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Lamprell plc  -  LAM   

Settlement of FSA Investigation

Released 08:24 18-Mar-2013

RNS Number : 2063A
Lamprell plc
18 March 2013
 



 

18 March 2013

 

LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")

 

SETTLEMENT OF FSA INVESTIGATION

 

 

Lamprell (ticker: LAM), a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, confirms that it has concluded a settlement with the Financial Services Authority ("FSA") in relation to the FSA's investigation into the Company's handling of inside information, as previously announced to the market.

 

As a result, the FSA has found that Lamprell breached Listing Principle 2, DTR 1.3.4R, DTR 2.2.1 and LR 9 Annex 1 (R). The FSA has ruled that there were deficiencies in Lamprell's systems and controls which meant that it could not adequately assess its financial performance against budget and against market expectations as accurately as it ought to have been able to do.  Consequently, Lamprell failed to inform the market of its deteriorating financial position in a timely manner.

 

In calculating a penalty to be applied for these breaches, the FSA has adopted a methodology using a percentage of market capitalisation as part of the five step framework in the current FSA penalty regime.  This methodology sets a precedent going forward for similar breaches by listed companies and is expected to increase significantly the level of financial penalties for these types of breaches (compared to the penalty levels under the previous regime).  Based on this, the FSA has imposed a fine of £2,428,300 on Lamprell (after being discounted by 30% pursuant to the stage 1 early settlement discount scheme). 

 

The FSA took into account, among other things, the following in determining the penalty imposed on Lamprell:

 

·     There was no deliberate or reckless behaviour by Lamprell.

·     Lamprell has provided significant and extensive cooperation throughout the course of the FSA's investigation.

·     Lamprell accepted from the outset that certain deficiencies had existed in its relevant systems and controls and has made significant efforts to remedy the problems, including the appointment of an experienced management team, improved financial reporting processes and project controls, a robust financial forecasting model and staff utilisation reporting

 

Throughout this process, the Lamprell Board has treated this matter with the utmost seriousness and has been determined to strengthen the Company's internal systems, controls and financial reporting processes. 

 

 

John Kennedy, Non-executive Chairman for Lamprell, commented:

 

"The Board recognised that it was in the best interests of the Company to accept the position reached with the FSA, so as to avoid incurring significant additional expenses and expending the further time that would be required to pursue the matter.  This settlement draws a line under the investigation by the FSA and the matters to which it relates.  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."

 

 

- Ends -

 

 

Enquiries:

 

Lamprell plc

John Kennedy, Chairman

+44 (0) 207 920 2347

Frank Nelson, Chief Financial Officer

+971 (0) 4 803 9227


M:Communications, London

  Patrick d'Ancona

  +44 (0) 207 920 2347

  Andrew Benbow

  +44 (0) 207 920 2344

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Settlement of FSA Investigation - RNS