Lamprell plc LAM Trading Update

  Lamprell plc (LAM) - Trading Update

RNS Number : 7915N
Lamprell plc
03 October 2012




                                      

3 October 2012



                                   Lamprell

                         ("Lamprell" or the "Group")

                                      



                                TRADING UPDATE



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 -





Enquiries:



Lamprell plc             +44(0)2079202347
John Kennedy, Chairman
M:Communications, London
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

END


TSTGUBDGGUGBGDX -0- Oct/03/2012 06:00 GMT
 
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