Harland & Wolff has temporarily suspended shares trading after it was unable to post its annual accounts on time.
The company - which operates the Arnish yard in Lewis - reported a £43 million loss
for 2023 in unaudited preliminary results. The firm had a near £71 million deficit
for the previous year.
A delayed audit concerning the treatment of figures for some long term contracts held back publication of its yearly report which was due by Sunday.
Auditors are expected to approve its financial statements next week.
Harland & Wolff is also awaiting a decision from the incoming UK Government regarding a £200 million refinancing loan guarantee application to provide financial stability and help it rebuild its business.
The loan guarantee would assist in its aim to borrow money ay a lower interest to refinance debts owed to Riverstone Credit Partners which rose from $35 million to $115 million over the past 18 months. The Riverside credit facility matures at the end of December.
In-principle approval was obtained in December following lengthy discussions with
UK Export Finance subject to a commercial rate review and government ministerial
consents.
Harland & Wolff said: “Should there be any material delays to securing the facility post the general election, the company's ability to execute new and large contracts would be adversely affected.
“The company continues to engage with UK Government and will make an announcement in due course.”
The suspension of shares followed the “complex nature” of some extended contracts won by the company which required “extensive discussions” with auditors to agree the method of accounting for revenues.
This includes a £750 million manufacturing subcontract to build blocks for three Royal Navy support ships at its yards in Belfast and Appledore over the next seven years. Construction is expected to commence in 2025 for all three ships to be in service by 2032.
Harland & Wolff also secured a £61 million contract with Canadian oil and natural gas company Cenovus Energy to upgrade a floating production storage and offloading (FPSO) vessel.
The Belfast and Appledore yards are due to receive a £77 million upgrade and investment in major new equipment including one of Europe's largest robotic welding panel lines, plasma cutters and transporters during the next 24 months.
The firms’ Belfast base is one of Europe's largest heavy engineering facilities. It acquired the Appledore yard in August 2020.
In February 2021, the company took on the former BiFab sites at Arnish and Methil which focuses on fabrication work within the renewables, energy and defence sectors.
Arnish yard operator, Harland & Wolff, awaits government decision over £200 million loan guarantee
1 July 2024
