Harland & Wolff Group Holdings PLC (AIM:HARL) has indicated revenues this year might be lower than expected due to the impact of the Ukraine war, energy prices and supply chain issues.
The Belfast shipyard owner is now guiding towards revenues in 2022 in a range of £65mln-£75mln, compared to £70mln-75mn previously.
Because of the external shocks, sales cycles have lengthened and that makes clients more cautious to commit to orders, the company said in a statement, though pipelines are still healthy, especially in renewables and retrofitting.
Wage and cost inflation have also started feeding through since the end of March, though H&W said its overhead base is relatively small.
John Wood, chief executive, added: “I have always maintained that reactivating all the assets and moving along the growth to profit curve is effectively a five-year journey and we are now in year three.
"Whilst we appear to be battling the next global crisis as soon as the previous one has ended, I am certain that our strategic presence and work in the sunrise sectors of defence and renewables will be increasingly valuable.”
Wood added he also expects the company to achieve the milestone of having all five operational arms fully active by early in the third quarter of this year.
Revenue for the 17 months to end-December 2021 was £18.5mln (July 2020: £1.48mln) with losses at £25.5mln (£10.4mln).
Shares fell 7% to 13.74p.