Companies: ATH   

Recent AIM float ATH Resources, with two producing open-cast coal mines in Ayrshire, one prospective open-cast producer in Fife and another two in France, is bullish about the outlook for coal on both sides of the Channel. Chief executive Tom Allchurch, who started the company by buying the Skares Road mine near Cumnock in 1998 backed by John Moulton's Alchemy Partners, says recent Government forecasts underestimate coal's future role in electricity generation and sees firm prices here and in France, where ATH is now virtually the only coal producer. With debts paid off by its float proceeds and cash generation, ATH hopes to increase output from 1.6m tonnes to 1.9m tonnes by 2007, but might anticipate that through acquisitions (no comment on possible deals with Mining Scotland). House broker Seymour Pierce sees marginally depressed pre-tax profits of £400,000 in the year to September soaring to £7 million in 2004-05 as new contracts are negotiated. The company will be paying dividends and at 133.5p the shares look worth a punt.