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Harland & Wolff Responds to Financial Times Article

17/07/2024

Harland & Wolff Group, the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management, provides the following statement in relation to an article published on 16 July 2024 in the Financial Times and certain other media outlets about the Company's £200 million Export Development Guarantee ("EDG") application.

The Company considers these articles to be speculative and misleading. The Company has not received any  decision from Government in relation to its application and the Company continues to provide information and updates on a regular basis to facilitate Government in its decision-making process.

The Company makes the following comments to address points made in these articles and to provide clarification:

· The EDG application made by the Company has been for the standard 80/20 EDG product; 20% of the loan is an unguaranteed and commercial tranche and 80% of the loan is the guaranteed tranche that is funded by banks and guaranteed by UK Export Finance ("UKEF").

· This is a standard UKEF product and the structure and terms are consistent with other similar transactions in the market.

· The Company has not asked for a 100% guaranteed product on any occasion.

· There are no taxpayer monies provided to the Company. The funds received by the Company will be from the commercial lender and the banks with which the Company has agreed terms.

· The Company continues engagement with Government on a standard EDG product that has been offered to hundreds of other entities, both in the UK and globally. There is no deviation or departure from what is a standard product that has been used for several years.

· The Company has consistently maintained that it remains prepared to execute the transaction on a standard 80/20 EDG product basis.

· The Company was informed in December 2023 that the EDG facility had been approved and was subject to a commercial rate review and final ministerial consent. An announcement was made on that basis with the consent of Government. The Company has not been informed by Government that it has withdrawn its approval for the EDG facility.

· The legal advice that the Company has received confirms that a commercially negotiated and priced EDG loan (for which the Company has applied) does not breach state aid rules. Further discussions are ongoing with the Department of Business and Trade ("DBT") to understand any differences between the advice received by DBT and that received by the Company.

· The Company's lender, Riverstone Credit Partners, have been fully supportive of the Company and have enabled the Company to win crucial contracts such as the M55 Regeneration Programme, Cory barges, FSS Programme and, most recently, the Searose project.

· The Company further provides some key highlights to demonstrate the growth and future prospects of the Company:

All four yards are now fully operational;

Over 1,500 high quality manufacturing-related jobs have been created;

over 140 apprentices being trained on an annual basis;

Revenue projections of £200 million for FY24 continue to be expected to be achieved;

Scottish yards fully geared up for the renewables fabrication with circa £1 billion of work tendered; Methil and Arnish part of the Scottish Offshore Wind Energy Council ("SOWEC") to attract significant capital investment in both yards; and

Management remains confident in its plans to realise its aspiration of c£500 million per annum revenues.

The Company continues to maintain its discussions with Government and will make further announcements on the outcome of its EDG application in due course.

KeyFacts Energy Industry Directory: Harland & Wolff  

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