Last checked at 3 Mar 2020 07:00
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3 March 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN聽
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BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
Pre-Close Trading Update
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Braemar Shipping Services plc (LSE: BMS), a leading international provider of shipbroking, financial advisory, logistics and engineering services principally to the聽shipping and energy industries, is pleased to provide a trading update for the year ended 29 February 2020.
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Financial Year Ended 29 February 2020
路 The Group's trading results for the second half of the year are anticipated to be approximately in line with market expectations*.
路 Shipbroking had a strong second half, largely driven by strong tanker markets in the last calendar quarter of 2019 and is estimated to end the year with a forward order book approximately 15% higher than the $43m at the half year. New offices have been planned for Athens and Geneva and long term prospects for growth continue to be positive.
路 Advisory fees from mandated business continued to grow in the Financial Division, Braemar Naves, although there were fewer material transaction based success fees in the period just ended than had been previously anticipated.
路 The Logistics Division, Cory Brothers, traded in line with the previous year. A review of the strategic options available to maximise the value of this division is underway, which will include an evaluation of potential growth opportunities (both organic and by acquisition).
路 The Engineering Division, Wavespec, saw continuing losses, with progress delays on the LNG storage technology and further delays with current projects tied to China due to ongoing trade negotiations between the US and China. The Board is therefore reassessing the carrying value of Wavespec's assets and will address all possible alternatives to improve its performance.
路 The Group's associate, Aqualis Braemar, is making good progress in the integration of the Braemar Technical Services businesses. It has recently announced a return to Operating profits for the period since Braemar became a shareholder.
路 Results for the year ended 29 February 2020 will be released in May 2020.
Outlook
路 Shipping markets have seen significant falls in charter rates since the start of the calendar year, particularly in the larger sizes in the Tanker and Dry Bulk markets, due to reduced import volumes into China.
路 Until the spread of COVID-19 shows signs of slowing, forecasts for economic growth and global trade are widely expected to continue to fall. Braemar expects this will have an effect on earnings for the first quarter of the year ending 28 February 2021 in the Shipbroking Division.
路 The welfare of all Braemar staff and stakeholders is of paramount importance to the Group and therefore vigilance will be maintained to manage travel and any other activities that may heighten the risk to their wellbeing.
路 The Company will continue to monitor the situation carefully and update the market as and when required. Whilst this uncertainty remains the Board, as previously announced, will keep the dividend under review.
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Ron Series, Executive Chairman of Braemar commented: 'I am pleased with the Shipbroking performance last year but note that there is work to be done in improving the performance of the Logistics and Engineering Divisions. Whilst the current outlook is uncertain due to the Coronavirus impact, I believe that we are well positioned to benefit from a return to normal trading conditions.'
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* Market expectations mean the current forecasts from finnCap
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For further information, contact:
Braemar Shipping Services plc | |
Ron Series, Executive Chairman | Tel +44 (0) 20 3142 4100 |
Nick Stone, Finance Director | |
finnCap | |
Matt Goode/ James Thompson/ Kate Washington (Corporate Finance) Andrew Burdis (ECM) | Tel +44 (0) 20 7220 0500 |
Buchanan | |
Charles Ryland / Victoria Hayns / Stephanie Watson / Matilda Abraham | Tel +44 (0) 20 7466 5000 聽 |
Notes to Editors:
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About Braemar Shipping Services plc
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Braemar Shipping Services plc is a leading international provider of shipbroking, financial advisory, logistics and engineering services principally to the shipping and energy industries. Founded in 1972, Braemar employs approximately 530 people in 30 locations worldwide across its Shipbroking, Financial, Logistics and Engineering divisions.
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Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.
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For more information, including our investor presentation, visit www.braemar.com