Harland & Wolff Group Holdings PLC New Facility, Board Change & Scilly Ferries Update

RNS Number : 7054Y

Harland & Wolff Group Holdings PLC

01 August 2024

 

This announcement contains inside information

1 August 2024

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

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 further announces 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 support Harland & Wolff Group's ongoing stabilisation and long-term strategy objectives. We also look forward to working with the very experienced team from Rothschild & 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."

 

For further information, please visit  www.harland-wolff.com  or contact:

 

Harland & Wolff Group Holdings plc Malcolm Groat, Chairman Arun Raman, Chief Finance Officer	[phone] [e-mail]   [e-mail]
h2Radnor (Investor Relations) Neville Harris / Josh Cryer	[phone]
Cavendish Capital Markets Limited (Nominated Adviser & Broker) Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance) Michael Johnson (Sales)	[phone]
Liberum Capital Limited (Joint Broker) Nicholas How / Edward Mansfield	[phone]

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 

END

 

 

BOABFLBBZVLFBBD