20th May 2019 11:18
LONDON (Alliance News) - Braemar Shipping Services PLC's shares rose on Monday as the firm reported good progress during its recently ended financial year, with the outlook positive.
Braemar shares were 13% higher at a price of 203.26 pence each in morning trade.
Braemar's revenue from continuing operations increased 14% to GBP177.9 million for the 12 months to February, though Braemar's pretax loss still widened to GBP3.1 million from GBP2.4 million.
On an underlying basis, Braemar's pretax profit rose to GBP8.9 million from GBP6.9 million.
The company is paying a 10.0p final dividend, giving a total of 15.0p, unchanged from the year before.
Looking divisionally, Shipbroking had a good year, beating expectations, with revenue up to GBP75.7 million from GBP61.8 million, with underlying operating profit rising 21%.
Dry cargo saw a "healthy" improvement, with sale & purchase also having a strong year and tanker broking showing a recovery.
In the Financial division - made up of Braemar-NAVES, which was bought in September 2017 - revenue increased to GBP7.0 million from GBP3.7 million, in an "encouraging" first year. Underlying operating profit climbed to GBP2.1 million from GBP1.8 million.
Braemar Logistics revenue fell to GBP32.1 million from GBP33.2 million in a "steady" year, with the underlying operating profit flat at GBP800,000.
Lastly, Engineering met expectations. Revenue declined to GBP3.1 million from GBP4.2 million, and the underlying operating loss widened to GBP300,000 from GBP100,000.
Braemar's other division, Technical, continued to struggle, and last week Braemar announced it was selling effectively all of the division's operations to Norway's Aqualis ASA, in a deal which will give Braemar a major stake in a "larger and stronger business".
There are "interesting" opportunities in Shipbroking going ahead, said Braemar, with new environmental rules in shipping set to have a positive effect on the company.
Finance is doing well, it continued, while Logistics and Engineering also have good prospects.
"Braemar achieved good progress during 2018 but there is still much more to do and further opportunities to develop as we return the group to growth," said Chair Ronald Series.
"It is an exciting time for Braemar, having reached a good solution for the majority of the Technical division. The group is now well set to focus on our Shipbroking, Financial and Logistics businesses which have good prospects."
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