Harland & Wolff slashes FY guidance
By Iain Gilbert
Date: Friday 30 Dec 2022
(Sharecast News) - Shipbuilding company Harland & Wolff slashed full-year guidance on Friday, stating roughly £30.0m of revenues had been deferred into the first half of 2023.
Harland & Wolff said it has been unable to undertake certain key workstreams on the £55.0m M55 Regeneration Programme contract awarded to it by the Ministry of Defence, on behalf of the Lithuanian Defence Materiel Agency. H&W stated the delay was primarily due to a lack of material availability and specialist original equipment manufacturers' parts.
As a result, the firm now expects approximately £20.0m of revenues from the contract to be deferred into 2023. However, it added that the overall project was still on track and in line with the base redelivery schedule for the vessel.
H&W also said ongoing geopolitical uncertainties and global inflation had caused "certain other clients" within the cruise and ferry market to either defer contracts into 2023 or reduce the scope of works. On the back of this, management estimates fourth-quarter revenues to be down £8.0m to £10.0m, which will also be deferred into H1 2023.
The AIM-listed group, which previously said full-year revenues would be between £65.0m and £75.0m, stated the aforementioned issues meant revenues would be "materially below expectations" at between £29.0m and £31.0m.
As of 1015 GMT, Harland & Wolff shares had sunk 22.58% to 15.60p.
Reporting by Iain Gilbert at Sharecast.com
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