Harland and Wolff ‘can still deliver naval contract’ | EUROtoday

The government chairman of Harland and Wolff has stated the Belfast shipyard continues to be able to delivering a serious Royal Navy contract, as soon as it finds new house owners.

Russell Downs, a restructuring professional, has been working the enterprise since July.

He is working with advisers from Rothschild financial institution to seek out patrons for Harland and Wolff’s 4 UK yards.

Navantia, Spain’s state-owned shipbuilder, is known to have an interest within the Belfast operation.

Navantia is the main companion within the Fleet Solid Support (FSS) programme to construct three naval logistics vessels with Harland and Wolff as subcontractor.

“The yards together or separately have a credible future,” Mr Downs informed the BBC.

“We have strong leadership in all of our yards. We have a strong business case around the work they are currently doing and the work they expect to do in the future.

“They have a funding want within the close to time period however into the long run they are going to be producing money.”

Sky News has reported that Babcock International, the UK defence contractor, is also a potential bidder for the Belfast business.

The company’s main site is the historic Titanic shipyard in Belfast. It also has yards at Appledore in Devon, and at Methil and Arnish in Scotland. It employs 1,500 people in total.

The Harland and Wolff holding company is likely to be placed into administration sometime in the next two weeks.

However, the shipyards are in separate operating companies so they can continue trading while the sales process is completed.

Mr Downs said there should be a list of bidders within the next 10 days and he hopes a deal or deals can be concluded by the end of October.

He suggested the government will have a role in approving buyers given the FSS contract is Harland and Wolff’s major asset.

“We have to select somebody we have now an expectation will clear these hurdles rapidly,” he added.

Mr Downs also confirmed a report in the Financial Times that he has launched an investigation into the possible “misapplication” of about £25m at the business.

It is essentially an examination of spending decisions taken by the previous management. It does not imply wrongdoing.

The firm’s former chief government, John Woods, informed the Financial Times that the allegation of misapplication of funds was “ridiculous”.

Harland and Wolff has been heavily loss-making and its shares have been suspended since the beginning of July, after it failed to publish audited accounts.

Later that month, ministers rejected the firm’s application for a £200m loan guarantee.

Business Secretary Jonathan Reynolds told parliament at the time: “Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost.”