Belfast shipbuilder Harland and Wolff enters administration again

Harland and Wolff, the historic shipbuilder based in Belfast, has entered administration for the second time in five years, primarily affecting its holding company, Harland & Wolff Group Holdings plc. The operational companies that manage the shipyards in Belfast, Appledore, Methil, and Arnish will continue to operate, although the administration process will lead to a reduction in workforce. The company’s executive chairman expressed optimism about finding new ownership for the yards. The firm has faced significant financial challenges, including a loss of over £25 million in its 2021 accounts and a staggering loss of approximately £70 million in 2022. The 2023 unaudited accounts indicate a further loss of £43 million. These financial difficulties stem from a reliance on high-interest loans from a US lender and a lack of government support, which was deemed too risky for taxpayer money. Harland and Wolff's recent history includes a buyout from administration in 2019 after its Norwegian owners withdrew support, leading to insolvency. The company had not built a ship in a generation before rebranding as Harland and Wolff and securing a significant Royal Navy contract in 2022. However, mounting financial losses have overshadowed these achievements. The administration process will wipe out shareholder investments, and while some employees will be retained for essential services, the future of the company remains uncertain as it seeks new ownership and financial stability.