Lamprell plunges as management purge begins
Oil and gas engineering firm Lamprell lost almost 40 per cent of its share value after it said delays and extra costs would make 2012 losses significantly larger than expected.
Oil and gas engineering firm Lamprell lost almost 40 per cent of its share value after it said delays and extra costs would make 2012 losses significantly larger than expected.
The firm is now set to make wholesale changes at the top, saying "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 on whole faces the chop will come "in the near term", the company said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lamprell said the problem lay with additional costs on its already delayed Windcarrier 1 and Windcarrier 2 construction projects.
It also warned that problems at a separate construction project would result in revenue and profit from that work slipping from 2012 to 2013.
"The company now anticipates that the loss for the year will be significantly greater than previously expected," it said in the trading update.
Chairman John Kennedy said the fundamentals of the business remained sound and the order book and new contract pipeline were strong.
The firm's order book currently stands at approximately $1.5bn.
Shares in Lamprell were down 38% to 68p at 0815 on Wednesday morning.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published