Braemar Shipping Services PLC Trading Update (0691O)
January 25 2019 - 2:00AM
UK Regulatory
TIDMBMS
RNS Number : 0691O
Braemar Shipping Services PLC
25 January 2019
25 January 2019
BRAEMAR SHIPPING SERVICES PLC
('Braemar', the 'Company' or the 'Group')
Trading Update
Braemar Shipping Services plc (LSE: BMS), a leading
international provider of broking, financial, consultancy,
technical and logistics services to the shipping, marine, energy,
offshore and insurance industries, announces the following trading
update based on 10 months' trading to 31 December 2018.
The Shipbroking division has continued to trade well with a
growing forward order book and the Board expects full year profits
for this division to be ahead of expectations. The improvement in
performance is mainly due to increased dry cargo chartering
business at improved market rates in the first half followed by a
stronger tanker performance in the second half together with
successful sale and purchase activity.
The Financial division has continued to perform strongly under
Braemar and has performed in line with the Board's expectations at
acquisition. As previously announced in the interim results, the
revenue of the business is becoming increasingly driven by success
related transaction and advisory fees and the pipeline of business
is growing. We revised the forecast expectations after the first
half because of a very promising sell-side mandate. However, the
seller ultimately decided not to proceed, which is in the nature of
the advisory business. Going into the new year the business has
already developed a strong pipeline.
The Group's Logistics division is trading in line with
expectations, with a good performance from UK port-hub and liner
agency, partly offset by weaker freight forwarding.
The Technical division has continued to face tough market
conditions especially in offshore oil and gas where activity has
remained low. As a result the Technical division has had a
disappointing final quarter of 2018. We have been active in taking
further costs out of the business and the cost of achieving this is
being borne in the final quarter. The reported results of the
division are expected to be GBP1.0 million below expectations.
The Board has reviewed strategic options for the Technical
division and is currently working on delivering a structural change
which is expected to allow the Group to recognise the inherent
value of the division. A further announcement will be made in due
course.
For further information, contact:
Braemar Shipping Services
James Kidwell, Chief Executive Tel +44 (0) 20 3142 4100
James Hayward, Interim Chief Financial
Officer
Peter Mason, Company Secretary
Stockdale Securities
Robert Finlay / Antonio Bossi / Tel +44 (0) 20 7601 6100
Henry Willcocks
Buchanan
Charles Ryland / Stephanie Watson Tel +44 (0) 20 7466 5000
Notes to Editors:
About Braemar Shipping Services plc
Braemar Shipping Services plc is a leading international
provider of knowledge and skill-based services to the shipping,
marine, energy, offshore and insurance industries. Founded in 1972,
Braemar employs approximately 750 people in more than 60 locations
worldwide across its Shipbroking, Technical, Logistics and
Financial divisions.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, including our investor presentation, visit
www.braemar.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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