The shipbuilder Harland & Wolff has been forced to temporarily suspend trading in its shares after accounting issues meant it was unable to file audited accounts on time.
The Aim-listed company, which owns the shipyard where the Titanic was built, said on Monday that it would suspend trading with immediate effect because accounts had not been filed.
It expects to publish the accounts in the week commencing 8 July, with share trading resuming at that point.
The Belfast-based shipbuilder was plunged into uncertainty last month when it was reported that the UK government was witholding the approval of a £200m loan guarantee promised in December to shore up its finances.
The update on Monday said that because of the “multi-year and complex nature” of some of its contracts, it had been in “extensive discussions” with auditors over how best to record revenues over the duration of a build programme.
It said that this was particularly relevant when assessing incomes from its seven-year contract with the Spanish shipbuilder Navantia to assist in the construction of fleet support ships for the Royal Navy, a deal that is expected to net the UK company £750m.
It added: “The assessment of the split in revenues between current year’s revenues and deferred revenues has caused a delay to the audit process and hence the publication of the company’s annual report and audited financial statements.”
The company was able to publish unaudited accounts in which it posted an operating loss of £24.7m for the 12 months until 31 December 2023, an improvement on a £58.5m loss a year earlier. Revenues increased from £27.8m in 2022, to £86.9m this year.
In May, the GMB union wrote to the chancellor warning that any decision to block the £200m loan guarantee that had been offered to Harland & Wolff would put jobs at threat.
The letter was prompted by reports that the government was looking to withdraw support for a £200m loan facility Harland & Wolff had applied for through UK Export Finance. The money would allow it to borrow to pay off expensive debts owed to Riverstone Credit Partners, a US investor.
In the update, the company said further work was continuing on the facility and it expected that a decision would be made after Thursday’s general election.
It added: “Should there be any material delays to securing the facility post the general election, the company’s ability to execute new and large contracts would be adversely affected.”
Harland & Wolff also owns ports across England and Scotland, including Methil on the Firth of Forth, Appledore in North Devon and Arnish Point on the Isle of Lewis.
