Shankul Bhandare
Harland and Wolff suspended trading on the London Stock Exchange due to accounting issues delaying the release of its annual report.
The Belfast-based company, known for owning the shipyard that built the Titanic, disclosed ongoing discussions with auditors regarding revenue accounting methods for certain contracts. Consequently, it postponed the publication of its 2023 annual report until July 8, 2024, leading to the suspension of trading in its ordinary shares on AIM effective from 7:30 am today.
Alongside this announcement, Harland and Wolff released unaudited financial results for the year ended December 31, 2023. These results showed a significant revenue increase from £27.8 million to £86.9 million year-over-year, with an operating loss decreasing to £24.7 million from £58.5 million.
The development coincides with uncertainties surrounding a £200 million government loan guarantee intended to support the firm amid financial challenges, including preparations for a major £1.6 billion contract with the Royal Navy next year. Despite reports suggesting a potential rejection of the guarantee by the Treasury, Harland and Wolff’s CEO clarified that their application remains under consideration.
With a market value of £20 million and substantial debt, Harland and Wolff, saved from administration in 2019 by a £6 million deal with Infrastrata, faces ongoing financial pressures. The firm’s auditors warned of “material uncertainty” last year without securing new financing through additional projects.
The potential collapse of Harland and Wolff, a historic 162-year-old heavy engineering facility and crucial player in Britain’s maritime sector, poses significant concerns for the government.
