RNS1 Aug 2024 07:07
New Money Facility, Directorate Change and Scilly Ferries Update
Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management,provides the following update in relation to the completion of a new money facility, directorate change and the Scilly Ferries.
The Company announces that it has today entered into arrangements with its existing lenders to increase its existing facility by US $25,000,000, bringing the total commitments under that facility to US $140,000,000, in order to improve and stabilise the liquidity position of the Company and its subsidiaries.
In addition, as previously announced, the Company has formally engaged Rothschild & Co as financial adviser to assess strategic options for the Group.
The Company furtherannounces that in accordance with the provisions of the service agreement of Mr. John Wood, Chief Executive Officer of the Company, the Company has terminated his employment with effect from 31 July 2024. As a result, and in accordance with the provisions of the service agreement, Mr John Wood is no longer a member of the Board and has left the Company with immediate effect. As announced previously, Mr. Russell Downs and Mr. Alan Fort are scheduled to join the Board as soon as the necessary on-boarding and due diligence procedures have been completed.
Finally, the Company announces that it is withdrawing all passenger services between Penzance and the Isles of Scilly with immediate effect. The Company remains focussed on growing the business in its four key delivery centres (Belfast, Appledore, Methil and Arnish) and will be winding down business lines that are deemed to be non-core for the Company. Accordingly, the fast ferry service will not be operationalised and discussions are ongoing to dispose of the fast ferry.
Malcolm Groat, Chairman of Harland & Wolff comments:
"We are grateful to our lenders in continuing their funding commitment to supportHarland & Wolff Group's ongoing stabilisation and long-term strategy objectives. We also look forward to working with the very experienced team fromRothschild & Co to help us achieve that objective.
The Board look forward to Russell Downs and Alan Fort joining us once their appointment formalities are completed and, in the meantime, I wish to place our thanks to John for his invaluable contribution to the Company's business and wish him the very best in his future endeavours.
It is regrettable that we have taken the tough decision to terminate the fast ferry, but we need to focus our energies and resources in continuing to grow the core business across our four delivery centres. This decision aligns with and brings us back to our fundamental five markets and six services strategy. Our ferry service team will be working closely with passengers and other counterparties to ensure a smooth transition out of this business."
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