Sunday, February 5, 2023
spot_img
HomeFinance & EconomyBraemar sees strong trading in second half of the year

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Braemar sees strong trading in second half of the year

Braemar Shipping Services, a leading international Shipbroker and provider of expert advice in shipping investment, chartering, risk management and logistics services, issued an update on trading and other matters.

Trading update
The strong trading seen in the first half of the financial year has continued throughout the second half to date. Revenues* for the year ended 28 February 2022 are now expected to be not less than £101m (2021: £84m).

This strong performance reflects favourable market conditions and, more importantly, the investments we have made in increasing the breadth, focus and depth of the Group’s shipbroking activities. Of note, a volatile Dry Cargo market has helped us increase both revenue and market share on the physical and securities desks. The Sale and Purchase desk has concluded a significantly higher number of transactions, largely due to the strong Dry Cargo market, but also due to the synergies gained from closer collaboration with the Financial Division on containers. Tanker market rates have remained low, impacted by pandemic related weakness in oil demand. However, Tanker transaction volumes have increased by more than 25% compared to the previous year, aided by strategic hires, including the previously announced Clean Products hires in Geneva.

The Group’s employee reward arrangements are also being changed in respect of the current and future years, as described below, with the consequence that an additional cash bonus of £2.8m will be charged to profits in the current year. The proposed changes should however positively impact reported profitability in future years as the charge to profitability of the deferred equity is similarly reduced. The Group expects underlying operating profit* for the year to 28 February 2022 to be circa £9.8m (28 February 2021: £7.7m).

Proposed changes to employee reward arrangements
In order to better align shareholder and employee interests and support the Group’s successful growth agenda, the Board has concluded that it should reduce the overall amount of deferred equity issued annually as part of employee remuneration arrangements.

Under the current scheme, deferred shares have been awarded and issued to employed recipients over a three-year vesting period and generally settled by shares purchased in the market. Whilst this scheme will remain unchanged, the amount paid in such deferred shares will be halved with an increase in cash bonuses paid of the same amount. This will also apply in future years and will involve claw back arrangements on the additional cash payments in order to encourage employees to remain in Braemar’s employment.

Disposal of Cory Brothers
Good progress is being made on the disposal of Cory Brothers, the Group’s non-core Logistics Division, which is expected to be concluded over the next few weeks. The disposal, however, is no longer expected to be by way of a joint venture but rather an outright disposal for a combination of upfront cash and deferred payments based on a three year earn out.

The financial performance of Cory Brothers remains in line with previous guidance but is not included in the above numbers. Moreover, Cory Brothers’ trading for the year will be included in the Company’s full year results as ‘discontinued operations’ due to the planned disposal of the business.

Proposed Board change
Braemar announces that Lesley Watkins, Audit Committee Chair, will resign from the board with effect from 31 March 2022 in order to be able to take on another non-executive role.

Braemar is pleased to announce that Joanne Lake will succeed Lesley. Joanne will be appointed to the board as a non-executive director with effect from 1 March 2022 and will become Audit Committee Chair with effect from 1 April 2022. Joanne will also join the Remuneration and Nomination Committees from 1 March 2022. Elizabeth Gooch will succeed Lesley in the role of senior independent director from 1 April 2022.

Nigel Payne, Braemar’s Chairman commented: “Lesley was appointed a non-executive director in June 2017 and became Audit Committee Chair later that year. We are very grateful for Lesley’s significant contribution to the group. We have particularly valued her governance, risk, and regulatory knowledge and experience of working with listed companies. We wish her the very best for the future.”

“We are delighted to welcome Joanne to the board. Joanne is a chartered accountant with a strong financial and City background and brings a wealth of experience to the board and will be a tremendous asset to the Group as we further our growth agenda.”

Joanne presently holds the following roles in publicly quoted companies: the non-executive Chairman of AIM-quoted Made Tech Group plc, a leading provider of digital, data and technology services; the non-executive deputy chairman of Main Market-listed land promotion, property development and investment, and construction group, Henry Boot plc; a non-executive director of Gateley (Holdings) Plc, the AIM-listed legal and professional services group; a non-executive director of AIM-quoted consumer finance provider, Morses Club Plc; and a non-executive director of Honeycomb Investment Trust plc, the Main Market-listed specialist lender and investor in credit assets. Joanne is also non-executive Chairman of AIM-quoted wealth and investment management group, Mattioli Woods plc, where she has been a director since July 2012, but is due to step down from the board imminently once regulatory approval has been received for her successor. Joanne was previously also a non-executive director of AIM-listed Accrol Group Holdings plc until October 2018.

There is nothing further to disclose pursuant to Listing Rule 9.6.13 in respect of Joanne Lake.

Source: Braemar

Related Posts

Video

Finance & Economy
Shipping News
Ports

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Stolt-Nielsen sees Q4 profits rise on strong markets

Stolt-Nielsen Limited reported unaudited results for the fourth quarter and full year 2022. The Company reported a fourth-quarter net profit of $95.3 million, with revenue...

Euronav delivers better-than-expected Q4 revenue

Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2022. Hugo De Stoop, CEO of Euronav said: “Constrained vessel supply...

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...