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Shipbuilder company Harland and Wolff (H&W) has suspended trading in its shares after accounting issues delayed the filing of its audited financial results.
The company, which owns the shipyard that built the Titanic, said that there are “ongoing discussions” with its auditor regarding revenue recognition relating to the multi-year and complex nature of some of the contracts under which the company is working.
The assessment of the split in revenues between current year’s revenues and deferred revenues has caused a delay to the audit process, resulting in the company being unable to publish its annual results by 30 June. H&W now expects to publish the audited results during the week commencing 8 July.
Yesterday (1 July) an official announcement said: “Trading in the company’s ordinary shares on AIM will therefore be suspended with effect from 7.30 a.m. today pending publication of the 2023 Annual Report.”
So far, unaudited full-years results show a jump in revenues from £27.7m to £86.9m for the year ended 31 December. Operating loss for the company reached £24.7m, down from £58.5m.
The announcement comes amid uncertainty regarding a £200m loan facility promised by the government in December.
H&W added: “Further work continues on this facility and the company expects the UK Government to reach a decision after the General Election. 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.”
