Harland & Wolff denied UK funding, chief executive Wood steps down

(Alliance News) - Harland & Wolff Group Holdings PLC announced Friday the UK government has ...

Alliance News 19 July, 2024 | 4:51PM
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(Alliance News) - Harland & Wolff Group Holdings PLC announced Friday the UK government has denied its GBP200.0 million funding request.

The London-based shipped yard operator had been hunting for approval of an export development guarantee application from the UK Department for Business & Trade.

The announcement follows comments from the company Wednesday, which pushed back on a Financial Times report it deemed "speculative and misleading". Harland on Wednesday had said it had not yet received "any decision from government in relation to its application".

Harland said on Friday, however: "The Department for Business and Trade has notified the Company that HM government will not be proceeding with the company's application for the EDG facility at this time. The company has therefore expedited discussions with Riverstone Credit Management LLC in order to secure alternative new debt facilities to support the near-term working capital needs of the business following its recent significant revenue growth. These alternative financing arrangements are expected to close within the next few days."

It has also engaged Rothschild & Co to advise it on best strategies moving forward.

In addition, the firm said Chief Executive John Wood will take a leave of absence with immediate effect. Russell Downs is to serve as CEO in the interim.

Downs commented: "The great weight of responsibility for all stakeholders involved in the business to secure a long-term future is crystal clear to me and I am enormously honoured to be given the responsibility to find a solution. I will be working tirelessly in consultation with employees, management, customers, suppliers, unions, government agencies and other stakeholder groups in the coming weeks."

Concurrently, Alan Fort will join the board as non-executive director, currently serving in the same role at steel maker Celsa UK.

By Aidan Lane, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Harland & Wolff Group Holdings PLC 8.38 GBX -2.90 -

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