Braemar Shipping Services PLC Trading Update - Continuing to build momentum (5253M)
September 22 2021 - 2:00AM
UK Regulatory
TIDMBMS
RNS Number : 5253M
Braemar Shipping Services PLC
22 September 2021
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE
REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN
BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
22 September 2021
Trading Update
Continuing to build momentum: trading well ahead of last year,
interim dividend planned
Braemar Shipping Services Plc (LSE: BMS), a leading
international Shipbroker and provider of expert advice in shipping
investment, chartering, risk management and logistics services, is
pleased to make the following trading update relating to trading
for the six months to 31 August 2021.
The new management team is encouraged by the performance of the
Group in the first half of the year, where trading has been well
ahead of the same period last year. The Board is pleased to see its
recent investment in people to increase the strength and diversity
of services offered to clients paying dividends. Following the
upgrade to market forecasts and the adoption of a progressive
dividend policy that followed its full year results announcement,
the Group continues to trade well and is now modestly ahead of
those upgraded expectations.
Shipbroking
The Shipbroking Division had a strong first half of the year and
has benefitted from the investment in recent years to build the Dry
Cargo and Securities desks, which have both achieved a good trading
performance. The Sale and Purchase desk has also been very active
on the back of the buoyant dry bulk and container markets. As
anticipated the Tanker market continues to be affected by the
pandemic-related weaker demand for oil, in comparison with the
exceptional conditions seen in the previous year that were driven
by demand for storage capacity. Overall revenue and profits for the
period were higher than in the comparative period last year.
The strong trading in Sale and Purchase, Dry Cargo and
Securities looks set to continue in the second half of the year as
the demand for dry bulk and container capacity remains high. Whilst
the tanker market remains flat, there are already indications that
demand will strengthen as global demand for oil increases. The
forward order book has increased in the first half of the year and
is expected to close the half year at $56m compared to the $43m
seen at the beginning of the period. Revenue and profits for the
full year look set to exceed the previous year and meet current
expectations.
Financial
The resurgent interest in the shipping industry from both a
lending and equity investment point of view has meant that the
Financial Division, Braemar Naves, had a successful first half of
the year. Several restructuring opportunities and one significant
leasing transaction in the container market were closed during the
period, and revenue will consequently be significantly higher than
in the first half of last year. Whilst the nature of the corporate
finance work that is done by Braemar Naves means that revenues can
be unpredictable, current activity levels point to a strong year as
a whole.
Logistics
The Logistics Division, Cory Brothers, had a strong first half
of the year, particularly from its Freight Forwarding activities.
The pressure on container space and Brexit-related import/export
complexities has led to greater demand for its services with a
consequent increase in revenue and profits compared to the same
period last year. Trading has also been good on the Port Agency
side and, overall, the Division is expected to continue trading
ahead of last year and in line with our expectations.
The planned joint venture for Cory Brothers with Vertom Agencies
is progressing well and is expected to be concluded during the
second half of the financial year. Once completed Braemar will have
disposed of the current Cory Brothers legal entities in exchange
for a significant minority stake in a much larger European port
agency business. In anticipation of this transaction completing,
those assets are likely to be classified as 'held for sale' in this
year's interim results and then the joint venture interest will be
accounted for as an associate following completion.
Outlook
The Group has traded well since the beginning of the current
financial year and will deliver interim results well ahead of the
interim period last year and modestly ahead of the upgraded
expectations. The board continues to look forward with confidence
as it sets about delivering on its growth strategy and expects to
announce an interim dividend with the interim results for the
period to 31 August 2021 which will be released to the market in
early November 2021.
For further information, contact:
Braemar Shipping Services
James Gundy, Group Chief Executive Tel +44 (0) 20 3142 4100
Officer
Nick Stone, Chief Financial Officer
Peter Mason, Company Secretary
finnCap
Matt Goode / James Thompson Tel +44 (0) 20 7220 0500
Buchanan
Charles Ryland / Victoria Hayns / Tel +44 (0) 20 7466 5000
Stephanie Whitmore / Matilda Abraham
Notes to Editors:
About Braemar Shipping Services Plc
Braemar is a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management. Braemar employs approximately 520 people in 30 offices
worldwide across its Shipbroking, Financial and Logistics
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUAVKRAKUKUAR
(END) Dow Jones Newswires
September 22, 2021 02:00 ET (06:00 GMT)
Braemar (LSE:BMS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Braemar (LSE:BMS)
Historical Stock Chart
From Jul 2023 to Jul 2024