Lamprell issues fourth warning

ENGINEERING firm Lamprell yesterday issued its fourth profit warning since the spring, sending shares on a downward spiral yesterday.

In July, the Middle Eastern-based rig maker warned that delivery of two windfarm vessels had been delayed, which incurred additional costs. A separate construction project has now pushed revenue and profit from this year into next, it said yesterday.

In August, Lamprell had guided for a full year loss of between $12m (£7.5m) and $17m, after a torrid first-half where it repeatedly warned on its results.

It will appoint external advisers to investigate the full financial impact of these latest issues, although Lamprell admits that its loss for the year will be “significantly greater than expected”. The firm remains in discussion with lending banks regarding its covenants.

John Kennedy, chairman of Lamprell, admitted yesterday he was disappointed with the need to make the profit warning, and would consider changes to the management team to shore up its reputation.

“Lamprell’s position in the refurbishment market remains pre-eminent,” he said.

“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,” he added.

Lamprell shares closed down 36.6 per cent yesterday at 70p.