Harland & Wolff: FY 2022 revenues will be “materially below expectations”

Written by Nick Blenkey
Harland & Wolff cranes

Things have been looking up lately for U.K. shipbuilder Harland & Wolff, with a number of significant contract wins and the prospects of more to come, including a role in building three fleet support ships. However in a trading update released today, Harland & Wolff Group Holdings plc (AIM: HARL) discloses that it has faced a number of supply chain and other issues that will see some revenues expected in FY 2022 to be deferred into FY 2023.

You can find all the details in the full regulatory filing HERE, but the effects are summed up in this extract:

“The Group previously announced in its interim results on 30 September 2022 that it expected to achieve revenues of between £65m and £75m in FY 2022. As a result of the issues detailed above, which have led to material deferments in December 2022, the revenue out-turn for FY 2022 is expected to be materially below expectations at between £29m and £31m. Despite lower than expected revenues the Company has achieved a 56% increase in turnover in a 12-month period in comparison to the 17-month period ended 31 December 2021 (FY 2021: £18.51 million).”

“Whilst it is disappointing that we have not met our aspirations for FY 2022 due to timing issues, we have made significant progress over the last twelve months, and I am confident that we will see a robust 2023 with deferred revenue from 2022 which will start getting booked during the course of H1 2023,” said John Wood, group CEO at Harland & Wolff Group Holdings plc. “Despite the external challenges that we face, I believe that we are now at the cusp of a major transformation of the entire Group and the team is working hard to convert bids into contracts. We have now developed a track record of delivering projects for our clients and are at the stage of reaching that critical volume of work that we need for the Group to acquire stability and accelerate organic growth.”

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