TIDMHARL
RNS Number : 2505B
Harland & Wolff Group Holdings PLC
30 September 2022
30 September 2022
Harland & Wolff Group Holdings plc
("H&W" or the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2022
Harland & Wolff Group Holdings plc (AIM: HARL), the
UK-quoted company focused on strategic energy infrastructure,
fabrication, shipbuilding and vessel repairs is pleased to present
its unaudited interim results for the six-month period ended 30
June 2022. .
Key highlights:
-- Revenues of GBP15.41 million; a three-and-a-half-fold
increase from the previous year (30 June 2021: GBP4.14
million).
-- Gross margin of 22% in line with Company's expectations for
contracts delivered in the period despite inflationary
pressures.
-- Operating loss before depreciation, amortisation and
financing costs of GBP14.06 million (30 June 2021: GBP8.16
million).
-- Group corporate credit facility of $70 million signed in
March 2022 with drawdowns being utilised to fund ongoing working
capital requirements.
-- With a series of contract announcements made post the
half-year period (Cory Phase 1 and 2 as well the M55 Regeneration
Programme), the Company's revenues will be weighted towards Q3 2022
and Q4 2022.
-- Therefore, the Company continues to maintain its guidance of
achieving revenues of between GBP65 million and GBP75 million at
the end of FY22.
Operational Review
Cruise & Ferry Market
The Belfast repair dock was full during the first half of FY22.
Whilst the ferry business has become a baseload form of revenue for
the repair dock operations, the Company was pleased to welcome the
Queen Victoria cruise vessel during this period. This was the
Company's first major cruise dry docking which was successfully
redelivered to the client.
The cruise market has fundamentally shifted after the Covid-19
pandemic. New build orders have either been postponed or cancelled
entirely as cruise operators are increasingly preferring to repair
and refurbish their existing fleet, which bodes well for the
Company. On the back of the Queen Victoria contract, the Company
has been negotiating a series of cruise vessel dockings with
multiple owners with vessels arriving in Q1 2023.
Renewables
The Company continues to make inroads into the renewables
market. After the announcement of the Scotwind auction results in
in the first half of FY22, the Company is now formally engaged with
a number of developers who have been awarded licences in the
current auction round. Projects being developed consist of both
fixed and floating wind structures and whilst large fabrication
contracts are still between 18-24 months away (awaiting various
permissions that developers need to secure prior to full scale
fabrication), the Company expects to see a number of demonstrator
models and prototypes being contracted for in Methil, Arnish and
Belfast in FY23.
Saipem Contract
The Saipem contract for the fabrication of eight wind turbine
generator jackets for the NNG project was signed in 2021 with a
twelve-month completion period. The project has encountered delays
due to a number of client materials arriving late and being
defective in nature rendering them incapable of being used. Both
parties (H&W and Saipem) have recognised the difficulties in
meeting the project schedules due to these problems Therefore, a
new agreement has been reached which will involve de-scoping the
contract from eight jackets to four jackets. In recognition of the
investments and fixed costs incurred by the Company for
fabrication, a revised contract has been agreed for four jackets
with a value of GBP23 million, in place of the original contract
value of GBP26.50 million for eight jackets. The Company expects to
deliver these jackets in sequence through Q1 2023.
As a result of this, the Company has conducted a review of its
future operations at both Methil and Arnish and whilst it remains
important to bid for larger fabrication programmes (fixed and
floating structures), the gestation period from the inquiry stage
to the contract award stage can be as long as eighteen months. With
a focus on generating as much revenue as possible and to build a
consistent baseload of revenues, going forward, the Company will
instead be focusing more heavily on smaller contract values of
between c.GBP4 million and c.GBP10 million per contract for Methil
and Arnish. These contracts will be for the fabrication of specific
component parts, transition pieces, tubulars, pipework and other
such bespoke items for large wind farm projects. The Company
believes that servicing multiple clients with smaller orders
simultaneously will reduce the dependence on one single, large
client and will significantly de-risk the operations of both
facilities.
Defence
With the award of the M55 contract, the Company is building its
credentials within the defence market and is in negotiations with
Prime Contractors for larger sub-contract programmes and, further,
with the Ministry of Defence as Prime Contractor, in its own right,
for smaller defence programmes. The ongoing geo-political upheaval
in the Ukraine (and globally) has focussed Government's attention
on boosting the country's defence capabilities and there is a
growing cross-party desire to boost the country's sovereign
capabilities for shipbuilding, ship repairs and ship
refurbishments. In addition to defence spending, the Government has
also committed to the build of the next generation of research,
border patrol and other commercial vessels per the refreshed
National Shipbuilding Strategy under the aegis of the National
Shipbuilding Office. The Company believes that with the twin
political agendas of shipbuilding and levelling-up, it is well
positioned to bid for defence and government-related contracts as
invitations to tender arise. .
The Company is formally engaged in the Fleet Solid Support
Programme (FSS) under the Team Resolute umbrella with Navantia as
the Prime Contractor and the Company as its sub-contractor. The
final set of bid documents was delivered to the Ministry of Defence
in July, with the preferred bidder being announced in Q4 2022.
Whilst the Company remains optimistic that the preferred bidder
status will be awarded to Team Resolute, the Company believes that
there will be significant subcontract opportunities with other
Primes should they be awarded preferred bidder status given the
lack of capacity in other UK yards. The Company will make an
announcement on the outcome of the FSS decision when known.
Commercial
The commercial fabrication market has started showing signs of
growth and the Company sees significant opportunities both for
fabrication and vessel repairs. Post the half-year end, the Company
signed two contracts with the Cory Group (Cory Phases 1 and 2) for
the build and fabrication of 23 barges in Belfast. Due to the
ongoing Russia-Ukraine crisis and associated sanctions, the Company
withdrew from the tendering process of a series of oil and LNG
tankers with either Russian ownership or links to ultimate Russian
beneficial ownership. The Company continues to open up other
avenues and is seeing significant traction for its dry-docking
operations for tankers, FPSOs and LNG carriers under European and
American ownership.
Energy
The Company successfully completed two energy-related projects
from its Arnish facility in the first half of the year; structures
for an oil and gas project in the Black Sea and fabrication of
super duplex structures for a nuclear power plant in the UK.
Following the success of both projects, repeat contracts are
currently being scoped out. The Ukraine crisis has highlighted the
need for self-reliance with regards to energy supplies.
The Company's assets are strategically located to major North
Sea developments and discussions are ongoing in relation to
contracts for life of field extensions, new exploration programmes
and support for the fast-growing renewables market by repurposing
existing offshore platforms. As with the Renewables vertical,
whilst the Company is bidding for larger contracts that have a
longer gestation period, the Company continues to pursue smaller
contracts that are awarded quickly and can keep both revenues and
working capital moving.
Islandmagee Gas Storage Project
The Islandmagee gas storage project has come to the forefront of
attention given the structural shortage of gas storage in the UK
and volatile gas prices. Whilst full scale operation is still a few
years away, this project has highlighted the length of time it
takes to develop key strategic infrastructure and the
inefficiencies surrounding the development of such projects.
Moreover, the project has also highlighted the growing importance
of the need for flexible storage that can be future proofed and
made capable of transitioning into hydrogen storage, which will be
another major pinch point in a hydrogen-led economy.
The Company is currently in a judicial review process in
relation to the grant of the project's marine licence. Court
hearing dates have been set for November 2022. As previously
stated, the Company is afforded confidence from its legal counsel
that the judicial review will find in the Company's favour. The
Islandmagee gas storage project continues to remain the Company's
flagship energy project and discussions are continuing with
counterparties, from oil and gas majors to Government, to determine
the most appropriate methodology to monetise the gas store.
Financial overview
For the period ended 30 June 2022, the Company's consolidated
revenues stood at GBP15.41 million (30 June 2021: GBP4.14 million)
representing a three-and-a-half-fold increase from the comparative
period last year. The gross profit for the period stood at GBP3.38
million (30 June 2021: GBP1.39 million) representing a gross margin
percentage of 22%. Margins are in line with our expectations. As we
move into the next phase of the Company's growth cycle, with the
onset of large fabrication contracts, we expect to develop an
optimum mix of contracts within the portfolio to ensure gross
margins achieve our optimum level.
As with every other business, there are significant inflationary
pressures to manage and navigate at present. We are, as far as
possible, reducing our exposure to the volatility in steel prices
by requesting for client-delivered materials therefore de-risking
the procurement process for the Company. Where we are required to
acquire steel, our contracts are typically structured on a floating
price with the costs being passed directly to the client. Our goal
remains to develop an optimum blend of work across the four sites,
in order to maintain our gross margin target of approximately 25%.
However, we are operating in a highly volatile environment at
present and will not be able to pass on all labour and energy
related cost increases to every client. We are working with each
client on a case-by-case basis to mitigate these cost increases and
structure a risk and cost sharing mechanism that is mutually
beneficial to both parties.
The operating loss (including depreciation and amortisation) for
the period stood at GBP14.06 million (30 June 2021: GBP8.17
million). This loss reflects an increase in the number of personnel
and overall overheads, reflecting the need to service five assets
(Belfast, Appledore, Methil, Arnish and London). Operating losses
included increased non-capitalised insurance, IT, recruitment,
legal and asset maintenance costs on a much larger asset base
relative to the comparative period.
The Group now has one of the largest fabrication footprints in
the country, two of the largest dry docks in Europe and two of the
largest specialist fabrication sites in the UK. Having acquired
these assets out of administration, we have had to undertake an
accelerated programme of repairs and maintenance, as well as build
up our core staff strength in order to be able to bid for and win
large value contracts. Today, it is pleasing to see all our sites
fully operational, with each one winning work and servicing
clients, both new and repeat.
Whilst we continue to focus on a conservative level of cash burn
relative to our physical size, general overheads and non-project
related costs have increased over the period. Administrative
expenses for the period stood at GBP16.43 million (30 June 2021:
GBP8.77 million) which was due to our broader asset base and our
strategy to service, grow and maintain a developing business.
On 9 March 2022, we announced that we had entered into a
group-wide $70 million Green Term Loan Facility with affiliates of
Riverstone Credit Partners, LLC ("RCP"), a dedicated credit
investment platform managed by Riverstone Holdings LLC and focused
on entities engaged in building infrastructure and providing
infrastructure services to generate, transport, store and
distribute both renewable and conventional sources of energy. The
Facility is there to support growth and supplement the Company's
working capital requirements.
The Facility is split into two tranches:
-- A committed facility of $35 million
-- An uncommitted accordion facility of up to $35 million
The Company has utilised the first tranche of $35 million and
has commenced discussions with RCP on the activation of the second
tranche accordion and converting a portion of that uncommitted
facility into a committed facility. This upsized facility will
principally be used for paying down the Appledore deferred
consideration in its entirety and for ongoing working capital needs
of the Company.
Outlook
Going into the second half of the current financial year, we are
seeing a significant increase in revenues from the key projects
that were contracted at the beginning of Q3 2022.
In addition, Q4 2022 is the beginning of the peak cruise and
ferry repair season and we already have a number of repair
contracts in place. Key contracts such as the Saipem contract, Cory
barges and the M55 Regeneration Programme continue to be executed
at pace, all of which will provide baseload revenue visibility for
the remainder of this year and next.
The Company continues to maintain its guidance of achieving
revenues of between GBP65 million and GBP75 million at the end of
FY22. Furthermore, we have significantly increased our forward
backlog* position to GBP100m.
John Wood, CEO of Harland & Wolff Group Holdings plc,
commented:
"Our business model and strategy remain robust and has been
validated not only by the fact that we are now operational in all
five markets, but also by external counterparties such as
Riverstone who have invested on the basis of a sound business
strategy. We have a growing reputation in our markets and I remain
very optimistic about the trajectory of the Company.
After a slow start this year, we have now gained significant
momentum with the rapid execution of three major contracts. As we
announce these interim results, we have a backlog of over GBP100
million, a record level for the Company, affording us strong future
visibility of revenue."
*Backlog is defined as confirmed contracted revenues for future
periods.
This announcement contains inside information.
For further information, please visit www.harland-wolff.com or
contact:
Harland & Wolff Group Holdings plc +44 (0)20 3900
John Wood, Chief Executive Officer 2122
Seena Shah, Head of Marketing & Communications investor@harland-wolff.com
media@harland-wolff.com
Cenkos Securities plc (Nominated Adviser
& Broker)
Stephen Keys / Callum Davidson / Dan
Hodkinson (Corporate Finance) +44 (0)20 7397
Michael Johnson (Sales) 8900
----------------------------
About Harland & Wolff
Harland & Wolff is a multisite fabrication company,
operating in the maritime and offshore industry through five
markets: commercial, cruise and ferry, defence, energy and
renewables and six services: technical services, fabrication and
construction, decommissioning, repair and maintenance, in-service
support and conversion.
Its Belfast yard is one of Europe's largest heavy engineering
facilities, with deep water access, two of Europe's largest
drydocks, ample quayside and vast fabrication halls. As a result of
the acquisition of Harland & Wolff (Appledore) in August 2020,
the company has been able to capitalise on opportunities at both
ends of the ship-repair and shipbuilding markets where there will
be significant demand.
In February 2021, the company acquired the assets of two
Scottish-based yards along the east and west coasts. Now known as
Harland & Wolff (Methil) and Harland & Wolff (Arnish),
these facilities will focus on fabrication work within the
renewables, energy and defence sectors.
In addition to Harland & Wolff, it owns the Islandmagee gas
storage project, which is capable of providing 25% of the UK's
natural gas storage capacity and which would benefit the Northern
Irish economy as a whole when completed.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2022
Six months to Six months to
30 June 30 June
2022 2021
Unaudited Unaudited
Notes GBP GBP
Continuing operations
Revenue 15,413,527 4,143,863
Cost of sales (12,031,833) (2,748,683)
----------------------- -----------------------
Gross profit 3,381,694 1,395,180
Management and administrative expenses (16,432,799) (8,769,630)
Other income 337,960 412,169
Depreciation and amortisation (1,354,540) (1,206,248)
Operating loss (14,067,685) (8,168,529)
Finance income - 205
Finance costs (3,580,205) (1,166,505)
Loss before taxation (17,647,890) (9,334,829)
Taxation - -
----------------------- -----------------------
Loss for the period (17,647,890) (9,334,829)
======================= =======================
Total comprehensive loss for the period attributable to:
Owners of the company (17,647,890) (9,334,829)
----------------------- -----------------------
Earnings Per Share
Basic and diluted 2 (10.83) (10.45)
----------------------- -----------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
30 June 30 June
2022 2021
Unaudited Unaudited
Notes GBP GBP
Non-current assets
Intangible assets 3 12,055,457 11,880,556
Property, plant and equipment 4 24,437,365 19,345,086
Right of use assets 5 12,580,662 13,330,726
Total non-current assets 49,073,484 44,556,368
------------------ ----------------------
Current assets
Inventories 9,005,144 3,268,144
Trade and other receivables 6 10,637,686 2,415,917
Cash and cash equivalents 2,290,311 5,724,990
Total current assets 21,933,141 11,409,051
------------------ ----------------------
Current liabilities
Trade and other payables 7 (29,783,848) (13,323,733)
Loans and borrowings 8 (6,902,000) (599,060)
Lease liabilities 8 (1,499,946) (1,302,492)
Total current liabilities (38,185,794) (15,225,285)
------------------ ----------------------
Net current liabilities (16,252,653) (3,816,234)
Non-current liabilities
Loans and borrowings 8 (15,126,074) (2,090,000)
Lease liabilities 8 (13,891,686) (13,867,903)
Financial liability 8 (200,000) (200,000)
------------------ ----------------------
Total non-current liabilities (29,217,760) (16,157,903)
------------------ ----------------------
Net assets 3,603,072 24,582,231
================== ======================
Shareholders' funds
Share capital 12,444,734 12,032,879
Share premium 58,736,711 52,114,865
Merger reserve 8,988,112 8,988,112
Share based payment reserve 379,904 233,332
Revaluation reserve 6,074,895 6,074,895
Retained earnings (83,021,284) (54,861,852)
------------------ ----------------------
Total equity 3,603,072 24,582,230
================== ======================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
Share based
Share Share Revaluation Merger payment Retained Total
capital premium Reserve reserve reserve earnings equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2021
(Unaudited) 11,465,301 33,961,603 6,074,895 8,988,112 125,673 (45,527,023) 15,088,561
Loss for the
period - - - - - (9,334,829) (9,334,829)
------------------ ----------------- ------------------- --------------- -------------------- ------------------ ---------------
Total
comprehensive
expense
for the
period - - - - - (9,334,829) (9,334,829)
Transactions
with owners
recorded
directly in
equity:
Shares issued 567,578 18,153,262 - - - - 18,720,840
Share option
expense - - - - 107,659 - 107,659
Balance at 30
June 2021
(Unaudited) 12,032,879 52,114,865 6,074,895 8,988,112 233,332 (54,861,852) 24,582,231
================== ================= =================== =============== ==================== ================== ===============
Balance at 1
January 2022
(Audited) 12,444,734 58,736,711 6,074,895 8,988,112 360,501 (65,373,396) 21,231,557
Loss for the
period - - - - - (17,647,890) (17,647,890)
------------------ ----------------- ------------------- --------------- -------------------- ------------------ ---------------
Total
comprehensive
expense
for the
period - - - - - (17,647,890) (17,647,890)
Transactions
with owners
recorded
directly in
equity:
Share option
expense - - - - 19,403 - 19,403
Balance at 30
June 2022
(Unaudited) 12,444,734 58,736,711 6,074,895 8,988,112 379,904 (83,021,286) 3,603,070
================== ================= =================== =============== ==================== ================== ===============
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2022
Six months Six months
to to
30 June 30 June
2022 2021
Unaudited Unaudited
GBP GBP
Cash flows from operating activities
Loss for the period (17,647,890) (9,334,829)
Adjustments to cash flows from non-cash
items:
Depreciation and amortisation 1,354,540 1,206,248
Foreign exchange loss 101,337 -
Finance costs 3,580,205 1,166,505
Share option expense 19,403 107,659
(12,592,405) (6,854,417)
Working capital adjustments:
Increase in inventories (7,828,503) (2,239,759)
Increase in trade and other receivables (3,811,742) (768,898)
Increase/(decrease) in trade and other
payables 7,673,315 (917,449)
Net cash outflows from operating activities (16,559,335) (10,780,523)
------------- -------------
Cash flows from investing activities
Acquisitions of property, plant and equipment (680,716) (1,184,405)
Acquisitions of intangible assets (133,813) (387,998)
Net cash outflows from investing activities (814,529) (1,572,403)
------------- -------------
Cash flows from financing activities
Proceeds from issue of shares, net of
share issue costs - 15,233,881
Proceeds from borrowings, net of debt 20,155,203 -
issuance costs
Repayment of borrowings and lease liabilities (4,549,580) (333,311)
Interest paid (1,219,450) (963,955)
Net cash inflows from financing activities 14,386,173 13,936,614
------------- -------------
Net (decrease)/increase in cash and
cash equivalents (2,987,691) 1,583,688
Cash and cash equivalents at the start
of the period 5,278,002 4,141,302
Cash and cash equivalents at the end
of the period 2,290,311 5,724,990
============= =============
NOTES TO THE INTERIM RESULTS
For the six months ended 30 June 2022
1. Accounting policies
Basis of preparation
The interim financial information in this report has been
prepared using accounting policies consistent with International
Financial Reporting Standards (IFRS) as adopted by the European
Union (EU). IFRS is subject to amendment and interpretation by the
International Accounting Standards Board (IASB) and the IFRS
Interpretations Committee and there is an ongoing process of review
and endorsement by the European Commission. The financial
information has been prepared on the basis of IFRS that the
Directors expect to be adopted by the European Union and applicable
as at 30 June 2022.
Non-statutory accounts
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006.
A copy of the statutory accounts of the Company for the 17-month
period ended 31 December 2021 has been delivered to the Registrar
of Companies. The audit report on these accounts is unqualified and
did not contain a statement under Sections 498(2) or (3) of the
Companies Act 2006.
The financial information for the six months ended 30 June 2022
and 30 June 2021 is unaudited.
The Group has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing the interim financial information'.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
17-month period ended 31 December 2021, which was prepared under
IFRS as adopted by the EU, and any public announcements made by
Harland & Wolff Group Holdings plc during the interim reporting
period.
Accounting policies
The interim financial information has been prepared under the
historical cost convention except for certain items that are shown
at fair value as disclosed in the accounting policies.
The same accounting policies, presentation and methods of
computation are followed in preparing the interim financial
information as were applied in preparation of the Group's financial
statements for the 17-month period ended 31 December 2021.
The financial statements are presented in Sterling which is the
functional currency of the Group, and all values are rounded to the
nearest Pound Sterling (GBP).
Basis of consolidation
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control
ceases.
Inter-company transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised
losses are also eliminated. When necessary, amounts reported by
subsidiaries have been adjusted to conform with the Group's
accounting policies.
NOTES TO THE INTERIM RESULTS
For the six months ended 30 June 2022
1. Accounting policies (continued)
Going concern
The interim results have been prepared on a going concern basis.
During the six months ended 30 June 2022 the Group announced that
it secured the build of eleven barges for the Cory Group valued at
GBP8.40 million over a period of 10 months and has also secured, on
13 July 2022, its first major defence contract with the
refurbishment of the M55 Minehunter, the contract valued at circa
GBP55 million and to be completed within 24 months. Further, the
Company announced a further contract worth GBP9.60 million on 19
July 2022 for an additional twelve barges for the Cory Group.
Additionally, there is a strong pipeline of opportunities across
the five markets that the Group is involved in that management
seeks to convert into firm contracts. However, given the
uncertainty surrounding bid success and the relative lack of bid to
success history, management have prepared a worst-case scenario in
respect of their going concern assumptions. This assumes no bid
contract wins and that the sole revenue generated by the Group will
arise from the existing contracts that are currently being
fulfilled at the various facilities within the Group. The scenario
includes all expected costs associated with such works as well as
the repayment of all liabilities that fall due and takes into
account all cost savings and process efficiencies considered
achievable. Based on this worst case forecast scenario the
directors have a reasonable expectation that the Group has access
to adequate resources to continue in operational existence for the
foreseeable future. Thus, they continue to adopt the going concern
basis of accounting in preparing the interim results for the six
months ended 30 June 2022.
2. Earnings per share
Six months Six months
to to
30 June 30 June
2022 2021
Unaudited Unaudited
GBP GBP
The loss for the purposes of basic and
diluted earnings per share being the net
loss attributable to equity shareholders
Continuing operations (17,647,890) (9,334,829)
-------------------- ------------------
Number of shares
Weighted average number of ordinary shares
for the purpose of:
Basic earnings per share 162,887,840 89,336,977
Basic and diluted earnings per share
Continuing operations (10.83) (10.45)
-------------------- ------------------
NOTES TO THE INTERIM RESULTS
For the six months ended 30 June 2022
3. Intangible assets
Gas storage Development Project
Artefacts Trademarks development costs costs Total
GBP GBP GBP GBP GBP
Cost
At 1 January
2022 647,395 863,192 10,028,338 55,000 334,177 11,928,102
Additions - - 133,813 - - 133,813
------------ ------------- -------------- -------------- ------------ ------------
At 30 June 2022 647,395 863,192 10,162,151 55,000 334,177 12,061,915
------------ ------------- -------------- -------------- ------------ ------------
Amortisation
At 1 January
2022 - - - 5,083 - 5,083
Amortisation
charge - - - 1,375 - 1,375
------------ ------------- -------------- -------------- ------------ ------------
At 30 June 2022 - - - 6,458 - 6,458
------------ ------------- -------------- -------------- ------------ ------------
Net book value
At 30 June 2022 647,395 863,192 10,162,151 48,542 334,177 12,055,457
============ ============= ============== ============== ============ ============
At 31 December
2021 647,395 863,192 10,028,338 49,917 334,177 11,923,019
============ ============= ============== ============== ============ ============
4. Property, plant and equipment
Land and Office Motor vehicles Plant Total
buildings equipment and machinery
GBP GBP GBP GBP GBP
Cost or valuation
At 1 January 2022 11,951,519 274,975 554,517 15,200,892 27,981,903
Additions - - - 680,716 680,716
------------------- --------------- ----------------- ---------------- ------------
At 30 June 2022 11,951,519 274,975 554,517 15,881,608 28,662,619
------------------- --------------- ----------------- ---------------- ------------
Depreciation
At 1 January 2022 881,940 136,424 118,842 2,109,915 3,247,121
Charge for the period 214,064 22,542 28,082 713,445 978,133
------------------- --------------- ----------------- ---------------- ------------
At 30 June 2022 1,096,004 158,966 146,924 2,823,360 4,225,254
------------------- --------------- ----------------- ---------------- ------------
Carrying amount
At 30 June 2022 10,855,515 116,009 407,593 13,058,248 24,437,365
=================== =============== ================= ================ ============
At 31 December 2021 11,069,579 138,551 435,675 13,090,977 24,734,782
=================== =============== ================= ================ ============
NOTES TO THE INTERIM RESULTS
For the six months ended 30 June 2022
5. Right of use assets
Property
GBP
Cost or valuation
At 1 January 2022 14,301,897
Additions -
-------------------
At 30 June 2022 14,301,897
-------------------
Depreciation
At 1 January 2022 1,346,204
Charge for the period 375,031
-------------------
At 30 June 2022 1,721,235
-------------------
Carrying amount
At 30 June 2022 12,580,662
===================
At 31 December 2021 12,955,693
===================
6. Trade and other receivables
30 June 30 June
2022 2021
Unaudited Unaudited
GBP GBP
Trade receivables 2,411,008 292,644
Accrued Income 5,532,511 103,793
Other receivables 1,060,560 1,396,695
Prepayments 1,633,607 622,786
10,637,686 2,415,917
============ =============
7. Trade and other payables
30 June 30 June
2022 2021
Unaudited Unaudited
GBP GBP
Trade payables 17,814,372 3,431,788
Social security and other taxes 2,707,543 2,783,818
Outstanding defined contribution pension
costs 118,092 63,335
Other payables 153,560 340,868
Accruals and deferred income 8,990,280 6,703,923
29,783,848 13,323,733
=============== =================
NOTES TO THE INTERIM RESULTS
For the six months ended 30 June 2022
8. Financial liabilities
30 June 30 June
2022 2021
Unaudited Unaudited
GBP GBP
Current liabilities:
Loan facility 6,902,000 -
Lease liabilities - right of use 1,499,946 1,302,492
Costain Loan - 599,060
8,401,946 1,901,552
================= ================
Non-current liabilities:
Loan facility 15,126,074 -
Lease liabilities - right of use 13,891,686 13,867,903
Moyle Investments 200,000 200,000
Other borrowings - 2,090,000
29,217,760 16,157,903
================= ================
Loan Facility
The Company entered into a group-wide loan facility on 9 March
2022 with affiliates of Riverstone Credit Partners, LLC ("RCP"),
split into a committed facility of $35 million and an uncommitted
accordion facility of up to $35 million. The facility matures on 9
September 2023 and has an interest rate of the published 90 day
Secured Overnight Financing Rate (the "SOFR") plus 9% per annum,
with the floor of the SOFR set at 1%. The Company may elect to
extend the maturity date by six months at a time up to three times
for a final maturity date no later than 9 March 2025.
Moyle Investments
In December 2017, the Company's wholly owned subsidiary,
InfraStrata UK Limited increased its ownership in Islandmagee
Energy Limited from 90% to 100% by acquiring the remaining interest
from Moyle Energy Investments Limited at par value. In recognition
of the support by Moyle of the gas storage project at Islandmagee,
Harland & Wolff Group Holdings plc will pay Moyle GBP200,000 on
first gas storage.
9. Seasonal trend analysis
The Company normally observes a seasonal trend of ferry and
cruise repairs being conducted over the winter period in
preparation for summer sailings. However, given the effects of the
lockdowns as a result of the COVID-19 pandemic, major ferry clients
deferred their winter 2020 works into summer and autumn 2021.
Whilst the effects of the lockdown slowly dissipate, we envisage
seasonal normality to be the norm going forward. There are no
particular seasonal variations observed within the other
markets.
10. Dividend
The Directors do not recommend payment of a dividend for the
period to 30 June 2022.
11. Publication of the interim report
This interim report is available on the Company's website
https://www.harland-wolff.com
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END
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(END) Dow Jones Newswires
September 30, 2022 02:00 ET (06:00 GMT)
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