Shipbroking and Financial Divisions Driving Growth
Braemar Shipping Services plc (LSE: BMS), a leading international provider of broking, financial, consultancy, technical and other services to the shipping, marine, energy, offshore and insurance industries, today announces unaudited half-year results for the six months ended 31 August 2018.
OPERATIONAL KEY POINTS
- Shipbroking division achieved a strong performance and increased its forward order book by 5% to $46.0 million from the year end position. Compared to the first half last year, the forward order book has grown by 9.5%. Subsequent to the half year, a dry bulk fleet was successfully delivered.
- New Financial division performed ahead of management’s expectations, with a good pipeline of sizeable advisory and refinancing mandates which we expect will bear fruit in the coming year.
- Technical division continued to face tough trading, especially in the Offshore market where recovery was slower than expected.
- Logistics division was slightly behind the prior year, after weaker summer activity.
- Disposal of loss making Braemar Response was successfully completed on 9 October 2018, after the reporting period, for total cash consideration of £0.8 million.
FINANCIAL KEY POINTS
- Improving performances in Shipbroking and Financial divisions continued to drive the Group’s underlying trading.
- Revenue in the first half was £71.6 million (interim 2017/18: £64.5 million), a rise of 11%.
- Underlying* operating profit increased by 12% to £2.8 million (interim 2017/18: £2.5 million), before one-off acquisition related charges of £6.1 million (interim 2017/18: £1.8 million) – the increase relates to the acquisition of Braemar NAVES in September 2017 and Braemar Atlantic in February 2018.
- 10% increase in underlying* basic EPS of 6.53p (interim 2017/18: 5.96p).
- Significant one-off costs incurred in the period predominately due to Board changes.
- Unchanged interim dividend of 5.0p per share.Reconciliation of underlying profit before tax to reported (loss)/profit before tax:
* Underlying measures above are before non-recurring specific items, including acquisition-related charges.
**H1 2017/18 underlying and reported results have been re-presented to reflect the reclassification
of Braemar Response following the decision to divest the business.
Underlying profit before tax Acquisition related charges Acquisition related finance costs
£2.5m £(6.1)m £(0.2)m
£2.3m £(1.8)m –
Reported (loss)/profit before tax
Acquisition related charges includes costs directly associated with the purchase of Braemar NAVES Corporate Finance GmbH and Braemar Atlantic Brokers Securities Holdings Limited as well as the run off of the equity-based retention programme established during the acquisition of ACM Shipping Group plc.
David Moorhouse CBE, Chairman of Braemar, commenting on the results and the outlook said:
“An improving performance in our Shipbroking and Financial divisions continued to drive the Group’s results. We expect a stronger second half performance compared with the first half of our financial year supported by an increased forward order book in Shipbroking and a strong pipeline in our Financial division.”
“The changes to the composition of the Group over the last year make it better equipped to deliver higher value-added services in cyclical and volatile markets.”
“We expect to meet market expectations for the current financial year, dependent on the timing of certain large shipping finance projects concluding during the period, as currently planned.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, contact:
Braemar Shipping Services
James Kidwell, Chief Executive: Tel +44 (0) 20 3142 4100
James Hayward, Interim Finance Director: Tel +44 (0) 20 3142 4100
Robert Finlay / Antonio Bossi / Henry Willcocks: Tel +44 (0) 20 7601 6100
Charles Ryland / Stephanie Watson / Matilda Abraham: Tel +44 (0) 20 7466 5000
Notes to Editors:
Alternative Profit Measures (“APMs”)
Braemar uses APMs as key financial indicators to assess the underlying performance of the Group. Management considers the APMs used by the Group to better reflect business performance and provide useful information to investors and other interested parties. Our APMs include underlying operating profit and underlying earnings per share. Explanations of these terms and their calculation are shown in summary above and in detail in our Operating and Financial Review.
About Braemar Shipping Services plc
Braemar Shipping Services plc is a leading international provider of knowledge and skill-based services to the shipping, marine, energy, offshore and insurance industries. Founded in 1972, Braemar employs approximately 750 people in more than 60 locations worldwide across its Shipbroking, Technical, Logistics and Financial divisions. Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.