REG - Harland & Wolff - New Facility, Board Change & Scilly Ferries Update

Harland & Wolff groupAnnouncement

01/08/2024 07:00

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RNS Number : 7054Y  Harland & Wolff Group Holdings PLC  01 August 2024

This announcement contains inside information

1 August 2024

Harland & Wolff Group Holdings plc

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

New Money Facility, Directorate Change and Scilly Ferries Update

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, provides the following update in relation to the completion of a
new money facility, directorate change and the Scilly Ferries.

The Company announces that it has today entered into arrangements with its
existing lenders to increase its existing facility by US $25,000,000, bringing
the total commitments under that facility to US $140,000,000, in order to
improve and stabilise the liquidity position of the Company and its
subsidiaries.

In addition, as previously announced, the Company has formally engaged
Rothschild & Co as financial adviser to assess strategic options for the
Group.

The Company further announces that in accordance with the provisions of the
service agreement of Mr. John Wood, Chief Executive Officer of the Company,
 the Company has terminated his employment with effect from 31 July 2024. As
a result, and in accordance with the provisions of the service agreement, Mr
John Wood is no longer a member of the Board and has left the Company with
immediate effect. As announced previously, Mr. Russell Downs and Mr. Alan Fort
are scheduled to join the Board as soon as the necessary on-boarding  and due
diligence procedures have been completed.

 

Finally, the Company announces that it is withdrawing all passenger services
between Penzance and the Isles of Scilly with immediate effect. The Company
remains focussed on growing the business in its four key delivery centres
(Belfast, Appledore, Methil and Arnish) and will be winding down business
lines that are deemed to be non-core for the Company. Accordingly, the fast
ferry service will not be operationalised and discussions are ongoing to
dispose of the fast ferry.

 

Malcolm Groat, Chairman of Harland & Wolff comments:

 

"We are grateful to our lenders in continuing their funding commitment to
support Harland & Wolff Group's ongoing stabilisation and long-term
strategy objectives. We also look forward to working with the very experienced
team from Rothschild & Co to help us achieve that objective.

 

The Board look forward to Russell Downs and Alan Fort joining us once their
appointment formalities are completed and, in the meantime, I wish to place
our thanks to John for his invaluable contribution to the Company's business
and wish him the very best in his future endeavours.

 

It is regrettable that we have taken the tough decision to terminate the fast
ferry, but we need to focus our energies and resources in continuing to grow
the core business across our four delivery centres. This decision aligns with
and brings us back to our fundamental five markets and six services strategy.
Our ferry service team will be working closely with passengers and other
counterparties to ensure a smooth transition out of this business."

 

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

 Malcolm Groat, Chairman                                                   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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