Losses have widened at Harland & Wolff after it took on new manufacturing sites and more than trebled its workforce, but the shipbuilder and energy manufacturer believes that it must make such investment now to reap the rewards in future.
It is in talks on securing large offshore wind contracts, as well as expanding its offering in shipbuilding, the energy sector and defence.
The London-listed business owns the Harland & Wolff Belfast shipyard, as well as sites in Appledore, Devon, and at Methil, Fife and Arnish on the Isle of Lewis. It added the latter three locations in its most recent financial year.
Annual results published yesterday showed turnover of £10.2 million in the 12 months to the end of July, up from £1.5 million. The pre-tax loss was £16.7 million, wider than the £10.4 million in the previous 12 months, while staff numbers grew from 80 to about 320.
John Wood, chief executive, said: “In order to establish our credibility within the industry, it has been essential to bring the yards back into full operation only after completing all the necessary upgrades to meet best-of-class technical and operational standards.
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“While the increased level of spending in the short term hurts cashflows, it is necessary that we invest in the business now in order to reap its benefits in the months and years to come.”
The group’s first big fabrication contract was signed in April with a £26.5 million deal for the Methil site to provide jackets for the NNG offshore wind farm in Scotland. It is hopeful that can break-even from a cashflow perspective towards the end of this year and move into profit in 2022.
The shares closed flat at 26½p.
