Engineering firm hit by £2.4m fine for failing investors

18 March 2013
By Edd Gent
Mobile version
Share |
Lamprell was dealt a major setback by delays to the delivery of its Windcarrier turbine installers to Norwegian company Fred Olsen

Lamprell was dealt a major setback by delays to the delivery of its Windcarrier turbine installers to Norwegian company Fred Olsen

An engineering firm has been hit with a £2.4m fine for failings that kept investors in the dark about its deteriorating financial position.

The Financial Services Authority (FSA) said Lamprell was too slow to react to its trading issues because systems and controls were "seriously deficient" for a listed company of its size and complexity.

When the company did eventually recognise the seriousness of its plight, a profits warning caused its shares to slump 57 per cent in May 2012.

It marked the start of a run of bad news from the Middle East-based builder of drilling rigs and vessels used in the installation of wind farms.

The fine is the first imposed for breaches of its kind under the FSA's new penalty policy, which is linked to a company's market value and is expected to lead to significantly higher penalties than in the past.

There was no evidence of deliberate or reckless behaviour by Lamprell, which said it has made significant efforts to remedy the problems.

FSA director of enforcement Tracey McDermott said: "The integrity of our markets depends on listed companies making timely and accurate disclosures of material developments on an on-going basis.

"Lamprell's systems and controls may have been adequate at an earlier stage, but failed to keep pace with its growth. As a result they were seriously deficient for a listed company of its size and complexity, meaning it was unable to update the market on crucial financial information in a timely manner."

The company was dealt a major setback by delays to the delivery of its Windcarrier turbine installers to Norwegian company Fred Olsen.

Lamprell chairman John Kennedy said: "The board and management can now exclusively focus their attention on more constructive matters and on upcoming opportunities, with a view to developing and growing the company further."

Latest Issue

E&T cover image 1605

"We visit Barcelona, one of the smartest cities in the world, to find out what makes it so special. What does it look like and what is the future?"

E&T jobs

  • Senior Development Engineer, Electronics

    Premium job

    Helmet Integrated Systems / Gentex Corporation
    • Letchworth Garden City, Hertfordshire
    • Competitive

    We are an innovative, robust and fast growing business, whose main focus is to deliver continues improvement to existing products and offer new sol..

    • Recruiter: Helmet Integrated Systems / Gentex Corporation

    Apply for this job

  • Smart Grid Research Engineer

    Premium job

    University of Strathclyde
    • Cumbernauld, Glasgow
    • Grade: 6/7* £26,537 - £37,768*

    Work as part of a growing dynamic team on a wide range of technical projects with particular emphasis on experimental validation and testing

    • Recruiter: University of Strathclyde

    Apply for this job

  • Electrical Asset Specialist

    Affinity Water
    • Hatfield, Hertfordshire

    Responsible for updating and writing electrical engineering standards, approved codes of practice and safe systems of work

    • Recruiter: Affinity Water

    Apply for this job

  • Senior Electronics Engineer

    York Instruments
    • York, North Yorkshire

    Senior electronics engineer to work as part of a team developing an MEG imaging system; working with the engineering team and external contractors.

    • Recruiter: York Instruments

    Apply for this job

  • Manufacturing Engineer - Circuit Card Assembly

    MBDA
    • Lostock Junction
    • Competitive Salary & Benefits

    What’s the opportunity?   Manufacturing UK is an integral part of the Operations Directorate whose principal mission is to ensure that MBDA’s deliverable commitments are met...

    • Recruiter: MBDA

    Apply for this job

  • High Voltage Engineer

    Premium job

    Essex X-Ray & Medical Equipment
    • Great Dunmow, Essex

    This High Voltage Engineer will provide design leadership for high voltage cable assemblies up to one megavolt.

    • Recruiter: Essex X-Ray & Medical Equipment

    Apply for this job

  • Team Leader - Flank Arrays

    BAE Systems
    • Barrow-In-Furness, Cumbria, England
    • Negotiable

    Team Leader - Flank Arrays Would you like to work in a unique role within the construction of the Astute Class submarines? We currently have a vacancy for a Team Leader - Flank Arrays at our site in Barrow-in-Furness. As a Team Leader - Flank Arrays, you

    • Recruiter: BAE Systems

    Apply for this job

  • Electronics and Software Engineer

    Copley Scientific Ltd
    • Nottingham
    • circa £35,000 per annum + bonus

    Develop new test equipment for the pharmaceutical industry. Good opportunities to grow and develop. Successful family-owned and managed business.

    • Recruiter: Copley Scientific Ltd

    Apply for this job

  • Intelligent Transport Systems Engineer - Highways Technology

    Premium job

    Mott MacDonald
    • Birmingham, West Midlands

    Our transport technology team in Birmingham is currently growing a highly skilled and customer-focused team to...

    • Recruiter: Mott MacDonald

    Apply for this job

  • Principal Robotic Systems Engineer

    Premium job

    National Oceanographic Centre
    • Southampton, Hampshire
    • £45,271 to £49,207 per annum

    Responsible for technical oversight and project management of internally and externally funded innovation centre projects.

    • Recruiter: National Oceanographic Centre

    Apply for this job

More jobs ▶

Subscribe

Choose the way you would like to access the latest news and developments in your field.

Subscribe to E&T