The share price of Lamprell (LAM) has partially recovered since it bottomed-out at 62p midway through November, and while there’s some evidence to suggest that the new management team is making progress on the operational front, the 2012 full-year report reflects a dreadful year that culminated in a £2.4m fine from the UK Financial Services Authority for failing to report late-running or over-budget projects to the market in good time.
The specialist rig engineer made a succession of profit warnings in 2012, citing supply chain issues and delivery delays on its Windcarrier turbine installer. The end result being that Lamprell booked a pre-exceptional operating loss of $84.5m (£55.6m), against a profit of $90.2m in the previous year. Admittedly, Lamprell fulfilled some contracts during the latter stages of 2012, which brought down year-end trade/receivables by £270m to $398m. The forward order book at $1.3bn has contracted by 12 per cent since the end of July, but all major projects are progressing to schedule. Post year-end Lamprell received waivers from its lenders with regard to covenants on its existing debt facilities.
BoA/Merrill Lynch believe that Lamprell with be earnings neutral in 2013, and predicts a recovery in adjusted EPS to 17¢ in 2014.
| LAMPRELL (LAM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 144p | MARKET VALUE: | £375m | |
| TOUCH: | 143.5-144p | 12-MONTH HIGH: | 369p | LOW: 62p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 156¢* | NET CASH: | $104m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 0.74 | 85.5 | 39.1 | 8.7 |
| 2009 | 0.43 | 28.4 | 13.2 | 3.5 |
| 2010 | 0.50 | 65.2 | 30.2 | 12.3 |
| 2011 | 1.15 | 63.5 | 26.6 | 8.00 |
| 2012 | 1.05 | -109.7 | -42.5 | nil |
| % change | -9 | - | - | -100 |
£1 = $1.52 *Includes intangible assets of $220m, or 84¢ a share | ||||
