StockMarketWire.com - Lamprell expects to book a significant loss on the East Anglia One offshore windfarm project this year and warned that full year earnings would be materially below forecasts.

Lamprell remains confident of meeting its client's expectations in terms of schedule and quality but said it would incur extra costs to achieve this.

Lamprell previously announced that there were start-up costs and inefficiencies in relation to the project and the learning curve had proven to be steeper than anticipated.

An update said: 'We are working with our client and supply chain to mitigate the additional costs.

'As the Company continues to work through the variable factors that will ultimately affect the costs on this project, the Company will be in a position to make an announcement with respect to the financial impact in due course.

'While we expect revenue for FY2017 to be in line with current guidance, we now expect earnings and EBITDA to be materially below current market expectations.

'The company continues to maintain a strong balance sheet and its robust cash position provides confidence in its future.

'We remain of the view that the renewables market presents significant potential for the growth of the Group and we are convinced that the lessons learned from this first project in the sector have strengthened our capabilities.

'This will help to position us competitively for future project awards.'






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