Lamor secures $15M in new financing as Q2 results beat forecasts

Finnish environmental solutions provider Lamor has secured $15 million in new financing agreements and extended the maturity of its bond. The arrangements, announced after its second-quarter review period, strengthen the company's financial position.

The financing secures funding for the start-up of the Kilpilahti plastic recycling plant and the completion of the company's Kuwait project.

Lamor's April-June operating profit was €0.4 million, down from €1.0 million a year earlier, on revenue of €20.0 million versus €21.1 million. Both figures beat Inderes ' forecasts, which had projected an operating loss of €0.1 million and revenue of €16.5 million.

The order book shrank sharply, falling to €54.4 million at the end of the period from €86.1 million a year earlier. Orders received also dropped to €19.0 million from €20.3 million.

Lamor kept its full-year guidance unchanged, estimating revenue of €80-92 million and adjusted operating profit at the previous year's level or higher. Chief executive officer Fred Larsen said demand for the company's expertise "has increased despite geopolitical uncertainties."

The financing gives Lamor breathing room to execute on two large projects at a time when its order book is contracting. Delivering on Kilpilahti and Kuwait will be key to justifying the guidance it has held onto.