Harland & Wolff chairman Malcolm Groat resigns and shareholders voice 'administration' concern

There are concerns around the future of Belfast iconic ship builder Harland & Wolff.

The company has announced its chairman Malcolm Groat has resigned from the board with immediate effect. This comes after the chief executive stood down after an appeal to the government for £200million in support was rejected.

And a group of shareholders say they're worried the business is being lined up for a "pre-pack administration" deal - meaning they could lose most of their investment.

In the latest to hit the beleaguered firm, a statement confirmed non-executive directors Sir Jonathon Band and Katya Zotova have also stepped down.

"On behalf of the Board, I wish to thank our outgoing non-executive directors for the time and hard work that they have put in over the years in support of the company and wish them well in their future endeavours," said Russell Downs, interim executive chairman.

Mr Downs took up the role of interim executive chairman after former chief executive John Woods stood down last month.

A group of shareholders has now expressed concern that the company is being lined up for a 'pre-pack administration'.

"They might only get, say, 25p in the pound back - that would leave nothing for shareholders which I’m afraid is quite sad," said shareholder Philip Hyde.

“We feel very disappointed that we could lose the lot."

Harland & Wolff says it has appointed Rothchild & Co as its financial adviser to "assess strategic options" and assist the board in deciding a route forward that will "maximise value for stakeholders and seek to preserve the company’s core operations".

A Government spokesperson said: “We have been working with all parties extensively to ensure an outcome for Harland and Wolff that delivers shipbuilding and fabrication across the UK and protects jobs.

“This wasn’t an easy decision, however following a comprehensive assessment of Harland and Wolff’s finances, we have concluded that the market is best placed to resolve these commercial matters.

“Government funding would not necessarily secure our objectives and there is a risk that taxpayer money would be lost. We encourage all parties to engage with trade unions before further decisions are made.”

Historic ship builders

Harland & Wolff was founded in 1861. The company's headquarters are in London but it operates a number of sites across the UK, the largest of which is in Belfast.

It is famous for having built a number of ocean liners including the RMS Olympic and the RMS Titanic, which tragically sank on its maiden voyage in April 1912.

The Belfast shipyard is also known for its twin gantry cranes Samson and Goliath, built in 1974 and 1969, which loom large over the city's skyline.

Until recently, the last ship to be built at the yard was MV Anvil Point, which launched in 2003 and was built for use by the Ministry of Defence.

The company was put for sale in 2018 amid a difficult business environment and it faced uncertainty when it was placed into administration the following year.

However its future was secured after it was acquired by InfraStrata for £6m.

The Belfast shipyard completed its first vessel in over 20 years when it delivered a barge for the waste management firm Cory in 2023.

It was also awarded a £1.6bn contract to deliver three naval support ships for the Royal Fleet Auxiliary, with work due to begin in 2025.

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