BMS are "totally undervalued"2 Apr 2024 08:01
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"Braemar (LON:BMS) – Looking Totally Undervalued
Yesterday morning’s Trading Update for the year to end February 2024 declared that the shipping services group had achieved a strong year in line with market expectations.
Revenue is expected to be not less than £150m (£153m) with underlying operating profit of not less than £18m (£20m).
That really was quite a year that its management must surely hope was now well out of the way.
The £73m capitalised group kept a positive cash position with net cash at 29th February 2024 of £1m (£7m), which was a decrease from the prior year after the cost of the internal independent investigation conducted and concluded last year, certain tax payments and share buy backs during the period.
As for this new year the company has informed investors that its total forward order book is some 47% up at $83m, which is a good advance from the $65.6m book as at end October last year.
With its finals due to be announced in May it is worth reminding readers that analyst Ian McInally at Cavendish Capital Markets has previously estimated that the current year revenues could rise to £154.4m, with adjusted EBIT of £18.2m, worth 36.5p in earnings and enabling a 14.9p dividend per share.
Come the May figures we could well see upgrades helping to pinpoint just how undervalued this group’s shares are at last night’s closing price of 256p.
I still find it hard to understand why these shares are so lowly valued, they are destined to rise above the 300p level fairly soon."