Harland & Wolff hits back at 'misleading' report over possible closure

15th May 2024 13:58

(Sharecast News) - UK shipbuilder Harland & Wolff has dismissed "misleading and inaccurate" suggestions that it could close after a newspaper report stated the government was about to block a financial support package to keep the Belfast firm afloat.

In a statement to "reassure shareholders", H&W said talks continued "at pace" on the export development guarantee with all relevant government departments and financial institutions.

"Management remain comfortable with progress on what is a complex and large transaction for all parties involved," it said, adding that it would update the market "in the next few weeks".

Finance Minister Jeremy Hunt was expected to block the £200m EDG, sparking a row with Defence Secretary Grant Shapps, who only on Tuesday trumpeted the "golden age" of naval shipbuilding with the announcement of a 28-vessel construction pipeline, the Times newspaper reported, citing unnamed sources.

H&W has a £1.6bn contract to construct three Royal Fleet Auxiliary support ships with Navantia, the Spanish shipbuilder, which has a yard in Cadiz.

"Having won a large proportion of the prestigious Fleet Solid Support Programme in fiscal 2023 followed by the Searose mid-life extension project and, finally, preferred bidder status for the Falkland Islands Port Replacement Project, the company has demonstrated its capability and capacity within the shipbuilding, maritime and heavy engineering sectors, both nationally and globally."

H&W, founded 162 years ago and famous for building the ill-fated 'Titanic' and its sisters 'Olympic' and 'Britannic', said it continued to have "highly supportive financial partners and shareholders who are aware of the long-term plan" to target annual revenues of £500m.

H&W chief executive John Wood said he was "disappointed to read this article and the reaction it has caused, given that we have grown the business to become a major player in the UK shipbuilding sector, whilst spreading our risk over multiple markets".

"Our EDG application has not been rejected and continues to be work in progress."

Reporting by Frank Prenesti for Sharecast.com