Braemar Shipping Share News (BMS)

LONDON (Alliance News) - Braemar Shipping Services PLC on Wednesday said results for the second half of the current financial year are anticipated to be "significantly" improved compared to the first half.

The marine and energy service provider expects underlying operating profit for the full-year to the end of February in the range of GBP7.8 million and GBP8.2 million, in line with market expectations. For the year ended February 2017, Braemar Shipping reported underlying operating profit of GBP3.5 million.

The group said it net debt on February 28 was GBP2.0 million due to acquisitions. In September last year, Braemar Shipping bought NAVES Corporate Finance GmbH for EUR35.0 million and last month it purchased Atlantic Brokers Holdings Ltd for GBP4.8 million.

The newly acquired Financial division delivered strong financial performance, Braemar Shipping said. Shipbroking division has traded in line with market expectation despite a weaker tanker sector and Technical division has returned to profitability during the second half of the year.

Although, the Braemar Shipping's smallest Logistics division was "adversely" affected by a post year end settlement of GBP750,000 for the historic claim relating to activity in the early 2000s, it is now returning to more normalised levels, the company said.

Braemar said it believes that the outlook for the next financial year is favourable and the group will benefit from the full year impact of Braemar-NAVES and Braemar Atlantic as well as the continuing recovery of the Technical division.

In recent years, the Technical division suffered from an industry wide reduction in activity, however, after completion of the company's business restructuring programme, it was expected to yield around GBP6.0 million of annualised cost savings starting from current financial year.

The company is set to release its annual results on May 15.

Braemar Shipping shares were up 6.1% at 291.25 pence per share on Wednesday afternoon.