Lamprell (LAM.L), a provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, provided an update on its trading. As a consequence of late delivery and other contract-related matters, the company has incurred additional costs on the Windcarrier 1 and Windcarrier 2 construction projects, which will adversely impact its forecast loss for the year ending 31 December 2012. Lamprell also noted that a delay in client deliverables on a separate construction project has resulted in a deferral of revenue and profit from 2012 to 2013, and it will impact the 2012 financial results.
The Board intends to instruct Lamprell 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 company said, its Chairman, with the fullest support of the non-executive directors, considers changes to the leadership and senior management team. 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 clarity on the detailed financial impact of the issues.
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