Harland and Wolff has confirmed the heavily loss-making company is set to enter administration.
The Belfast-based shipbuilder and renewables fabrication and assembly business said earlier today (16 September) it had concluded “the company is insolvent on a balance sheet basis per its last audited accounts and most recent management accounts”.
It added: “Contingency planning for the making of an administration order and appointment of administrators from Teneo is underway for the company. The process will likely commence this week.”
The business update said a number of parties have already expressed interest in acquiring some or all the company’s subsidiaries. A first-round bid deadline is due shortly.
The company, which employs around 1,500 people at yards in Belfast, Methil and Arnish in Scotland and Appledore in west England, said it had been left in a difficult financial position following the Government’s recent rejection of a £200m loan guarantee facility.
The Board had already begun efforts in recent weeks to wind down and reduce headcount in non-core activities including Harland and Wolff’s Scilly Ferries business.
Trading of shares has been suspended since July after the company failed to file audited accounts on time.
Preliminary results show a loss of £43m was made in 2023, despite revenues rising by 213% since the previous year to £86.91m.