Harland & Wolff shares suspended after accounts delay

(Sharecast News) - Shares in Harland & Wolff are to be suspended temporarily after the shipbuilder failed to publish its annual results on time. The firm said the delays were caused by "ongoing discussions with its auditors regarding revenue recognition relating to the multi-year and complex nature of some of the contracts under which the company is working."

It added that an assessment of the split in revenues between the current year and deferred revenues "has caused a delay to the audit process and hence delays to the publication of the 2023 annual report".

Unaudited full-year results showed pre-tax losses narrowed to £43m from £70m, while revenues more than doubled to £87m.

Operating losses fell to £24.7m in the 12 months to December 31, down from a loss of £58.5m a year earlier. Interest costs rose to £18.37m from £12.29m in 2022.

H&W has been in talks with banks to secure a £200m loan with the UK government acting as a guarantor. The company on Monday said it expected ministers to make a decision on the export finance guarantee after the July 4 General Election.

However, it also warned that "should there be any material delays to securing the facility" after that, the company's "ability to execute new and large contacts would be adversely affected".

It needs the cash to meet working capital requirements and fulfil major contracts, including a £1.6bn Royal Navy deal to build three ships, which it won in 2022 as part of a consortium led by Spain's Navantia.

Reporting by Frank Prenesti for Sharecast.com