Company Report: Harland and Wolff Group plc
Harland and Wolff Group plc
Harland and Wolff Group (H&W) continues to operate in testing market conditions as a diverse engineering business with a number of specialisms related to shipbuilding, heavy engineering, ship repair, and floating production and drilling vessels for the off-shore oil and gas industry.
The company is a wholly owned subsidiary of the Fred Olsen Energy Group.
Despite difficult trading, annual turnover increased in 2015 to over £66m, the highest level of the past decade. The higher turnover came in a period of much tighter trading profit margins although the end year results did show a smaller operating profit.
During the recent year the company provided services to 21 different vessels (27 in 2014). There was useful business from the continuing relationship with the Irish Sea ferry operators, Stena Line.
There was also a repair contract with a large LNG carrier and further work for the Dolphin drilling company. The annual report makes particular mention of the continuing work for the SRTT 2000 tidal device for the Scotrenewables project.
The company maintained a profitable trading profile. The pre-tax profit when translated into the balance sheet was aligned with a reduction in the actuarial deficit on the pension scheme which fell to over £25m at the end of the year. Shareholders' equity returned to a positive figure.
Average employment in the group was stable at 208 people. However, the company, in March 2016, given the reduced workload, announced a reduction in the size of its core workforce by 60 employees.