Harland & Wolff (HARL) , the maritime engineering specialist, has announced today an all-encompassing update on their business and management outlook for the financial year 2023, along with the financial year 2024. The company has charted a series of highlights demonstrating the strong financial position the company is in - in its own words, proving that the “Harland and Wolff machine is really starting to hum.”
The company cited a backlog of confirmed contracted revenues totalling around £900m, extending over a seven-year period, of which around £750m is represented by the previously announced FSS contract. In addition, the Company has a weighted pipeline of new business in excess of £3.6bn of revenues over the next five years; at the current win ratio of 34%, this equates to a projected backlog of approximately £1.24bn.
In addition, the engineering specialist's updated outlook for FY23 and FY24 includes target revenues of £100-115m in FY23 and target revenues of £200-£230m in FY24. Harland & Wolff continues to maintain its targets, despite well-documented delays experienced across the supply-chain and the recently announced termination of the Saipem contract.
With regards to group financing, Harland & Wolff has announced that it has amended its debt facility with Riverstone Credit Partners LLC, upsizing the loan to $100 million (previously $75m).
Harland & Wolff also offered an outlook across five markets in which the company is engaged, demonstrating strong signs of progress in each, particularly in the cruise and ferry market, noting that enquiries have increased significantly following the successful dry docking of the Queen Victoria cruise vessel in 2022.
John Wood, Group CEO of Harland & Wolff comments: "It is gratifying to see the levels of activity that are already present in all of our yards, with the knowledge that this is only going to increase steadily - and materially - from this point. The Harland and Wolff machine is really starting to hum and our ability to operate flexibly across multiple facilities will become increasingly important as an industry differentiator as our workload expands. We look forward to the future with increasing confidence."
View From Vox
Harland & Wolff grabbed investor attention with their update this morning, with the report demonstrating that the company is in a strong position to deliver its target revenues across FY23 and FY24. We are excited to see the updates coming from Harland this year, as the company has already made huge strides across multiple markets in 2023.
In February alone, the engineering specialist announced plans to extend its fabrication halls at the Belfast Facility, as part of its £77m recapitalisation plan, along with the announcement of securing six new contracts within the defense, cruise & ferry, and commercial fabrication markets.
Following the company consistently announcing a series of successes this year, the update today consolidates Harland & Wolff’s strong position moving into the next financial year. Follow Harland & Wolff to keep up to date with the latest news and updates from the company.