Shares in Lamprell fall 32 percent to 75 pence, their lowest level since 2009, after the battered oil rig maker issues its fourth profit warning since the spring on continued contract delivery issues.
The chairman indicates it is time for a change in senior management as Lamprell, whose shares have already fallen 70 percent since May, downgrades its guidance for the year and says talks with its lenders are continuing.
"It is clear that there is a fundamental issue in the delivery of fixed price contracts which will require a root and branch change of senior management," say analysts at Investec.
The broker cuts its target price to 55 pence from 100, and keeps its 'hold' stance on the stock, adding: "Until losses are quantified, the banks are mollified and a new team is in place, we would steer clear of the shares."
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