LONDON (Thomson Financial) - Libra Natural Resources PLC posted a steep
increase in its full-year profit, and said it is still in exclusive talks to buy
an unnamed major UK pellet maker with "some form of conclusion expected
imminently".
The cleaner fuel company said that, as a consequence of its evolution into a
focused wood pellet manufacturing group, it intends to put all its non-pellet
investments into a separate holding company.
Libra reported a pretax profit of 2.55 mln stg for the year to Dec 31 on
first sales of 2.36 mln, compared with a 156,000 stg profit a year earlier.
Libra said it believes its wood pellet operations represent an extraordinary
business opportunity. Initial unaudited indications for the first quarter of
2007, with record pellet production and revenues, strengthen this belief, it
added.
"We look forward with real confidence to the coming year," said chief
executive Peter Greensmith.


There's also a report out, giving a forward valuation of 32p a share. This looks a hotty and the stock is being lapped up in the market.

more positive announcements this week including a new acquisition and several production upgrades. AGM 14/8 - looking good.

Tipped as a buy in the Investors Chronicle this week.