Harland & Wolff said on July 1 that it would suspend trading with immediate effect because its accounts had not been filed.
The Guardian reports that the publicly listed Belfast-based shipbuilder has been forced to temporarily suspend trading in its shares after accounting issues meant it was unable to file audited accounts on time. It expects to publish the accounts in the week commencing 8 July, with share trading resuming at that point.
In June, it was reported that the U.K. government was withholding the approval of a £200m ($253 million) loan guarantee promised in December 2023 in order to shore up its finances.
The update on July 1 pointed to uncertainty in income because of the “multi-year and complex nature” of some of its contracts, most notably 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 U.K. 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.”
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.
