Coal mining firm Scottish Resources Group has announced plans to seek a stock market listing that is expected to value the company at up to £250m.
The move will provide the company with a £25m war chest and give its private equity backers a partial exit.
SRG is the largest surface coal mining company in the UK and has a strategic land portfolio in the central belt of Scotland for residential and commercial projects as well as renewable energy projects.
It currently has planning proposals and consents comprising around 2,100 new homes and 3m sq ft of industrial and distribution space.
The company returned to profitability in the year to March 27, posting a pre-tax profit of £28.5m compared with a loss of £12.3m the year before.
Revenues were up 59% to £229.9m.
Scottish Resources was formed on privatisation in 1994. Investment vehicles Parkburn and Palmaris own 71% and 16% of the company respectively.
Chief executive, former BP man Don Nicolson, who was brought in two years ago to prepare the group for flotation, said: “As the UK’s largest surface coal mining company, Scottish Resources Group has the scale, asset base and stakeholder relationships to maximise growth opportunities.
“We have a strong management team with significant operational experience and a track record of achieving planning consents.
“Our strategic land portfolio offers residential, commercial and renewable energy opportunities in addition to surface mining, which positions us well for the future. We plan to raise approximately net £25m of new equity capital which will provide Scottish Resources Group with the financial resources to take advantage of these opportunities.”
Rt Hon Alex Salmond MSP, First Minister of Scotland, said: “SRG is a dynamic Scottish-based energy company which has increased its workforce by 50% in the past two years and which is now looking to grow further.
“It is particularly welcome that SRG is looking to capitalise on the huge growth opportunities in Scotland’s renewable energy market and is poised to make its own contribution to our nation’s world-leading climate change targets.”
