Lamprell fined for breaching FSA listing rules
Lamprell has reached a settlement with the Financial Services Authority (FSA) for failing to inform the market of its deteriorating financial position last year.
Lamprell has reached a settlement with the Financial Services Authority (FSA) for failing to inform the market of its deteriorating financial position last year.
The oil and gas-focused specialist engineering group said Monday it was fined £2.4m after the FSA ruled it found deficiencies in the company's systems and controls which meant that it could not adequately assess its financial performance.
Lamprell last year issued five profit warnings as results slipped due to operational problems. Its share prices has fallen from 368p in April 2012 to as low as 60p in November 2012.
The UK watchdog said the company did not update the market about its financial difficulties until it released a profit warning on May 16th.
"In response to this trading update, Lamprell's share price fell by 57% demonstrating the importance of that financial information," the FSA said in statement.
The fine, which is the first penalty of its kind under the FSA's new policy, was reduced by 30% after the group cooperated. The regulator also found Lamprell did not display deliberate or reckless behaviour.
John Kennedy, Lamprell's non-executive chairman, said: "The board recognised that it was in the best interests of the company to accept the position reached with the FSA, so as to avoid incurring significant additional expenses and expending the further time that would be required to pursue the matter.
"This settlement draws a line under the investigation by the FSA and the matters to which it relates. The board and management can now exclusively focus their attention on more constructive matters and on upcoming opportunities, with a view to developing and growing the company further."
Lamprell is working to turn business around after announcing it expects to incur at $105m full-year loss. James Moffat took over as Chief Executive Officer earlier this month following the departure of Nigel McCue.
Shares fell 2.37% to 144.25p at 12:04 Monday.
RD