TIDMBMS
RNS Number : 1667G
Braemar Shipping Services PLC
09 May 2011
BRAEMAR SHIPPING SERVICES PLC
9 May 2011
Preliminary results for the year ended 28 February 2011
Braemar Shipping Services plc ("Braemar", "the Company" or "the
Group"), a leading international provider of broking, consultancy,
technical and other services to the shipping and energy industries,
today announces full year results for the year ended 28 February
2011.
FINANCIAL HIGHLIGHTS
-- Revenue GBP126.1m (2010: GBP119.0m)
-- Pre-tax profit before amortisation GBP14.8m (2010:
GBP15.0m)
-- EPS before amortisation 53.84p (2010: 53.22p)
-- Cash at 28 February 2011: GBP25.6m (28 Feb 2010:
GBP27.9m)
-- Final dividend 17.0p per share (up 5%), full year 26.0p
(2010: 25.0p) up 4%
-- 8(th) successive year that the Company has increased its
dividend
OPERATIONAL HIGHLIGHTS
-- Purchase of the business and certain assets of BMT Marine and
Offshore Surveys Limited
-- Shipbroking profits 7% ahead
-- Successful consolidation and relocation of our businesses in
Singapore
-- Integration and re-branding of our technical services
businesses with an improved outlook for the year ahead
-- Estimated forward order book deliverable in 2011/12 - GBP23m
[US$36m] (2010/11 - GBP28m [US$42m])
Commenting on the results and outlook, Sir Graham Hearne,
chairman of Braemar Shipping Services plc, said:
"Our markets in shipping and oil and gas services have had a
turbulent year and against this backdrop the performance of the
Group has been robust.
Braemar, across all divisions, is a first-class company and
among the leaders in its various markets; it is this that underlies
my confidence that Braemar will continue to play a leading role in
the markets in which it operates."
ENDS
For further information, contact:
Braemar Shipping Services Tel +44 (0) 20 7535 2650
Alan Marsh Tel +44 (0) 20 7535 2881
James Kidwell
Pelham Bell Pottinger Tel +44 (0) 20 7861 3139
Damian Beeley Tel +44 (0) 20 7861 3961
Zoe Pocock
Elaborate Communications Tel +44 (0) 1296 682356
Sean Moloney
Arbuthnot Securities Limited Tel +44 (0) 20 7012 2158
Nick Tulloch Tel +44 (0) 20 7012 2106
Henry Willcocks
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 segments: Shipbroking, Technical,
Logistics and Environmental.
It is listed on the Official List of the London Stock Exchange
in the Industrial Transport sector.
Principal businesses:
Shipbroking
Braemar Seascope provides chartering, sale and purchase and
consulting shipbroking services to international ship owners,
charterers and financial institutions operating in the tanker, gas,
chemicals, offshore, container and dry bulk markets. There are
shipbroking offices in the 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: 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: specialised marine and offshore services. It
has offices in the UK, Australia, China, India, Indonesia,
Malaysia, Singapore and Vietnam.
www.braemarfalconer.com
Wavespec: 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
PRELIMINARY ANNOUNCEMENT - YEAR ENDED 28 FEBRUARY 2011
CHAIRMAN'S STATEMENT
Overview
Our markets in shipping and oil and gas services have had a
turbulent year and against this backdrop the overall performance of
the Group has been robust. This is testament to the quality of our
employees, their experience, and their ability to respond in a
challenging environment. Group revenues grew 6% to GBP126.1m;
pre-tax profits before amortisation were GBP14.8m compared with
GBP15.0m in 2009/10 and pre-tax profits after amortisation were
GBP13.2m compared with GBP13.5m in 2009/10. Basic earnings per
share (EPS) were 48.41p (2010: 47.93p) and EPS excluding
amortisation were also similar to last year at 53.84p (2010:
53.22p).
We saw the continuation of the global economic recovery during
the financial year and this was particularly strong in Asia.
Alongside that shipping continues to enjoy a growth in demand for
raw materials which has provided good support to the dry bulk
sector, despite the delivery of new tonnage. Similarly the tanker
market is being sustained by growing oil demand from the East at a
time when the economies in the United States and Europe remain
sluggish.
Asia
For some years we have been building our presence in Asia which
has become the world's most important region for international
shipping. This year we successfully consolidated all our businesses
in Singapore which now employs 110 staff in a single office. From
this base we are expanding in the region, particularly in
shipbroking where we have opened new tanker chartering and sale
& purchase broking desks. One of our executive directors, Denis
Petropoulos, has relocated to Singapore to lead this important
development.
Operations
Over the past few years we have acquired a number of
complementary technical businesses. We are announcing today the
integration and re-branding of these businesses under a common
name, Braemar Technical Services, with a geographic management
structure. This will support the marketing of our marine surveying,
engineering, energy loss-adjusting and consulting disciplines to
our international client base and consequently reinforces the
leading market position we have in this division.
We are also pleased to announce today the purchase of the
business and certain assets of BMT Marine and Offshore Surveys
Limited for a cash consideration of GBP2.4m. The businessprovides
hull and machinery, P&I and Marine Warranty survey services
around the globe; clients operate primarily in the insurance,
shipping and offshore industries. In its last financial year it
reported normalised EBITDA of GBP0.9 million. This acquisition
enables our Technical division to deliver a truly global service to
our clients.
Dividend
I am pleased to announce that the Directors are recommending for
approval at the Annual General Meeting a final dividend of 17.0
pence per ordinary share (an increase of 5%), to be paid on 27 July
2011 to shareholders on the register at the close of business on 1
July 2011. Together with the 9.0p interim dividend, the Company's
dividend for the year will be 26.0 pence (2010: 25.0 pence), a rise
of 4%. The dividend is covered 1.86 times by earnings. This is the
eighth year in succession that the Company has increased its
dividend.
Board changes
During the year, Alastair Farley was appointed to the Board,
bringing with him a wealth of experience in the shipping
industry.
Richard Agutter will retire from the Board later this year
having completed over nine years of service. I would like to thank
him for his outstanding contribution over the years.
Outlook
While economists and politicians continue to debate the speed
and extent of the recovery, both in the UK and globally, we are
well placed in our major markets and enter the new financial year
with a healthy pipeline of business. Our estimate of the
shipbroking forward order book deliverable over the course of the
financial year 2011/12 stands at GBP23 million (US$36 million)
compared with GBP28 million (US$42 million) at 1 March 2010. We
also expect to see an improvement in the performance of our
Technical division in the coming year.
Braemar, across all divisions, is a first-class company and
among the leaders in its various markets. On behalf of the Board, I
would like to express our thanks to all our staff throughout the
world for their commitment over the past year; it is this that
underlies my confidence that Braemar will continue to play a
leading role in the markets in which it operates.
Sir Graham Hearne
9 May 2011
CHIEF EXECUTIVE'S REVIEW OF THE BUSINESS
Overview
The Group's strategy is to maintain and grow its international
marine and energy services businesses.
Braemar is a people business built on the quality and
professionalism of its staff and the strength of its client
relationships. We have always made a substantial commitment to
recruitment and training. I am delighted that many of our recruits
have developed into skilled professionals and we are able to send
them to parts of the world that do not have the same pool of
available talent, where they can put their high level of
professionalism to effective use.
Our global network of offices provides a strong platform from
which to serve our clients. Over the past 12 months all over the
world we have all seen incidents or sudden changes in
circumstances, not least the BP Macondo incident, the earthquake
and tsunami in Japan and the recent political turmoil sweeping
North Africa and the Middle East. It is our job to help our clients
respond to such events, which we do with shipbroking as well as
with bespoke shipping research, marine surveying, loss-adjusting
and engineering consulting.
Divisional review
1. Shipbroking - Braemar Seascope
Shipbroking profits (before amortisation and tax) were up 7% in
a year when global freight rates have been turbulent.
On 1 March 2010 the Baltic Dry Index stood at 2,760 and by the
end of our financial year (28 Feb 2011) it was 1,251 having reached
a high of 4,209 on 26 May 2010 and a low of 1,043 on 4 Feb 2011.
The average for that period was 2,497 and on 6 May 2011 it stood at
1,314.
Freight rates in the cape market were constrained by the
continuous additions to the fleet and in our final quarter the high
volume of coal shipments from Queensland, Australia was
significantly disrupted by high cyclonic rainfall which damaged the
mines and rail infrastructure to the ports. Supramax and handysize
markets were remarkably resilient and steady, with little
volatility in either the Atlantic or the Pacific basin. Underlying
cargo demand remains strong but freight rates are being suppressed
by the effect of new tonnage, and freight futures indicate that the
market will remain soft. Our Dry Cargo teams in Australia and India
have had a strong year with good support from the offices in
London, Beijing and Singapore.
The influx of new tanker tonnage to the fleet continues to have
an adverse effect on chartering rates. Commissions are being
impacted by lower freight rates but we are pleased to see an
increase in our volume of transactions, largely offsetting the
lower rates. Our strategy of developing business with China and
India has been beneficial and we have concluded significant VLCC
business with both countries.
The refined-products shipping markets are also suffering from an
over-supply of tonnage but volumes remain good. Since the terrible
events in Japan, product distribution has grown, particularly in
the larger sizes, and the added tonne miles have resulted in
greater activity both for our London and Singapore offices.
The crude oil price has risen sharply as both Chinese and Indian
demand continues to grow. The unrest in Libya and other recent
tension in the Middle East, combined with the increase in demand,
have made both crude and refined oils the currency of speculators,
with traders anticipating further price spikes. This has had a
direct impact on the cost of fuel oil used as bunkers, which is now
some US$200 per tonne higher than last year, putting pressure on
owners' returns. This, in turn, means the repayment of the capital
cost of the asset comes under strain, placing further pressure on
owners to consider their strategy. Our dedicated projects section
is often involved in assisting clients in those strategic
discussions and as a result our period charter book continues to
remain strong.
Our specialist chartering teams both in chemicals and liquid
petroleum gas (LPG) have extended and added further contracts with
large clients resulting in both desks ending this year ahead of the
one before. It is also encouraging that the LPG physical product
broking section has grown its client base and continues to be a
valuable addition to the division.
The liquid natural gas (LNG) market is maturing and many power
projects have now been completed or are nearing completion, and the
vessels delivered ahead of the completion of these projects have
been absorbed. This has meant that freight rates are now at a level
which returns a profit, although many owners have some way to go to
make up for earlier losses suffered in previous thin markets. We
have been active in this sector during the year particularly in the
provision of consulting services.
The market for offshore supply vessels was relatively subdued in
2010, but the rising oil price is stimulating drilling activity and
investment, which we expect will lead to higher demand and better
vessel use. Our offshore team, based in London, Aberdeen and
Singapore has had a good year both for chartering and project
business.
The process of inventory re-stocking during 2010 by many
businesses fuelled a resurgence in demand for container tonnage in
a quest for market share and further gains on profitable routes.
The competition for market share caused a rapid increase in charter
rates although the subsequent additional tonnage being pushed into
the market ultimately put more pressure on freight rates, which
have been steadily falling over the past quarter. Our chartering
team has succeeded in transacting a good level of longer term
business during this period.
The container sale and purchase market remains extremely tight,
with sales candidates limited and prices very firm, due to the
number of competing buyers. As a result we have seen increasing
newbuilding activity and it seems likely this will remain a focus
for the main players in the coming months.
Over the past year second-hand vessel values and newbuilding
prices have been generally stable in most ship categories and our
team has conducted a good level of business both in the wet and dry
sectors.
The worldwide volume of demolition business has been lower than
expected, partly due to the closure of yards in Bangladesh for some
of the year, but our share remains high and demolition is an
important aspect of the full service we provide.
Our newbuilding activity has been surprisingly resilient
particularly with Chinese and South Korean yards which for the most
part have order books covering the next three years. During the
year we established new sale and purchase desks in Singapore and
Monaco which allows us to serve an extended client base.
2. Technical
We are reorganising the companies in our Technical division to
operate as a single unit, which will give a greater ability to
market all of the technical services we offer to our clients across
the world. This will be rolled out over the coming quarter and as
part of the process we are re-establishing the business along
geographical lines with two regional sub-divisions in the Far East
and the West.
The financial results for the Technical division did not meet
our full expectations due to lower than anticipated activity in the
new ventures of cargo loss adjusting and Wavespec's consulting
business in Houston, both of which have yet to achieve
profitability. However, the division has begun the new financial
year well and we expect a better overall performance for the
year.
Our marine engineering and marine surveying business (Braemar
Falconer) posted higher revenue compared to the previous year with
the offices in Singapore, Malaysia, Vietnam and Indonesia all
performing well. Regional rig move and drilling activity in the Far
East picked up during the year and this trend is expected to
continue in 2011. Marine warranty surveys, the main revenue stream
of the group, also grew by 20%. Revenue from China operations
lagged behind during the year although the second half showed an
improvement. The outlook for 2011 for the group is good and so far
the year has begun well with opportunities for growth in
geotechnical services and work from deep water drilling
activity.
Our energy loss adjusting business (Braemar Steege) performed in
line with expectations. Claims activity in the energy sector was
below average throughout the year as most oil and gas exploration
and production areas were not affected by natural disasters.
Activity levels in the Gulf of Mexico dropped significantly
following the BP Macondo incident and it will be some time before
projects start moving again. Despite the magnitude of this
incident, the impact on the insurance industry has been less than
expected because of lower insurance cover. Activity in other deep
water areas such as West Africa and Brazil has increased as
investment has been transferred from the Gulf of Mexico. Braemar
Steege has responded by establishing a new office in Rio do Janeiro
and making greater use of the group's connections in Nigeria. The
Singapore office continues to grow from strong regional activity in
Asia and Australia, where access to group resources throughout the
region is also supporting development. Instructions on expert
witness cases remain steady and provide a good source of income
while new energy claims are low.
The financial year was challenging for the marine engineering
and naval architecture consulting business (Wavespec). They are
pre-eminent in LNG supervisory and consulting work, but over the
last two years very few LNG carriers have been ordered. In Houston
this was compounded by the discontinuance of several projects that
the office was advising on and by the reaction to the BP Macondo
incident in April 2010 which stopped all work in the Gulf of
Mexico. Looking forward to 2011-12 we are starting to see a
recovery in LNG carrier construction both in terms of orders placed
and expressions of interest. In addition, the burgeoning activity
for Floating Storage and Re-gasification Units (FSRUs) and
improvements in the offshore sector point to increased demand for
the skill-sets in both the UK and US offices.
The economic environment in the US slowed the growth of our new
cargo claims arm (Braemar Marine) which also has a presence in the
UK and the Far East. As a consequence the division was absorbed
into Braemar Falconer and has been restructured subsequent to this
re-branding. In recent months a better base has been established
from which to build.
3. Logistics - Cory Brothers
Cory Brothers returned to Cardiff this year by opening a new
office for its Agency and Logistics businesses just a short
distance from where the company was founded in 1842 and
subsequently earned the right to use the Welsh Dragon as its
logo.
Revenues in the Logistics division grew by 10% with forwarding,
one-off projects and liner all contributing. Prospects are
promising for the new financial year with an expected increase in
activity from several major clients and projects on the back of
business won in this year.
Port Agency continues to maintain its leading position within a
depressed UK market, handling approximately 8,500 port calls
annually (including hub managed calls). As anticipated,
ship-to-ship operations activity continued throughout the year and
are expected at least to maintain their volume in the current year.
During 2010, Agency entered into agreements with a number of
customers for the use of its highly-respected operational system
"ShipTrak".
Overseas activity increased with the Singapore office performing
well with increased volume. The establishment of new partnerships
in Brazil and Gibraltar will serve to develop the global Cory
brand.
4. Environmental - Braemar Howells
The weak UK economy and Government spending cuts constrained
activity in the domestic market. However, in the latter part of the
year the industrial services arm successfully undertook two large
tank cleaning contracts and was also involved in a clean-up
response for an oil spill. Looking ahead, the International
division is gaining more enquiries and three new international
projects are due to commence in the first quarter of the new
financial year. These will be serviced by the company's versatile
and multi-skilled workforce.
Colleagues
Everyone across the Group has worked very hard throughout the
year, with skill and commitment second to none, and I wish to thank
them all sincerely for their contribution.
Alan Marsh
6 May 2011
Financial Review
Key divisional statistics
2011 2010 2009 2011 2010 2009
-------------- -------- -------- -------- -------------- -------- -------- --------
Shipbroking GBP'000 GBP'000 GBP'000 Technical GBP'000 GBP'000 GBP'000
Revenue 61,646 57,362 60,409 Revenue 22,621 22,697 21,193
Operating
profit Operating
before profit before
amortisation amortisation
and central and central
costs 14,309 13,324 14,990 costs 1,319 2,325 4,156
Operating Operating
profit profit
margin 23.2% 23.2% 24.8% margin 5.8% 10.2% 19.6%
Employee Employee
numbers 288 272 218 numbers 222 202 178
-------------- -------- -------- -------- -------------- -------- -------- --------
Logistics Environmental
Revenue 35,119 31,899 40,797 Revenue 6,749 7,066 4,745
Operating
Operating profit
profit /(loss)
before before
amortisation amortisation
and central and central
costs 1,230 1,434 1,130 costs 271 614 (165)
Operating Operating
profit profit
margin 3.5% 4.5% 2.8% margin 4.0% 8.7% (3.5%)
Employee Employee
numbers 232 235 232 numbers 60 62 60
-------------- -------- -------- -------- -------------- -------- -------- --------
Group revenue increased by 6% with a similar gross margin of
76.3% and an operating margin before amortisation of 11.5% (2010:
12.1%). Operating profits in Technical were lower, principally due
to the new cargo loss adjusting activities and Wavespec's
consulting arm in Houston which have not yet reached
profitability.
Operating costs (excluding amortisation) increased by 6.8%
mainly due to an increase in staff numbers, a full year of activity
from new and acquired businesses along with the effect of foreign
exchange on the translation of overseas costs and office relocation
costs in Singapore. We have continued to invest in our staff, and
have continued to recruit and headcount has increased to 802 of
which 305 are based overseas.
Foreign exchange
Over the year the US dollar weakened against most G20 currencies
and the average rate of exchange for US dollar-denominated
shipbroking earnings was $1.57/GBP (2010: $1.55/GBP). At 28
February 2011 the balance sheet rate for conversion was $1.63/GBP
(28 February 2010: $1.52/GBP) and the Group held forward currency
contracts to sell $13.0 million at an average rate of $1.57/GBP and
a variable forward window agreement to sell US$1.0 million per
month with upper and lower limits of $1.4885 - $1.6510 between the
months March 2011 and February 2012. During the year ended 28
February 2011, the Group recognised in the income statement a
foreign exchange gain of GBP0.7 million that had been deferred at
28 February 2010.
Taxation
The effective rate of tax for the Group was 25.6% (2010: 28.2%).
The improvement in the rate relative to the prior year is due to
the mix of overseas profits, prior year over provisions and lower
non-deductible expenditure. The provision for deferred tax is
calculated using the reduced UK corporation tax rate of 27%. The
further reductions from 27% to 26% together with the three further
annual 1% cuts to 23% by April 2014 that were announced on 23(rd)
March 2011are expected to reduce the rate in future years.
Balance sheet
Net assets at 28 February 2011 amounted to GBP64.8 million
(2010: GBP59.1 million). Goodwill of GBP30.0 million mostly relates
to our shipbroking business. Net current assets were GBP23.0
million within which the staff bonus represents the most
significant liability and the majority of this was paid subsequent
to the end of the company's financial year. There were no
acquisitions during the year and there is a deferred consideration
of GBP0.4 million (2010: GBP1.9 million) relating to acquisitions
in previous years, most of which will be paid in cash during
2011/12.
Cash flow
The Group generated GBP7.3 million (2010: GBP11.0 million) of
cash from operating activities during the year, after tax payments.
This was used to make deferred consideration payments relating to
previous acquisitions amounting to GBP1.3 million, capital
expenditure of GBP1.5 million and dividend payments of GBP5.1
million. Capital expenditure includes costs associated with fitting
out the new office in Singapore. Cash balances were GBP25.6 million
at the end of the year (28 February 2010: GBP27.9 million) and
there was no debt.
James Kidwell
6 May 2011
Braemar Shipping Services PLC
Audited Consolidated Income statement for the year ended 28
February 2011
28 Feb
28 Feb 2011 2010
Continuing operations Notes GBP'000 GBP'000
---------------------------------------- ------ ------------ ---------
Revenue 3 126,135 119,024
Cost of sales (29,897) (28,094)
---------------------------------------- ------ ------------ ---------
96,238 90,930
Operating costs
------------ ---------
Operating costs excluding amortisation (81,744) (76,550)
Amortisation of intangible assets (1,565) (1,480)
---------------------------------------- ------ ------------ ---------
(83,309) (78,030)
Operating profit 3 12,929 12,900
Finance income 177 193
Finance costs (14) (2)
Share of profit from joint ventures 103 400
Profit before taxation 13,195 13,491
Taxation (3,378) (3,806)
Profit for the year 9,817 9,685
---------------------------------------- ------ ------------ ---------
Attributable to:
Ordinary shareholders 9,802 9,655
Non-controlling interest 15 30
Profit for the year 9,817 9,685
---------------------------------------- ------ ------------ ---------
Earnings per ordinary share 5
Basic - profit for the year 48.41p 47.93p
Diluted - profit for the year 47.43p 47.26p
Audited Consolidated Statement of comprehensive income
28 Feb 2011 28 Feb 2010
GBP'000 GBP'000
----------------------------------------------- ------------ ------------
Profit for the year 9,817 9,685
Other comprehensive income / (expense)
Foreign exchange differences on retranslation
of foreign operations 977 (164)
Cash flow hedges - net of tax (179) 703
Total comprehensive income for the
year 10,615 10,224
----------------------------------------------- ------------ ------------
Attributable to:
Equity holders of the parent 10,600 10,194
Non-controlling interest 15 30
Total comprehensive income for the
year 10,615 10,224
----------------------------------------------- ------------ ------------
Braemar Shipping Services PLC
Audited Consolidated Balance sheet as at 28 February 2011
As at As at
28 Feb 11 28 Feb 10
Assets GBP'000 GBP'000
------------------------------------- ---------- ----------
Non-current assets
Goodwill 30,006 28,740
Other intangible assets 2,777 4,247
Property, plant and equipment 6,813 6,510
Investments 1,694 1,485
Deferred tax assets 1,797 1,208
Other long-term receivables 238 169
------------------------------------- ---------- ----------
43,325 42,359
Current assets
Trade and other receivables 40,741 36,918
Derivative financial instruments 314 -
Restricted cash - 5,521
Cash and cash equivalents 25,634 27,930
------------------------------------- ---------- ----------
66,689 70,369
Total assets 110,014 112,728
------------------------------------- ---------- ----------
Liabilities
Current liabilities
Derivative financial instruments - 571
Trade and other payables 41,062 41,706
Current tax payable 2,379 3,346
Provisions 267 288
Client monies held as escrow agent - 5,521
------------------------------------- ---------- ----------
43,708 51,432
Non-current liabilities
Deferred tax liabilities 1,271 2,001
Provisions 217 168
------------------------------------- ---------- ----------
1,488 2,169
Total liabilities 45,196 53,601
Total assets less total liabilities 64,818 59,127
------------------------------------- ---------- ----------
Equity
Share capital 2,110 2,108
Share premium 11,077 11,014
Shares to be issued (3,275) (3,198)
Other reserves 26,323 25,525
Retained earnings 28,424 23,534
------------------------------------- ---------- ----------
Group shareholders' equity 64,659 58,983
Non-controlling interest 159 144
Total equity 64,818 59,127
------------------------------------- ---------- ----------
Braemar Shipping Services PLC
Audited Consolidated Cash flow statement for the year ended 28
February 2011
28 Feb 2011 28 Feb 2010
Notes GBP'000 GBP'000
----------------------------------------- ------- ------------ ------------
Cash flows from operating activities
Cash generated from operations 6 12,280 15,278
Interest received 177 193
Interest paid (14) (2)
Tax paid (5,164) (4,421)
Net cash generated from operating
activities 7,279 11,048
----------------------------------------- ------- ------------ ------------
Cash flows from investing activities
Dividends from joint ventures - 406
Acquisition of subsidiaries, net
of cash acquired (1,293) (2,793)
Purchase of property, plant and
equipment (1,549) (1,394)
Proceeds from sale of property, plant and
equipment 43 59
Purchase of investments (94) -
Other long term assets (69) 7
Net cash used in investing activities (2,962) (3,715)
----------------------------------------- ------- ------------ ------------
Cash flows from financing activities
Proceeds from issue of ordinary
shares 65 98
Dividends paid (5,110) (4,888)
Purchase of own shares (916) (72)
Net cash used in financing activities (5,961) (4,862)
----------------------------------------- ------- ------------ ------------
(Decrease) / increase in cash and cash
equivalents (1,644) 2,471
Cash and cash equivalents at beginning of the
period 27,930 25,194
Foreign exchange differences (652) 265
------------ ------------
Cash and cash equivalents at end
of the period 25,634 27,930
----------------------------------------- ------- ------------ ------------
Braemar Shipping Services PLC
Audited Consolidated Statement of Changes in Total Equity for
the year ended 28 February 2011
Shares Non
Share Share to be Other Retained controlling Total
capital premium issued reserves earnings Total interest equity
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
At 1 March
2009 2,104 10,920 (3,479) 25,020 18,268 52,833 114 52,947
Cash flow
hedges
- Transfer to
net profit - - - 643 - 643 - 643
- Fair value
gains in the
period - - - 333 - 333 - 333
Exchange
differences - - - (164) - (164) - (164)
Net income
recognised
directly in
equity - - - 812 - 812 - 812
Profit for the
year - - - - 9,655 9,655 30 9,685
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
Total
recognised
income in the
year - - - 812 9,655 10,467 30 10,497
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
Dividends paid - - - (4,888) (4,888) - (4,888)
Issue of
shares 4 94 - - - 98 - 98
Purchase of
shares - - (72) - - (72) - (72)
Consideration
to be paid - - - (34) - (34) - (34)
ESOP shares
allocated - - 353 - (353) - - -
Credit in
respect of
share option
schemes - - - - 591 591 - 591
Deferred tax
on items
taken to
equity - - - (273) 261 (12) - (12)
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
At 28 February
2010 2,108 11,014 (3,198) 25,525 23,534 58,983 144 59,127
Cash flow
hedges
- Transfer to
net profit - - - (488) - (488) - (488)
- Fair value
gains in the
period - - - 236 - 236 - 236
Exchange
differences - - - 977 - 977 - 977
------------
Net income
recognised
directly in
equity - - - 725 - 725 - 725
Profit for the
year - - - - 9,802 9,802 15 9,817
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
Total
recognised
income in the
year - - - 725 9,802 10,527 15 10,542
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
Dividends paid - - - - (5,110) (5,110) - (5,110)
Issue of
shares 2 63 - - - 65 - 65
Purchase of
shares - - (916) - - (916) - (916)
ESOP shares
allocated - - 839 - (839) - - -
Credit in
respect of
share option
schemes - - - - 829 829 - 829
Deferred tax
on items
taken to
equity - - - 73 208 281 - 281
At 28 February
2011 2,110 11,077 (3,275) 26,323 28,424 64,659 159 64,818
--------------- -------- -------- -------- --------- --------- -------- ------------ --------
Braemar Shipping Services PLC
Notes to the financial statements
Note 1 - General Information
The financial information set out above does not constitute the
company's statutory accounts for the years ended 28 February 2011
or 2010 but is derived from those accounts. Statutory accounts for
2010 have been delivered to the registrar of companies, and those
for 2011 will be delivered in due course. The auditor has reported
on those accounts; their reports were (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
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 as adopted by the
EU on 25 May 2011.
Note 3 - Segmental results
Shipbroking Technical Logistics Environmental Total
2011 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ------------ ---------- ---------- -------------- --------
Revenue 61,646 22,621 35,119 6,749 126,135
--------------- ------------ ---------- ---------- -------------- --------
Segment result
before
amortisation
of intangible
assets 14,309 1,319 1,230 271 17,129
Amortisation
of intangible
assets (586) (644) (299) (36) (1,565)
Segment result 13,723 675 931 235 15,564
--------------- ------------ ---------- ---------- -------------- --------
Unallocated
other costs (2,635)
--------------- ------------ ---------- ---------- -------------- --------
Operating
profit 12,929
Finance
income/(cost)-
net 163
Share of
profit from
joint
ventures 103
--------------- ---------------------------------------------------- --------
Profit before
taxation 13,195
Taxation (3,378)
Profit for the
year
attributable
to
shareholders
from
continuing
operations 9,817
--------------- ------------ ---------- ---------- -------------- --------
2010
--------------- ------------ ---------- ---------- -------------- --------
Revenue 57,362 22,697 31,899 7,066 119,024
--------------- ------------ ---------- ---------- -------------- --------
Segment result
before
amortisation
of intangible
assets 13,324 2,325 1,434 614 17,697
Amortisation
of intangible
assets (481) (644) (319) (36) (1,480)
Segment result 12,843 1,681 1,115 578 16,217
--------------- ------------ ---------- ---------- -------------- --------
Unallocated
other costs (3,317)
--------------- ------------ ---------- ---------- -------------- --------
Operating
profit 12,900
Finance
income/(cost)-
net 191
Share of profit from joint ventures 400
----------------------------------------------------- -------------- --------
Profit before
taxation 13,491
Taxation (3,806)
Profit for the
year
attributable
to
shareholders
from
continuing
operations 9,685
--------------- ------------ ---------- ---------- -------------- --------
Braemar Shipping Services PLC
Notes to the financial statements
Note 4 - Dividend
The proposed final dividend of 17.0 pence per share (2010: final
16.25 pence) takes the total dividend for the year to 26.0 pence
(2010: 25.0 pence). The cost of the final dividend will be GBP3.4m
(2010: GBP3.3m) based on 20.3m shares (which excludes shares held
in the ESOP for which the dividend has been waived).
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
817,242 ordinary shares held by the employee share trust (2010:
871,760) 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.
2011 2010
GBP'000 GBP'000
-------------------------------------------------- ----------- -----------
Profit for the year attributable to shareholders 9,802 9,655
-------------------------------------------------- ----------- -----------
pence pence
-------------------------------------------------- ----------- -----------
Basic earnings per share 48.41 47.93
Effect of dilutive share options (0.98) (0.67)
Diluted earnings per share 47.43 47.26
-------------------------------------------------- ----------- -----------
Profit for the year attributable to shareholders
before amortisation 10,901 10,721
-------------------------------------------------- ----------- -----------
pence pence
-------------------------------------------------- ----------- -----------
Basic earnings per share 53.84 53.22
Effect of dilutive share options (1.10) (0.75)
Diluted earnings per share 52.74 52.47
-------------------------------------------------- ----------- -----------
Shares Shares
-------------------------------------------------- ----------- -----------
Weighted average number of ordinary shares 20,248,456 20,143,909
Effect of dilutive share options 419,543 287,780
Diluted weighted average number of ordinary
shares 20,667,999 20,431,689
-------------------------------------------------- ----------- -----------
Note 6 - Reconciliation of operating profit to net cash flow
from operating activities
2011 2010
GBP'000 GBP'000
-------------------------------------------------------- -------- --------
Profit before tax for the year from continuing
operations 13,195 13,491
Adjustments for:
- Depreciation 1,202 1,064
- Amortisation 1,565 1,480
- (Profit) / loss on sale of property plant
and equipment (20) (5)
- Finance income (177) (193)
- Finance expense 14 2
- Share of profit of joint ventures (103) (400)
- Share based payments 829 591
- Net foreign exchange gains and financial instruments (714) 686
Changes in working capital:
- Trade and other receivables (4,395) 1,745
- Trade and other payables 854 (3,417)
- Provisions 30 234
Cash generated from operations 12,280 15,278
-------------------------------------------------------- -------- --------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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