Harland & Wolff has suspended trading in its shares after failing to publish audited results for the past year.
PKF Littlejohn’s auditor failed to sign the accounts on time because of a delay in deciding whether revenue should be recognised in the latest financial year or deferred into future years.
The company that is most famous for building Titanic said that it would publish its audited financial statements next week. The company said that the delay was “necessary” to ensure accurate revenue recognition related to a multiyear contract, which has now been agreed upon with its auditor.
Harland & Wolff is still in discussions with the government about a support package of £200 million. This will be vital for Riverstone Credit Partners to pay off its debts at high rates and fulfill contracts that it has already won. Harland & Wolff is also negotiating a £1.6billion contract to assemble 3 new vessels for the Royal Navy’s aircraft carriers and battle fleet. This contract will generate £750m in revenue.
The UK Export Finance agency’s loan guarantee was approved by the minister in December. However, the final approval is still subject to the Treasury’s consent and a review of commercial rates. The company is expecting a decision to be made after the general elections, but any “material delays” will affect its ability to execute large and new contracts.
Harland & Wolff’s unaudited financial results showed revenue of £86.9million, up from £27.8million in 2022. The company also reported a loss before tax of £43.1million, a significant improvement over the previous £70.8million. Harland & Wolff benefited from contracts, including the refitting of HMS Quorn for the Lithuanian Navy, an ex-Royal Navy minehunting vessel.
Before her fateful first voyage, the Titanic left Harland & Wolff’s shipyards in April 1912.
By the end of this month, the size of the credit agreement with Riverstone Credit Partners will be increased from $35 million when it was first signed in March 2022 to $115 millions. The facility expires at the end this year. Harland & Wolff’s net debt was £92.38m at the end last year. This is up from £81.13m a year ago. Interest costs increased to £18.4m from £12.3m.
A spokesperson for the company stated that it was on track to reach its revenue forecast of £200m this year. He said that several new contracts were in advanced stages of negotiation and would be ready for execution within the next few weeks.
Harland & Wolff is a company founded by Edward Harland in 1861, along with Gustav Wolff his German business partner. The company employs approximately 1,500 workers across its four locations, having hired another 500 during the first half year.
The company’s shares, listed on Aim (London’s junior stock exchange), have dropped by 34% in the last 12 months. Its value is now £14.5million. InfraStrata – a London based infrastructure investment firm – bought the company for £6million in 2019, saving it from going into administration.
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