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(Alliance News) - Harland & Wolff Group Holdings PLC on Monday reported a widened annual loss as the ship builder saw a rise in costs as it upgraded its shipyards.
In the year ended July 31, the Belfast-based specialist in ship repair, conversion and offshore construction reported a pretax loss of GBP16.7 million, widened from a GBP10.4 million loss the year before.
Revenue in the period multiplied to GBP10.2 million from GBP1.5 million.
Management & administrative expenses increased 84% to GBP15.3 million from GBP8.3 million.
Chief Executive John Wood said: "It is fantastic to be back in an environment where we can meet our clients face to face, which had not been possible since we made our first acquisition in Belfast and commenced the Harland & Wolff journey nearly two years ago. I am encouraged by the increase in revenue across the group between the July 2020 and July 2021 across all sectors. We are focussed on taking the company to a level of steady revenue flows and achieve our first year of positive earnings before interest, taxes, depreciation and amortization, expected to be in 2022."
The company did not declare any dividends in the period.
Wood noted the company's expenses increased as it was "essential" to bring its yards back into full operation after completing the necessary upgrades.
"Whilst the increased level of spending in the short-term hurts cashflows, and we are very mindful of that, it is, however, absolutely necessary that we invest in the business now in order to reap its benefits in the months and years to come," he continued.
Harland & Wolff said its footprint now exceeds 250 acres, making it the largest business dedicated to the marine construction and fabrication industry in the UK.
Wood added: "With our investments in people and systems across the group, we are in our best ever position to bid for and consummate larger long-term contracts as we strive to enhance shareholder value.
"We estimate that at circa 80% utilisation of the facilities, Harland & Wolff is capable of generating revenues of about GBP500 million per annum. Whilst we have a lot of work to do to get to that level, the business is now starting to move in that direction with momentum being built across all our five markets."
Shares in Harland & Wolff Group were trading flat in London on Monday afternoon at 26.50 pence.
By Paul McGowan; paulmcgowan@alliancenews.com
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