Lamprell plc (LAM) - Trading Update
RNS Number : 7915N
03 October 2012
3 October 2012
("Lamprell" or the "Group")
Lamprell (ticker: LAM), a leading provider of diversified engineering and
contracting services to the onshore and offshore oil & gas and renewable
energy industries, makes the following announcement:
In the Company's Trading Update of 26 July 2012 it was announced that the
delivery of the Windcarrier 1 and 2 projects had been delayed. On 1 October
2012 Windcarrier 1, the Brave Tern, was delivered to Fred. Olsen.As a
consequence of late delivery and other contract-related matters Lamprell has
incurred further additional costs on both the Windcarrier 1 and Windcarrier 2
construction projects, which will adversely impact the forecast loss for the
year ending 31 December 2012.
Furthermore, a delay in client deliverables on a separate construction project
has resulted in a deferral of revenue and profit from 2012 to 2013. There has
been no deterioration in the project's expected financial performance, but the
deferral will impact the 2012 financial results.
Having identified and been made aware of these and other issues, the Board
intends to instruct the Company to appoint external advisors to provide an
independent assessment of the full extent of their financial impact. As a
result of internal work in estimating their likely combined extent, the
Company now anticipates that the loss for the year will be significantly
greater than previously expected. The order book currently stands at
approximately US$1.5 billion.
In light of these recent developments the Chairman, with the fullest support
of the non-executive directors, considers that changes to the leadership and
senior management team are required to ensure Lamprell begins to rebuild its
reputation with both investors and customers. Further announcements will be
made regarding such changes in the near term.
The Company will provide a further update to the market when it has greater
clarity on the detailed financial impact of these issues.
The Company remains in discussions with its lending banks regarding its
covenants and remains confident that it will have sufficient cash flow to fund
its ongoing activities and debt repayments.
John Kennedy, Chairman, Lamprell, commented:
"Lamprell's position in the refurbishment market remains pre-eminent. After
three months with the Company I believe the fundamentals of the business
continue to be sound and the order book and new contract pipeline remain
strong. However, I am extremely disappointed in the need to make this latest
trading update and feel that a refreshed management team will bring a more
focused sense of delivery to all our stakeholders."
- ends -
Lamprell plc +44(0)2079202347
John Kennedy, Chairman
Patrick d'Ancona +44 (0) 207 920 2347
Andrew Benbow +44 (0) 207 920 2344
This information is provided by RNS
The company news service from the London Stock Exchange
TSTGUBDGGUGBGDX -0- Oct/03/2012 06:00 GMT
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