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30 Nov 2023 16:00
This announcement contains inside information.
30 November 2023
Harland & Wolff Group Holdings plc
("Harland & Wolff" or the "Company")
Trading 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 comment on its revenue guidance for FY23.
Given the multi-year and complex nature of some of the contracts under which the Company is working, the Company has commenced discussions with its auditors at an early stage to ensure that all parties are in agreement with the method of accounting for revenues throughout the duration of a build programme. The Company believes that it is taking a prudent approach to revenue recognition and remains comfortable with the market's expectation of £100m revenue for this financial year. However, the Company notes that a different approach to revenue recognition, whilst not changing the overall value of the contract, could lead to a range of £80m-£100m of revenue for this financial year, with any balance deferred until 2024. The Company will make a further announcement when the audited position for revenue recognition has been settled.
The Company reiterates its estimate of revenues for FY24 at £200 million and has a high degree of visibility over £145 million of these revenues at this stage, underpinned by the FSS and SeaRose contracts. Contract negotiations continue with clients in all five of the Company's target markets and the Company continues to see a high level of activity in the energy, defence and commercial markets with bids being submitted and contracts being negotiated for large contracts.
For further information, please visit www.harland-wolff.com or contact:
Harland & Wolff Group Holdings plc John Wood, Chief Executive Officer Arun Raman, Chief Finance Officer
| +44 (0)20 3900 2122 investor@harland-wolff.com media@harland-wolff.com |
Cavendish Securities plc (Nominated Adviser & Broker) Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance) Michael Johnson (Sales)
| +44 (0)20 7397 8900 |
Liberum Capital Limited (Joint Broker) Nicholas How / Edward Mansfield
| +44 (0)20 3100 2000 |
Radnor Capital Partners (Investor Relations) Neville Harris / Joshua Cryer | +44 (0) 20 3897 1838 |
|
About Harland & Wolff
Harland & Wolff is a multisite fabrication company, operating in the maritime and offshore industry through five markets: commercial, cruise and ferry, defence, energy and renewables and six services: technical services, fabrication and construction, decommissioning, repair and maintenance, in-service support and conversion.
Its Belfast yard is one of Europe's largest heavy engineering facilities, with deep water access, two of Europe's largest drydocks, ample quayside and vast fabrication halls. As a result of the acquisition of Harland & Wolff (Appledore) in August 2020, the company has been able to capitalise on opportunities at both ends of the ship-repair and shipbuilding markets where there will be significant demand.
In February 2021, the company acquired the assets of two Scottish-based yards along the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff (Arnish), these facilities will focus on fabrication work within the renewables, energy and defence sectors.
In addition to Harland & Wolff, it owns the Islandmagee gas storage project, which is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Irish economy as a whole when completed.
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