The Britain’s biggest producer of the fuel, U. K. Coal Plc, suffered a major loss, third in a row, following the failure of strategic reviews to tap the loopholes in the overall system of operations and further, to upgrade the system.

The company reported an increase in revenue by 11% to 351.2m from 316.0m while the operating loss slumped by 20.1% to 74.3m from 93.1m.

Responding to the crumbling situation, Chairman Jonson Cox, claimed, “The viability of UK Coal over the medium term depends on appropriately rewarding the equity capital required to finance the business. The board fully appreciates that investors deserve a far better return than they have experienced over recent years”.

Moreover, Cox attributes the major loss to the surmounted financial burden of 242m in 2010, which has increased from 94m in 2006.

Deciphering the financial situation of the company, Cox asserted the need of overhauling the entire system to exploit the potential of the available resources. Citing the strategic steps taken by the company to address the debt issue, Cox claimed that company had repudiated an unaffordable RPI pay award, which would have cost 5m and further, curtailed the size of the head office.