UPDATE 1-ATH Resources sees FY profit below own estimates

* Says FY sales misses company estimate

* Total reserves since H1 up by 15 pct

* Reduces debt levels to 40 mln stg as planned

* Shares down 5 pct (Adds details)

Oct 8 (Reuters) - British coal miner ATH Resources Plc (ATH.L) said on Thursday its full-year sales had come in below its expectations and that profit for the year ended Oct. 4 was also expected be hurt, knocking its shares down 5 percent.

"The reduction in sales volumes will, to a limited extent, result in the profit for the year being below the directors' expectations," the company said.

ATH, Britain's third biggest coal producer with five surface mines in Scotland, said sales for the full year were 1.8 million tonnes, around 100,000 tonnes lower than previous expectations.

However, average prices continued to increase during the year to over 42 pounds per tonne, it added.

The company also said its debt levels fell by 5 million pounds in the second half to around 40 million pounds.

ATH Resources said total reserves rose by more than 1 million tonnes to 8.2 million tonnes since the half year, an increase of more than 15 percent.

Coal is used to generate around a third of the UK's electricity and ATH Resources holds coal supply contracts with four of the UK's main electricity generating companies, including Drax Power (DRX.L), E.ON UK Plc (EONGn.DE) and EdF (EDF.PA).

On Oct. 7, E.ON UK said it expected to delay building its controversial Kingsnorth coal-fired power plant in Britain for up to three years because of lower electricity demand. [ID:nL7082010]

ATH Resources shares were down 5 percent at 50 pence at 0717 GMT on the London Stock Exchange. (Reporting by Ramkumar in Bangalore) (ram.kumar@thomsonreuters.com +91 80 41355800; Reuters Messaging: ram.kumar.thomsonreuters.com@reuters.net))