Lamprell plc Organisational update (9583W)
03 May 2016 - 4:01PM
UK Regulatory
TIDMLAM
RNS Number : 9583W
Lamprell plc
03 May 2016
3 May 2016
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
ORGANISATIONAL UPDATE
Lamprell (ticker: LAM), a leading provider of diversified
fabrication, engineering and contracting services to the energy
industry, announces that Mr John Kennedy and Mr James Moffat have
agreed to extend their respective roles as Executive Chairman and
Chief Executive Officer ("CEO") while the search process to find a
new CEO continues. These extensions ensure management stability
during a challenging period for the industry. Mr John Kennedy and
Mr James Moffat will remain in their respective roles until 31
December 2016 or until the appointment of a new CEO if this is
earlier.
Further to the extension of his period as a Director and CEO, Mr
James Moffat's exclusive consultancy agreement post-retirement will
run until the end of March 2017.
In addition, given the continuing challenges in market
conditions and as the construction cycle of current projects moves
towards completion, the Group is implementing a number of cost
saving measures in its fixed and variable costs. In continuation of
the earlier overhead reduction programme, the Group has taken
immediate steps to reduce its management, professional and
administrative headcount by around 100 people or a total of 8% of
all overhead staff. This includes project support personnel, as
some of the ongoing projects reach completion, as well as
back-office staff. The Group is also targeting other operating and
overhead savings.
Mr John Kennedy, Executive Chairman for Lamprell, said:
"The Board has been assessing potential candidates for the role
of CEO to replace James Moffat following his retirement later this
year. The CEO search process remains a key priority for the Board
and we are determined to find the right candidate. In the current
operating environment, the Board and executive management will
provide leadership continuity. Accordingly, I am delighted that Mr
Moffat has agreed to defer his retirement which will allow us to
continue to benefit from his extensive experience and depth of
knowledge of the industry during these challenging times."
James Moffat, Chief Executive Officer for Lamprell, said:
"Lamprell maintains a high degree of flexibility in its business
structures providing us with room to streamline the organisation to
adapt to the market environment. In order to adjust our resources
to current lower activity levels we continue our on-going drive for
overhead reductions and have taken proactive steps to reduce our
cost base and focus on tight cash management within the Group's
operations, both of which will help to underpin our projections and
preserve our long term future."
- Ends -
Enquiries:
Lamprell plc
John Kennedy, Executive Chairman +971 (0) 4 803 9308
James Moffat, Chief Executive
Officer +971 (0) 4 803 9308
Tony Wright, Chief Financial
Officer +971 (0) 4 803 9308
Natalia Erikssen, Investor Relations +44 (0) 7885 522989
Tulchan Communications, London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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