Braemar Shipping Services, a leading international provider of broking, financial, consultancy, technical and other services to the shipping, marine, energy, offshore and insurance industries, announced unaudited half-year results for the six months ended 31 August 2017.
OPERATIONAL KEY POINTS
— Shipbroking division achieved a resilient revenue performance and has maintained a strong forward order book to support full year performance.
— The Technical division recorded an improved performance, following the programme of business restructuring. Significant new project work has commenced early in the second half of the year.
— Logistics, our smallest division, was slightly behind prior year performance, however new contracts have come on stream in the second half of the year.
— Acquisition of NAVES Corporate Finance GmbH (“NAVES”), a financial advisory business focussed on the maritime industry, completed on 26 September 2017. This acquisition has established a new Financial division for the Group and marks a significant milestone in Braemar’s business development.
FINANCIAL KEY POINTS
— Improving financial performance after a challenging end to the prior financial year
— Revenue in the first half was GBP66.6 million (interim 2016/17: GBP70.2 million)
— Underlying* operating profit of GBP2.3 million (interim 2016/17: GBP2.8 million), before charging one-off acquisition related expenditure of GBP1.8 million (interim 2016/17: GBP2.5 million)
— Underlying* basic EPS of 5.39p (interim 2016/17: 7.83p)
— Strong cash generation from operations for the period of GBP3.5 million (interim 2016/17: GBP(1.4) million)
— Strong balance sheet with net cash of GBP6.4 million at 31 August 2017 (GBP0.7 million at 31 August 2016)
— Interim dividend of 5.0p per share
David Moorhouse CBE, Chairman of Braemar, commenting on the results and the outlook said:
“We are well placed to deliver a stronger second half business performance compared with the first half of our financial year, as Braemar’s improving momentum continues. The principal drivers of this are the continuing recovery in the Technical division following the cost saving measures taken, new project work in our engineering business and a solid pipeline of marine and adjusting business. In addition, the second half will benefit from the initial 5 month contribution from Braemar NAVES.”
“While our markets remain highly competitive and cyclical, the Group’s portfolio of businesses is much better positioned with the addition of a marine financial advisory capability and we intend to develop this alongside our existing operations. We are in line to meet our objectives for the full year.”