GCIHarland & Wolff expects to secure ‘lucrative contracts’ in 2022
The shipyard and energy infrastructure company, (HARL ), has announced a series of investor events for 2022 which are to be held at its various sites across the United Kingdom.
Harland, which is focused on infrastructure projects and physical asset lifecycle management, said each event will be an opportunity for investors to witness the work taking place in each of the company’s yards, ‘as well as the reactivation works that have taken place over 2021.’
Addressing investors, Harland noted that over the last year, it has become ‘a multi-site group’ which holds a substantial proportion of the UK’s marine and energy fabrication footprint.
It said it has invested in all its sites - completing significant maintenance works, bringing in technology and enhancing capability, ‘all of which has strengthened its competitive edge.’
‘After having secured major fabrication contracts and developed a strong pipeline of ship repair work, there is much activity to observe across the four sites in 2022,’ it said today.
Commenting today, John Wood, Group Chief Executive Officer of Harland & Wolff, told investors: “As we enter the new year with all of our yards now fully operational, 2022 is set to be an exciting year for Harland & Wolff - one that will see further growth and success.
He added: “With strategic acquisitions completed in 2019, 2020 and 2021 as well as the bringing in of some of the world’s best marine and offshore engineering talent, we are well placed to continue to secure lucrative contracts and deliver value for shareholders. We look forward to welcoming investors, new and old, to all of our yards this year.”
In November 2021, Harland % Wolff’s subsidiary, Appledore was awarded a contract worth more than £2m by Herbosch-Kiere Marine Contractors for the fabrication of a steel pontoon.
At the time, the Company told investors that it expected the contract win to position the Company ‘strongly’ to win further and larger fabrication and shipbuilding contracts.
In its interim results for the twelve-month period to 31 July 2021, Harland & Wolff Group reported a seven-fold increase in revenues to £10.18m and a gross margin of 24%, in line with Company’s expectations for the portfolio of contracts delivered during the period.
As a result of its performance, the Directors of the shipyard and energy infrastructure group now believe that the Company will achieve a cash break-even on an annualised basis by the end of the current financial year (31 December 2021) and will be EBITDA positive in 2022.
By period end, the Group had the largest fabrication footprint in the country, two of the largest dry docks in Europe and two of the largest specialist fabrication sites in the UK. Today, all sites are fully operational with each winning work and servicing clients, both new and repeat.
Going into the second half of the current financial year and into the next year, the Company said it expects to have greater visibility and certainty of monthly cash flows. Currently, it is in discussions to structure a group revolving credit facility that it will be able to draw-down on as and when required, ‘especially to fulfil the working capital requirements of larger contracts.’
‘It is the Board’s view that the Company will benefit from having the ability to draw-down debt on an ongoing basis as the Company scales and wins larger contracts,’ the Company added.
Going forward, Harland & Wolff informed investors that it expects more robust activity and contracts as the global economy normalises in 2022 and beyond. It said it is confident that revenue for the 17-month period to December 2021 will be in line with market expectations.
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