Shares of Harland & Wolff Group Holdings have fallen after the company announced a widened pretax loss for the first half of the year. Despite a significant jump in revenue, increased costs were cited as the primary reason for the disappointing results.
At 0721 GMT, shares were down 1.75 pence, or 11.5%, at 13.5 pence.
Losses and Revenue
During the six-month period, Harland & Wolff Group Holdings reported a pretax loss of £31.5 million, compared to a loss of £17.6 million in the same period last year. The company attributed the poor performance to a highly volatile cost environment, which made it difficult to fully pass on labor- and energy-related cost increases to all clients.
However, there was positive news on the revenue front, with a 65% increase to £25.53 million. Harland & Wolff Group Holdings remains optimistic about achieving its 2023 revenue target of around £100 million, a significant jump from the £28.0 million reported in 2022. This optimistic outlook is based on the delivery of programs contracted at the beginning of the year.
Future Revenue Expectations
Looking ahead to 2024, Harland & Wolff Group Holdings anticipates revenue of around £200 million. The company has already secured contracts worth £145 million and continues to pursue additional contract prospects.
According to the company, the worst of the inflationary effects appears to be in the past, and they are hopeful that their margins will increase as they work through their rapidly growing order book.