MercoPress. South Atlantic News Agency

The Times torpedo against preferred bidder for Falklands FIPASS

The Times reported that UK Chancellor Jeremy Hunt was expected to block financial support for the Harland & Wolff shipbuilding company in Belfast

On Wednesday, Harland & Wolff Group Holdings PLC, the preferred bidder status for the Falkland Islands Port Replacement Project, moved to reassure investors as it responded to what it considers to be a “misleading and inaccurate article published in The Times”, as reported by Alliance News.

Following on the article, shares in Harland & Wolff fell 15% to 10.02 pence in London on Wednesday. The company which serves the maritime and offshore industries said that discussions continue to progress at pace on the Export Development Guarantee with all relevant Government departments and financial institutions.

It said “management remain comfortable with progress on what is a complex and large transaction for all parties involved”, adding a further update will be provided in the next few weeks.

Chief Executive John Wood said: “We were 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. I expect to be providing a fuller update on our refinancing plans in the next few weeks”.

Harland & Wolff said having won a large proportion of the prestigious Fleet Solid Support Program in financial 2023 followed by the Searose mid-life extension project and, finally, bidder for the Falkland Islands Port Replacement Project, (replacing FIPASS), it has demonstrated its capability and capacity within the shipbuilding, maritime and heavy engineering sectors, both nationally and globally.

Harland & Wolff said it has been working through its five-year plan, which has seen four shipyards and fabrication facilities rebuilt or refurbished, a pipeline of contracted work secured and increasing amounts of work delivered.

The five-year plan was to reach forecasted revenues of £ 200 million by the close of financial 2024, of which circa 90% has already been contracted.

The next goal is to increase contracted revenues for financial 2025 and beyond as well as to achieve the milestone of annualized earnings before interest, taxes, depreciation and amortization break-even in financial 2024.

On Wednesday, The Times reported that Chancellor Jeremy Hunt is expected to block a financial support package designed to keep the Harland & Wolff shipbuilding company in Belfast afloat.

It said government insiders have voiced serious fears that the 162-year-old firm could collapse as a result, marking the end of centuries of shipbuilding in the city, concludes the Alliance News piece.