24th Oct 2019 10:29
(Alliance News) - Braemar Shipping Services PLC on Thursday narrowed its first half loss, helped by revenue growth and lower acquisition-related costs.
The shipbroking, maritime financial advisory, and engineering services provider generated revenue of GBP59.5 million in the six months to August 31. This was up year-on-year by 3.5% from GBP57.4 million.
Its pretax loss narrowed to GBP1.3 million from a GBP2.8 million loss in the first six months of last year.
Acquisition related expenditure fell by 45% year-on-year to GBP3.4 million from GBP6.1 million, Braemar said.
Braemar's Shipbroking division had revenue growth of 9.3% to GBP38.7 million from GBP35.4 million last year, with its Engineering segment reporting a revenue increase of 7.4% to GBP1.9 million from GBP1.8 million.
There was a 1.8% revenue fall in Logistics to GBP15.6 million from GBP15.9 million and a 25% decline in the Financial segment to GBP3.3 million from GBP4.4 million.
Braemar held its interim dividend at 5.0 pence per share.
Looking ahead, Braemar said geopolitical conditions, looming fuel regulation changes, and shifting trading patterns are causing volatility in the shipping market. Trading for the full-year is line with expectations, the company said.
Executive Chair Ronald Series said: "I am pleased to report strong performance in our core Shipbroking division. Our investment in the division has positioned it well to capitalise on the improving conditions across the shipping markets.
"This investment coupled with our longstanding track record and reputation as a leading global shipbroker underpins our revenue growth. The Financial division remains very busy although its profitability continues to depend on the incidence and timing of completed transactions.
"The management team continues to work hard in focusing the business in each of our core areas. The board has been significantly refreshed in recent months and is focused on returning Braemar to growth. We look forward to the second half with confidence and our trading for the full financial year remains in line with our expectations."
Shares in the company were 5.2% lower at 218.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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