30th Aug 2022 10:58
(Alliance News) - Braemar Shipping Services PLC on Tuesday reported it delivered annual results ahead of its expectations and upped its total payout for the year.
Shares in Braemar Shipping Services were up 16% at 334.20 pence on Tuesday morning in London.
In the year ended February 28, the London-based shipping investment advisors reported a pretax profit of GBP8.5 million, up 66% against GBP5.1 million the previous year.
Revenue totalled GBP101.3 million. This represented a 21% increase against the GBP83.7 million achieved a year prior.
The firm cited an increase in the size of its Shipbroking operations as well as "generally favourable" market conditions for the strong annual results.
The company declared a final dividend of 7.0 pence per share, bringing the total payout for the year to 9.0p per share, up 80% from 5.0p the previous year.
In the five months since February 28, Braemar Shipping said had been "exceptionally" strong, explaining that the company has benefitted from increasing the scale and breadth of its broking operations.
As a result, the company expects an outturn of GBP20 million for the year ending February 28, 2023. This is up from GBP10.1 million the past financial year and up from the group's previous expectations of GBP12 million.
Chief Executive James Gundy said: "I am delighted with our strong trading performance this year. We are now beginning to see the benefits of streamlining the group and focusing on our core shipbroking activities. Braemar is leaner and stronger than it was just a few years ago. Our growth strategy is delivering results and we are extending our global reach."
Looking ahead, Braemar Shipping noted that capacity at many shipyards is now unavailable well into 2025. This, the company explained, has created "significant" opportunity for its Sales & Purchase desk. It also expects a positive impact for its chartering desk, too, as a result.
However, the firm noted geopolitical uncertainty, exchange rate volatility, logistical challenges remaining from the Covid-19 pandemic and inflationary pressures as potential future headwinds.
Nonetheless, the board said it continues to look to the future with confidence as it sets about delivering on its growth strategy centred on Shipbroking.
By Heather Rydings; [email protected]
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