The government has announced that they will not provide a financial lifeline to shipbuilder Harland & Wolff (H&W) due to concerns of potential losses to taxpayers. The company, which employs over 1,500 individuals across its operations, had been in discussions with the Department for Business and Trade for support, including a £200m Export Development Guarantee. However, Business Secretary Jonathan Reynolds confirmed in a written statement to MPs that the application had been rejected, citing that the funding would not guarantee the objectives set by the government.
The shipbuilder, which is facing significant debts, had previously announced on Friday that their bid for taxpayer aid had been unsuccessful. They are currently in talks with lenders to secure new loan facilities, with discussions expected to continue for several more days. In addition, the company revealed that their chief executive, John Wood, will be taking a leave of absence with immediate effect, with an interim executive chairman assuming control of his responsibilities.
H&W has also announced that they have appointed restructuring expert Russell Down to oversee a recapitalisation plan, with the aim of achieving sustainable financial stability for the company. The shipyard has faced significant competition from countries in Asia, and was only saved from closure in 2019 when it was bought out of administration by energy infrastructure firm InfraStrata for £6m.
The shipbuilder is currently in discussions with key stakeholders, including the UK government, to address the state of their existing and future contracts. Last year, they secured a £1.6bn contract to build support ships for the Royal Navy. Sky News has also reported on other financial news, including former Tory chancellor Zahawi’s potential bid of £600m for the Telegraph, Ryanair’s warning to shareholders of weaker summer fares and slipping profits, and BT’s £17.5m fine for a 999 call network fault.
