HARL Harland & Wolff Group Holdings Plc

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".

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.