(Alliance News) - Harland & Wolff Group Holdings PLC on Wednesday moved to reassure investors as it responded to what it considers to be a "misleading and inaccurate article published in the Times" on Wednesday.
Shares in Harland & Wolff fell 15% to 10.02 pence in London on Wednesday.
The London-based fabrication company which serves the maritime and offshore industries said that discussions continue to progress at pace on the Export Development Guarantee with all relevant Government departments and financial institutions.
It said management remain comfortable with progress on what is a complex and large transaction for all parties involved, adding a further update will be provided in the next few weeks.
Chief Executive John Wood said: "We were disappointed to read this article and the reaction it has caused, given that we have grown the business to become a major player in the UK shipbuilding sector, whilst spreading our risk over multiple markets. Our EDG application has not been rejected and continues to be work in progress. I expect to be providing a fuller update on our refinancing plans in the next few weeks".
Harland & Wolff said having won a large proportion of the prestigious Fleet Solid Support Programme in financial 2023 followed by the Searose mid-life extension project and, finally, preferred bidder status for the Falkland Islands Port Replacement Project, it has demonstrated its capability and capacity within the shipbuilding, maritime and heavy engineering sectors, both nationally and globally.
Harland & Wolff said it has been working through its five-year plan, which has seen four shipyards and fabrication facilities rebuilt or refurbished, a pipeline of contracted work secured and increasing amounts of work delivered.
The five-year plan was to reach forecasted revenues of GBP200 million by the close of financial 2024, of which circa 90% has already been contracted.
The next goal is to increase contracted revenues for financial 2025 and beyond as well as to achieve the milestone of annualised earnings before interest, taxes, depreciation and amortisation break-even in financial 2024.
On Wednesday, The Times reported that Chancellor Jeremy Hunt is expected to block a financial support package designed to keep the Harland & Wolff shipbuilding company in Belfast afloat.
It said government insiders have voiced serious fears that the 162-year-old firm could collapse as a result, marking the end of centuries of shipbuilding in the city.
https://www.thetimes.co.uk/article/titanic-shipyard-could-face-closure-after-160-years-0kmk00q2p
By Jeremy Cutler, Alliance News reporter
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Harland & Wolff (HARL)