ONE of the region's last surviving coal miners has reported falling turnover and profits, but insists fossil fuel still has an important part to play in its future.

In its annual results Banks Group, based at Meadowfield, County Durham, reported turnover fell 21 per cent to £101.2m while operating profits fell by 34 per cent to £17.9m.

The falling price of coal has hit the firm as less coal is being used to drive electricity power stations. Last week, for the first time the UK’s electricity was supplied without burning any coal.

Banks has not given up hope that its coal businesses will rally in the future, but in the meantime it will focus efforts on developing its property business, which includes sites across the North-East. Its plan to build houses in Hurworth, near Darlington, however, has drawn objections from some local residents.

Despite the dip in performance in the year to October 2015, Simon Fisher, group finance director of Banks Group, hailed "another robust set of results".

Mr Fisher added: “The present difficult conditions in world coal markets are expected to continue through 2016 and into 2017 but to improve thereafter. We see a continuing demand for UK coal and are progressing development plans for two new surface mines at Highthorn in Northumberland and Dewley Hill in Newcastle upon Tyne. These will replace our Shotton and Brenkley mines as they become exhausted and so provide continuity for the business and employment for our workforce as well as economic benefits for the north east region."

The sale of interests in a wind farm in the period provided additional development funds for a number of key projects. Total capital investment across the group was £25m. Banks continued to directly employ about 400 workers and its Community Funds awarded grants totalling £255,000 to 92 separate groups.

The firm's wind farms generated £13m income from electricity sales, up from £11m in the previous year. Banks' Lambs Hill Wind Farm, in Stockton, will be constructed later this year.

Banks concluded: “Market conditions for property development have continued to improve leading to increased activity across our property development portfolio. The group now has interests in 28 projects involving over 5,000 potential residential plots and 42,000 square feet of potential office and commercial space.

“Looking to the future, our mining operations will continue to be affected by the current difficulties in world coal markets before an improved balance is achieved, which is expected to be from 2017 onwards."