TIDMBMS
RNS Number : 9648U
Braemar Shipping Services PLC
26 October 2010
BRAEMAR SHIPPING SERVICES PLC
26 October 2010
Unaudited interim results for the six months ended 31 August 2010
Braemar Shipping Services plc ("Braemar" or the "Group"), an international
provider of shipping and marine services, today announces unaudited half-year
results for the six months ended 31 August 2010.
· Revenue from continuing operations increased 18% to GBP67.6m (interim
2009/10: GBP57.1m)
· Pre-tax profit from continuing operations increased 3% to GBP7.2m (interim
2009/10: GBP7.0m, second half 2009/10: GBP6.5m)
· Basic EPS from operations increased 7% to 25.99p (interim 2009/10: 24.25p)
· Interim dividend of 9.00p per share (interim 2009/10: 8.75p)
· Strong balance sheet with cash of GBP14.8m (31 August 2009: GBP9.8m) and
no debt
· Strong shipbroking performance in a volatile market
· Asia expansion plan:
- More than 100 staff in new Singapore office and the establishment of
tanker and sale and purchase broking desks
- Operating licence issued in China (Shanghai)
Sir Graham Hearne, chairman of Braemar, said: "The gradual recovery in most
shipping markets which began in 2009 continued into 2010 and the financial year
began more positively than expected. Throughout the period under review our
transaction volumes have been consistent and in some cases improving. Broking
revenues were also augmented by a strong forward order book at the beginning of
the year.
"Our strategy of steadily expanding the scope and geographical coverage of our
operations evens out the exposure to particular markets which is beneficial
during periods of volatility. The importance of Asia to our business cannot be
underestimated and we intend to strengthen our presence significantly in the
region. Growth in Asia is expected to sustain the demand for shipping, while the
supply of new tonnage will tend to suppress freight rates and vessel values -
probably for some time to come. In this environment we expect to see transaction
numbers rise but at lower average commissions. Part of our future income arises
from the forward order book of business written which provides a level of
security and predictability. Our prospects for the year as a whole remain
positive."
ENDS
For further information, contact:
+------------------------------------+------------------------------+
| Braemar Shipping Services | |
+------------------------------------+------------------------------+
| Alan Marsh | Tel +44 (0) 20 7535 2650 |
+------------------------------------+------------------------------+
| James Kidwell | Tel +44 (0) 20 7535 2881 |
+------------------------------------+------------------------------+
| | |
| Pelham Bell Pottinger | |
+------------------------------------+------------------------------+
| Damian Beeley | Tel +44 (0) 20 7861 3139 |
| Zoe Pocock | Tel +44 (0) 20 7861 3961 |
+------------------------------------+------------------------------+
| | |
| Elaborate Communications | |
+------------------------------------+------------------------------+
| Sean Moloney | Tel +44 (0) 1296 682356 |
+------------------------------------+------------------------------+
| | |
| Arbuthnot Securities | Tel +44 (0) 20 7012 2158 |
| Nick Tulloch | |
+------------------------------------+------------------------------+
| Henry Willcocks | Tel +44 (0) 20 7012 2106 |
+------------------------------------+------------------------------+
Notes to Editors
Braemar Shipping Services plc is a leading international provider of broking,
consultancy, technical and other services to the shipping, marine and energy
industries.
The business is organised into the following business segments: Shipbroking,
Technical, Logistics and Environmental.
It is listed on the Official List of the London Stock Exchange in the transport
sector.
Principal businesses:
Shipbroking
Braemar Seascope provides chartering, sale and purchase and consulting
shipbroking services to international ship owners and charterers in the tanker,
gas, chemicals, offshore, container and dry bulk markets. There are shipbroking
offices in UK, China, Australia, Singapore, India, Italy and Monaco.
www.braemarseascope.com
Technical
Braemar's Technical division provides a range of specialist marine services to
the maritime sector and includes:
Braemar Steege 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, Lima, Mexico City and Miami.
www.braemarsteege.com
Braemar Falconer provides specialised marine and offshore services. It has
offices at the following locations: Australia, China, India, Indonesia,
Malaysia, Singapore, Vietnam and the UK.
www.braemarfalconer.com
Wavespec provides consultant marine engineering and naval architecture services
to the shipping and offshore markets. A new office in Houston was opened in
2009.
www.wavespec.com
Logistics
Cory Brothers Shipping Agency provides port agency, freight forwarding and
logistics services within the UK and Singapore.
www.cory.co.uk
Environmental
Braemar Howells provides pollution response and advisory services primarily in
the UK and Africa and is continuing to develop an international presence.
www.braemarhowells.com
INTERIM ANNOUNCEMENT - SIX MONTHS ENDED 31 AUGUST 2010
CHAIRMAN'S STATEMENT
In a difficult shipping market the performance of the Group has been steady.
Group revenues grew 18% to GBP67.6m and pre-tax profits increased 3% to GBP7.2m
which compares with GBP7.0m in the first half of 2009/10 and GBP6.5m in the
second half. Basic earnings per share were up 7% to 25.99p.
The gradual recovery in most shipping markets which began in 2009 continued into
2010 and the financial year began more positively than expected. Growing demand
for raw materials from Asia underpinned the dry bulk sector which so far has
been able to absorb the new tonnage delivered. The tanker market was relatively
strong earlier in the year but weakened over the summer as the availability of
tonnage exceeded the requirement for oil transportation. Changes in the freight
markets have affected the sale and purchase market which has seen variable
activity during the period. Throughout the period under review our transaction
volumes have been consistent and in some cases improving. Broking revenues were
also augmented by a strong forward order book at the beginning of the year.
Our strategy of steadily expanding the scope and geographical coverage of our
operations evens out the exposure to particular markets which is beneficial
during periods of volatility. The importance of Asia to our business cannot be
underestimated and we intend to strengthen our presence significantly in the
region. We have recently been granted a licence to form a shipbroking company in
Shanghai which opens up the possibility of transacting local Chinese business.
In addition, we will shortly be moving all our existing businesses in Singapore
employing 110 staff into a single new office. The office will be used as a base
for further expansion particularly in shipbroking where we are opening new
tanker chartering and sale and purchase broking desks. As an indication of the
importance we place on this development one of our executive directors, Denis
Petropoulos, who is also joint managing director of Braemar Seascope, will
relocate to Singapore to lead this project.
Braemar Falconer, Braemar Steege and Cory Brothers all performed well with
results that were similar to last year. Wavespec's consulting business in
Houston has not yet reached profitability though in the longer term we expect to
see some increase in the demand for our marine surveying and risk assessment
services, as well as for our environmental business, Braemar Howells.
The Board has declared an interim dividend of 9.00 pence, an increase of 3% over
2009/10. The interim dividend will be paid on 14 December 2010 to shareholders
on the register at the close of business on 19 November 2010.
Growth in Asia is expected to sustain the demand for shipping, while the supply
of new tonnage will tend to suppress freight rates and vessel values - probably
for some time to come. In this environment we expect to see transaction numbers
rise but at lower average commissions. Part of our future income arises from the
forward order book of business written which provides a level of security and
predictability. Our prospects for the year as a whole remain positive.
Sir Graham Hearne
Chairman
25 October 2010
CHIEF EXECUTIVE'S REVIEW OF ACTIVITIES
Shipbroking
Revenue grew 26% to GBP32.0m (2009/10: GBP25.4m) and operating profits before
amortisation were GBP7.5m, up 32% from GBP5.7m in the first half of last year.
Shipbroking represented 82% of the operating profits before amortisation and
unallocated costs.
Our dry cargo offices in the UK, Australia, Singapore, China, India and Italy
have performed well in a volatile market. The Baltic Dry Index stood at 2,738 at
1 March 2010 and rose to a high of 4,209 in May before falling to a low of 1,700
in July closing at 2,713 on 31 August 2010. It currently stands at 2,727.
Capesize rates were the most volatile due to a steady flow of newbuilding
tonnage entering the market and playing against the export of bulk minerals
volumes mainly from Australia, Brazil, South Africa, US west coast and the US
Gulf. While Chinese demand for iron ore has remained strong, the demand for
other bulk commodities such as coal has eased. We expect to see less volatility
in the spot market and a gradual weakening of freight rates due to the increase
in vessel numbers. Over the next two years the freight rate in the larger vessel
categories are likely to be more affected because of the significant number of
new units being delivered. The handysize sector should be more resilient and
experience less volatility due to the smaller newbuilding order book. We have
built a solid position in dry cargo due to our strong ties with major, active
charterers which should result in a better revenue base.
The deep sea tanker chartering market started this financial year slightly
stronger than we had anticipated. This was due to many large crude carriers
being utilised for short to medium term storage of both crude oil and products
and the delay of some newbuildings being delivered into the market. These
factors created a shortage of tonnage which served to strengthen rates. However,
since the summer, much of the storing tonnage has now been discharged and the
previously delayed tonnage is now feeding back into the market. The added
availability of tonnage is taking its toll on the crude chartering market and
over the past three months rates have dropped back to the low levels experienced
12 months ago. Over the past six months the BDTI (Baltic Dirty Tanker Index)
peaked in mid May at 1,122 points and since then has fallen to 715 points at the
end of August. This is an indication of the volatility of the deep sea tanker
markets and how small changes in tonnage demand can produce spikes in rates.
With the stored crude oil now being refined, the CPP (clean petroleum product)
market has been fairly busy with refinery distribution but the incoming new
tonnage has kept the spot rates low. The small tanker product market has also
been affected by many new vessels delivering and the rates have remained low for
the first half of the year. Our desks have increased their transaction volumes
and grown their client base during this volatile period.
The spot market has a significant knock-on effect on time charter rates and
there are oil companies, traders and notable ship operators prepared to take
advantage of the lower rates to charter tonnage in for the medium term. We have
been successful in concluding several of these deals. This is likely to continue
and we expect our strong period chartering team to remain busy.
Since the beginning of the year our wet FFA desk has dealt with a greater number
of clients many of whom are involved in physical chartering and it is notable
that we are concluding trades with several new operators as well as the more
well-known oil traders and oil companies.
Rates continue to remain low in the specialised tanker divisions but the
chemical chartering section has won new business this year as well as extending
existing contracts. Our gas chartering section has also remained busy with
several LPG shipping contracts being renewed and in particular increasing the
number of spot charterers in the VLGC (very large gas carrier) market. Our
broking of LPG product remains active and we are now seeing the added value of
this business line both through physical product broking and the consequential
shipping that may be required.
The LNG market is starting to absorb the surplus tonnage that had been
intentionally built for specific projects and with the winter months approaching
we expect to see a more active chartering market both for spot and term
business.
Our sale and purchase department performed well in the first half with a good
balance of business across both the wet and dry sectors. Vessel values and
newbuilding prices have been generally stable over the period and newbuilding
deliveries have also, for the most part, taken place as expected. The worldwide
volume of demolition business has been lower than expected due to better freight
rates, but our share remains high and demolition is an important aspect of the
full service we provide. We are also extending our coverage with new desks in
Singapore and Monaco both of which are expected to be immediately profitable.
The container market continued to recover with significantly increased volumes
and subsequently improved freight rates. The laid up tonnage still in existence
at the beginning of the year was steadily re-activated. Charter rates for
container vessels have more than doubled in some sectors, albeit from
historically low levels, and second-hand prices rose on the back of increased
interest in the market especially from new entrants predominantly based in
Greece and Asia. On the back of the renewed confidence both the chartering and
sale and purchase teams in London, Singapore and Shanghai, have performed well
with numerous charters and sales concluded. However, the buoyancy in the market
has already affected the sale and purchase sector where willing buyers and
sellers expectations are often some way apart and true sales candidates remain
scarce. The charter market is expected to see a challenging second half with
reports of reducing box volumes.
Our offshore teams in London, Aberdeen and Singapore enjoyed a good level of
activity in the first half with a balance of chartering and project business
contributing to income. We expect the remainder of the year to continue with
reasonable activity and although rates may soften we are actively involved in
significant project business.
Technical - Braemar Falconer, Braemar Steege and Wavespec
The overall results of our Technical division were lower than expected. Revenue
was GBP12.5m which was at a similar level to last year but operating profits
before amortisation fell from GBP1.9m to GBP0.9m. The established businesses
performed as expected, but the new ventures of cargo loss adjusting and
Wavespec's consulting business in Houston have both not yet reached
profitability.
Our ship surveying and engineering business, Braemar Falconer, has continued to
perform well over the past six months. The offices in Malaysia, Singapore,
Vietnam and Indonesia all performed better than in the first half of last year.
Rig moves and drilling activity have both picked up, contributing to revenues in
Singapore, Vietnam and Indonesia. Activity in China has lagged during the first
half because of restricted activity in the northern region but this is beginning
to reverse with more projects being given the go-ahead. India is generally
steady and Australia has shown early signs of increased activities. The on-going
projects together with those in the pipeline indicate that the present level of
activity should be maintained for the remainder of the year. The cargo adjusting
arm - Braemar Marine - which we started last year has been amalgamated with
Braemar Falconer to extend their activities in the US and the Far East because
of a natural link between the businesses. We expect it to become profitable next
year.
Braemar Steege is performing in line with expectations. New energy loss
adjusting instructions from the upstream sector have been slow in the first half
of the year. This may continue, particularly in Houston where there has been
slowdown in Gulf of Mexico development work, due to the tighter regulations.
This situation is being countered by expansion of expert witness services and
further development in the onshore power sector, where some notable instructions
have been received with regard to nuclear installations. The Singapore office
continues to do well from strong activity in offshore developments in Asia and
Australia. The establishment of a fully staffed and operational unit in Rio de
Janeiro in September positions Braemar Steege to take advantage of expected
increases in activity in Brazil, where offshore exploration is growing
substantially. This will assist the Group's progress within the wider Latin
American region.
Wavespec's long term business with Qatargas was successfully completed in August
2010 and the company is now working on a number of early-stage Chinese LNG
projects. The call for new operating procedures and increased safety
considerations in the US should increase the demand for Wavespec's advisory
services in due course.
Logistics - Cory Brothers
Revenues grew from GBP16.0m to GBP19.1m and operating profits before
amortisation were GBP0.8m (2009/10: GBP1.2m) Cory's on-going business was
maintained despite a relatively depressed UK market. Ship agency performed
steadily with contributions from ship-to-ship transfer and hub services and the
Singapore office performed well on the back of increasing activity in the
region.
Logistics' revenues grew GBP2.8m due to an increase in general forwarding
activity, but operating profits were lower because of the conclusion of a large
single contract in the prior year which enhanced that result. The cruise tour
excursions business saw further increases in port calls and passenger take-up
throughout the summer season.
Environmental - Braemar Howells
Revenues were GBP4.0m up 20% from the prior half and operating profits before
amortisation were at break-even compared to GBP0.1m last half. The company's
overall income grew quite strongly as a result of several UK projects undertaken
by the industrial services arm but the margins were disappointing. There has
been a slow-down in the company's consulting and training services which have
suffered in the recession. This is partly as a result of Government spending
controls which have reduced the income in the Maritime Coastguard Agency, MoD
and Network Rail contracts operated by the incident response section.
International operations have started to pick up with new contracts won, the
benefits of which will come through in the second half of the year.
Principal risks and uncertainties
The directors consider that the principal risks and uncertainties which could
have a material effect on the group's performance in the second half of the year
are unchanged from those identified on pages 23 and 30-31 of the 2010 Annual
Report. These include operational risks occurring as a result of ineffective
internal systems or controls, staff departures, professional errors and/or
omissions (for which the Group carries insurance) and other external factors;
foreign exchange risk from fluctuations in the US dollar to sterling exchange
rate; liquidity risk arising from funding requirements; and credit risk in the
form of non-payment of invoices.
Treasury
The majority of the Group's income is US$ denominated and the average rate of
exchange for conversion of US$ income in the six months to 31 August 2010 was
$1.54/GBP (Interim 2009/10: $1.57/GBP, Full Year 2009/10: $1.55/GBP). The rate
of translation as at 31 August 2010 was $1.54/GBP. The half-on-half translation
impact of the dollar was not significant and the Group holds forward contracts
for $12m at an average rate $1.49/GBP in respect of second half cash flows. Over
a full year the approximate effect on profits before taxation of a 10 cent swing
in the average $/GBP rate of translation (assuming no hedging) is GBP1.7m.
Taxation
The effective underlying rate of tax, excluding the share of net profits from
joint ventures, was 27.2% (2009/10: 30.3%). The rate is lower than previous
years due the mix of overseas profits and also as a result of the prospective
reduction in the standard UK rate (to 27% from April 2011) which reduces the
deferred tax provisioning.
Cash flow and acquisitions
Cash balances were GBP14.8m at 31 August 2010 compared with cash of GBP9.8m at
31 August 2009 and GBP27.9m as at 28 February 2010. The Group normally generates
most of its annual cash flow in the second half of the year with the first half
reduction mainly due to the payment of the annual staff bonus and the full year
dividend from the prior year. Acquisition payments totalling GBP1.1m were all
for earn-outs arising from the purchases of businesses in prior years, the
majority of which related to the final payment for Braemar Steege.
Alan Marsh
Chief Executive
25 October 2010
Statement of Directors' responsibilities
The Directors confirm, to the best of their knowledge, that this set of
consolidated interim financial information has been prepared in accordance with
IAS34 as adopted by the European Union, and that the interim management report
herein includes a fair review of the information required by DTR 4.2.7 and DTR
4.2.8 of the Disclosure and Transparency rules of the United Kingdom's Financial
Securities Authority.
The Directors of Braemar Shipping Services PLC are listed in the Braemar
Shipping Services PLC Annual Report for 28 February 2010.
By order of the Board
A R. W. Marsh, Chief Executive J. R. V. Kidwell,
Finance Director
Braemar Shipping Services plc
Consolidated Income Statement
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | Unaudited | | Unaudited | | Audited |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | Six | | Six | | Year |
| | | months | | months | | ended |
| | | to | | to | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | 31 Aug | | 31 Aug | | 28 Feb |
| | | 2010 | | 2009 | | 2010 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Continuing operations |Notes | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Revenue | 4 | 67,591 | | 57,116 | | 119,024 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Cost of sales | | (18,160) | | (13,611) | | (28,094) |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Gross profit | | 49,431 | | 43,505 | | 90,930 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Operating costs | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Operating costs excluding | | (41,572) | | (35,929) | | (76,550) |
| amortisation | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Amortisation of intangible | | (788) | | (679) | | (1,480) |
| assets | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | (42,360) | | (36,608) | | (78,030) |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Operating profit | 4 | 7,071 | | 6,897 | | 12,900 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Finance income | | 37 | | 98 | | 193 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Finance costs | | (7) | | - | | (2) |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Share of profit after tax | | 113 | | 26 | | 400 |
| from joint ventures | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Profit before taxation | | 7,214 | | 7,021 | | 13,491 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Taxation | 5 | (1,928) | | (2,120) | | (3,806) |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Profit for the period | | 5,286 | | 4,901 | | 9,685 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Attributable to: | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Equity holders of the parent | | 5,259 | | 4,877 | | 9,655 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Non-controlling interest | | 27 | | 24 | | 30 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Profit for the period | | 5,286 | | 4,901 | | 9,685 |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| | | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Earnings per ordinary share | 6 | | | | | |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Basic - pence | | | | | | |
| | | 25.99p | | 24.25p | | 47.93p |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
| Diluted - pence | | | | | | |
| | | 25.51p | | 23.98p | | 47.26p |
+------------------------------+-------+-----------+----------+-----------+----------+----------+
Consolidated Statement of Comprehensive Income
+-------------------------------+------+---+--------+----------+-----------+----------+---------+
| | | Unaudited | | Unaudited | | Audited |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | Six months | | Six | | Year |
| | | to | | months | | ended |
| | | | | to | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | 31 Aug | | 31 Aug | | 28 Feb |
| | | 2010 | | 2009 | | 2010 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Profit for the period | | 5,286 | | 4,901 | | 9,685 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Other comprehensive income / | | | | | | |
| (expense) | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Foreign exchange differences on | (87) | | (1,581) | | 3,597 |
| retranslation of foreign operations | | | | | |
+------------------------------------------+--------+----------+-----------+----------+---------+
| Cash flow hedges - net of tax | | 53 | | 1,269 | | (429) |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Total comprehensive income | | 5,252 | | 4,589 | | 12,853 |
| for the period | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Attributable to: | | | | | | |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Equity holders of the parent | | 5,225 | | 4,565 | | 12,823 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Non-controlling interest | | 27 | | 24 | | 30 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| Profit for the period | | 5,252 | | 4,589 | | 12,853 |
+-------------------------------+------+------------+----------+-----------+----------+---------+
| | | | | | | | |
+-------------------------------+------+---+--------+----------+-----------+----------+---------+
Braemar Shipping Services plc
Consolidated Balance Sheet
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | Unaudited | | Unaudited | | Audited |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | As at | | As at | | As at |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | 31 Aug | | 31 Aug | | 28 Feb |
| | | | 10 | | 09 | | 10 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Assets | Notes | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Non-current assets | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Goodwill | 8 | | 28,588 | | 28,198 | | 28,740 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Other intangible assets | 8 | | 3,457 | | 4,452 | | 4,247 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Property, plant and | 8 | | 6,648 | | 6,567 | | 6,510 |
| equipment | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Investments | | | 1,609 | | 1,902 | | 1,485 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Deferred tax assets | | | 1,340 | | 612 | | 1,208 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Other receivables | | | 290 | | 129 | | 169 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | 41,932 | | 41,860 | | 42,359 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Current assets | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Trade and other receivables | | | 41,561 | | 37,547 | | 36,918 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Restricted cash | | | - | | - | | 5,521 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Cash and cash equivalents | | | 14,821 | | 9,837 | | 27,930 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | 56,382 | | 47,384 | | 70,369 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Total assets | | | 98,314 | | 89,244 | | 112,728 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Liabilities | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Current liabilities | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Trade and other payables | | | 31,876 | | 29,422 | | 42,277 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Current tax payable | | | 2,726 | | 2,575 | | 3,346 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Provisions | | | 272 | | 67 | | 288 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Client monies held as | | | - | | - | | 5,521 |
| escrow agent | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | 34,874 | | 32,064 | | 51,432 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Non-current liabilities | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Deferred tax liabilities | | | 1,817 | | 2,390 | | 2,001 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Provisions | | | 203 | | 133 | | 168 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | 2,020 | | 2,523 | | 2,169 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Total liabilities | | | 36,894 | | 34,587 | | 53,601 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Net assets | | | 61,420 | | 54,657 | | 59,127 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Equity | | | | | | | |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Share capital | 9 | | 2,109 | | 2,104 | | 2,108 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Share premium | 9 | | 11,019 | | 10,920 | | 11,014 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Shares to be issued | | | (2,998) | | (3,195) | | (3,198) |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Other reserves | 10 | | 25,491 | | 24,708 | | 25,525 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Retained earnings | | | 25,628 | | 19,982 | | 23,534 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Total shareholders' equity | | | 61,249 | | 54,519 | | 58,983 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Non-controlling interest | | | 171 | | 138 | | 144 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
| Total equity | | | 61,420 | | 54,657 | | 59,127 |
+-----------------------------+--------+--+-----------+--+-----------+--+----------+
Braemar Shipping Services plc
Consolidated Cash Flow Statement
+----------------------------+----------+--------+--+-----------+--+-----------+--+----------+
| | | | Unaudited | | Unaudited | | Audited |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| | | | Six | | Six | | Year |
| | | | months | | months | | ended |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| | | | 31 Aug | | 31 Aug | | 28 Feb |
| | | | 10 | | 09 | | 10 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| | Notes | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Profit before tax for the | | | 7,214 | | 7,021 | | 13,491 |
| period | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Adjustments for: | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Depreciation | | | 582 | | 461 | | 1,064 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Amortisation | | | 788 | | 679 | | 1,480 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Loss on sale of | | | - | | - | | (5) |
| property, plant and | | | | | | | |
| equipment | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Finance income | | | (37) | | (98) | | (193) |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Finance expense | | | 7 | | - | | 2 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Share of profit of joint | | | (113) | | (26) | | (400) |
| ventures | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Share based payments | | | 370 | | 311 | | 591 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Changes in working capital | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Trade and other | | | (4,292) | | (509) | | 1,745 |
| receivables | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| - Trade and other payables | | | (9,227) | | (15,081) | | (3,417) |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Provisions | | | 33 | | 24 | | 234 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Financial instruments | | | (343) | | - | | 686 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Cash (used in) / generated | | | (5,018) | | (7,218) | | 15,278 |
| from operations | | | | | | | |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Interest received | | | 37 | | 98 | | 193 |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Interest paid | | | (7) | | - | | (2) |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Tax paid | | | (2,715) | | (2,584) | | (4,421) |
+----------------------------+-------------------+--+-----------+--+-----------+--+----------+
| Net cash (used in) / generated from operating | | (7,703) | | (9,704) | | 11,048 |
| activities | | | | | | |
+------------------------------------------------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Cash flows from investing activities | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Dividends received from joint | | | - | | 338 | | 406 |
| ventures | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Acquisition of subsidiaries, net of | 11 | | (1,066) | | (1,652) | | (2,793) |
| cash acquired | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Purchase of property, plant and | 8 | | (717) | | (853) | | (1,394) |
| equipment | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Proceeds from sale of property, plant | | | - | | - | | 59 |
| and equipment | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Purchase of investments | | | - | | (19) | | - |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Other long-term receivables | | | (121) | | 47 | | 7 |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Net cash used in investing activities | | | (1,904) | | (2,139) | | (3,715) |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Cash flows from financing activities | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Proceeds from issue of ordinary | 9 | | 6 | | - | | 98 |
| shares | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Dividends paid | 7 | | (3,293) | | (3,121) | | (4,888) |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Purchase of own shares | 9 | | (42) | | - | | (72) |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Net cash used in financing activities | | | (3,329) | | (3,121) | | (4,862) |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| (Decrease)/increase in cash and cash | | | (12,936) | | (14,964) | | 2,471 |
| equivalents | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Cash and cash equivalents at | | | 27,930 | | 25,194 | | 25,194 |
| beginning of the period | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Foreign exchange differences | | | (173) | | (393) | | 265 |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| Cash and cash equivalents at end of | | | 14,821 | | 9,837 | | 27,930 |
| the period | | | | | | | |
+---------------------------------------+--------+--+-----------+--+-----------+--+----------+
| | | | | | | | | |
+----------------------------+----------+--------+--+-----------+--+-----------+--+----------+
Braemar Shipping Services plc
Consolidated Statement of Changes in Equity
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| | | Share | Share | Shares | Other | Retained | Attributable | Non-controlling | Total |
| | | capital | premium | to be | reserves | earnings | to equity | interest | equity |
| | | | | issued | (note | | holders of | | |
| | | | | | 11) | | the parent | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| |Notes | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| At 1 March | | 2,108 | 11,014 | (3,198) | 25,525 | 23,534 | 58,983 | 144 | 59,127 |
| 2010 | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Cash flow | | - | - | - | 53 | - | 53 | - | 53 |
| hedges - net | | | | | | | | | |
| of tax | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Exchange | | - | - | - | (87) | - | (87) | - | (87) |
| differences | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Net income | | - | - | - | (34) | - | (34) | - | (34) |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Profit for the | | - | - | - | - | 5,259 | 5,259 | 27 | 5,286 |
| period | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Total income | | - | - | - | (34) | 5,259 | 5,225 | 27 | 5,252 |
| for the period | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Dividends paid | 7 | - | - | - | - | (3,293) | (3,293) | - | (3,293) |
| | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Issue of | 9 | 1 | 5 | - | - | - | 6 | - | 6 |
| shares | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Purchase of | 9 | - | - | (42) | - | - | (42) | - | (42) |
| shares | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| ESOP shares | 9 | - | - | 242 | - | (242) | - | - | - |
| allocated | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Share option | | - | - | - | - | 370 | 370 | - | 370 |
| schemes | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Balance at 31 | | 2,109 | 11,019 | (2,998) | 25,491 | 25,628 | 61,249 | 171 | 61,420 |
| August 2010 | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| At 1 March | | 2,104 | 10,920 | (3,479) | 25,020 | 18,268 | 52,833 | 114 | 52,947 |
| 2009 | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Cash flow | | - | - | - | 1,269 | - | 1,269 | - | 1,269 |
| hedges - net | | | | | | | | | |
| of tax | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Exchange | | - | - | - | (1,581) | - | (1,581) | - | (1,581) |
| differences | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Net income | | - | - | - | (312) | - | (312) | - | (312) |
| recognised | | | | | | | | | |
| directly in | | | | | | | | | |
| equity | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Profit for the | | - | - | - | - | 4,877 | 4,877 | 24 | 4,901 |
| period | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Total income | | - | - | - | (312) | 4,877 | 4,565 | 24 | 4,589 |
| for the period | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Dividends paid | 7 | - | - | - | - | (3,121) | (3,121) | - | (3,121) |
| | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Issue of | | - | - | - | - | - | - | - | - |
| shares | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Purchase of | | - | - | (69) | - | - | (69) | - | (69) |
| shares | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| ESOP shares | | - | - | 353 | - | (353) | - | - | - |
| allocated | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Share option | | - | - | - | - | 311 | 311 | - | 311 |
| schemes | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
| Balance at 31 | | 2,104 | 10,920 | (3,195) | 24,708 | 19,982 | 54,519 | 138 | 54,657 |
| August 2009 | | | | | | | | | |
+----------------+-------+---------+---------+---------+----------+----------+--------------+-----------------+---------+
BRAEMAR SHIPPING SERVICES PLC
UNAUDITED NOTES TO THE FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED 31 AUGUST 2010
1. General information
The interim consolidated financial statements of the Group for the period ended
31 August 2010 were authorised for issue in accordance with a resolution of the
directors on 25 October 2010. Braemar Shipping Services plc is a Public Limited
Company incorporated and domiciled in England and Wales.
The term 'Company' refers to Braemar Shipping Services plc and 'Group' refers to
the Company and all its subsidiary undertakings and the employee share ownership
trust. The address of its registered office is 35 Cosway Street, London NW1 5BT.
These interim condensed consolidated financial statements do not comprise
statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The audited statutory accounts for the year ended 28 February 2010 have been
delivered to the Registrar of Companies in England and Wales. The report of the
auditors on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statements under Section 498 of the
Companies Act 2006.
Forward-looking statements
Certain statements in this half-yearly report are forward-looking. Although the
Group
believes that the expectations reflected in these forward-looking
statements are reasonable,
we can give no assurance that these expectations
will prove to have been correct. Because
these statements involve risks and
uncertainties, actual results may differ materially from
those expressed or
implied by these forward-looking statements. We undertake no obligation to
update any forward-looking statements whether as a result of new information,
future events or otherwise.
2. Basis of preparation and statement of compliance
This consolidated interim financial information for the half-year ended 31
August 2010 has been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Services Authority and with IAS 34, 'Interim financial
reporting' as adopted by the European Union. The half-yearly condensed
consolidated financial report should be read in conjunction with the annual
financial statements for the year ended 28 February 2010, which have been
prepared in accordance with IFRSs as adopted by the European Union.
3. Accounting policies
Changes in accounting policies
The accounting policies adopted in the preparation of these interim consolidated
financial statements are consistent with those of the annual financial
statements for the year ended 28 February 2010, as included in those annual
financial statements, except as described below. The following new standards and
amendments to standards are mandatory for the first time for the financial year
beginning 1 March 2010 and have been applied to the Group:
- IFRS 3 (revised), 'Business combinations' and consequential amendments to
IAS 27, 'Consolidated and separate financial statements', IAS 28, 'Investments
in associates' and IAS 31, 'Interests in joint ventures', are effective
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after 1
July 2009.
The revised standard continues to apply the acquisition method to business
combinations, although with some certain significant changes. For example, all
payments to purchase a business are to be recorded at fair value at the
acquisition date, with any adjustment to contingent consideration to be recorded
through the income statement. There is a choice on an acquisition-by-acquisition
basis to measure the non-controlling interest in the acquiree either at fair
value or at the non-controlling interest's proportionate share of the acquiree's
net assets. All acquisition-related costs should be expensed.
- IAS 38 (amendment), 'Intangible Assets', is effective from 1 July 2009.
The amendment clarifies guidance in measuring the fair value of an intangible
asset acquired in a business combination,
None of the above revisions have any impact on the presented results of the
Group for this current period, but could impact the Group in the future. The
requirements of IFRS 3R will be adopted prospectively.
A number of other new standards, amendments to standards and interpretations are
mandatory for the first time for the financial year beginning 1 March 2010. The
Board regularly considers these and have concluded that none are currently
relevant to the Group nor expected to have a material impact in the future.
Additionally, no new standards, amendments and interpretation which are
effective for subsequent accounting periods have been adopted early by the
Group.
4. Segmental information
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | Shipbroking | Technical | Logistics | Environmental | Total |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Six months to 31 August | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| 2010 (unaudited) | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Revenue | 32,023 | 12,475 | 19,114 | 3,979 | 67,591 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result before | 7,537 | 874 | 793 | 15 | 9,219 |
| amortisation of intangible | | | | | |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Amortisation of intangible | (293) | (322) | (155) | (18) | (788) |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result | 7,244 | 552 | 638 | (3) | 8,431 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Unallocated other costs | | | | | (1,360) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Operating profit | | | | | 7,071 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Finance income - net | | | | | 30 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Share of profit from joint | | | | | 113 |
| ventures | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit before taxation | | | | | 7,214 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Taxation | | | | | (1,928) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit for the period | | | | | 5,286 |
| attributable to | | | | | |
| shareholders | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment operating assets | 44,485 | 19,738 | 13,195 | 3,126 | 80,544 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Six months to 31 August | | | | | |
| 2009 (unaudited) | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Revenue | 25,370 | 12,403 | 16,021 | 3,322 | 57,116 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result before | 5,689 | 1,930 | 1,151 | 160 | 8,930 |
| amortisation of intangible | | | | | |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Amortisation of intangible | (181) | (322) | (158) | (18) | (679) |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result | 5,508 | 1,608 | 993 | 142 | 8,251 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Unallocated other costs | | | | | (1,354) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Operating profit | | | | | 6,897 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Finance income - net | | | | | 98 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Share of profit from joint | | | | | 26 |
| ventures | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit before taxation | | | | | 7,021 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Taxation | | | | | (2,120) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit for the period | | | | | 4,901 |
| attributable to | | | | | |
| shareholders | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment operating assets | 43,047 | 19,204 | 12,454 | 2,188 | 76,893 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
4. Segmental information (continued)
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | Shipbroking | Technical | Logistics | Environmental | Total |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Year ended 28 February 2010 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| (audited) | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Revenue | 57,362 | 22,697 | 31,899 | 7,066 | 119,024 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result before | 13,324 | 2,325 | 1,434 | 614 | 17,697 |
| amortisation of intangible | | | | | |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Amortisation of intangible | (481) | (644) | (319) | (36) | (1,480) |
| assets | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment result | 12,843 | 1,681 | 1,115 | 578 | 16,217 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Unallocated other costs | | | | | (3,317) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Operating profit | | | | | 12,900 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Finance income - net | | | | | 191 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Share of profit from joint | | | | | 400 |
| ventures | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit before taxation | | | | | 13,491 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Taxation | | | | | (3,806) |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Profit for the period | | | | | 9,685 |
| attributable to | | | | | |
| shareholders | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| | | | | | |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
| Segment operating assets | 42,654 | 18,400 | 13,291 | 2,239 | 76,584 |
+-----------------------------+-------------+-----------+-----------+---------------+---------+
Segment assets consist primarily of intangible assets (including goodwill),
tangible fixed assets, receivables and other assets. Receivables for taxes, cash
and cash equivalents and investments have been excluded.
5. Taxation
Current tax expense for the interim periods presented is the expected tax
payable on the taxable income for the period, calculated as the estimated
average annual effective income tax rate applied to the pre-tax income of the
interim period. Current tax for current and prior periods is classified as a
current liability to the extent that it is unpaid. Amounts paid in excess of
amounts owed are classified as a current asset.
The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities,
using tax rates that are enacted or substantively enacted at the balance sheet
date
The Group's consolidated effective tax rate for the six months ended 31 August
2010 was 26.7% (six months ended 31 August 2009: 30.2%, year ended 28 February
2010: 28.2%).
6. Earnings per share
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | Six | | Six | | Year |
| | months | | months | | ended |
| | to | | to | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | 31 Aug | | 31 Aug | | 28 Feb |
| | 2010 | | 2009 | | 2010 |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Profit for the period attributable | 5,259 | | 4,877 | | 9,655 |
| to shareholders | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | pence | | pence | | pence |
| | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Basic earnings per share | 25.99 | | 24.25 | | 47.93 |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Effect of dilutive share options | (0.48) | | (0.27) | | (0.67) |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Diluted earnings per share | 25.51 | | 23.98 | | 47.26 |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| | Shares | | Shares | | Shares |
| | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Weighted average number of | 20,238,050 | | 20,114,413 | | 20,143,909 |
| ordinary shares | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Effect of dilutive share options | 374,437 | | 224,718 | | 287,780 |
+------------------------------------+-------------+----------+--------------+----------+-------------+
| Diluted weighted average number of | 20,612,487 | | 20,339,131 | | 20,431,689 |
| ordinary shares | | | | | |
+------------------------------------+-------------+----------+--------------+----------+-------------+
7. Dividends
The following dividends were paid by the Group:
+------------------------------------+-------------+----------+-------------+----------+-----------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| | Six | | Six | | Year |
| | months | | months | | ended |
| | to | | to | | |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| | 31 Aug | | 31 Aug | | 28 Feb |
| | 2010 | | 2009 | | 2010 |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| Ordinary shares of 10 pence each | | | | | |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| Final of 16.25 pence per share | 3,293 | | 3,121 | | 3,121 |
| (2009: 15.5 pence per share) | | | | | |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| Interim of 8.75 pence per share | - | | - | | 1,767 |
| paid | | | | | |
+------------------------------------+-------------+----------+-------------+----------+-----------+
| | 3,293 | | 3,121 | | 4,888 |
+------------------------------------+-------------+----------+-------------+----------+-----------+
The Directors have declared an interim dividend of 9.00 pence per ordinary
share, payable on 14 December 2010 to shareholders on the register on 19
November 2010.
8. Goodwill, other intangible assets and property, plant and equipment
+-----------+----------+--------+----------+-----------+------+----------+-------------+-------------+
| | | | | | | | (Unaudited) |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| | | | | | | | Total |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| | | | | | | | GBP000 |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| Six months ended 31 | | | | | | |
| August 2010 | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Opening net book amount as at 1 | | | | | 39,497 |
| March 2010 | | | | | |
+------------------------------------------+-----------+------+----------+-------------+-------------+
| Acquisition of | | | | | | (151) |
| subsidiaries (see note | | | | | | |
| 11) | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Additions | | | | | | | 717 |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| Depreciation and | | | | | | (1,370) |
| amortisation | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Closing net book amount at 31 August 2010 | | | | 38,693 |
+------------------------------------------------------+------+----------+-------------+-------------+
| | | | | | | | |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| | | | | | | | |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| Six months ended 31 | | | | | | |
| August 2009 | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Opening net book amount as at 1 | | | | | 38,247 |
| March 2009 | | | | | |
+------------------------------------------+-----------+------+----------+-------------+-------------+
| Acquisition of a | | | | | | 1,317 |
| subsidiary | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Additions | | | | | | | 853 |
+-----------+-------------------+----------+-----------+------+----------+-------------+-------------+
| Depreciation and | | | | | | (1,140) |
| amortisation | | | | | | |
+-------------------------------+----------+-----------+------+----------+-------------+-------------+
| Exchange | | | | | | | (60) |
| differences | | | | | | | |
+----------------------+--------+----------+-----------+------+----------+-------------+-------------+
| Closing net book amount at 31 August | | | | | 39,217 |
| 2009 | | | | | |
+------------------------------------------+-----------+------+----------+-------------+-------------+
| | | | | | | | | |
+-----------+----------+--------+----------+-----------+------+----------+-------------+-------------+
9. Share capital
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | Number | | Ordinary | | Share | | (Unaudited) |
| | | of | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | shares | | Shares | | Premium | | Total |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | (thousands) | | GBP000 | | GBP000 | | GBP000 |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| At 1 | | 21,073 | | 2,108 | | 11,014 | | 13,122 |
| March | | | | | | | | |
| 2010 | | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| Shares issued and fully | 2 | | 1 | | 5 | | 6 |
| paid | | | | | | | |
+----------------------------+-------------+----------+----------+----------+---------+----------+-------------+
| At 31 | | 21,075 | | 2,109 | | 11,019 | | 13,128 |
| August | | | | | | | | |
| 2010 | | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| | | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
| At 1 March 2009 and 31 | 21,036 | | 2,104 | | 10,920 | | 13,024 |
| August 2009 | | | | | | | |
+----------+-----------------+-------------+----------+----------+----------+---------+----------+-------------+
9. Share capital (continued)
The Group's ESOP trust acquired 14,500 of the company's shares between in the
first half of the year for GBP42,000.
During the six months ended 31 August 2010, 46,750 shares at a value of
GBP149,000 that were awarded to employees in May 2007 as part of the Deferred
Bonus Plan (the Plan) were delivered to them in May 2010 following the three
year vesting period. Details of the Plan are disclosed in the annual financial
statements for the year ended 28 February 2010.
In addition, 26,668 shares at a value of GBP93,000 that were awarded to
executive directors in May 2007 as part of the long-term incentive plan ("LTIP")
were delivered to them in May 2010 due to performance conditions being met.
Details of the LTIP are disclosed in the annual financial statements for the
year ended 28 February 2010.
10. Other reserves
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Group | Capital | Merger | Deferred | Translation | Hedging | | (Unaudited) |
| | redemption | reserve | consideration | reserve | reserve | | Total other |
| | reserve | | reserve | | | | reserves |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| At 1 March 2010 | 396 | 21,346 | (389) | 3,821 | 351 | | 25,525 |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Cash flow hedges | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| - Transfer to net | - | - | - | - | (145) | | (145) |
| profit | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| - Fair value gains in | - | - | - | - | 219 | | 219 |
| the period | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Foreign exchange | - | - | - | (87) | - | | (87) |
| differences | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Deferred tax on items | - | - | - | - | (21) | | (21) |
| taken to equity | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| At 31 August 2010 | 396 | 21,346 | (389) | 3,734 | 404 | | 25,491 |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| At 1 March 2009 | 396 | 21,346 | (355) | 3,985 | (352) | | 25,020 |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Cash flow hedges | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| - Transfer to net | - | - | - | - | 488 | | 488 |
| profit | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| - Fair value losses in | - | - | - | - | 1,274 | | 1,274 |
| the period | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Foreign exchange | - | - | - | (1,581) | - | | (1,581) |
| differences | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| Deferred tax on items | - | - | - | - | (493) | | (493) |
| taken to equity | | | | | | | |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
| At 31 August 2009 | 396 | 21,346 | (355) | 2,404 | 917 | | 24,708 |
+------------------------+------------+---------+---------------+-------------+---------+----------+-------------+
All other reserves are attributable to the equity holders of the parent company.
11. Acquisitions
The Group made no acquisitions during the period.
In respect of the acquisition of Braemar Steege Holdings Limited (formerly
Steege Kingston Partnership Limited) on 3 March 2008, the Group made the second
and final stage payment in respect of this business on 18 May 2010. An amount of
GBP960,000 was paid based on a multiple of the earnings before interest and tax
in the two years following completion and was settled wholly in cash. An amount
of GBP151,000 that had been additionally accrued in respect of this acquisition
has been adjusted against goodwill following this final payment.
Finally, stage payments were made in the six months ended 31 August 2010 in
respect of the acquisitions of Cagnoil Limited (GBP47,000), LPG Connect
(GBP41,000) and Freight Action Limited (GBP18,000).
INDEPENDENT REVIEW REPORT TO BRAEMAR SHIPPING SERVICES PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
August 2010 which comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated balance sheet, the
consolidated cash flow statement, the condensed consolidated half-year statement
of changes in equity and the related explanatory notes. We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 August 2010 is not prepared, in all material
respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK
FSA.
John Luke
for and on behalf of KPMG Audit Plc
Chartered Accountants
15 Canada Square, London, E14 5GL
25 October 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFISISLEFII
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