Harland and Wolff parent company to enter administration

By PA Reporters

Belfast shipbuilder Harland and Wolff has announced the business is set to move into administration.

A company statement said: “A full review of all group holdings commenced in July and has concluded that H&W Group Holdings PLC is insolvent on a balance sheet basis as per its last audited accounts and most recent management accounts.”

Insolvency practitioners Teneo will act as administrators and shares will be delisted.

The company said between 50-60 immediate redundancies are expected but that staff employed at its four shipyards are not affected.

Harland and Wolff interim executive chairman Russell Downs said the group had faced a “very challenging time” due to historic losses and failure to secure long-term financing.

He said: “It’s important to recognise that this is very difficult news for staff and will affect many within group. We will work to support our staff through this transition.

“We also know that it will be very unwelcome news for shareholders who have shown significant commitment to the business over the last five years.

“The board, the senior managers and rest of the team are committed to deliver the best outcome for the four yards and communities they serve to ensure their continued operation into the long term under new ownership.

“Unfortunately, extremely difficult decisions have had to be taken to preserve the future of our yards.

“Despite the recent challenges, the four yards have a strong capability, under new ownership and with the continuing support of their customers, to deliver UK-based ship building and leading UK based renewables employing over 1,300 committed personnel.

“It’s critical that the business comes through its financial troubles to secure an enduring legacy worthy of its name and its past for the benefit of the UK as a whole and its communities in particular.”

The parent group of Harland & Wolff is expected to collapse into administration later this week. (Liam McBurney/PA)