Contract Win

RNS Number : 8868S

Harland & Wolff Group Holdings PLC

19 July 2022

 

This announcement contains inside information

19 July 2022

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

£9.6 million additional contract win from Cory Group

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company focused on strategic infrastructure projects and physical asset lifecycle management, is pleased to announce that it has been awarded a second contract worth approximately £9.6 million by Riverside Energy Park Limited, part of the Cory Group of companies ("Cory") for the fabrication of twelve barges. This additional contract follows on from the original Cory contract announced on 1^st June. 

The barges will be used to transport recyclable and non-recyclable waste on the River Thames. The contract award is subject to Cory reaching financial close on its Riverside 2 development, which will include an Energy from Waste (EfW) facility that will be adjacent to Cory's existing EfW facility and will be one of the largest and most efficient in the UK.  

Fabrication will again take place at Harland & Wolff's Belfast site, beginning towards the end of the fabrication programme for the first set of eleven barges (announced on 1^st June).  A production line has been set up at the Belfast facility that will provide seamless delivery of the twenty-three barges in total. Revenues from this additional contract are expected to be delivered in FY 2023, further underpinning the Group's contracted revenues for that year, which now sit at c£40 million. The Company continues to trade in line with market expectations for FY 2022.

Harland & Wolff, group CEO John Wood, commented:

"We are pleased that Cory has once again chosen Harland & Wolff to fabricate these new barges. Fabrication facilities require a constant stream of work in order to create economies of scale and derive operational efficiencies. We have set up a semi-automated production line for the first Cory contract and with the award of the second contract, we will be able to drive through further efficiencies in the fabrication process."

For further information, please visit  www.harland-wolff.com  or contact:

Harland & Wolff Group Holdings plc John Wood, Chief Executive Officer Seena Shah, Head of Marketing & Communications	[phone] [e-mail]   [e-mail]
Cenkos Securities plc (Nominated Adviser & Broker) Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance) Michael Johnson (Sales)	[phone]

About Harland & Wolff

Harland & Wolff is a multisite fabrication company, operating in the maritime and offshore industry through five markets: commercial, cruise and ferry, defence, energy and renewables and six services: technical services, fabrication and construction, decommissioning, repair and maintenance, in-service support and conversion.

Its Belfast yard is one of Europe's largest heavy engineering facilities, with deep water access, two of Europe's largest drydocks, ample quayside and vast fabrication halls. As a result of the acquisition of Harland & Wolff (Appledore) in August 2020, the company has been able to capitalise on opportunities at both ends of the ship-repair and shipbuilding markets where there will be significant demand.

In February 2021, the company acquired the assets of two Scottish-based yards along the east and west coasts. Now known as Harland & Wolff (Methil) and Harland & Wolff (Arnish), these facilities will focus on fabrication work within the renewables, energy and defence sectors.

In addition to Harland & Wolff, it owns the Islandmagee gas storage project, which is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Irish economy as a whole when completed.

About Cory Group

·     Cory is one of the UK's leading waste management and recycling companies.

·   Cory operates one of the largest energy from waste facilities in the United Kingdom, with a unique river-based infrastructure on the Thames for delivering waste.

·   The company currently works directly with eight London Boroughs, including Hammersmith and Fulham, Lambeth, Wandsworth, Bexley, Tower Hamlets, the Royal Borough of Kensington and Chelsea, Barking and Dagenham, and the City of London.

· Key statistics from 2021 include:

o  782,000 tonnes of non-recyclable waste were diverted from landfill, saving 170,000 tonnes of CO₂ from being released into the atmosphere.

o  532 GWh of baseload electricity generated.

o  170,000 tonnes of ash were turned into aggregate for construction.

o  71,000 tonnes of recyclable waste were sorted.

o  £141.4m underlying revenue was made in 2021, with £73.6m in EBITDA.

· Cory is planning to invest more than £800 million in its operations and river infrastructure over the coming years. This includes the planned Riverside 2 energy from waste facility next to the company's existing energy from waste facility in Belvedere.

For further information, please visit http://www.corygroup.co.uk/

 

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