REG - Harland & Wolff - Management Response to Financial Times Article

Harland & Wolff groupAnnouncement

17/07/2024 10:30

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RNS Number : 7712W  Harland & Wolff Group Holdings PLC  17 July 2024

17 July 2024

 

Harland & Wolff Group Holdings plc

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

Management Response to Financial Times ("FT") Article

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, provides the following statement in relation to an article
published on 16 July 2024 in the Financial Times and certain other media
outlets about the Company's £200 million Export Development Guarantee ("EDG")
application.

The Company considers these articles to be speculative and misleading. The
Company has not received any  decision from Government in relation to its
application and the Company continues to provide information and updates on a
regular basis to facilitate Government in its decision-making process.

The Company makes the following comments to address points made in these
articles and to provide clarification:

·      The EDG application made by the Company has been for the standard
80/20 EDG product; 20% of the loan is an unguaranteed and commercial tranche
and 80% of the loan is the guaranteed tranche that is funded by banks and
guaranteed by UK Export Finance ("UKEF").

·      This is a standard UKEF product and the structure and terms are
consistent with other similar transactions in the market.

·      The Company has not asked for a 100% guaranteed product on any
occasion.

·      There are no taxpayer monies provided to the Company. The funds
received by the Company will be from the commercial lender and the banks with
which the Company has agreed terms.

·      The Company continues engagement with Government on a standard
EDG product that has been offered to hundreds of other entities, both in the
UK and globally. There is no deviation or departure from what is a standard
product that has been used for several years.

·      The Company has consistently maintained that it remains prepared
to execute the transaction on a standard 80/20 EDG product basis.

·      The Company was informed in December 2023 that the EDG facility
had been approved and was subject to a commercial rate review and final
ministerial consent. An announcement was made on that basis with the consent
of Government. The Company has not been informed by Government that it has
withdrawn its approval for the EDG facility.

·      The legal advice that the Company has received confirms that a
commercially negotiated and priced EDG loan (for which the Company has
applied) does not breach state aid rules. Further discussions are ongoing with
the Department of Business and Trade ("DBT") to understand any differences
between the advice received by DBT and that received by the Company.

·      The Company's lender, Riverstone Credit Partners, have been fully
supportive of the Company and have enabled the Company to win crucial
contracts such as the M55 Regeneration Programme, Cory barges, FSS Programme
and, most recently, the Searose project.

·      The Company further provides some key highlights to demonstrate
the growth and future prospects of the Company:

o  All four yards are now fully operational;

o  Over 1,500 high quality manufacturing-related jobs have been created;

o  over 140 apprentices being trained on an annual basis;

o  Revenue projections of £200 million for FY24 continue to be expected to
be achieved;

o  Scottish yards fully geared up for the renewables fabrication with circa
£1 billion of work tendered; Methil and Arnish part of the Scottish Offshore
Wind Energy Council ("SOWEC") to attract significant capital investment in
both yards; and

o  Management remains confident in its plans to realise its aspiration of
c£500 million per annum revenues.

The Company continues to maintain its discussions with Government and will
make further announcements on the outcome of its EDG application in due
course.

 

For further information, please visit  www.harland-wolff.com
(http://www.harland-wolff.com/)   or contact:

 

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

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

 Arun Raman, Chief Finance Officer                                         media@harland-wolff.com (mailto:media@harland-wolff.com)

 h2Radnor (Investor Relations)                                             +44 (0) 20 3897 1838

 Neville Harris / Josh Cryer
 Cavendish Capital Markets Limited (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

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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