Member Info for stokey12

Bubble2021 ref 12.09 post I assume you meant the Northern Ireland Executive in Stormont and not the Republic of Ireland Government in Dublin.

I am wondering who is behind the damaging leaks to the press. If it is fond to be an employee of HARL then they should in my opinion be sacked. These continual leaks may make a successful turnaround more difficult as companies may be reluctant to contract with HARL for fear that they would go under. What is needed in my view is for Invest NI and/or DBT to signal a willingness to provide support. Also the MoD could assist by confirming that HARL would be eligible to tender for contracts once the financial issues have been resolved.

This is the report from the Sunday Times https://www.thetimes.com/business-money/companies/article/harland-and-wolff-lines-up-administrators-after-200m-taxpayer-bailout-is-rejected-xtt2zxffj I would be surprised if the Flacks Group would be allowed to purchase HARL as they are an American company.

There is a slightly wrinkle in this situation arising out of the FSS contract. If any Non UK group was to seek to purchase the shipyards would the government call in the deal under its powers under the National Security and Investments Act for review. If it does I can see the FSS contract being removed from HARL which would possibly be a deal breaker.

SYN00GOLD ref 09.54 post interesting I am not sure that the government has many options as it is not a lender to HARL so its scope to act is limited. I was not aware that Grant Thornton where involved in HARL I think whoever was the source got the name of the auditors wrong. There seems to be a number of 'advisers' working on this. I would have thought it would be best to let Rothschilds do their review before jumping in.

Jfk9 ref 09.07 post with respect the terminology is important. A turnaround which is what HARL is in is an attempt to rescue a company to keep it as a going concern. While administration is a formal legal process which could lead to a winding up. The SeaRose contract is worh around £100m which is more than the curent Riverfort loan. If it has been finalised the Falklands contract is worth more. Therefore contractual revenues may be more than the current loans. Once the non core assetsare disposed of as part of the turnaround what is left will be profitable plus we would have the advantage ofJW not spending money on expansion leaving the company in perpetual debt.

Iamsailing ref 08.08 post while the current interim Executive Chairman may have acted as an administrator in the past as with the new NED this is not an administration which is a legal process. For political reasons whatever the Secretary of State announces tomorrow it will not be an administration. What I suspect will be said is that once the finances have been sorted and HARL is on a firmer financial footing the guarantee will be looked at again.

I would observe that your calculations are off by £30m because the Riverfort loan is in USD and not GBP. Also I would observe you forgot the current assets of the company which are circa £54m if I recall correctly including about £24m in trade receivables. It is also worth noting that we do not know what contracts that HARL has and what payments are due on them. The Falklands contract if has been agreed is worth about the same as the Riverfort loan and then there is FPSO which is also a significant contract. I therefore do not see for commercial, legal or political reasons HARL actually being put into adminstration what I see is a six month turnaround period elading to HARL being on sound footing without JW wasting money by going too far too fast.

Nextyearrodders ref 18.34 post It may be due to the political sensitivities the Secretary of State is giving an explanaton to MPs as to why he reverse the decision made by his predecessor. In addtion he may wish to reassure MPs around FSS. As soon as I have been able to get a copy of the statement I will post the link to it.

I was going to ask JW at the AGM. HARL has been doing ship repairs since 2000 so why is Belfast so under utilise. So far this year I do not think we have had more than ten vessels into Belfast.

Chrisatrdg ref 14.40 post I am mostly in agreement with you. My view is that IM is a medium term option for a disposal. I say this as I disagree with you and do not think that the NICA will give permission and permisssion will need to be sought from the Supreme Court. The only basis I can see for a near term disposal of IM is to go back to the drawing board and sell it for hydrogen storage if this can be done without needing a marine license.

Jfk9 ref 11.29 post I agree with you on JW I have been of the view for sometime that the share price in part reflected the confidence the market had in HARL management. As far as IM is concerned in the accounts for FY22 it had a book value of circa £10.5m. How much it could be sold as a project is debatable and depends in my view on how the JR of the Utility Regulator's decision that a construction license is needed. As far as the shipyards are concerned I do believe they have value which exceeds that of IM. This is based in part on the book value of the various sites. I would observe that Appledore is a freehold site.

Drango ref 10.40 post the reason why the government cannot give HARL an upfront payment in relation to FSS is because there is no direct contract between the government and HARL.

Ilovesushi ref 10.24 post whether you are right or not we would have a good idea by 3.30pm om Monday.

We will know around 3.30pm om Monday what the government position is in relation to HARL. I cannot remember which Secretary of State it was I think it was Hilary Benn who said that shipbuilding would continue in Northern Ireland. After the events of the last couple of days I think that the new management working with Rothschild will slim down operations. The question that we will see answered on Monday is whether the government solution is nationalisation or provding funds from the National Wealth Fund to upgrade Arnish and Methil. The other question is whether the devolved adminsitrations in Scotland and Northern Ireland would provide assistance.

I was not planning to post until Monday but receivd notification of this filing. Two observations firstly they did not waste time in filing this. Secondly yesterday's RNS was arguably disingenuous as it is clear it was a sacking and not a question of taking a leave of absence which implies he may come back.

NextYearrodders ref 18.06 post I agree we will see a sell off of non core assets. I am not sure if this will include IslandMagee. It will probably include Scilly Ferries I am not sure about Marine Services. Another question is about Harland and Wolff Technology no idea if it has actually ever contributed anything. Then there are all these offices like Southampton and USA. So there are assets that can be disposed off which could reduce the debt pile. That said there is a need to avoid anything that looks like a fire sale,

This reporting from CityAM https://www.cityam.com/harland-wolff-boss-steps-down-as-titanic-shipbuilder-seeks-emergency-lifeline/?utm_source=CityAM&utm_campaign=9e1d0cac67-EMAIL_CAMPAIGN_2024_07_19_02_25&utm_medium=email&utm_term=0_-9e1d0cac67-%5BLIST_EMAIL_ID%5D

MaryBr190 ref 14.59 He cannot as there is only one solid support ship in service and that one is only just able to last until the first FSS ship is built. Also it will cost almost as much to cance as to keep it going.

LSE03 ref 14.23 post I noticed that as well. that is why I said in my 14.19 post that I would not be surprised if the EDG is granted once Riverfort is out of the pciture

Comnonsensical ref 13.46 post If we are looking at HARL in isolation then I would agre with you. However we need to look at the wider political and economic position in Northern Ireland. It looks like Spirit Aerosystem is going to be sold and broken up. Therefore HARL has to remain as a going concern to avoid massive job losses in Northern Ireland both direct and indirect. Part of the concern from the Treasury appears to have been about almost half the loan being used to pay off a American lender. I would therefore not be surprised if the EDG is granted once Riverfort is out of the picture.