Lamprell increases loss forecast following review of business

RIG maker Lamprell yesterday warned that its losses for the full year would increase significantly, six weeks after axing three executives following its fourth profit warning of the year.

The company now anticipates a total loss of $105m (£66m) for the year as a result of delays to projects, up from previous projections of between $12 and $17m.

Middle-East based Lamprell said that it was in talks with its banks to seek a waiver to certain banking covenants.

The forecast losses follow a review of the business, which assessed how the delays to projects would impact Lamprell’s financial position.

The rig maker last month axed three senior executives, including chief executive Nigel McCue, after chairman John Kennedy warned that he would consider changing the management team to shore up its reputation. Last week the FTSE 250-listed company appointed Frank Nelson as interim finance chief with immediate effect.

Despite the bleak outlook, shares soared in trading yesterday to close up 17.33 per cent.