Lamprell shares shredded

The share price of Lamprell collapsed after the rig manufacturer pre-empted its interim management statement by announcing that 2012 revenues and margins would fall well short of guidance due to a combination of supply chain problems, under-utilisation of resources and further cost issues with wind farm vessels. Full-year revenues are now predicted to be in line with last year’s $1.1bn (£688m) – a $170m shortfall on consensus expectations, while expected margins of 3.5 per cent are two-thirds below the previously anticipated 9.5 per cent. The downbeat assessment provided an unpleasant surprise for investors after the positive outlook given in March’s 2011 preliminary report.