REG - Harland & Wolff - Times Article & Recent Speculation

Harland & Wolff groupAnnouncement

15/05/2024 13:30

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RNS Number : 5847O  Harland & Wolff Group Holdings PLC  15 May 2024

 

15 May 2024

 

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

Times Article & Recent Speculation Regarding the Export Development
Guarantee ("EDG") Application

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, seeks to provide clarity on, what it considers to be, a misleading
and inaccurate article published in the Times today, and to reassure
shareholders.

The Company confirms that discussions continue to progress at pace on the EDG
with all relevant Government departments and financial institutions;
management remain comfortable with progress on what is a complex and large
transaction for all parties involved. A further update will be provided in the
next few weeks.

Having won a large proportion of the prestigious Fleet Solid Support Programme
in FY23 followed by the Searose mid-life extension project and, finally,
preferred bidder status for the Falkland Islands Port Replacement Project, the
Company has demonstrated its capability and capacity within the shipbuilding,
maritime and heavy engineering sectors, both nationally and globally.

The Company has been working through its five-year plan, which has seen four
shipyards and fabrication facilities rebuilt or refurbished, a pipeline of
contracted work secured and increasing amounts of work delivered.  The
Company's five-year plan was to reach forecasted revenues of £200m by the
close of FY24, of which circa 90% has already been contracted. The business
currently employs in excess of 1,500 people who are all engaged on active
projects. The next goal for the Company is to increase contracted revenues for
FY25 and beyond as well as to achieve the milestone of annualised EBITDA
break-even in FY24.

The Company is busy across its five markets, with substantial growth on its
key energy and cruise contracts.  Work on FSS continues, with the framework
for the extension to the new fabrication hall taking shape in Belfast. The
Company remains on track to start production as planned.  The strategy for
the "Route to £500m" revenue per annum is now firmly established and the
Company remains focused on delivering this.

The Company continues to have highly supportive financial partners and
shareholders who are aware of the long-term plan. The Company made an
application for the EDG product in order to help facilitate its future growth
and achieve its vision of £500m of revenues annually. The Company remains
comfortable with the progress of this application.

With the facilities that the Company has in is portfolio, it has substantial
capacity, not only to undertake the FSS Programme and Falkland Islands Port
Replacement Project in tandem, but also to build multiple vessels and
structures at the same time. The Company's physical capacity is complemented
by its highly skilled and growing workforce, underpinned by its unprecedented
investment in apprenticeships and workforce development.

John Wood, Group Chief Executive Officer, Harland & Wolff comments: "We
were disappointed to read this article and the reaction it has caused, given
that we have grown the business to become a major player in the UK
shipbuilding sector, whilst spreading our risk over multiple markets.  Our
EDG application has not been rejected and continues to be work in progress.
I expect to be providing a fuller update on our refinancing plans in the next
few weeks".

 

 Harland & Wolff Group Holdings plc                                        +44 (0)20 3900 2122

 John Wood, Chief Executive Officer                                        investor@harland-wolff.com (mailto:investor@harland-wolff.com)

 Seena Shah, Head of Marketing & Communications                            media@harland-wolff.com (mailto:media@harland-wolff.com)

 Cenkos Securities plc (Nominated Adviser & Broker)                        +44 (0)20 7397 8900

 Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance)

 Michael Johnson (Sales)

 Liberum Capital Limited (Joint Broker)                                    +44 (0)20 3100 2000

 Nicholas How / Edward Mansfield / Lucas Bamber / Antonia Brown

About Harland & Wolff

 

Harland & Wolff is a multisite fabrication company, operating in the
maritime and offshore industry through five markets: commercial, cruise and
ferry, defence, energy and renewables and six services: technical services,
fabrication and construction, decommissioning, repair and maintenance,
in-service support and conversion.

 

Its Belfast yard is one of Europe's largest heavy engineering facilities,
with deep water access, two of Europe's largest drydocks, ample quayside and
vast fabrication halls. As a result of the acquisition of Harland & Wolff
(Appledore) in August 2020, the company has been able to capitalise on
opportunities at both ends of the ship-repair and shipbuilding markets where
there will be significant demand.

 

In February 2021, the company acquired the assets of two Scottish-based yards
along the east and west coasts. Now known as Harland & Wolff (Methil) and
Harland & Wolff (Arnish), these facilities will focus on fabrication work
within the renewables, energy and defence sectors.

 

In addition to Harland & Wolff, it owns the Islandmagee gas storage
project, which is expected to provide 25% of the UK's natural gas storage
capacity and to benefit the Northern Irish economy as a whole when completed.

 

 

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