The UK's largest coal-fired power station is poised to list on the stock market by the end of this year, it emerged last night.

North-Yorkshire based Drax wants creditors to back the proposed move which would give it an enterprise value of more than £1.5bn, including £908m of debt.

Drax revealed talks with creditors will take place ahead of its annual meeting in May and it would then begin restructuring its debt burden once their approval has been secured.

According to a timetable drawn up by its advisers at Dresdner Kleinwort Wasserstein, that could lead to trading in Drax shares beginning on the London Stock Exchange in December.

Drax, which employs more than 500 staff, said it had come a long way since restructuring 15 months ago and it was now a real business rather than just a debt-laden power plant.

Power sales increased to £523m during 2004, from £452m a year earlier, and it had improved profitability ahead of its plan, with a gross margin of £239m.