Shipbuilder Harland & Wolff has suspended trading in its shares on the London Stock Exchange after the firm failed to publish its annual results on time.
The Belfast-based company, which owns the historic shipyard where the Titanic was built, said the audited accounts had been delayed due to ongoing discussions with its auditors about how to book revenue from some of its “multi-year and complex” contracts.
It thus missed the June 30 deadline for publishing results, and therefore temporarily suspended trading of its shares on the Aim market.
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Harland & Wolff said: “Given the multi-year and complex nature of some of the contracts on which the company works, the company has had extensive discussions with its auditors to agree a method of revenue recognition throughout the construction period. program.”
It said the group had recently settled the earnings treatment with its auditors and intended to publish the results next week, when the share suspension is expected to be lifted.
In unaudited 2023 financial results published on Monday, it reported a pre-tax loss of £43.1m, down from losses of £70.8m in 2022.
Revenue more than tripled to £86.9m from £27.8m the previous year.
It comes amid uncertainty over the government’s £200m loan guarantee, which has thrown Harland & Wolff’s future into doubt.
A report in The Times newspaper in May suggested Chancellor Jeremy Hunt was to block a key application for a support package from the firm amid an “intense government row”.
Harland & Wolff group chief executive John Wood insisted at the time that the company’s application “has not been rejected” and “remains unfinished”.
The group has built up a large pile of debt, which has seen it face soaring costs due to higher interest rates, and has been under financial pressure for a number of years.
Five years ago, it was saved from administration by an agreement with the energy company Infrastrata.
Harland & Wolff received a boost when the Team Resolute Consortium it belongs to won a bid to supply three Fleet Fixed Support Ships (FSS) for the Royal Fleet Auxiliary.
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She requested support from the government’s export development guarantee system.
The scheme typically covers up to 80% of lender risk for loans up to £500m, but Harland & Wolff is calling for a 100% guarantee in its application.
In its unaudited results, group CFO Arun Raman said: “I am very encouraged by the growth in sales from 2022 to 2023 as we look to reach the critical mass needed to achieve cash profitability.”
“Our finance costs are high, exacerbated by the base rate increase in 2023, and it is crucial to close the UKEF (UK Export Finance) facility as soon as possible to secure the stable long-term working capital needed to secure it. large, multi-year contracts.
“Our negotiations with the UK government continue to conclude this agreement.”
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