At the Annual General Meeting of the Company to be held at 2pm today, James Kidwell, the Company’s Chief Executive, will make the following statement:
I am pleased to report that, albeit against a disappointing comparative period for last year, trading profit for the Group for the first quarter of the current year to February 2018, has improved. While revenues were lower, as expected, profitability improved as the benefit of the cost savings measures taken last year were realised.
Trading for the first quarter in the Shipbroking division has been good and results show a significant improvement on the prior year’s equivalent performance. The tanker desk, the largest sector of Braemar’s Shipbroking business, has achieved improved trading volumes despite lower freight rates. Our sale and purchase and projects desks have started the year strongly and, most pleasingly, we have concluded some significant newbuilding and long term project business which will benefit future years. The dry cargo desk has shown a marked improvement in performance reflecting its recovering market. Our Offshore desk is ahead of the prior year with some increase in activity although the offshore market remains low due to asset over-capacity.
The first quarter’s performance of the Technical Services division shows a modest improvement against prior year. Solid revenue in the incident led businesses (including Loss Adjusting, Marine and Response) have offset a lower performance in Offshore and Engineering which are mainly influenced by energy related projects. However, the effect on profitability of lower project income is much reduced by the cost savings measures we took last year. Over the last few months there have been stronger signs of project related activity as evidenced by the volume of new tenders in the market. Conversion of these opportunities into income will take time, but the overall market picture is more encouraging than it was twelve months ago.
Revenue in the Logistics division is in line with prior year equivalent although there has been some margin degradation due to the business mix.
Whilst the improved performance at this early stage of the financial year is encouraging, our end markets remain challenging. Accordingly, the Board’s expectation for the year as a whole remains unchanged. The Group is well financed with a strong balance sheet and we continue to actively seek opportunities to invest in complementary activities which will augment our service offering and deliver long term growth.
The Group will release its interim results for the six months ending 31 August 2017 on Monday 23 October 2017.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, contact:
|Braemar Shipping Services|
|James Kidwell, Chief Executive||Tel +44 (0) 20 3142 4100|
|Louise Evans, Finance Director||Tel +44 (0) 20 3142 4100|
|Robert Finlay / Antonio Bossi / Henry Willcocks||Tel +44 (0) 20 7601 6100|
|Charles Ryland / Victoria Hayns / Stephanie Watson
|Tel +44 (0) 20 7466 5100
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 850 people worldwide across its Shipbroking, Technical and Logistics divisions.
Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.