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It's becoming obvious after 16 months waiting for a new finance deal that HARL is not currently creditworthy. Even under a lower rate of interest HARL would not be able to repay the debt with losses & cash burn forecast beyond 2025. UKEF would do well to steer their well managed ship away from the rocky shores of Harland & Wolff.
Mf12 - Information from RCOI Website. 2023 Annual Report page 13. Available to all, no paywall.
Marcosino - Maybe investing in penny shares is not for you, have you considered a cash savings account? If you can't stand the heat get out of the kitchen!! Just for you 'strong sell' Lots of love, Tosspot x
Riverstone released their 2023 accounts recently, the loan as at 31st Dec 2023 was $100m (Dollars to avoid any confusion) and was upsized to $115m in February 2024. I made an error in my last post, the yield to maturity is 19% plus warrants (not the 13.2% I originally quoted).
Apparently HARL are capitalising interest rather than paying it, so the loan gets BIGGER, hence the new charge to accounts.
Guessing the new finance deal talks are not progressing well, Riverstone have increased the amount available to HARL by $15m on 29th Feb 2024 (total commitment $115m). Yield to maturity of 13.2% ouch!
Since 2017 HARL have made losses every year, the debt projection for 2023 is £82.5m. Broker forecasts for accumulative losses and deferred interest is £211M by start of 2025. Doubtful anyone would bid on the company to take on those losses.
I agree Xenor on the amount of unsubstantiated ramping on LSE & ADVFN during the week. Simply uncalled for.
I try to offer a more honest approach to HARL, the distressed balance sheet, the 16 month (and still waiting) finance deal, the lack of a business update (especially the new projects announced in 2023) the accounting difference of a small matter of £20m, the added charges to the company accounts and a date to publish the 2023 accounts would be advantageous for investor confidence.
Sadly when you consider all the above you have to consider if JW really is the man to lead the company forward. You can't lay the blame on all AIM companies treating their investors shoddily it is just those that have skeletons in the cupboard that suffer from that affliction.
HARL have an agreement to 'talk' to UKEF doubtful it will get past that stage until the company balance sheet improves.
Stokey 12:40 - Arnish have ample work for 2 years constructing barges, hence current projections are satisfied.
When a 'valued' poster on here is saying to expect an equity raise POST the finance deal it is quite concerning. Surely the point of the finance deal is to put the company on a firm footing not to be diluting shareholders afterwards. Very mixed messages coming through and no doubt investors are spooked by such chaotic posts.
MayAnya - £67m loss for 2022 with 2023 accounts likely to be much worse. I agree multi million pound LOSS making company.
In the absence of news on the finance deal, is JW pumping the share price for an equity raise? Today's RNS will be barely profitable & yesterdays whilst good news is not a signed contract. Investors beware, history has a habit of repeating itself.
Bubble2021- I have been gracious towards you (and TheDogFarther when he was around) I have posted my work history on numerous occasions and you insist on making accusations I was sacked from Harland & Wolff. Either apologise or accept legal ramification.
Citizenlane - So what's gone wrong since? The share price was over 25p after that contract was announced, now scratting around sub 10p. Hope HARL does not go like another share you ramped - IOG.
Xenor - It's going to be some deal, 16 months in the making. Think of how many lifeboats could have been serviced in that time, you know where I'm going with this sadly.
The old political begging bowl coming out in the absence of the finance deal. Don't expect the political parties to cover the Riverstone debt though, rinse and repeat for shareholders.
Scaffman - Has the board changed from HARL to ISSG? You seem to have a bee in your bonnet over the ISSG, do you really want them to fail? HARL will not pick up the pieces if they do now the levelling up funding has been removed.
Strange how no one is commenting on the share price decline since 1st Jan 2024. With a new 'finance deal' eagerly awaited and the launch of a new ferry service in the spring you would expect investors to be queuing up for a slice of the action, it is purported to be the next multi-bagger (and has been for the last 18 months) and yet the share price is slumping. Not forgetting IM which some believe will be storing gas by the end of the year!! Could the answer be the company is running on fumes having maxed out it's credit card, is hocked to Riverstone and now Barclays and the finance deal will not be the saviour investors are expecting? I almost forgot the lack of new contracts for H2 2024 to reach the heady turnover of £250m, or will that be a new RNS to say the 'accounting differences' are still unresolved? Does nor paint a pretty picture for old or new investors, JW & Arun are slowly sinking the dream.
Si - JW's past history of dubious RNS's is now coming home to roost. He can no longer hoodwink shareholders for a few quid those days are gone. Refinancing £200m is a different ball game, maybe the past misdemeanours will leg the company up. Some interesting discussion on ADVFN regarding the finance.
MayAnya 12:17 - 'Why release an RNS for it to spike then fall'. Your post is self defeating are you expecting bad news to be announced afterwards?