
02 t om allchurch
Chief Executive
Tom Allchurch is a graduate mining engineer 
and has spent his entire career in the development 
and operation of surface coal mines. Tom initially 
trained as a Site Engineer with Shand Mining Limited, 
a contractor to British Coal, before joining Bayford 
Mining Limited, a smaller private mining company, 
in 1986. In 1991 Tom joined Rackwood Colliery 
Company Limited as Projects Manager and was 
responsible for the development of a number of 
UK and French projects including Skares Road. 
T om left Rackwood in 1998 leading the management 
team in acquiring the rights to operate (and 
subsequently acquire) the Skares Road mine. 
Tom was Chairman of the coal industry trade 
association, the Confederation of UK Coal 
Producers, in 2001 and 2002. From 1998 Tom 
was Managing Director of the Group and became 
Chief Executive when the Company listed on AIM.
03 John Hodgson
Marketing Director
John Hodgson commenced his career with the 
National Coal Board in 1964 as a chemist in the 
scientific department from where he progressed to 
Assistant Regional Marketing and Preparation Officer 
in 1975. In 1981 John joined Burnett & Hallamshire 
Fuels plc as Production Director responsible for the 
production and marketing of coal from twelve coal 
washing operations. In 1984 John transferred to 
Rushcliffe Fuels Limited and was Managing Director 
from 1989 to 1993. John joined British Fuels in 
1993 as General Manager of the International 
and Sourcing Division, responsible for sourcing 
the entire company’s solid fuel requirements. 
John joined the Group in 1998 as its Marketing Director . 
John retired from the Board on 31 October 2007 
but remains with the Group as Marketing Director 
of the Surface Mining division.
04 steven Beaumont
Finance Director and Company Secretary
Steven Beaumont is a Chartered Accountant 
having previously worked for Arthur Andersen 
and Deloitte Haskins and Sells. Steven joined the 
Board in October 2006. Prior to joining ATH, he 
spent the majority of his career with United Utilities 
where, from 2001, he held the senior positions 
of both Finance Director, and then Commercial 
Director of United Utilities’ North West Division. 
As Commercial Director he managed over 1,000 
people responsible for the investment delivery 
programme, front line network customer service, 
commercial activities, supply chain, legal and 
business services. He was Group Financial 
Controller from 1998 to 2001. 
05 alistair Black
Operations Director
Alistair Black commenced his training as a Site 
Engineer with Coal Contractors Limited in 1986, 
progressing to Site Manager of the Roughcastle 
North site in 1994. In 1996 Alistair joined Rackwood 
as Regional Production Manager responsible 
for two surface and one underground mine 
in Scotland. Alistair joined the Group in 1998 as 
Operations Manager for the Skares Road mine 
and became Operations Director in 2000. Alistair 
gained his MBA from Heriot Watt University in 1999. 
He is also the Health and Safety Director for the Group.
06 vaughan w illiams
Non-executive Director
Vaughan Williams has a degree in politics from 
Exeter University. Vaughan spent four years at 
British Steel from 1968 to 1972 before joining a 
predecessor company of BHP Minerals Europe 
Limited as Coal Sales Manager, later promoted to 
Director responsible for coal sales in Europe, CIS, 
the Middle East and Africa. Vaughan then moved to 
BHP Coal Australia Pty Limited in 1986 as Manager 
of their marketing operations. After returning from 
Australia, Vaughan became Deputy Managing 
Director at BHP Minerals Europe Limited in 1988 
and subsequently Managing Director in 1990. 
Vaughan then became Vice President Marketing 
at BHP Billiton Diamonds Inc. in 2000 where he 
remained until 2003. He joined the Group in 2004.
07 ivana ridler
Non-executive Director
Ivana is a Vice President of Lexington Partners 
UK Ltd, where she is responsible for private equity 
co-investments in Europe. Ivana was an investment 
executive at Alchemy Partners between 2001 and 
2006 and previously was the Alchemy Plan’s 
representative on the Board until November 2006. 
Before that Ivana worked at Bear Stearns in London 
and New York as an investment banker in the M&A 
team. She holds a masters degree in Business 
Administration and Economics from the University 
of St Gallen, Switzerland.  www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
17
The Directors submit their report and the audited financial statements of ATH Resources plc for the year ended 30 September 2007.
Principal activities
The principal activity of the Company is that of a holding company. The principal activities of the Group are the operation 
of surface coal mines and the recovery of coal via tip washing and its subsequent sale to UK electricity generators, industrial 
and domestic customers. The Group operates under the title of ATH Resources.
Review of developments and future prospects
The Group’s trading performance for the year was in line with Directors’ expectations and is discussed in greater detail 
in the Chief Executive’s Statement. The Directors are pleased with the Group’s progress and believe the businesses are 
ideally placed to continue to develop and mine new prospects.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable 
law and United Kingdom Generally Accepted Accounting Practice (“UK GAAP”). Company law requires the Directors to 
prepare financial statements for each financial year which give a true and fair view, in accordance with UK GAAP , of the state 
of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing those financial 
statements, the Directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent; 
  state whether applicable accounting standards have been followed, subject to any material departures disclosed and 
explained in the financial statements; and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will 
continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time 
the financial position of the Company and to enable them to ensure that the financial statements comply with the requirements 
of the Companies Act 1985. They are responsible for safeguarding the assets of the Group and hence for taking reasonable 
steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
Group’s website. Legislation in the United Kingdom governing the preparation and dissemination or financial statements may 
differ from legislation in other jurisdictions.
Directors’ indemnities
The Group made third party indemnity provisions for the benefit of its Directors for the whole of the year, which continue 
to remain in force.
Directors
The Directors in office during the period under review were:
         
        
D C Port         
T J Allchurch         
A Black         
S Beaumont (appointed 9 October 2006)        
J K Hodgson (resigned 31 October 2007)        
R A Croston (resigned 9 October 2006)         
V M F Williams         
I Ridler         
During the year, Mrs Ivana Ridler left the Alchemy Investment Plan Co-Investment Scheme and became an Independent 
Non-executive Director.
DiRectoRS’ RePoRt  page
18
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Substantial shareholdings
The Company has been informed that on 30 November 2007 the following shareholders held substantial holdings in the issued 
ordinary shares of the Company:
        Number of  
        ordinary  Holding 
        shares %
 Alchemy Partners Nominees Limited         7,546,059 19
 AXA Framlington Extra Income Trust         3,700,000 9
 Artemis High Income Fund         3,256,097 8
 Rathbones Income Fund         3,094,999 8
 Mr T J Allchurch         1,749,181 4
 Midas Balanced Income Fund         1,425,000 4
 Shires Incomes plc         1,250,000 3
Statement as to disclosure of information to auditors
The Directors who were in office on the date of approval of these financial statements have confirmed, as far as they are 
aware, that there is no relevant audit information of which the auditors are unaware. Each of the Directors have confirmed 
that they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any 
relevant audit information and to establish that it has been communicated to the auditor.
Key performance indicators (“KPis”)
The Board monitors the Group’s progress and financial performance on a regular basis. Performance is assessed against 
budget using financial and non-financial measures. The following are the most significant KPIs used by the Group:
         Restated 
        2007 2006
Sales price – revenue earned per tonne of coal sold (£)      32 30
Cost price – operating cost per tonne of coal sold (£)      23 22
Coal reserves – the volume of coal which is classed as permitted or probable reserves (million tonnes)  8.6 7.9
Health and safety – number of reportable accidents (number)      8 6
Environmental incidents – breaches of environmental legislation (number)    Nil Nil
Return on capital employed – profit before interest and tax divided by capital employed (%)   16 15
Principal risks and uncertainties facing the Group
Replacement of production
The Group’s operations have a finite life due to the geology of each site and will become exhausted at some point in the future. 
Production is replaced through the development or acquisition of new sites and extensions to existing sites.
Exploration and development
The exploration for, and development of, coal deposits involves significant risks, which are managed through the combination 
of careful evaluation, experience and knowledge. Not all properties which are explored are ultimately developed into producing 
mines. There can be no guarantee that estimates of quantities and qualities made will be realised or that appropriate consents 
will be granted. With all mining operations there is uncertainty and therefore risks associated with operating parameters and costs. 
General mining and processing risks
The Group’s operations are subject to all of the hazards and risks normally encountered in the exploration, development and 
production of coal. Appropriate levels of site investigation are undertaken to minimise the risk but these risks could include 
unusual and unexpected geological formations, geo-technical instability, flooding and other conditions involved in the 
extraction of material.
DiRectoRS’ RePoRt  www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
19
Principal risks and uncertainties facing the Group continued
Volatility of price of coal
The market price of coal is volatile and is affected by numerous factors which are beyond the Group’s control. These include 
international supply and demand, the level of consumer product demand, international economic trends, currency exchange 
rate fluctuations, the level of interest rates, the rate of inflation, the cost of freight, global or regional political events and international 
events as well as a range of other market forces. This volatility is managed through the entering into of long term, fixed price, 
supply agreements with electricity generating companies.
Environmental issues
The Group’s activities and the markets in which it operates are subject to environmental regulation. Such regulations typically 
cover a wide variety of matters including prevention of waste, pollution and protection of the environment. The risk is managed 
by daily inspections of all operations with a potential to cause environmental breaches and by careful design of the operations 
to mitigate any potential risk.
Health and safety
The Group’s activities are, and will continue to be, subject to health and safety standards and regulations. Failure to comply 
with such requirements may result in fines, penalties and/or litigation. Risk assessments are carried out by management as 
well as retaining the services of external risk consultants to identify any potential risks and ensure safe methods of working.
Financial instruments
Details relating to financial instruments are given in the Corporate Governance Report on page 21.
employees
The Directors recognise the importance of the Group’s employees in the success of the business. 
The Group is committed to equal opportunities in employment and seeks to ensure that all current employees or applicants 
are treated equally regardless of age, sex, nationality, race, colour, creed or disability.
The Directors retain regular contact with employees using both formal and informal lines of communication to ensure relevant 
financial and operational information is disseminated. Regular meetings take place to allow employees of all levels to 
contribute to the Group’s development. 
Payment policy
It is the Group’s policy to pay suppliers in accordance with agreed terms, provided the supplier has also complied with 
agreed terms and conditions. At 30 September 2007, the trade creditors of the Group represented 50 days (2006: 50 days) 
of purchases.
Auditors
The Directors, having been notified of the cessation of the partnership known as Baker Tilly, resolved that Baker Tilly UK Audit LLP 
be appointed successor auditor with effect from 1 April 2007, in accordance with the provisions of the Companies Act 1989, 
s26(5). Baker Tilly UK Audit LLP has indicated its willingness to continue in office as auditors of the Company, and a resolution 
to that effect will be proposed at the Annual General Meeting.  
By order of the Board
S Beaumont
Group Finance Director and Company Secretary
4 December 2007  page
20
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
introduction
Although the rules of AIM do not require the Company to comply with the Combined Code on Corporate Governance 
(“the Code”), the Company fully supports the principles set out in the Code and will attempt to comply wherever possible, 
given both the size and resources available to the Company. Details are provided below of how the Company applies 
the Code.
the Board
At the start of the year, the Board of Directors comprised four Executive Directors, two independent Non-executive Directors, 
one of whom is the Chairman and an Alchemy Plan nominated Non-executive Director. During the year, the Director nominated 
by the Alchemy Plan left Alchemy and became an independent Non-executive Director. The Alchemy Plan did not nominate a 
new Director but retains the right to do so. If the Alchemy Plan’s shareholding in the Company falls below 10% of the issued 
share capital, the right to appoint ceases. After the year end, Mr John Hodgson retired as an Executive Director reducing 
the number of Executive Directors to three. It is not intended that John will be replaced on the Board in the short term.
Mr Richard Croston resigned as an Executive Director on 9 October 2006 following the appointment of Mr Steven Beaumont. 
Richard continued to work for the Group until May 2007.
The Board generally meets each month and receives a Board pack comprising individual reports from each of the 
Executive Directors, together with any other material deemed necessary for the Board to discharge its duties. It is the 
Board’s responsibility for formulating, reviewing and approving the Group’s strategy, budgets, major items of expenditure 
and acquisitions.
During the year to 30 September 2007 the Board met a total of eleven times.
Board committees
The Board has established three committees; Audit, Remuneration and Nominations, all having written terms 
of delegated responsibilities.
Audit Committee
The Audit Committee comprises the three Non-executive Directors and is scheduled to meet twice a year. It is the 
Audit Committee’s role to provide formal and transparent arrangements for considering how to apply the financial 
reporting and internal control requirements of the Code, whilst maintaining an appropriate relationship with the 
independent auditors of the Group. In order to comply with the requirement of the Code that at least one member 
has relevant financial experience, the Chairman of the Board sits on the Audit Committee.
During the year to 30 September 2007 the Audit Committee met on two occasions.
Remuneration Committee
The Remuneration Committee comprises the three Non-executive Directors and the Chief Executive and meets at least once 
a year, normally in June. It is the Remuneration Committee’s role to establish a formal and transparent policy on Executive 
remuneration and to set remuneration packages for individual Directors.
During the year to 30 September 2007 the Remuneration Committee met on six occasions.
Nominations Committee
The Nominations Committee comprises the three Non-executive Directors and the Chief Executive and meets as required 
to consider and make recommendations on the appointment of Directors to the Board.
Shareholder relations
The Company meets with its institutional shareholders and analysts as appropriate and encourages communication with 
private shareholders via the Annual General Meeting. In addition, the Company uses the Annual Report and Accounts, 
Interim Statement and website (www.ath.co.uk) to provide further information to shareholders.
The Board considers Mr Vaughan Williams to be the Senior Independent Director.
coRPoRA te GoveRNANce RePoRt www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
21
internal control and risk management
The Board is responsible for the system of internal control and for reviewing its effectiveness. Such systems are designed 
to manage rather than eliminate risks and can provide only reasonable and not absolute assurance against material 
misstatement or loss. Each year, on behalf of the Board, the Audit Committee reviews the effectiveness of these systems. 
This is achieved primarily by considering the risks potentially affecting the Group and discussions with the external auditors.
The Group does not currently have an internal audit function due to the small size of the administrative function, which 
amounts to six people, and the high level of Director review and authorisation of transactions.
A comprehensive budgeting process is completed once a year and is reviewed and approved by the Board. The Group’s 
results, as compared against budget, are reported to the Board on a monthly basis and discussed in detail at each meeting 
of the Board.
The Group maintains appropriate insurance cover in respect of legal actions against the Directors as well as against material 
loss or claims against the Group and reviews the adequacy of the cover regularly.
Financial instruments
Currency risks
The Group does not have any direct exposure to currency risk as all of the Group’s business is conducted within the UK.
Interest rate risk
The Group uses fixed rate hire purchase agreements in order to hedge its interest rate risk.
Price risk
The Group uses a mixture of short term and fixed price long term contracts with suppliers and customers to manage 
its exposure to variation in market prices.
Credit risk
The Group trades predominantly with long standing customers, the nature of these relationships assist management 
in controlling its credit risk in addition to the normal credit management. In addition the Group carries credit insurance 
against material loss from the failure of a customer to pay.
Liquidity
Management control and monitor the Group’s cash flow on a regular basis, including forecasting future cash flows. page
22
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
introduction
Companies trading on AIM are not required to provide a formal remuneration report. However, in line with current best practice 
this report provides information to enable a greater level of understanding as to how Directors’ remuneration is determined. 
The Remuneration Committee of the Board is responsible for considering Directors’ remuneration packages and makes its 
recommendations to the Board. The Committee comprises the three Non-executive Directors and meets at least once a year, 
normally in June. 
Remuneration policy
Remuneration packages are designed to be competitive and to reward above average performance. Executive Directors 
receive salary, fully financed Company car, death in service benefit, critical illness and medical cover, pension contribution, 
annual bonuses and share options.
Service contracts
The Executive Directors have service agreements with the Company. Mr T om Allchurch, Mr John Hodgson and Mr Alistair Black’s 
agreements are dated 28 November 2003 for an initial twelve months, thereafter subject to termination upon twelve months’ 
notice being given by either party. Mr Steven Beaumont’s agreement is dated 9 October 2006 with an initial notice period 
of six months which increased to twelve months after one year’s service.
Pensions
The Group does not have a pension scheme, instead makes contributions to Executive Directors’ personal pension schemes 
of 12.5% of annual salary.
Non-executive Directors
The Non-executive Directors entered into Letters of Appointment dated 12 May 2004. Both Mr David Port and Mr Vaughan Williams 
were appointed for an initial three year term, which can be terminated upon six months’ notice being given by either party. 
They receive a fee of £65,488 and £26,514 respectively. Until October 2006 Mrs Ivana Ridler was the Alchemy Plan nominated 
Non-executive Director. Mrs Ivana Ridler was appointed an independent Non-executive on 31 October 2006 for an initial three 
year term. She received a fee of £22,367. The Group paid fees and expenses of £7,769 (2006: £23,239) to Alchemy Partners 
in the year. 
Directors’ remuneration
Details of Directors’ remuneration are set out below:
      Sub-total   2007 2006 
   Salary Benefits Bonus  emoluments  Pension t otal Total 
   £000 £000 £000 £000 £000 £000 £000
executive Directors       
T J Allchurch   193 17 43 253 24 277 197
J K Hodgson (resigned 31 October 2007)  83 10 16 109 10 119 104
R A Croston (resigned 9 October 2006)   2 1 — 3 — 3 100
A Black   122 14 24 160 15 175 109
S Beaumont (appointed 9 October 2006)  138 29 — 167 18 185 —
M T W Tod (resigned 23 June 2006)   — — — — — — 95
Non-executive Directors       
D C Port   65 — — 65 — 65 52
V M F Williams   27 — — 27 — 27 21
I Ridler   22 — — 22 — 22 —
t otal   652 71 83 806 67 873 678
Mr Richard Croston resigned as an employee of the Group in May 2007 and received a payment of £55,703 in respect of loss 
of office.
Performance incentives
The Group operates an annual cash bonus scheme and grants share options.
The annual bonus scheme provides for a maximum bonus of 30% of salary to be paid by reference to: achievement 
of a Group earnings target (10%); surpassing the earnings target (10%) and individual personal targets (10%).
RemuNeRA tioN committee RePoRt  www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
23
Performance incentives continued
The Company has the following share incentive arrangements:
 an Inland Revenue Approved Executive Share Option Scheme (“Approved Scheme”);
 an Unapproved Executive Share Option Scheme (“Unapproved Scheme”); and
 a Long Term Incentive Plan (“LTIP”) (together “the Schemes”).
None of the option shares or LTIP require payment to be made by participants to receive the benefit of an option.
Directors’ interests in share options
The options and awards have been granted pursuant to the Schemes to the following Directors:
  Number of share options  Performance period  Exercisable
 Exercise  1 October     30 September   Performance 
 price 2006 Revised Granted Lapsed 2007 from to target from to
t J Allchurch            
Approved £1.46 20,134 337 — —  20,471 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 335,000 5,614 — — 340,614 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 88,003 — — — 88,003 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
LTIP £0.00 335,000 25,949 — (360,949) — 1 Oct 03 30 Sep 07 64.42 12 Jun 09 10 Jun 14
LTIP £1.70 88,003 — — — 88,003 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
t otal  866,140 31,900 — (360,949) 537,091     
J K Hodgson
Approved £1.46 20,134 337 — — 20,471 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 150,000 2,513 — — 152,513 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 41,068 — — — 41,068 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
LTIP £0.00 170,000 2,849 — (172,849) — 1 Oct 03 30 Sep 07 64.42 12 Jun 09 10 Jun 14
LTIP £1.70 41,068 — — — 41,068 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
t otal  422,270 5,699 — (172,849) 255,120
R A croston
Approved £1.46 20,134 337 — — 20,471 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 150,000 2,513 — — 152,513 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 41,068 — — — 41,068 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
LTIP £0.00 170,000 2,849 — (172,849)  — 1 Oct 03 30 Sep 07 64.42 12 Jun 09 10 Jun 14
LTIP £1.70 41,068 — — — 41,068 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
t otal  422,270 5,699 — (172,849) 255,120
A Black
Approved £1.46 20,134 337 — — 20,471 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 150,000 2,513 — — 152,513 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 41,068 — — — 41,068 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
LTIP £0.00 170,000 2,849 — (172,849) — 1 Oct 03 30 Sep 07 64.42 12 Jun 09 10 Jun 14
LTIP £1.70 41,068 — — — 41,068 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
t otal  422,270 5,699 — (172,849) 255,120
S Beaumont
Approved £1.95 — — 15,384 — 15,384 1 Oct 06 30 Sep 09 55.40 08 Jan 10 07 Jan 17
Unapproved £1.95 — — 84,616 — 84,616 1 Oct 06 30 Sep 09 55.40 08 Jan 10 07 Jan 17
LTIP £1.75 — — 100,000 — 100,000 1 Oct 06 30 Sep 10 75.70 08 Jan 12 07 Jan 17
t otal  — — 200,000 — 200,000     page
24
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Directors’ interests in share options continued
The performance target is cumulative pre-tax earnings per share. 
The number of options available to the members of the Approved Scheme with performance period from 1 October 2003 
to 30 September 2006, the Unapproved Scheme with performance period from 1 October 2003 to 30 October 2006 and 
the LTIP Scheme with performance period from 1 October 2003 to 30 September 2007 have been amended during the year 
following agreement of the schemes with the Inland Revenue. The revision to the number of options available was due to 
a previous share rights issue in 2005 as set out in the ‘Revised’ column on the table. 
The performance targets for the Approved and Unapproved Schemes with performance periods ending 30 September 2006 
were achieved and the options have vested.
The performance target for the LTIP Scheme ending on 30 September 2007 was not achieved and these options have 
now lapsed. 
No Directors exercised any options during the period.
v m F Williams
Chairman of the Remuneration Committee
4 December 2007
RemuNeRA tioN committee RePoRt  www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
25
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable 
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in 
the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared 
in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the 
Directors’ Report is consistent with the financial statements. The information given in the Directors’ Report includes that 
specific information presented in the Chairman’s Statement, the Chief Executive’s Statement, the Financial Review, 
the Corporate Governance Report and the Remuneration Committee Report.
In addition we report to you, if in our opinion, the Company has not kept proper accounting records, if we have not received 
all the information and explanations we require for our audit, or if information specified by law regarding Directors’ remuneration 
and other transactions is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial 
statements. The other information comprises only the Chairman’s Statement, the Chief Executive’s Statement, the Financial 
Review and the Directors’ Report. We consider the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with the International Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of evidence relating to the amounts and disclosures in the 
financial statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the 
preparation of the financial statements, and of whether the accounting policies are appropriate to the Group’s and Company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the relevant information and explanations which we consider 
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free 
from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated 
the overall adequacy of the presentation of the information in the financial statements. 
Opinion
In our opinion: 
  the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting 
Practice, of the state of the Group’s and Company’s affairs as at 30 September 2007 and of the Group’s profit for the year 
then ended and have been properly prepared in accordance with the Companies Act 1985; and
 the information given in the Directors’ Report is consistent with the financial statements.
Baker Tilly UK Audit LLP
Registered Auditor
Chartered Accountants
Leeds
4 December 2007 
InDePenDenT AUDITORs’ RePORT
to the members of ATH Resources plc page
26
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
         Restated 
        2007 2006 
       Notes £000 £000
t urnover       1 70,508   54,126
Cost of sales        (50,856) (40,470)
Gross profit        19,652 13,656
Administrative expenses        (9,460)  (5,575)
Other operating income        129 18
Operating profit       2 10,321 8,099
(Loss)/profit on disposal of fixed assets        (58) 28
Profit on ordinary activities before interest       10,263 8,127
Interest receivable       3 23 65
Interest payable and similar charges       4 (2,448) (1,049)
Profit on ordinary activities before taxation       7,838 7,143
T ax on profit on ordinary activities       6 (2,640) (2,470)
Profit on ordinary activities after taxation      18 5,198 4,673
Basic earnings per share       7 13.08p 11.77p
Diluted earnings per share       7 12.88p 11.61p
The profit on ordinary activities before taxation arises from the Group’s continuing activities.
There are no recognised gains or losses other than as stated in the profit and loss account.
 
coNSoLiDA teD PRoFit AND L oSS AccouNt
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
27
      2007  Restated 2006
     Notes £000 £000 £000 £000
Fixed assets       
Goodwill     8  6,376  7,169
Tangible fixed assets     9  64,356  65,143
Investments     10  1  1
       70,733  72,313
current assets      
Stocks     11 7,793  6,762 
Debtors     12 11,229  8,796 
Cash at bank      64  — 
      19,086  15,558 
creditors: amounts falling due within one year    13 (29,216)  (28,555)  
Net current liabilities       (10,130)  (12,997)
t otal assets less current liabilities       60,603  59,316
creditors: amounts falling due after more than one year   14  (13,467)  (16,602)
Provisions for liabilities and charges    16  (15,699)  (12,692)
Net assets       31,437  30,022
capital and reserves       
Called up share capital     17  199  198
Share premium account     18  27,563  27,341
Share-based payment reserve     18  1,313  853
Profit and loss account     18  2,362  1,630
equity shareholders’ funds     20  31,437  30,022
The financial statements on pages 26 to 44 were approved by the Board of Directors and authorised for issue on 4 December 2007 
and are signed on its behalf by:
S Beaumont
Finance Director
 
coNSoLiDA teD BALANce SHeet
as at 30 September 2007 page
28
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
      2007  Restated 2006
     Notes £000 £000 £000 £000
Fixed assets       
Investments     10  8,907  5,907
current assets       
Debtors: due in less than one year     12 394  256
 : due after more than one year      51,753  50,266 
Cash at bank      —  1,285 
      52,147  51,807 
creditors: amounts falling due within one year    13 (5,591)  (4,100) 
Net current assets       46,556  47,707
t otal assets less current liabilities       55,463  53,614
creditors : amounts falling due after more than one year   14  (22,976)  (22,687)
Net assets       32,487  30,927
capital and reserves       
Called up share capital     17  199  198
Share premium account     18  27,563  27,341
Share-based payment reserve     18  1,313  853
Profit and loss account     18  3,412  2,535
equity shareholders’ funds     20  32,487  30,927
The financial statements on pages 26 to 44 were approved by the Board of Directors and authorised for issue on 4 December 2007 
and are signed on its behalf by:
S Beaumont
Finance Director
comPANY BALANce SHeet
as at 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
29
      2007  Restated 2006
     Notes £000 £000 £000 £000
Net cash flow from operating activities    23a  23,580  17,601
Returns on investment and servicing of finance       
Interest received      23  65 
Interest paid      (1,077)  (423) 
Interest element of finance leases      (1,107)  (626) 
       (2,161)  (984)
t axation paid       (5,234)  (640)
capital expenditure      
Payments to acquire tangible fixed assets     (7,120)  (7,838) 
Receipts from sales of tangible fixed assets     352  376 
Acquisition         
Cash acquired with subsidiary      —  22,321 
Purchase of business      (1,000)  (25,944) 
       (7,768)  (11,085)
equity dividends paid       (4,466)  (4,335)
Cash flow before financing       3,951  557
Financing      
Issue of ordinary shares      223  — 
New secured loan      1,602  5,500 
Repayment of secured loan      (2,784)  (1,793) 
Capital element of finance lease payments     (8,248)  (5,460) 
       (9,207)  (1,753)
Decrease in cash     23c  (5,256)  (1,196)
coNSoLiDA teD cASH FL oW St AtemeNt
for the year ended 30 September 2007 page
30
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable 
accounting standards.
Basis of preparation
The Group has net current liabilities of £10,130,000 (2006: £12,997,000). The Group meets its day to day working capital 
requirements through an overdraft facility which is repayable on demand.
The Directors have prepared cash flow projections for the coming twelve months which show that the margin of cash 
requirements is within the Group’s existing borrowing facilities. On the basis of this cash flow information, the Directors 
consider that the Group will continue to operate within the facility currently and anticipated to be available to the Group. 
On this basis, the Directors consider it is appropriate to prepare the financial statements on the going concern basis. 
The financial statements do not include any adjustments that would result from this not being the case.
Accounting period
The Company has drawn up its accounts for the 52 week period to 30 September 2007 (52 week period to 1 October 2006).
consolidation
The accounts utilise the acquisition method to consolidate the accounts of the Company and all of its subsidiary undertakings 
other than as stated below. The accounts do not consolidate the results of the French subsidiary, Société des Ressources 
Minières du Massif Central (“SRMMC”), as it is not material for the purposes of giving a true and fair view (note 10).
Aardvark TMC Limited (“Aardvark”) has 20,000 ‘B’ ordinary shares, not owned by ATH Resources plc, subscribed at nominal 
value of 1 pence each, in addition to the ordinary shares wholly owned by ATH Resources plc.
The ‘B’ ordinary shares only carry the rights to receive a one off dividend in the event that Aardvark TFC Limited or SRMMC 
(Aardvark’s subsidiary and sub-subsidiary) are awarded damages in respect of existing and future litigation against the 
French State. The ‘B’ ordinary shares carry no voting rights or rights to receive any other dividend. As a result, the ‘B’ ordinary 
shares are not accounted for as a minority interest as it is not material for the purposes of giving a true and fair view.
The Company has not presented its own profit and loss account, as permitted by Section 230(4) of the Companies Act 1985.
mine development costs
The costs of prospecting and identifying new sites are expensed until such time that a prospective site is considered by the 
Board to be economically viable and that there is a high degree of probability and commitment that the site will be worked. 
Costs then incurred in preparing and developing sites are capitalised up to the start of production. Upon commencement 
of production, depreciation is charged on a tonnage basis.
Goodwill
Consolidated goodwill, being the excess consideration over the fair values of the assets acquired on the purchase of subsidiary 
undertakings, is capitalised and charged to profit over ten years as, in the opinion of the Directors, this represents the period 
over which the goodwill is effective.
Tangible fixed assets
Depreciation is provided on cost in annual instalments over the estimated useful life of assets which are reviewed annually. 
The rates of depreciation are as follows:
Freehold land   Not depreciated
Freehold buildings   Depreciated to their estimated residual value over their estimated remaining 
economic lives – 20 years
Mine purchase and development T onnage basis over the estimated total recoverable reserve
Plant and machinery  10 – 50%
AccouNtiNG PoLicieS www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
31
Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value.
Finance leases and hire purchase contracts
Tangible assets acquired under finance leases and hire purchase contracts are capitalised at the estimated fair value at 
the date of inception of each lease or contract. The total finance charges are allocated over the period of the lease in such 
a way as to give a reasonably constant charge on the outstanding liability.
operating lease agreements
Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, 
are charged against profits on a straight line basis over the period of the lease.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date 
where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have 
occurred at the balance sheet date. Timing differences are differences between the Group’s taxable profits and its results as 
stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from 
those in which they are recognised in the financial statements.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are 
expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. 
Deferred tax is measured on a non-discounted basis.
Pension contributions
The Group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their 
personal pension policies. The contributions due for the period are charged to the profit and loss account.
Final void provisions
Following the conclusion of coal extraction the final working void of a surface coal site must be back filled. The total cost of 
this operation is recognised as a provision on site commissioning when the obligation arises. The amount provided represents 
the present value of the expected costs. Costs are charged to the provision as incurred and the unwinding of the discount, 
being the difference between the present value and the total cost of the provision, is included in the interest charge for the 
period. An asset is created for an amount equivalent to the initial provision. This is charged to the profit and loss account 
on a tonnage basis over the estimated life of the recoverable reserves.
t urnover
Turnover is recognised at the fair value of the consideration received or receivable for sale of goods in the ordinary nature 
of the business. Turnover is shown net of Value Added Tax, of goods sold to customers outside the Group.
employee share schemes
The Company operates a number of share-based incentives as outlined in the Remuneration Committee’s Report. The cost 
of awards to employees, being the difference between the market price at the date of award and the amount of consideration 
due, is recognised over the period of the employee’s related performance where there is a reasonable expectation that the 
performance criteria will be met. page
32
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
FRS 20 ‘Share-based payment’
During the year the Group adopted FRS 20 ‘Share-based payment’. The adoption of this standard constitutes 
a change in accounting policy and therefore the impact has been reflected as a prior year adjustment in accordance 
with FRS 3 ‘Reporting financial performance’.
The standard requires that where shares or rights to shares are granted to third parties, including employees, a charge should 
be recognised in the profit and loss account based on the fair values of the shares at the date the grant of shares or right to 
shares is made. The Group operates share option schemes for senior executives which are required under the standard to 
be valued and charged against profit before tax.
The effect of the adoption of FRS 20 on prior year comparatives is to reduce operating profit by £480,000 in the year 
to 1 October 2006. Operating profit in the year to 30 September 2007 is reduced by £460,000.
A corresponding reserve is created in the balance sheet – Share-based payment reserve – which is a distributable reserve. 
In addition, a deferred tax credit is recognised in the profit and loss account to reflect tax relief available when the options 
are exercised. The impact on net assets is an increase of £255,855 for the period ended 1 October 2006 and an increase 
of £393,855 for the period ended 30 September 2007.
Financial instruments
Income and expenditure arising on financial instruments are recognised on an accruals basis and credited or charged 
to the profit and loss account in the financial period to which they relate.
investments
Investments are stated at cost and provision is made for any impairment in the value of fixed asset investments.
AccouNtiNG PoLicieS www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
33
1 t urnover and segmental reporting
The Group’s turnover was derived from its principal activity undertaken wholly within the UK.
2 Operating profit
         Restated 
        2007 2006 
        £000 £000
Operating profit is stated after charging:  
Depreciation of tangible assets  – owned assets      9,005 6,925
  – leased assets      4,643 3,299
Amortisation of goodwill arising on consolidation       793 396
FRS 20 ‘Share-based payment’ charge        460 480
Rentals under operating leases  – plant and machinery     259 355
  – land and buildings      17 —
Auditors’ remuneration 
Associates of Baker Tilly UK Audit LLP
 – audit       50 —
 – tax and advisory      20 —
 – employee benefits      10 —
        80 —
Associates of Baker Tilly  
 – audit       — 38
 – tax and advisory      — 16
 – corporate finance      — 3
        — 57
3 interest receivable
         Restated 
        2007 2006 
        £000 £000
Other interest receivable        23 65
4 interest payable and similar charges
         Restated 
        2007 2006 
        £000 £000
Bank overdraft and loan interest        1,077 423
Finance leases and hire purchase contracts interest      1,107 626
Final void provision discount        264 —
        2,448 1,049
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 page
34
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
5 employees
         Restated 
        2007 2006 
Staff costs during the year (including Directors)       £000 £000
Wages and salaries        12,663 9,541
Social security costs        1,442 955
Pension costs        211 148
        14,316 10,644
         Restated 
        2007 2006 
Average number of employees        No. No.
Office and management        63 43
Production        321 236
        384 279
         Restated 
        2007 2006 
Directors’ emoluments        £000 £000
Directors’ emoluments        806 619
Pension contributions        67 59
        873 678
         Restated 
        2007 2006 
Highest paid Director        £000 £000
Emoluments        253 178
Pension contributions        24 19
        277 197
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
35
6 t axation
         Restated 
        2007 2006 
Group        £000 £000
corporation tax:   
Current year        1,173 1,491
Adjustment to prior year        (337) 72
Deferred taxation        1,804 907
        2,640 2,470
The tax assessed for the year is lower than the standard rate of corporation tax as explained below:
         Restated 
        2007 2006 
Group        £000 £000
Profit on ordinary activities before taxation       7,838 7,143
Profit on ordinary activities multiplied by standard rate of tax for the period of 30%    2,351 2,143
Effect of expenses not allowable for tax purposes       448 357
Effect of depreciation in excess of capital allowances      (1,764) (1,135)
Effect of short term timing differences        138 126
t otal current tax        1,173 1,491
7 earnings per share
Basic earnings per share is calculated on profit after tax of £5,198,000 (2006 restated: £4,673,000) and a weighted average 
number of shares of 39,728,508 (2006: 39,693,568). The diluted earnings per share takes account of share options 
outstanding to employees as set out below:
        Restated 
       2007 2006 
Group       No. No.
Weighted average number of shares in issue     39,728,508 39,693,568
Weighted average number of dilutive share options     619,714 550,714
Total number of shares for calculating diluted earnings per share   40,348,222 40,244,282 page
36
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
8 Goodwill
         Restated 
Group         £000
cost 
1 October 2006 and 30 September 2007        7,926
Amortisation 
1 October 2006         757
Charge in the year         793
30 September 2007         1,550
Net book value 
30 September 2007         6,376
1 October 2006         7,169
9 Tangible fixed assets
     Mine   
   Freehold   purchase    
   land and    and   Plant and  
   buildings   development  machinery  Total  
Group   £000  £000  £000  £000
cost       
1 October 2006   3,261  38,009  41,775  83,045
Recognised in the year   —  1,275  —  1,275
Additions   2,300  4,673  5,023  11,996
Disposals   —  —  (2,079)  (2,079)
30 September 2007   5,561  43,957  44,719  94,237
Depreciation
1 October 2006    29  11,777  6,096  17,902
Charge in the year   37  7,590  6,021  13,648
Disposals   —  —  (1,669)  (1,669)
30 September 2007   66  19,367  10,448  29,881
Net book value
30 September 2007   5,495  24,590  34,271  64,356
1 October 2006    3,232  26,232  35,679  65,143
Finance leases and hire purchase contracts       
Depreciation charge   —  —  4,643  4,643
Net book value    —  —  24,831  24,831
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
37
10 investments
        Group  Company  
investments in subsidiary undertakings        £000 £000
cost  
1 October 2006 – Restated        — 5,907
Additions        — 3,000
30 September 2007        — 8,907
other investments  
cost  
1 October 2006 and 30 September 2007       1 —
   Proportion   
 Country of Type of   of voting Proportion of  Nature of  
 registration shares rights held shareholding business
Name of company directly owned     
Aardvark TMC Limited England Ordinary 100% 100% Surface coal mining
ATH Garleffan Limited England Ordinary 100% 100% Surface coal mining
ATH Regeneration Limited England Ordinary 100% 100% Land remediation
Held by subsidiary     
A Ogden & Sons Limited England Ordinary 100% 100% Land remediation
Aardvark TFC Limited England Ordinary 100% 100% Intermediary holding 
     company
Société des Ressources Minières  
du Massif Central (“SRMMC”) France Ordinary 100% 100% Coal prospecting
Aardvark TMC Limited has 20,000 ‘B’ ordinary shares, subscribed at nominal value of 1 pence each, in addition to the ordinary 
shares wholly owned by ATH Resources plc.
The ‘B’ ordinary shares carry the rights only to receive a one off dividend in the event that its subsidiary, Aardvark TFC Limited, 
or its subsidiary SRMMC, are awarded damages in respect of the existing and future litigation against the French State. The ‘B’ 
ordinary shares carry no voting rights or rights to receive any other dividend. As a result the ‘B’ ordinary shares are not 
accounted for as a minority interest.
Aardvark TFC Limited had share capital and reserves at 30 September 2007 of £1 (2006: £1).
SRMMC share capital and reserves at 31 December 2006 were €48,122 and the Company incurred a loss of €53,994 during 
that year. The Group provided funding to the Company of £100,700 (2006: £44,280) during the year to 30 September 2007, 
which has been charged to profit. There were no balances owing at the balance sheet date.
Aardvark TFC Limited and SRMMC are not consolidated in the accounts as they are not considered material for the purposes 
of giving a true and fair view. page
38
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
11 Stocks
      2007  Restated 2006
      Group company Group Company 
      £000 £000 £000 £000
Coal stocks      2,887 — 1,703 —
Work in progress      3,857 — 4,201 —
Other stocks      1,049 — 858 —
      7,793 — 6,762 —
12 Debtors
      2007  Restated 2006
      Group company Group Company 
      £000 £000 £000 £000
Amounts due from subsidiary undertakings     — 51,753 — 50,266
Trade debtors      10,817 — 8,257 —
Deferred tax      — 394 — 256
Prepayments and accrued income      376 — 240 —
Other debtors      36 — 299 —
      11,229 52,147 8,796 50,522
13 creditors: amounts falling due within one year
      2007  Restated 2006
      Group company Group Company 
      £000 £000 £000 £000
Bank loan (note 14)      2,747 2,675 4,172 4,100
Bank overdraft      8,158 2,896 2,838 —
Finance leases and hire purchase contracts (note 14)    7,418 — 7,837 —
Trade creditors      5,354 — 5,777 —
Corporation tax      712 — 5,110 —
Other taxation and social security      2,968 — 386 —
Other creditors      307 — 136 —
Deferred consideration      — — 1,000 —
Accruals and deferred income      1,552 20 1,299 —
      29,216 5,591 28,555 4,100
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
39
14 creditors: amounts falling due after more than one year
      2007  Restated 2006
      Group company Group Company 
      £000 £000 £000 £000
Bank loan      753 289 510 —
Finance leases and hire purchase contracts     12,539 — 16,092 —
Other creditors      175 — — —
Amounts due to subsidiary undertaking      — 22,687 — 22,687
      13,467 22,976 16,602 22,687
Amounts included above are repayable over varying periods by monthly instalments as follows:
        Finance leases and  
      Bank loan  hire purchase contracts
       Restated  Restated 
      2007 2006 2007 2006 
      £000 £000 £000 £000
Within one year      2,747 4,172 7,418 7,837
More than one year but not more than two years     362 122 5,860 6,393
More than two years but not more than five years     216 366 6,679 9,699
Five years or more      175 22 — —
      3,500 4,682 19,957 23,929
The bank loan is secured by a fixed charge over certain assets of the Group. The Company is party to a cross guarantee 
with its subsidiary undertakings in respect of bank loans and overdrafts held by Group companies which are secured by 
debentures over the assets of the Group. Obligations under finance leases and hire purchase contracts are secured on 
the related assets.
The Group entered into a loan facility for the acquisition of land and buildings during the year and the loan is secured on 
this property.
15 Financial instruments
The Group’s financial instruments comprise bank loans, cash and finance leases and hire purchase contracts. The purpose 
of these financial instruments is to finance the Group’s operations. All are considered to be stated at fair value. Short term 
debtors and creditors have been omitted from all disclosures.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be 
undertaken. The main risk arising from the Group’s financial instruments is interest rate risk.
The bank loan is secured by a fixed charge over certain assets of the Group. The bank loan is repayable over eight years and 
bears interest based on the bank’s base rate plus 1% (2006: base rate plus 1%).
The Group entered into a loan to fund the Regeneration acquisition in 2006. This loan will be fully repaid in 2008 and bears 
interest at 7.4% (2006: 6.5%).
The Group entered into a new loan facility for the acquisition of development land and the loan is secured on this property. 
This loan is repayable over two years and an interest rate of 6.8% (2006: Nil).
Finance leases and hire purchase contracts are secured on the specific asset to which the agreement relates and are on 
fund rate terms. The weighted average interest rate is 5.6% (2006: 5%).
The Group enters into hedging agreements to fix the forward price of gas oil, a significant operating cost. These instruments 
are entered into to minimise the price risk of oil on the Group. page
40
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
16 Provisions for liabilities and charges
       Group  Company
      Final void  Deferred  Deferred 
      provision  tax Total  tax 
      £000 £000 £000  £000
1 October 2006 as reported      11,020 1,928 12,948 —
Prior year adjustment – FRS 20 ‘Share-based payment’    — (256) (256) (256)
1 October 2006 – Restated      11,020 1,672 12,692 (256)
Created in the year      1,913 1,804 3,717 (138)
Discount accrued      264 — 264 —
Released to profit and loss      (411) — (411) —
Utilised in the year      (563) — (563) —
30 September 2007      12,223 3,476 15,699 (394)
Deferred tax comprises:
         Restated 
        2007 2006 
        £000 £000
Capital allowances in excess of depreciation       3,915 1,973
Other timing differences        (439) (301)
        3,476 1,672
The Company’s deferred tax asset wholly relates to short term timing differences and is expected to be recoverable in full as 
share options are exercised and costs become chargeable against Corporation Tax.
17 called up share capital
     2007  Restated 2006
ordinary shares of 0.5 pence each    Number £000 Number £000
Authorised    200,000,000 1,000 200,000,000 1,000
Called up and fully paid    39,861,282 199 39,693,568 198
During the year, the Company issued 167,764 ordinary 0.5 pence shares at £1.33 per share with the exercise of options under 
share option schemes. Share options have been granted and are still outstanding under the ATH Resources plc Approved 
Executive Share Option Scheme, the ATH Resources plc Unapproved Executive Share Option Scheme and the ATH Resources plc 
Long Term Incentive Plan as follows:
ATH Resources plc Approved Executive Share Option Scheme
At 30 September 2007, the following options had been granted and were still outstanding under the scheme:
        
Performance
 
     
Number of  Exercise
 Performance period  
target
Date of grant    shares price From  to (pence)
1 November 2004    163,768 £1.46 1 Oct 03 30 Sep 06 38.68
7 January 2007    30,768 £1.95 1 Oct 06 30 Sep 09 55.40
The options are exercisable between three and ten years from the date of grant subject to the achievement of performance 
criteria. The performance target is cumulative pre tax earnings share.
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
41
17 called up share capital continued
ATH Resources plc Unapproved Executive Share Option Scheme
At 30 September 2007, the following options had been granted and were still outstanding under this scheme:
        
Performance
 
     
Number of  Exercise
 Performance period  
target
Date of grant    shares price From  to (pence)
11 June 2004    1,292,279 £1.33 1 Oct 03 30 Sep 06 38.68
29 September 2005    496,170 £1.85 1 Oct 04 30 Sep 07 44.20
3 October 2006    76,950 £2.065 1 Oct 05 30 Sep 08 44.50
8 January 2007    141,732 £1.95 1 Oct 06 30 Sep 09 55.40
The options are exercisable between three and ten years from the date of grant subject to the achievement of performance 
criteria. The performance target is cumulative pre tax earnings per share.
Options granted under the Approved and Unapproved Schemes during the year were valued using a Binominal model. 
Volatility was estimated at 39.1% after inspecting the historic volatility of a comparable company. The Group’s own volatility 
was not used due to the relatively short period of share trading history. Vesting estimates take account of the Group’s high 
retention rates. The exercise price was the market price at the close of trading on the date of grant. Expected exercise of 
the options is after 6.5 years, the risk free interest rate is 4.6% with an expected dividend yield of 3.63%.
ATH Resources plc Long Term Incentive Plan
At 30 September 2007, the following options had been granted and were still outstanding under the scheme:
        
Performance
 
     
Number of  Exercise
 Performance period  
target
Date of grant    shares price From  to (pence)
29 September 2005    496,170 £1.70 1 Oct 04 30 Sep 08 59.80
3 October 2006    76,950 £1.80 1 Oct 05 30 Sep 09  60.80
8 January 2007    172,500 £1.75 1 Oct 06  30 Sep 10 75.70
The options are exercisable between five and ten years from the date of the grant subject to the achievement of performance 
criteria. The performance criteria are cumulative pre-tax earnings per share.
Options on 1,493,963 shares lapsed during the year as the required performance criteria was not achieved.
Options granted under the Long Term Incentive Plan during the year were valued using a Binominal Model. Volatility was 
estimated at 37.7% after inspecting the historic volatility of a comparable company, the Group having insufficient trading 
history to be used. Vesting estimates take account of the Group’s high retention rate. The exercise price was the market price 
less 10% at the close of trading on the date of grant. Expected exercise of the options is after 7.5 years, the risk free interest 
rate is 4.6% with an expected dividend yield of 3.63%.
18 Reserves
       Group  
         Share-based  Profit 
       Share payment and loss  
       premium reserve account 
Group       £000 £000 £000
1 October 2006 as reported       27,341 — 2,227
Prior year adjustment – FRS 20 ‘Share-based payment’     — 853 (597)
1 October 2006 – Restated       27,341 853 1,630
Additions       222 460 —
Profit on ordinary activities after taxation       — — 5,198
Dividends paid       — — (4,466)
30 September 2007       27,563 1,313 2,362 page
42
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
18 Reserves continued
       Company  
         Share-based Profit 
       Share payment and loss  
       premium reserve account 
company       £000 £000 £000
1 October 2006 as reported       27,341 — 3,132
Prior year adjustment – FRS 20 ‘Share-based payment’     — 853 (597)
1 October 2006 – Restated       27,341 853 2,535
Additions       222 460 —
Profit on ordinary activities after taxation       — — 5,343
Dividends paid       — — (4,466)
30 September 2007       27,563 1,313 3,412
19 equity dividends
Declared and paid during the financial year:
         Restated 
        2007 2006 
        £000 £000
Final dividend for the year ended 1 October 2006: 7.89 pence per share (2005: 7.56 pence per share)  3,132 3,001
Interim dividend for the year ended 30 September 2007: 3.36 pence per share (2006: 3.36 pence per share) 1,334 1,334
        4,466 4,335
Proposed after the balance sheet date and not recognised as a liability
Final dividend for the year ended 30 September 2007: 8.24 pence per share (2006: 7.89 pence per share) 3,285 3,132
20 Reconciliation of movement in shareholders’ funds
      2007  Restated 2006
      Group company Group Company 
      £000 £000 £000 £000
Issue of ordinary shares      223 223 — —
Addition in respect of FRS 20 ‘Share-based payment’    460 460 480 480
Profit for the year      5,198 5,343 4,673 7,131
Dividends paid      (4,466) (4,466) (4,335)  (4,335)
Net increase in shareholders’ funds      1,415 1,560 818 3,276
Opening shareholders’ funds      30,022 30,927 29,204 27,651
closing shareholders’ funds      31,437 32,487 30,022 30,927
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
43
21 operating lease commitments
At 30 September 2007 the Group was committed to making the following payments during the next year in respect of 
operating leases:
         Restated 
        2007 2006 
        £000 £000
Plant and machinery:  
Leases which expire within one year        19 —
Leases which expire between two and five years       55 105
22 capital commitments
At 30 September 2007 the Group was committed to acquiring plant and machinery:
         Restated 
        2007 2006 
        £000 £000
Contracted but not provided        13,259 9,949
23 Cash flows
a Reconciliation of operating profit to net cash inflow from operating activities
         Restated 
        2007 2006 
        £000 £000
Operating profit        10,263 8,127
Depreciation and amortisation        14,441 10,620
Loss/(profit) on disposal of fixed assets        58 (28)
Increase in stocks        (1,031) (746)
(Increase)/decrease in debtors        (2,433) 2,118
Increase/(decrease) in creditors and provisions       2,282 (2,490)
Net cash flow from operating activities       23,580 17,601
b Analysis of net debt
   Restated    
   1 October   Cash  Other 30 September 
   2006   flow  movements 2007  
   £000  £000  £000 £000
Cash at bank   (2,838)  (5,256)  — (8,094) 
Debt due within one year   (4,172)  2,627  (1,202) (2,747) 
Debt due beyond one year   (510)  157  (400)  (753) 
Finance leases and hire purchase contracts  (23,929)  8,248  (4,276)  (19,957) 
   (31,449)  5,776  (5,878)   (31,551)  page
44
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
23 Cash flows continued
c Reconciliation of net cash inflow to movement in net debt
         Restated 
        2007 2006 
        £000 £000
Decrease in cash        (5,256) (1,196)
Cash flow from changes in debt        11,032 1,753
Change in net debt resulting from cash flows       5,776 557
New finance leases and hire purchase contracts       (4,276) (17,705)
New loans        (1,602) —
movement in net debt in year        (102) (17,148)
Net debt at 1 October 2006        (31,449) (14,301)
Net debt at 30 September 2007        (31,551) (31,449)
d Other movements in net debt
During the year the Group entered into finance leases and hire purchase contracts arrangements in respect of assets 
with a total capital value at the inception of the agreements of £4,276,000 (2006: £17,705,000).
The Group entered into a new loan facility for £1,602,000 in respect of the acquisition of development land at Pinxton 
in Derbyshire.
24 Related party transactions
During the year, the Group paid Alchemy Partners LLP £7,769 (2006: £23,239) for the services of Mrs Ivana Ridler, 
Non-executive Director of the Company. No balances were owed to Alchemy Partners LLP at 30 September 2007.
NoteS to tHe FiNANciAL St AtemeNtS 
for the year ended 30 September 2007 www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
45
Notice is hereby given that the Annual General Meeting of the Company will be held at 11.00 am at the offices of Eversheds LLP 
Solicitors, Cloth Hall Court, Infirmary Street, Leeds LS1 2JB on 15 January 2008 to transact the following business:
ordinary business
To consider and, if thought fit, pass the following ordinary resolutions:
1.  To receive the Accounts of the Company for the year ended 30 September 2007 and the reports of the Directors 
and auditors.
2. To declare a final dividend.
3. To re-elect Mr T om Allchurch as a Director.
4. To re-elect Mr Alistair Black as a Director.
5. To receive and approve the Remuneration Committee Report.
6.  To re-appoint Baker Tilly UK Audit LLP as auditors to the Company, to hold office until the conclusion of the next general 
meeting at which accounts are laid before the Company.
7. To authorise the Directors to fix the remuneration of the auditors.
Special business
To consider and, if thought fit, (and in the case of resolution 9 to the passing of resolution 8) pass the following resolutions. 
Resolution 8 will be proposed as an ordinary resolution and resolutions 9 and 10 as special resolutions.
8.  THAT the Directors be and are hereby generally and unconditionally authorised in accordance with Section 80 of the 
Companies Act 1985 (the “Act”) (in substitution for any existing authorities to allot relevant securities) to exercise all the 
powers of the Company to allot relevant securities (within the meaning of Section 80 of the Act) up to a maximum nominal 
amount of £59,593 (being approximately 30% of the issued share capital of the Company) provided that such authority 
shall expire at the conclusion of the next Annual General Meeting (or, if earlier on 15 April 2009) and provided further that 
the Company may before such expiry make such offers or agreements which would or might require relevant securities 
to be allotted after such expiry.
9.  THAT , subject to the passing of resolution 8, the Directors be and are hereby empowered pursuant to Section 95(1) of 
the Act to allot equity securities (as defined in Section 94(2) of the Act) for cash as if Section 89(1) did not apply to such 
allotment, provided that this power shall be limited to:
 (i)  the allotment of equity securities in connection with a rights issue or other issue in favour of the holders of 
ordinary shares (notwithstanding that, by reason of such exclusions or other arrangements as the Directors may 
deem necessary or expedient to deal with fractional entitlements or legal or practical problems under the laws of, 
or the requirements of any recognised regulatory body or stock exchange in, any territory, the equity securities to be 
issued are not offered to all such holders in proportion to the number of ordinary shares held by each of them); and
 (ii)  the allotment (otherwise than pursuant to sub-paragraph (i) above) of equity securities up to an aggregate nominal 
value of £9,932 being approximately 5% of the Company’s issued share capital;
  and such power shall expire on the conclusion of the next Annual General Meeting of the Company after the passing of 
this resolution (or if earlier 15 April 2009), save that the Company may before such expiry make any offers or agreements 
which would or might require equity securities to be allotted after such expiry.
Notice oF ANNu AL GeNeRAL meetiNG page
46
ATH Resources plc
Annual Report and Accounts 2007 www.ath.co.uk
Notice oF ANNu AL GeNeRAL meetiNG
Special business continued
10  THAT , the Company be generally and unconditionally authorised, pursuant to Article 9 of the Articles of Association of the 
Company to make market purchases (as defined in section 163 of the Companies Act 1985) of up to 2,003,758 ordinary 
shares of 0.5p each in the capital of the Company (being approximately 5% of the current issued ordinary share capital 
of the Company) on such terms and in such manner as the Directors of the Company may from time to time determine, 
provided that:
 (a)  the amount paid for each share (exclusive of expenses) shall not be more than the higher of (1) 5% above the average 
market value/of the middle market quotation for ordinary shares as derived from the Daily Official List of London Stock 
Exchange plc for the five business days before the date on which the contract for the purchase is made, and (2) an 
amount equal to the higher of the price of the last independent trade and current independent bid as derived from the 
London Stock Exchange Trading system or less than 0.5 pence per share; and
 (b)  the authority herein contained shall expire at the conclusion of the 2009 Annual General Meeting of the Company 
(or if earlier 15 April 2009), provided that the Company may, before such expiry, make a contract to purchase its own 
shares which would or might be executed wholly or partly after such expiry, and the Company may make a purchase 
of its own shares in pursuance of such contract as if the authority hereby conferred hereby had not expired.
S Beaumont
Group Finance Director and Company Secretary
4 December 2007
Notes
1.  A member who is entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies (who need not be a member 
of the Company) to attend and, on a poll, vote instead of the member. Completion and return of a form of proxy will not preclude a member from 
attending and voting at the meeting in person, should he subsequently decide to do so.
2.  If you are a person with information rights under Section 146 of the Companies Act 2006 you do not have the right to appoint a proxy. Any purported 
exercise by such persons (whether by completion and return of a form of proxy, or otherwise) will be ineffective. You may however have specific 
rights to instruct the member who granted you information rights as to how such member exercises their right to appoint a proxy.
3.  In order to be valid, any form of proxy and power of attorney or such other authority under which it is signed, or notarially certified or office copy 
of such power or authority, must reach the Company’s registrars, Capita Registrars not less than 48 hours before the time of the meeting or of any 
adjournment of the meeting.
4.  As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001, shareholders who hold shares in uncertificated form must be 
entered on the Company’s share register at 11:00 am on 11 January 2008 in order to be entitled to attend and vote at the Annual General Meeting. 
Such shareholders may only cast votes in respect of shares held at such time. Changes to entries on the relevant register after that time shall be 
disregarded in determining the rights of any person to attend or vote at the meeting.
5.  Copies of the service contracts and letters of appointment of each of the Directors will be available for inspection at the registered office of the 
Company during usual business hours on any weekday (Saturdays and public holidays excluded) and at the place of the Annual General Meeting 
from at least 15 minutes prior to and until the conclusion of the Annual General Meeting.
6.  CREST members who wish to appoint a proxy or proxies by utilising CREST electronic appointment service may do so for the Annual General 
Meeting and any adjournment(s) thereof by utilising the procedures described in the CREST Manual. CREST personal members or other CREST 
sponsored members and those CREST members who have appointed a voting service provider(s) should refer to their CREST sponsor or voting 
service provider(s), who will be able to take the appropriate action on their behalf.
  In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (CREST proxy instruction) must be 
properly authenticated in accordance with CRESTCos* specifications and must contain the information required for such instructions, as described 
in the CREST Manual. The message regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction given to 
a  previously appointed proxy, must, in order to be valid, be transmitted so as to be received by the issuer’s agent Capita Registrars (ID RA10) by 
the latest time for receipt of proxy appointments specified in the notice of Annual General Meeting. For this purpose, the time of receipt shall be 
taken as the time (as determined by the timestamp applied to the message by the CREST applications host) from which the Company’s agent 
(Capita Registrars) is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST . After this time, any change of 
instructions to proxies appointed through CREST should be communicated to the appointee through other means.
  CREST members and, where applicable, their CREST sponsors or voting service providers should note that CRESTCo does not make available 
special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of 
CREST proxy instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member 
or sponsored member or has appointed a voting service provider(s) to procure his/her CREST sponsor or voting service provider(s) take(s) such 
action as is necessary to ensure that a message is transmitted by means of the CREST system by a particular time. In this connection, CREST 
members and, where applicable, CREST sponsors or voting service providers are referred, in particular to those sections of the CREST Manual 
concerning practical limitations of the CREST system and timings. 
  The Company may treat as invalid a CREST proxy instruction in the circumstances set out in Regulations 35(5) of the Uncertified Securities 
Regulations 2001.
 * With effect from 1 July 2007 CRESTCo Ltd changed its legal and operating name to Euroclear UK & Ireland Limited. www.ath.co.uk
ATH Resources plc
Annual Report and Accounts 2007
page
47

I/We (block capitals) ...........................................................................................................................................................................
of  ......................................................................................................................................................................................................
being (a) member/members of the above-named Company hereby appoint the Chairman of the Meeting, or (see note 1 below)*
of  ......................................................................................................................................................................................................
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 15 January 2008 
and at any adjournment thereof, and to vote as indicated below.
Please indicate how you wish your proxy to vote by inserting “X” in the box below. If no indication is given, and on any other 
resolutions proposed at the meeting, your proxy will vote or abstain from voting as he/she thinks fit.
The vote withheld option is provided to enable you to abstain on any particular resolution. However, it should be noted that 
a “vote withheld” is not a vote in law, and will not be counted in the calculation of the proportion of votes “For” and “Against” 
a resolution.
 Resolution For Against Vote withheld
 1.  To receive the Accounts for the year ended 30 September 2007.
 2. To declare a final dividend of 8.24 pence per share.
 3. To re-elect Mr Tom Allchurch as a Director.
 4. To re-elect Mr Alistair Black as a Director.
 5. To receive and approve the Remuneration Committee Report.
 6. To re-appoint Baker Tilly UK Audit LLP as auditors.
 7. To authorise the Directors to determine their remuneration.
 8.  To authorise the Directors to allot relevant securities pursuant  
to Section 80 of the Companies Act 1985.
 9.  To authorise the Directors to allot equity securities pursuant  
to Section 95 of the Companies Act 1985.
 10.  To authorise the purchase of shares pursuant to Section 166  
of the Companies Act 1985.
Signed: ...............................................................................................................................................................................................
Dated:  ................................................................................................................................................................................................
*  If you wish to appoint some other person as your proxy, please insert their name and address here, delete the words “Chairman of the 
meeting” and initial the alteration. The proxy need not be a member of the Company.
Notes
1.  Any member entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies (who need not be a 
member if the Company) of his own choice to attend and, on a poll, to vote in his/her place. If a member wishes to appoint a proxy other 
than the Chairman, delete the words “the Chairman of the Meeting or,” initial the alteration and insert the name of the person you wish to 
appoint as your proxy.
2. All members are entitled to attend and vote at the meeting, whether or not they have returned a form of proxy.
3.   If you indicate that you want your vote withheld your proxy may abstain from voting and therefore there is no vote at law to be counted in 
the calculation of the proportion of votes for and against the resolution.
4.  If a member is a corporation, this form of proxy must be executed under its common seal or by the signature of an officer or attorney duly 
authorised in writing.
5.  In the case of joint holders, the signature of any one holder will be sufficient, but the names of all joint holders should be stated, and the 
vote of the senior holder who tenders a vote will be accepted to the exclusion of the vote(s) of other joint holder(s), seniority being 
determined by the order in which the names stand in the register of members of the Company.
6.  In order to be valid, this form of proxy, duly executed together with any power of attorney or other authority under which it is signed, 
or a notarially certified or office copy of such power or authority, must be lodged at the Company’s Registrars not less than 48 hours 
before the time of meeting or any adjournment of the meeting.
7. Any alterations made to this form of proxy should be initialled.
8.   CREST users should note that they can lodge their proxy votes for the meeting through CREST Proxy Voting System. For further 
instructions, users should refer to the CREST User Manual. Any CREST Sponsored Members should contact their CREST sponsor.
9.   As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001, shareholders who hold shares in uncertificated form 
must be entered on the Company’s share register at 11.00 am on 11 January 2008 in order to be entitled to attend and vote at the 
Annual General Meeting. Such shareholders may only cast votes in respect of shares held at such time.
FoRm oF PRoxY
for use at the Annual General Meeting to be held at 11.00 am on 15 January 2008 Business Reply
Licence Number
MB 122
Capita Registrars 
Proxies Department 
PO Box 25 
Beckenham 
Kent BR3 4BR
first fold
second fold
third fold and tuck in Registered office
Aardvark House 
Sidings Court 
Doncaster DN4 5NU
Company number
4928463
Bankers
Royal Bank of Scotland 
2 Whitehall Quay 
Leeds LS1 4HR
Solicitors
Eversheds LLP 
Cloth Hall Court 
Infirmary Street 
Leeds LS1 2JB
Auditors
Baker Tilly UK Audit LLP 
2 Whitehall Quay 
Leeds LS1 4HG
Nominated adviser and broker
Seymour Pierce Limited 
20 Old Bailey 
London 
EC4M 7EN
Financial PR advisers
Abchurch Communications Limited 
100 Cannon Street 
London EC4N 6EU
Registrar
Capita Registrars 
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
15 January 2008  Annual General Meeting
18 January 2008   Final dividend paid
30 March 2008   Half year end
10 June 2008  Interim results and dividend declared
25 June 2008   Ordinary shares go ex-dividend
17 July 2008   Interim dividend paid
28 September 2008   Financial year end
3 December 2008   Preliminary results and dividend declared
CoRPoRATe iNFoRmATioN
ComPANy diARy 2008 ATH Resources plc
Aardvark House 
Sidings Court 
Doncaster DN4 5NU
T el: +44 (0) 1302 760462 
Fax: +44 (0) 1302 760463 
Web: www.ath.co.uk
ATH Resources’ commitment to environmental issues 
is reflected in this annual report which has been printed 
on Revive 75 Gloss and Offset, a recycled paper stock. 
It contains 75% recovered fibre and 25% virgin fibre.
This document was printed by Beacon Press using 
  , their environmental print technology which 
minimises the impact of printing on the environment. 
All energy used comes from renewable sources,  
vegetable based inks have been used and 90% of all  
waste associated with this production has been recycled. 
The printer is a carbon neutral company.
Both the printer and the paper mill are registered to 
ISO 14001.