RNS Number:8464T
Braemar Shipping Services PLC
07 May 2008
This announcement replaces in its entirety the incorrect announcement posted
at 7.00am today under RNS number 8245T.
BRAEMAR SHIPPING SERVICES PLC
PRESS RELEASE
For immediate release 7 May 2008
Unaudited Results - Year ended 29 February 2008
Braemar Shipping Services plc (the "Group"), a leading international provider of
broking, consultancy, technical and other services to the shipping and energy
industries, today announced full year unaudited results for the year ended 29
February 2008.
HIGHLIGHTS
*Pre-tax profit up 47% to #14.7m (2007: #10.0m). On an adjusted basis this
represents an increase of 34%*.
*Basic EPS from continuing operations up 53% to 48.99p (2007: 32.08p). On
an adjusted basis this represents an increase of 33%*.
*Net cash generated from operating activities #17.0m (2007: #6.6m)
*Net cash at 29 February 2008: #21.6m (28 Feb 2007: #14.6m)
*Final dividend 15.00p per share (up 22%), full year 23.00p (2007:19.00p)
up 21%
*Strategy of broadening the business into shipping and energy services is
developing well.
*Adjusted profits exclude an impairment charge of #950,000 taken in 2006/7,
representing an adjustment to earnings per share of 4.82p.
Commenting on the results and outlook, Sir Graham Hearne, Chairman, said:
"Shipbroking has thrived in shipping markets which have been both volatile and
buoyant. The demand for oil and raw materials has continued unabated attracting
further new investment in shipping."
"Our other shipping services businesses have also made good progress, the most
notable performance coming from our Environmental business, DV Howells. We have
continued to invest part of our operating cash flows in these businesses."
"Market conditions remain favourable for our businesses and the financial year
has begun well, so far with no adverse effect from the global credit squeeze.
Freight rates and vessel values are both firm and there is strong demand for our
services, all of which bodes well for the new year."
For further information, contact:
Braemar Shipping Services plc
Alan Marsh Tel +44 (0) 20 7535 2650
James Kidwell Tel +44 (0) 20 7535 2881
Aquila Financial
Peter Reilly Tel +44 (0) 118 979 4100
Elaborate Communications
Sean Moloney Tel +44 (0)1296 682356
Charles Stanley Securities
Philip Davies Tel +44 (0) 20 7149 6457
Notes
Braemar Shipping Services plc is a leading international provider of broking,
consultancy, technical and other services to the shipping and energy industries.
Its principal businesses are as follows:
Braemar Seascope
Specialised shipbroking and consultancy services to international ship owners
and charterers in the sale & purchase, tanker, gas, chemicals, offshore,
container and dry bulk markets.
www.braemarseascope.com
Falconer Bryan
Falconer Bryan provides specialised marine and offshore services. It has offices
at the following locations: Australia, China, India, Indonesia, Malaysia,
Singapore, Vietnam, United Kingdom
www.falconer-bryan.com
Steege Kingston
Steege Kingston provides specialist loss adjusting and other expert services to
the energy (oil and gas), marine, power and other related industrial sectors. It
has offices in London, Houston, Singapore, Calgary and Mexico City.
www.steegekingston.com
Cory Brothers Shipping Agency
Port agency, freight forwarding and logistics services within the UK.
www.cory.co.uk
Wavespec
Marine engineering and naval architecture consultants to the shipping and
offshore markets.
www.wavespec.com
DV Howells
Pollution response service primarily in the UK for marine and rail operations.
www.dvhowells.co.uk
PRELIMINARY ANNOUNCEMENT - YEAR ENDED 29 February 2008
CHAIRMAN'S STATEMENT
This is my sixth report to Shareholders as Chairman and once again I am
delighted to announce another successful year of growth for the Group. The
financial highlights are that revenue increased by 37% from #73.8m to #101.0m,
profit before tax from continuing operations increased by 47% from #10.0m to
#14.7m and earnings per share from continuing operations rose by 53% to 48.99
pence from 32.08 pence in 2006/7. A more representative comparison of the
Group's performance is made by adjusting for an exceptional charge of #950,000
made last year, in which case adjusted pre-tax profits grew by 34% and earnings
per share by 33%.
Our staff across the World have performed well and we are grateful for their
effort and commitment which has brought about this success.
Shipbroking has thrived in shipping markets which have been both volatile and
buoyant. The demand for oil and raw materials has continued unabated attracting
further new investment in shipping. In particular this year we have benefited
from strong activity and rates in newbuilding, dry bulk and offshore chartering
though all shipbroking sections have performed well. Our forward order book has
grown again and stands at a record level.
Our Environmental division had an outstanding year, largely due to their
involvement in the clearance of the stricken container vessel off the south
coast of England, and both Cory Brothers and Wavespec performed well over the
year.
We have continued to invest part of our operating cash flows in these
businesses. In pursuing this strategy we are creating a broader and more diverse
group which can offer a wider range of services for clients. We have invested
significantly in our Technical division through the purchase of Falconer Bryan
in July 2007 for a cash consideration of #5.9m and Steege Kingston in March 2008
for a consideration which is expected to be in the range #8.0 - #8.5m dependent
on its financial performance. Falconer Bryan offers a range of engineering and
surveying services from offices across the Far East, and Steege Kingston is an
international loss-adjuster specialising in the energy market. These businesses
operate in markets that will grow and they also complement our existing
operations to create new opportunities. We have also added to our Logistics
division with the acquisition of 80 per cent of Fred. Olsen Freight Limited for
#2.0m in December 2007 and the remaining interest in Gorman Cory for #0.9m in
March 2008.
The Directors are recommending for approval at the Annual General Meeting a
final dividend of 15.00 pence per ordinary share, to be paid on 25 July 2008 to
shareholders on the register at the close of business on 27 June 2008. Together
with the 8.00p interim dividend the Company's dividend for the year is 23.0
pence (2007: 19.0 pence), a rise of 21%. The dividend is covered 2.1 times by
earnings from continuing operations.
Market conditions remain favourable for our businesses and the financial year
has begun well, so far with no adverse effect from the global credit squeeze.
Freight rates and vessel values are both firm and there is strong demand for our
services, all of which bodes well for the new year.
Sir Graham Hearne
6 May 2008
CHIEF EXECUTIVE'S REVIEW OF THE BUSINESS
Strategy
Our strategy has been, and remains, to extend the Group's activities beyond pure
shipbroking to cover other shipping related service areas where we can add value
not only for shareholders but also for our clients. To reflect the growth that
has occurred thus far, and to let clients and others more easily identify with
our overall offering, we have reorganised the Group into distinct operating
divisions: Shipbroking, Technical, Logistics and Environmental.
Operations
This year our shipbroking business has improved its financial performance
significantly at a time when the core office, departmental structure and head
count has not fundamentally changed. Some of this can be attributed to higher
freight rates but in many areas we are showing good growth in transaction
volumes which is a testament to the effectiveness of our teams. The new
financial year has started extremely well - as at 1 March 2008 we had already
concluded shipbroking business totalling in excess of US$53m deliverable over
the course of the year which is some 77% higher than the equivalent position at
1 March 2007.
Our Technical, Logistics and Environmental businesses have all been busy over
the last year and have raised their international profile considerably due to
their success in handling and winning important business. Each of these
businesses possesses specialist skills for which we expect there to be a growing
demand as the world fleet grows and both the appetite for energy and exploration
activity remain high. We have added to our skill base through selective
acquisitions and organic growth which will bring further opportunities to
increase our presence in these areas.
A review of the market and our activities during the year is set out by segment
below.
Shipbroking - Braemar Seascope
Revenues increased by 30% to #52.8m (2007: #40.5m) and operating profits were
23% higher at #13.0m (2007: #10.6m).
Shipbroking activities are undertaken under the name of Braemar Seascope from
offices in London, Aberdeen, Shanghai, Beijing, Singapore, Melbourne, Perth, and
Sarzanna, Italy, with further joint venture offices in Delhi and Mumbai.
At the beginning of our financial year - 1 March 2007 - the Baltic Dry Index,
the barometer for the dry bulk market, stood at the relatively low level of
4,818 before making steady gains until mid November when it reached its peak of
11,039, falling back to 5,615 by the end of January 2008 and finishing the
financial year at 7,613. It currently stands at 9,581. Volatility was especially
a feature of the Capesize market, which is devoted to the transportation of raw
materials particularly coal for power and steel, and iron ore for steel and is
indicative of a relatively even balance of supply and demand. In such
circumstances news or rumours of port closures, congestion or stem curtailments
can cause significant short-term fluctuations. Our dry cargo department finished
the year with record invoiced revenues, with the overseas offices all making
good contributions. We have also been active in the period charter market and
our forward book has grown substantially. In our next financial year we expect
volatility to continue and, although there will be a considerable number of
additions to the fleet, we expect the market to remain healthy, underpinned by
the burgeoning demands particularly in China and India.
Our deep sea tanker chartering department increased their involvement in both
the number of spot and time charter transactions, resulting in an increase in
revenue over last year. The Baltic Dirty Tanker Index ("BDTI") started the
financial year at 1,094 and closed at 1,151, averaging 1,122 over the year. It
currently stands at 1,701. However, on the 7 December 2007 a large single hull
crude tanker was holed by a barge whilst at anchor off South Korea resulting in
major pollution affecting the coastal environment. Charterers immediately looked
to secure only double hull tonnage putting pressure on the market. VLCC tanker
rates spiked achieving earnings as high as $300,000 per day despite the high
bunker prices. These rates filtered down to the Suezmax and Aframax sectors and
although there was a significant correction in the first quarter of 2008, the
rates remained higher than at any time in the previous year barring the peak in
December 2007 when the BDTI reached 2,279. The demand for double hull tonnage
has also accelerated various conversion programs that single hull tanker owners
had been planning for dry bulk or FPSO work. We expect that the balance between
demand, new crude carriers entering the market and conversions/scrapping to
broadly equate over the coming year.
In the smaller tanker sectors the impact of newbuildings entering the market
depressed rates. However the increase in refining and the subsequent
distribution of products in the coastal markets is expected to result in the
volume of transactions rising significantly over the next year. Volumes in the
specialist chemical markets (including petrochemical gases) have increased
resulting in charterers securing medium term contracts for 12 to 24 months.
Newbuilding tonnage delivering to this sector has accommodated the increase in
movements and rates are expected to remain steady.
LPG markets remained fairly static over the year with a surplus of large tonnage
keeping the rates at low levels although the main producers are now pricing the
product for expected increased sales from the end of 2008. LNG markets have also
stayed quiet with a number of delivered LNG carriers waiting for their planned
project work to commence. These projects had been delayed for technical and
commercial reasons and this has affected the critical supply of LNG. For a
number of these projects, transportation is now expected to commence within two
years. Once underway the surplus tonnage in both LNG and LPG sectors should be
quickly absorbed.
The performance of the sale and purchase department improved again with notable
success in placing newbuilding orders across a wide variety of high quality
shipyards. Secondhand transaction deal flow was steady and quite evenly balanced
between tankers and bulk carriers. Transaction values have been strong
reflecting the historically high prices achieved in the principal ship
categories. Another major feature was the amount of resale activity, this being
business where we are involved in transacting the onward sale of a newbuilding
contract already placed and for which our commission is generally earned on
delivery of the vessel from the yard. Demolition business is currently a less
active part of sale and purchase but we expect it to increase in the coming
years in line with the phase-out of single hull tankers, and as we enter the new
financial year we are seeing more evidence of this.
Container charter rates and vessel values remained quite firm over the year and
our container desk performed well in both the sale and purchase and chartering
markets. The arrival of substantial newbuilding tonnage will be a source of new
opportunities although charter rates and second hand prices could be lower in
the medium term if demand slows. However continuing globalisation, of which the
container market is a corner stone, underpins future prospects.
The offshore desk enjoyed a record year of growth and activity driven by the
high level of oil exploration activity. Supply vessels have been much in demand
and day rates rose to historic highs which look likely to be sustained by the
high price of oil. The increase in earnings has encouraged investment in the
industry and our team were also involved in concluding good sale and purchase
and newbuilding business.
Technical - Wavespec, Falconer Bryan and Steege Kingston
Revenues increased by 43% to #9.5m (2007: #6.6m) and operating profits were up
by 32% at #0.7m (2007: #0.5m). Falconer Bryan contributed revenues of #3.4m and
operating profits before amortisation of #0.5m in the eight months since it was
acquired. The business is headquartered in Singapore and employs 90 full time
staff from seven offices, most of which are based in the Far East. All of its
offices have been busy throughout the period working on a broad range of marine
warranty surveys, towage approvals and consulting engineering work, and this
activity shows every sign of continuing in the same vein. We are pleased with
the progress it has made as part of the Group during which a new office in
London has been established to access the insurance market.
Wavespec's revenue and operating contribution was slightly lower mainly due to a
weaker dollar, less higher margin project work and an office move to new leased
premises in Malden. However it has extended its Qatargas business to 2011 and
recently won new business for the design of new coal carrying vessels.
Steege Kingston was acquired on 3 March 2008 and has therefore not been
consolidated in the year we are now reporting on. It provides specialist loss
adjusting and other expert services to the energy (oil and gas), marine, power
and other related industrial sectors and is one of the leading international
players in the energy adjusting market, with a particularly strong reputation
and presence in the offshore/upstream sector. Its client base covers insurance
underwriters, insurance brokers as well as the insured parties in the oil and
gas industry itself. It operates from offices in London, Houston, Singapore,
Calgary and Mexico City with a total of 62 employees. In the year to 31 December
2007 it recorded consolidated revenues of #7.0 million and pre-tax profits of
#1.7 million and as at 31 December 2007 gross assets were #7.2 million and net
assets were #4.9 million including cash of #0.2 million.
The Technical division is now substantially larger as a result of the new
business additions. The combination of international offices, client bases and
skills will be a powerful business base from which to grow. The division now has
170 full time employees plus a further 70 consultant engineers acting as
supervisors in shipyards.
Logistics - Cory Brothers
Revenues increased by 19% to #27.9m (2007: #23.4m) and operating profits were up
5% at #1.0m (2007: #0.9m). Revenue growth arose primarily from liner, logistics
and forwarding business driven by sustained strong demand. In excess of 19,500
forwarding jobs were handled in the year compared with 13,200 last year.
Logistics and one-off projects continue to be the mainstay of sustainable growth
and profitability, and we are proud that Cory Logistics' success in this area
has been recognised by the industry with the awards of Lloyd's List Freight
Forwarder of the Year and Heavylift/ Project Specialist of the year for 2007.
The acquisition of 80% of Fred. Olsen Freight on 24 December 2007 is a key
strategic addition and a natural fit with Cory Logistics. It provides a range of
freight forwarding and liner agency services for a predominantly UK client base
complementing the services currently offered by Cory Logistics. It has 50
employees located mostly in Ipswich and close to the Cory Logistics offices of
Felixstowe.
Port agency is maintaining a leading position in an increasingly competitive UK
market, handling in excess of 6,000 port calls in 2007/8, an increase of 23%
over the prior year and. In April 2008 Cory was awarded the highly prestigious
BP hub agency business for the European region.
Morrison Tours, a seasonal business linked closely to the cruise industry around
the UK has added to its customer base and improved the take-up of the shore
excursions on offer with improved prospects for the coming year.
Environmental - DV Howells
DV Howells increased revenues to #10.8m from #3.2m in the previous year and
operating profits grew from #0.2m to #1.8m. Much of the growth was due to the
company's salvage support and environmental protection for the stricken
container ship off the South coast of England which had an incremental income of
over #7.9 million in the year. This work resulted in a significant increase in
man hours worked on the protection and clean up of the beaches together with the
specialist handling of the recovered containers from the ship. The Industrial
Services section of the company, which handled much of this work, also deployed
its specialist tank cleaning technology on a number of oil storage tank farms.
The 24/7 Incident Response section continued steadily performing specialist
environmental clean up including the handling of hazardous substances and spills
for ports, rail and roads from its nine bases in the UK. It also attended a
number of call outs for the Maritime and Coastguard Agency ("MCA") as part of
the contract to operate the MCA national counter pollution stockpiles.
The company's International and Specialist Services section acted as consultant
advisors in the review of various UK ports' oil spill contingency plans, as well
as assisting the Irish Coastal Authority with their emergency response and
incident management plans.
The company has grown its international involvement through a variety of
contracts including specialist consulting assignments for the International
Maritime Organisation, UK Ministry of Defence and major oil and shipping
companies, plus offshore drilling support, spill response and training, in
Africa, Europe and the Far East.
Financial Review
Income statement
Revenue and operating profits grew in all divisions - the segmental results are
shown in note 3 in this statement. Gross margins (calculated after charging
costs that are directly related to revenue) were stable at 72% and operating
margins after all operating expenses (excluding an exceptional charge in 2007)
also remained unchanged at 14%.
A reconciliation of reported profits to adjusted profits is set out in the table
below.
2007/8 2006/7
% #000 #000
Adjusted profits from continuing operations before
impairment charge and tax +34% 14,718 10,964
Impairment of Braemar Seascope Pty goodwill - (950)
-------- ------
Reported profit before tax from continuing operations +47% 14,718 10,014
-------- ------
Pence Pence
EPS from continuing operations (pre impairment charge) +33% 48.99 36.90
Impairment of goodwill - (4.82)
-------- ------
Basic EPS from continuing operations +53% 48.99 32.08
-------- ------
The average rate of exchange for conversion of US dollar income during the
financial year, after taking account of hedging, was $1.99/# (2007: $1.86/#) and
at 29 February 2008 the balance sheet rate for conversion was $1.99/# (28
February 2007: $1.97/#). If the 2007/8 shipbroking income had been translated at
the 2006/7 average exchange rate, it would have been higher by approximately
#3.7 million.
Discontinued operations
In September 2007 the bunker trading operations based in Australia ceased and
the historic net result of this activity is now shown on a single discontinued
operations line in the income statement.
Taxation
The tax rate on reported profit before tax was 32.6% (2007: 35.8%). The
underlying rate, excluding the share of net profits from joint ventures and the
effect of the impairment charge, was 33.4% (2007: 33.3%). Next year the tax rate
will benefit from the reduction in the rate of UK corporation tax to 28%.
Cash flow and acquisitions
The cash balance increased over the year by #7.0m to #21.6m (2007: #14.6m). The
Group generated operating cash flows (after tax) of #17.0m up from #6.5m in the
prior year mainly due to the increase in operating profits and an improvement in
working capital management. Out of this, #1.0m was spent on fixed assets, #4.3m
on acquisitions and #4.1m for dividend payments.
Cash expended on acquiring businesses was #7.4m, offset by #3.1m of cash in the
acquired balance sheets, in respect of Falconer Bryan (#5.9m), Fred. Olsen
Freight Limited (#1.3m) and deferred consideration (#0.2m). Subsequent to the
year end the Group paid #4.2m in respect of the purchase of Steege Kingston and
#0.9m to purchase the 59% of Gorman Cory such that it is now wholly-owned.
I would like to express my personal thanks and appreciation to all the staff
whose hard work and commitment which has contributed to our performance this
year, and with such dedicated colleagues I am confident for the continuing
success of the Group.
Alan Marsh
6 May 2008
Braemar Shipping Services PLC
Unaudited Consolidated Income statement for the year ended 29 February 2008
Year ended Year ended
29 Feb 2008 28 Feb 2007
Continuing operations Notes #'000 #'000
Revenue 3 100,964 73,831
Cost of sales (28,267) (20,658)
---------- ----------
72,697 53,173
Operating costs (58,729) (43,685)
---------- ----------
Impairment of goodwill - (950)
Operating costs excluding impairment of
goodwill (58,729) (42,735)
---------- ----------
---------- ----------
Operating profit 3 13,968 9,488
Finance income 391 335
Finance costs (11) (16)
Share of profit from joint ventures' and
associates 370 207
---------- ----------
Profit before taxation - continuing operations 14,718 10,014
Taxation (4,797) (3,585)
---------- ----------
Profit for the year - continuing operations 9,921 6,429
Profit / (loss) for the period from
discontinued operations (3) 43
---------- ----------
Profit for the year 9,918 6,472
---------- ----------
Attributable to:
Ordinary shareholders 9,772 6,367
Minority interest 146 105
---------- ----------
Profit for the year 9,918 6,472
---------- ----------
Earnings per ordinary share 5
Basic - continuing operations 48.99 p 32.08 p
Diluted - continuing operations 48.69 p 31.65 p
Basic - profit for the year 48.97 p 32.29 p
Diluted - profit for the year 48.68 p 31.87 p
Braemar Shipping Services PLC
Unaudited Consolidated Balance sheet as at 29 February 2008
As at As at
29 Feb 08 28 Feb 07
Assets #'000 #'000
Non current assets
Goodwill 25,826 22,606
Other intangible assets 2,315 1,582
Property, plant and equipment 5,820 5,478
Investments 1,890 1,538
Deferred tax assets 754 642
Other receivables 155 81
-------- --------
36,760 31,927
Current assets
Inventories 91 70
Trade and other receivables 26,784 21,750
Derivative financial instruments 107 27
Restricted cash 3,952 -
Cash and cash equivalents 21,635 14,634
-------- --------
52,569 36,481
-------- --------
Total assets 89,329 68,408
-------- --------
Liabilities
Current liabilities
Derivative financial instruments 49 -
Trade and other payables 39,540 29,011
Current tax payable 3,017 2,402
Provisions 48 294
Client monies held as escrow agent 3,952 -
-------- --------
46,606 31,707
Non-current liabilities
Deferred tax liabilities 681 283
Trade and other payables 434 -
Provisions 81 169
-------- --------
1,196 452
-------- --------
Total liabilities 47,802 32,159
-------- --------
Total assets less total liabilities 41,527 36,249
-------- --------
Equity
Share capital 2,061 2,023
Share premium 9,261 8,554
Shares to be issued (2,527) (1,047)
Other reserves 20,687 21,020
Retained earnings 11,717 5,390
-------- --------
Group shareholders' equity 41,199 35,940
Minority interest 328 309
-------- --------
Total equity 41,527 36,249
-------- --------
Braemar Shipping Services PLC
Unaudited Consolidated Cash flow statement for the year ended 29 February 2008
Year ended Year ended
29 Feb 08 28 Feb 07
Notes #'000 #'000
Cash flows from operating activities
Cash generated from operations 6 21,158 9,668
Interest received 391 335
Interest paid (11) (16)
Tax paid (4,587) (3,413)
------- -------
Net cash generated from operating activities 16,951 6,574
------- -------
Cash flows from investing activities
Dividends received from joint ventures - 263
Acquisition of subsidiaries, net of cash acquired (4,270) (1,844)
Purchase of property, plant and equipment (1,032) (654)
Proceeds from sale of property, plant and equipment 57 25
Purchase of investments (38) -
Proceeds from sale of investments 200 -
Other long term assets (74) (23)
------- -------
Net cash used in investing activities (5,157) (2,233)
------- -------
Cash flows from financing activities
Proceeds from issue of ordinary shares 745 569
Dividends paid (4,053) (3,595)
Dividends paid to minority interest (143) (100)
Purchase of own shares (1,480) (50)
Payment of principal under finance leases - (11)
------- -------
Net cash used in financing activities (4,931) (3,187)
------- -------
Increase/(decrease) in cash and cash equivalents 6,863 1,154
Cash and cash equivalents at beginning of the
period 14,634 13,567
Foreign exchange differences 138 (87)
------- -------
Cash and cash equivalents at end of the period 21,635 14,634
------- -------
Balance sheet analysis of cash and cash equivalents
Cash and cash equivalents 21,635 14,634
Short term borrowings - -
------- -------
Cash and cash equivalents at end of the period 21,635 14,634
------- -------
Braemar Shipping Services PLC
Unaudited Consolidated Statement of Changes in Total Equity for the year ended
29 February 2008
Share capital Share premium Shares to be Other reserves Retained Total Minority Total equity
issued earnings interest
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
------ ------ ------ ------ ------ ------ ------ ------
Group
As at 1 March
2006 1,988 8,046 (997) 21,789 2,031 32,857 - 32,857
Cash flow
hedges
- Transfer to
net profit - - - 40 - 40 - 40
- Fair value
losses in the
period - - - 17 - 17 - 17
Exchange
differences - - - (70) - (70) - (70)
------ ------ ------ ------ ------ ------ ------ ------
Net income
recognised
directly in
equity - - - (13) - (13) - (13)
Profit for
the - - - - 6,367 6,367 105 6,472
year ------ ------ ------ ------ ------ ------ ------ ------
Total
recognised
income in the
year - - - (13) 6,367 6,354 105 6,459
------ ------ ------ ------ ------ ------ ------ ------
Acquisition - - - - - 304 304
Dividends - - - (3,595) (3,595) (100) (3,695)
paid
Issue of 35 508 - - - 543 - 543
shares
Purchase of
shares - - (50) - - (50) - (50)
Consideration
to be paid - - - (738) - (738) - (738)
Credit in
respect of
share option
schemes - - - - 309 309 - 309
Deferred tax
on items
taken - - - (18) 278 260 - 260
to equity
Transfer to - - - - - - - -
retained ------ ------ ------ ------ ------ ------ ------ ------
profit
relating to
exercised
share options
Balance at 28
February 2007 2,023 8,554 (1,047) 21,020 5,390 35,940 309 36,249
Cash flow
hedges
- Transfer to
net profit - - - (16) - (16) - (16)
- Fair value
losses in the
period - - - 107 - 107 - 107
Exchange
differences - - - 383 - 383 - 383
------ ------ ------ ------ ------ ------ ------ ------
Net income
recognised
directly in
equity - - - 474 - 474 - 474
Profit for
the - - - - 9,772 9,772 146 9,918
year ------ ------ ------ ------ ------ ------ ------ ------
Total
recognised
income in the
year - - - 474 9,772 10,246 146 10,392
------ ------ ------ ------ ------ ------ ------ ------
Acquisition - - - - - 16 16
Dividends - - - (4,053) (4,053) (143) (4,196)
paid
Issue of 38 707 - - - 745 - 745
shares
Purchase of
shares - - (1,480) - - (1,480) - (1,480)
Consideration
to be paid - - - (782) - (782) - (782)
Credit in
respect of
share option
schemes - - - - 554 554 - 554
Deferred tax
on items
taken - - - (25) 54 29 - 29
to equity
Transfer to - - - - - - - -
retained ------ ------ ------ ------ ------ ------ ------ ------
profit
relating to
exercised
share options
Balance at 29
February 2008 2,061 9,261 (2,527) 20,687 11,717 41,199 328 41,527
------ ------ ------ ------ ------ ------ ------ ------
Braemar Shipping Services PLC
Notes to the financial statements
Note 1 - General Information
The Preliminary Announcement of unaudited results for the year ended 29 February
2008 is an extract from the forthcoming 2008 Annual Report and Accounts and does
not constitute the Group's statutory accounts of 2008 nor 2007. Statutory
accounts for 2007 have been delivered to the Registrar of Companies, and those
for 2008 will be delivered following the company's Annual General Meeting. The
auditors have reported on the 2007 accounts; their report was unqualified and
did not contain statements under Sections 237(2) or (3) of the Companies Act
1985.
Note 2 - Accounting policies
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with International Financial Reporting Standards
(IFRSs) adopted for use in the European Union, this announcement does not itself
contain sufficient information to comply with IFRSs. The company expects to
distribute full accounts that comply with IFRSs on 23 May 2008.
Note 3 - Segmental results
Revenue Profit for the period
2008 2007 2008 2007
#'000 #'000 #'000 #'000
Shipbroking 52,794 40,530 12,993 10,593
Logistics 27,874 23,449 953 911
Technical services 9,467 6,623 728 553
Environmental services 10,829 3,229 1,836 225
-------- -------- -------- --------
Segment revenue/ operating
profit from continuing
operations excluding 100,964 73,831 16,510 12,282
impairment
Impairment - Shipbroking - - - (950)
-------- -------- -------- --------
Segment revenue/operating
profit 100,964 73,831 16,510 11,332
after impairment -------- --------
Unallocated other costs (2,542) (1,844)
Finance income (cost)- net 380 319
Share of profit from joint
ventures' and associates 370 207
-------- --------
Profit before taxation 14,718 10,014
Taxation (4,797) (3,585)
-------- --------
Profit for the period
attributable to shareholders
from continuing operations 9,921 6,429
-------- --------
Note 4 - Dividend
The proposed final dividend of 15.00 pence per share (2007: final 12.25 pence)
takes the total dividend for the year to 23.00 pence (2007: 19.0 pence). The
cost of the final dividend will be #3.0m (2007: #2.4m) based on 20.2m shares
(which excludes shares held in the ESOP for which the dividend has been waived
and includes shares issued for Steege Kingston - see note 7) and will be charged
to equity in the 2008/9 financial year.
Braemar Shipping Services PLC
Notes to the financial statements
Note 5 - Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year, excluding 685,014 ordinary shares held by the
employee share trust (2007:331,495) which are treated as cancelled. For diluted
earnings per share, the weighted average number of ordinary shares in issue is
adjusted to assume conversion of all dilutive ordinary shares. The Group has one
class of potential dilutive ordinary shares being those granted to employees
where the exercise price is less than the average market price of the Company's
ordinary shares during the year.
2008 2008 2008 2007 2007 2007
Continuing operations Earnings #'000s Weighted Per share Earnings #'000s Weighted Per share
average number amount pence average number amount pence
of shares of shares
Adjusted
earnings per
share 9,775 19,953,231 48.99 7,274 19,715,846 36.90
Impairment of
goodwill - - - (950) - (4.82)
------ -------- ------ ------ -------- ------
Profit for the
period
attributable
to
shareholders 9,775 19,953,231 48.99 6,324 19,715,846 32.08
Effect of
dilutive share
options - 122,061 (0.30) - 264,693 (0.43)
------ -------- ------ ------ -------- ------
Fully diluted
earnings per
share 9,775 20,075,292 48.69 6,324 19,980,539 31.65
------ -------- ------ ------ -------- ------
Total operations
Profit for the
period
attributable
to
shareholders 9,772 19,953,231 48.97 6,367 19,715,846 32.29
Effect of
dilutive share
options - 122,061 (0.29) - 264,693 (0.42)
------ -------- ------ ------ -------- ------
Fully diluted
earnings per
share 9,772 20,075,292 48.68 6,367 19,980,539 31.87
------ -------- ------ ------ -------- ------
Note 6 - Reconciliation of operating profit to net cash flow from operating
activities
2008 2007
#'000 #'000
Profit before tax for the year from continuing
operations 14,718 10,014
Profit before tax for the year from discontinued
operations (3) 62
Adjustments for:
- Depreciation 687 518
- Amortisation 452 284
- Goodwill impairment charge 114 950
- Loss / (profit) on sale of property plant and
equipment 57 (12)
- Profit on sale of investment (89) -
- Interest income (391) (335)
- Interest expense 11 16
- Share of profit of joint ventures (370) (207)
- Share based payments 554 309
Changes in working capital:
- Stocks (21) 7
- Trade and other receivables 143 (3,874)
- Trade and other payables 5,630 2,098
- Provisions (334) (162)
-------- --------
Cash generated from operations 21,158 9,668
-------- --------
Note 7 - Post balance sheet event
On 3 March 2008 the Company acquired all of the share capital of Steege Kingston
Partnership Limited. The initial consideration was #5.5 million satisfied by
cash from existing resources of #4.2 million and the issue of 306,513 new
ordinary shares in Braemar Shipping Services plc. Further consideration is due
based on a multiple of the earnings before interest and tax in each of the two
years post completion and these amounts will be settled wholly in cash. Total
consideration is expected to be in the range #8.0 million - #8.5 million and the
maximum consideration payable is capped at #12.0 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSFSWWSASEDI
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