Lamprell swings to FY pre-tax loss driven by goodwill impairment
Lamprell, a provider of diversified fabrication, engineering and contracting services to the global energy industry, has swung to a full-year pre-tax loss driven by goodwill impairment, not helped by a fall in revenue.
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It said profit was impacted by an exceptional non-cash goodwill impairment of $180.5m that arose on the acquisition of Maritime Industrial Services in 2011, in line with continued market downturn.
Executive chairman John Kennedy said Lamprell's yards remained at record-high activity levels throughout the year with seven concurrent jack-up rigs and a large onshore modules project.
"The past year's underlying performance was strong, albeit affected by one-off events, with market challenges expected to continue in the upcoming year."
He said Lamprell was now fully focused on building a clear path to medium and long-term growth of the business.
"With this goal in mind, the board has worked hard to progress one of our key strategic priorities: the step-change opportunity offered by our potential participation in the Maritime Complex in the Kingdom of Saudi Arabia."
Pre-tax loss for the 12-month period was $181.9m, from a profit of $67.09m. Revenue had come in at $704.9m, from $871.1m.
Lamprell also confirmed it had appointed Nicholas Garrett as a non-executive director.
At 12:12 GMT, shares in Lamprell were down 1.98% to 99p each.