Last checked at 25 Jan 2019 07:00
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 £1.0 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 / Henry Willcocks | Tel +44 (0) 20 7601 6100 |
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