Marine services play Cammell Laird posted a disastrous set of interim figures and a profit warning as the fallout from the ludicrous 'Costa Classica' contract debacle continued to rumble. For the half year to 31 October, sales dropped to £52.7m (£61.7m) with pre-tax profits of £7.7m slashed to a £3.5m loss. In September 1999, the company took up a contract to lengthen and upgrade Costa Crociere's 'Costa Classica' vessel. In preparation for its arrival, a mid-body section plus additional upper decks were constructed at Birkenhead. Under the terms of the contract, payment was due on completion of the ship. Therefore the attempt to cancel the contract has severely hamstrung Cammell Laird due to costs incurred upfront. Non-delivery of the ship 'will have a significant impact on the financial results for the full year'. Its two acquisitions of the period, a concession with the Port of Marseilles and a 49% stake in US ship repair company Casacade General for $7.7m, have failed to make up for the shortfall. However, the board remained upbeat, stating that it 'fully expects to reverse the recent sequence of events' with strong profits growth. No dividend was paid at the interim stage. The shares have plummetted from a 2000 high of 141.5p to a current price of 12.8p!