REG - Harland & Wolff - Trading Statement

Harland & Wolff groupAnnouncement

30/11/2023 16:15

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RNS Number : 2747V  Harland & Wolff Group Holdings PLC  30 November 2023

This announcement contains inside information.

 

30 November 2023

 

 

 

Harland & Wolff Group Holdings plc

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

 

Trading 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 comment on its revenue guidance for FY23.

 

Given the multi-year and complex nature of some of the contracts under which
the Company is working, the Company has commenced discussions with its
auditors at an early stage to ensure that all parties are in agreement with
the method of accounting for revenues throughout the duration of a build
programme. The Company believes that it is taking a prudent approach to
revenue recognition and remains comfortable with the market's expectation of
£100m revenue for this financial year.  However, the Company notes that a
different approach to revenue recognition, whilst not changing the overall
value of the contract, could lead to a range of £80m-£100m of revenue for
this financial year, with any balance deferred until 2024. The Company will
make a further announcement when the audited position for revenue recognition
has been settled.

 

The Company reiterates its estimate of revenues for FY24 at £200 million and
has a high degree of visibility over £145 million of these revenues at this
stage, underpinned by the FSS and SeaRose contracts. Contract negotiations
continue with clients in all five of the Company's target markets and the
Company continues to see a high level of activity in the energy, defence and
commercial markets with bids being submitted and contracts being negotiated
for large contracts.

 

 

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)

 Cavendish 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

 Radnor Capital Partners (Investor Relations)                              +44 (0) 20 3897 1838

 Neville Harris / Joshua Cryer

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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