Board Appointments

Further to its recent announcement regarding certain changes to the Board, Harland & Wolff announces the formal appointments of Russell Downs and Alan Fort to its Board of Directors with immediate effect.

Russell joins the board as Interim Executive Chairman. As previously announced, Russell is a highly experienced finance professional after a 30-year career at PwC LLP, most recently as partner, helping businesses and stakeholders across a wide spectrum of industries.  Russell is founder of Armada Advisers LLP, a boutique advisory firm supporting stakeholders and advising on restructurings. He is currently also an executive director of Merry Hill Shopping Centre, a large shopping complex based in Dudley, England. With notable successes returning significant value to stakeholders and securing complex refinancings, he is well placed to lead the Board at this time as it seeks to complete a recapitalisation intended to give the Company a sustainable financial footing into the medium and long-term.

Alan joins the board as Non-Executive Director and has a long track record in performance improvement, with many years of board level experience providing support and challenge to management teams to ensure that goals are clearly defined and performance is transparently monitored. Amongst other roles, Alan is currently a Non-Executive Director at the steelmaker Celsa UK Group, a leading steel manufacturer where he previously held the role of Chief Restructuring Officer. Alan qualified as a chartered accountant with Price Waterhouse.

Other updates

On 19 July 2024, the Company announced that it was assessing strategic options for the Group having been notified that HM Government would not be proceeding with H&W's application for the EDG facility. As announced on 1 August 2024,  the Company subsequently entered into arrangements with its existing lenders, Riverstone, to increase its facility by $25m to provide short term liquidity to the Company.

In line with the Company's previous strategy to scale, diversify and invest in its asset base to ensure capability of carrying out large scale contracts, including the FSS programme, the Group has, over the past years, necessarily built significant scale and capability in its yards in England, Northern Ireland and Scotland supported by talented, loyal and committed work forces.

It remains the Company's priority to deliver our programme on the FSS project and the Company is in active discussions with this customer to agree the optimum route.  The Company continues to work on its existing order book to the fullest extent possible, whilst at the same time working with interested parties to find a solution that supports the long-term ambitions and prospects of the business.

The Company remains reliant on the support of its existing lenders, Riverstone, who continue to support the Group through the provision of short-term liquidity and under its existing structure of guarantees, share pledges and secured debentures.

As previously announced, the Company has appointed Rothschild & Co as its financial adviser to assess strategic options for the Group and assist the Board in deciding a route forward that will maximise value for stakeholders and seek to preserve the Company's core operations at its delivery centres in Belfast, Appledore, Methil and Arnish. This process is underway and being undertaken in conjunction with the ongoing review of the Company's business priorities.

Currently, the Company and its Board do not believe it can finalise its 2023 accounts on a going concern basis and, therefore, work to complete its unpublished accounts has also been suspended, with resources being focussed on the Rothschild process. Accordingly, the present suspension of the Company's shares will remain in place and the Company will update the market in accordance with its regulatory obligations as matters develop.

Russell Downs, Interim Executive Chairman, commented:
"We remain focussed on working with interested parties and key stakeholders to ensure that we can navigate through this uncertainty preserving the underlying value in the yards and the FSS contract for its employees and other stakeholders."

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