RE: Midas1 Jan 2023 11:09
Harland & Wolff
On March 31, 1909, work began on the Titanic, a vessel that took three years to build, employing 3,000 men. The company behind that mammoth project was Harland & Wolff, which went on to become one of the most prominent ship- builders in the world.
In 2018, however, the group fell into administration. At the time, people said shipbuilding was as good as dead in Belfast.
John Wood, a proud Scot who started his career in the merchant navy, is determined to prove them wrong.
As chief executive of a listed business, Infrastratra, Wood bought Harland & Wolff from the administrators and set about trying to create a company worthy of its past. The group now has facilities in Appledore, Devon, Arnish and Methil in Scotland and Islandmagee in County Antrim, as well as the iconic Belfast site.
The firm covers everything from design and development to construction, repair and maintenance. It is also involved in several sectors – defence, energy, cruise and ferries, commercial vessels and renewables, such as barges for offshore wind turbines.
A number of key contracts have been won recently. In Belfast, Cunard cruise liner the Queen Victoria, was given a makeover last summer, the largest cruise ship ever to undergo such work in the UK.
The firm is rebuilding an ex-Royal Navy minehunter, HMS Quorn, for the Lithuanian Navy. And, along-side two partners, it is preferred bidder for a massive £1.6 billion Ministry of Defence contract to build support ships for the Navy.
Other contracts are expected, too, as the Government seeks to expand the UK's fleet, as part of a national shipbuilding strategy.
Yet Harland & Wolff shares have tumbled over three years, not least on Friday, when it announced that several projects would now be delivering revenues in 2023 rather than the year just ended.
Midas verdict: Harland & Wolff is a venerable name with a history stretching back to the 1860s. The Titanic sank, but this company has come back from collapse and should ride the waves once more. At 16p, the shares could deliver handsome rewards to the adventurous investor.