The boss of the struggling shipbuilder Harland & Wolff has stepped down amid concerns for the company’s future.
John Wood led the rescue of the Titanic shipbuilder in 2019 and had been praised for its turnaround.
The company had won part of a £1.6bn contract to build new Royal Navy ships, and in its unaudited financial results for the year to 31 December 2023, reported £87m of revenue.
However, Harland & Wolff had to suspend its shares after it failed to publish the audited version of its accounts.
According to a report in the Financial Times, Wood announced his departure in a text message to directors last night.
The company later confirmed the change in a press release. It said Wood “will be taking a leave of absence from his role as CEO with immediate effect.”
It said Russell Downs would join as interim executive chairman. Downs previously worked at PwC for three decades.
It was originally reported that Woods departure was linked to a rescue loan the company was negotiating with Riverstone Credit Management.
Harland & Wolff already has a $115m (£89m) credit facility with Riverstone.
The company has also confirmed the government would not approve its £200m Export Development Guarantee (EDG). The EDG has been subject to significant speculation over the past year.
The former Conservative government had provisionally agreed a deal to 100 per cent underwrite the loan, but earlier this week, it was reported the new Labour administration was on the verge of declining the request, despite the company’s request for the guarantee to be lowered to 80 per cent.
While the group later denied these claims, today’s release has confirmed the government has declined the request.
Harland & Wolff said as a result, it has “expedited discussions with Riverstone Credit Management” to secure new debt facilities.
It said the new facilities could be announced within the next few days.
The group added that it had engaged investment bank Rothschild & Co to assess strategic options.
