Harland and Wolff: Belfast shipyard denies funding rejection

Harland and Wolff said negotiations with the government are continuing

Harland and Wolff has denied that the government has refused to give it a loan guarantee which is seen as crucial to its future.

The Times newspaper reported that the Treasury is set to block the £200m guarantee.

But the Belfast-based shipyard said negotiations with the government, which started in December last year, are continuing.

It described the report as "misleading and inaccurate".

"We were disappointed to read this article and the reaction it has caused," chief executive John Wood said.

"Our application has not been rejected and continues to be a work in progress. I expect to be providing a fuller update on our refinancing plans in the next few weeks."

Future plans

Harland and Wolff wants the loan guarantee to help stabilise its finances as it prepares to begin work on a major contract for the Royal Navy next year.

It is part of the Team Resolute consortium which will build three naval support ships.

The entire final assembly for these ships is due to be carried out in Belfast.

A barge constructed at the Harland & Wolff shipyard

The company has had to invest in its premises and increase its staffing ahead of that work which contributed to a £70m loss in 2022.

It currently has borrowings of around £80m from a specialist lender which involves paying a relatively high interest rate.

It wants to borrow up to £200m from conventional banks at a lower interest rate with the government acting as a guarantor for those loans.

It has applied to the government's Export Development Guarantee scheme which normally covers up to 80% of the risk to lenders on loans of up to £500m. Harland and Wolff is, unusually, seeking a 100% guarantee.

A government spokesperson also said no decision has been made.

"We continue to engage with Harland & Wolff on the export development guarantee," they said.

"Due to commercial sensitivities, it would not be appropriate to comment further until the outcome of the process is confirmed."