Braemar Shipping Services: Strong Strategic and Financial Progress Achieved

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, today announces preliminary results for the year ended 28 February 2019.

Financial Highlights
• Good progress achieved with revenue from continuing operations increased by 14% to £117.9m (2018: £103.0m)
• 25% increase in underlying operating profit to £9.1m (2018: £7.3m)
• Underlying basic EPS growth of 19% to 23.32p (2018: 19.57p)
• Final dividend of 10.0p giving an unchanged full year dividend of 15.0p, covered 1.6 times (2018 15.0p covered 1.3 times)
• Discontinued operations showing a loss of £22.7m mainly attributable to £21.3m book loss on disposal of Technical Division business units.
• Net debt of £7.8m up from £2.4m, including the cash in discontinued operations

Business Highlights
• Shipbroking traded ahead of expectations and in particular had a strong second half, notably in Dry Cargo and Tankers, forward order book maintained at $43m.
• Encouraging first full year trading of Financial Division with a broadening client base and growing pipeline of business. We believe that our expectations at the time of acquisition will be met.
• Post year end disposal of loss-making Technical Division business units in return for a significant equity investment in a larger and stronger business.
• Steady trading from Logistics with an increase in margins and underlying profit.
• Newly simplified Group structure focused on core activities to deliver higher margin services to the maritime industry.
• Significant Board changes to help drive long-term sustainable shareholder value.

SUMMARY FINANCIAL RESULTS

	Underlying Results		Reported Results
	2018/19	2017/18	2018/19	2017/18
Revenue	£117.9m	£103.0m	£117.9m	£103.0m
Operating Profit / (loss)	£9.1m	£7.3m	(£2.7)m	£(1.7)m
Profit/(Loss) for the yearBasic Earnings / (loss) per Share	£7.2m23.32p	£5.8m19.57p	(£27.4)m(88.63p)	(£2.9)m(9.70p)
Full Year Dividend per Share	15.0p	15.0p	15.0p	15.0p

 

Specific Items
	2018/19	2017/18
Acquisition and disposal related expenditureOne off costs relating to Board changes	£(11.1)m£(0.8)m	£(9.1)m
Specific item operating lossGain on revaluation of investment	£(11.8)m£0.5m	£(9.1)m
Finance costs associated with acquisitionsTotal Specific items before tax	£(0.8)m£(12.0)m	£(0.2)m£(9.3)m
Discontinued Operations
	2018/19	2017/18
Loss from discontinued operations	£22.7m	£0m

Ronald Series, Chairman of Braemar, commenting on the results and the outlook said:

“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.

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.

“I look forward to working with the Board and senior team and reporting on further progress during 2019.”

Listing Rule 9.6 disclosure

Braemar also announces that Steve Kunzer, one of its non-executive Directors, is also an independent director of Dampskibsselskabet NORDEN A/S, a ship owning company listed on Nasdaq Copenhagen.

This announcement contains inside information as defined under the Market Abuse Regulation (EU) No. 596/2014
Source: Braemar Shipping Services plc