ath resources plc annual report and financial statements 2005
annual report and financial statements 2005
aardvark house
sidings court 
doncaster dn4 5nu
tel 44 01302 760462
fax 44 01302 760463
web wwwathcouk
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1 corporate statement and highlights
2 chairman’s statement
3 chief executive’s statement
6 financial review
9 board of directors
10 directors’ report
12 corporate governance report
13 remuneration committee report
15 independent auditors’ report
16 consolidated profit and loss account
17 consolidated balance sheet
18 company balance sheet
19 consolidated cash flow statement
20 accounting policies
22 notes to the financial statements
31 notice of annual general meeting
ibc corporate information and company diary


Summary:
 business progress
a year on from listing on aim a successful
1 for 3 open offer was completed in order
to fund the purchase of two new sites
this effectively increased the group’s
reserve base by a further 41 million tonnes
one of these sites grievehill has already
been opened up with the first coal lifted
and dispatched in september
this together with the ongoing development
of the group through both the two existing
operational sites and further organic
development of new sites has positioned
the group to deliver a continuing strong trading
performance and improving dividend cover
board of directors
there have been no changes to the board
of directors during the year the executive
board members have all been in office since
the business was founded in 1998 reinforcing
the team spirit strength and depth of experience
built up over the last seven years
strategy
the group continues to pursue the strategy
laid out at the time of the ipo of maintaining
a relatively small but stable share of the coal
market supplying some 25 of the coal
consumed in the uk the group also
continues to focus on the higher margin
domestic or house coal sector although
this sector has declined over recent years
it remains a sizeable market and one in which
ath is well known and respected for the
quality of product supplied
the recent announcement by drax power
one of our key customers to seek a listing
on the london stock exchange suggests
an appetite for coal generation remains
within the business and financial communities 
in the context of the supply of electricity the
group and the power industry at large believe
that the government must amend the view
of meeting its commitments to kyoto by relying
solely on renewables and gas this view
ignores the geopolitical risk of sourcing the
country’s gas from the former soviet union
states the middle east south america and
north africa and the misconception that it is
possible to supply electricity to the national grid
on a reliable basis and to meet peak winter
demands through wind farms coal still supplies
a third of the uk’s electricity and it is difficult
to see how this situation can be changed
materially without a more radical review
of this country’s energy strategy
the group continues individually and through
trade associations to press the government
on the subject of energy policy the uk will
only ever have secure reliable and competitive
energy supplies when it achieves a balanced
portfolio of generating capacity from numerous
sources this requires significant quantities
of electricity generation from coal gas nuclear
and renewables letting the market decide
the strategy and mix will lead to an over priced
and vulnerable electricity supply industry
if carbon is the main cause of global warming
then the uk must renew its nuclear generating
capability and the already available technology
for carbon capture and storage must be
utilised for a new generation of clean coal
power stations generating electricity with
near zero emissions
although the coal industry faces a number
of challenges ath is ideally placed to take
advantage of the many opportunities that
will present themselves over the coming years
the group has made good progress since
its listing and believes that its strategy will
deliver good and consistent returns to
its shareholders
david port
nonexecutive chairman
chairman’s statement
02 ath resources plc annual report and financial statements 2005
“the year to 2 october 2005 demonstrated
continued significant progress in growing
the reserve base of the business and
improving trading results thus reinforcing
the board’s strategy outlined at the time
of the open offer”
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