Friday 15 January 2021

Lamprell today announces a strategic reorganisation of its business to increase the Group's focus on renewables and the energy transition, increase alignment with customers and enable the Group to take full advantage of the significant opportunities in its core markets. Lamprell also provides an update on its trading performance ahead of the publication of its audited financial results for the year ended 31 December 2020 on 25 March 2021.

Improving trading performance in-line with the Board's expectations

Lamprell has managed the challenges of the COVID-19 pandemic effectively and delivered a very strong operational performance in 2020. Furthermore, despite the multitude of challenges posed by the global pandemic, all of our ongoing projects have made good progress throughout the year. The positive operational performance, alongside committed cost control and high quality bid pipeline, allowed us to deliver a strong set of financial results in a challenging market environment. Expected to demonstrate another year of good revenue growth, with 2020 revenue expected to be USD 340 million (2019: USD 260.4 million). As a result the Company continues to trade in line with the Board's expectations. The Board believes the trading performance provides a solid basis for further progress in 2021.

The Group's key operational highlights are as follows:

· Moray East offshore windfarm project operationally completed in September and all jackets have now been installed offshore Scotland.

· An expansion of our Hamriyah facility, allowing us to further improve our efficiencies and capacity in renewables fabrication as we progress with Seagreen, our next major renewables project.

· The two IMI jack up rigs are progressing with fabrication of hull, cantilever and leg sections well under way. The Mahani gas field in Sharjah is nearing completion with first gas introduced on time, marking a key milestone for one of our key regional clients, Sharjah National Oil Company.

· Rig refurbishment has had a strong year, with a number of large scope projects arriving in our yard. A total of 16 rig refurbishment projects were completed in 2020 with other refurbishment projects under way.

Net cash has increased to USD 112 million from USD 71.4 million at 30 June 2020. Net cash will trend downwards through 2021 as projects progress and draw working capital as part of the normal project cycle. Backlog has increased year-on-year to USD 520 million (31 December 2019: 470 million) with USD 455 million scheduled to run off in 2021. Following the rapid development of global offshore wind opportunities, our bid pipeline has increased to USD 6 billion (30 June 2020: 5.5 billion).

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