Preliminary results for the year ended 28 February 2017

Braemar Shipping Services plc (LSE: BMS), a leading international provider of broking, consultancy, technical and other services to the shipping, marine, energy, offshore and insurance industries, today announces results for the year ended 28 February 2017.

FINANCIAL KEY POINTS

  • After a challenging year, the overall results are ahead of the revised market expectations
  • Revenue of £139.8 million (2015/16: £159.1 million)
  • Underlying operating profit of £3.5 million (2015/16: £13.8 million)
  • Underlying operating profit excludes:
  • Gain on sale of shares in The Baltic Exchange of £1.7 million
  • One off business restructuring costs of £3.0 million, largely in the Technical division
  • Acquisition related expenditure of £2.5 million
  • Underlying basic EPS of 8.7p (2015/16: 34.7p)
  • Net cash of £7.1 million at 28 February 2017 (29 February 2016: £9.2 million)As indicated the recommended final dividend of 5.0p per share is confirmed, giving a full year dividend of 14.0p (2015/16: 26.0p)

OPERATIONAL KEY POINTS

  • Shipbroking division achieved a resilient performance in difficult market conditions, with increased transaction volumes in almost all areas
  • As previously announced, the Technical division suffered from an industry wide reduction in activity, especially in oil and gas exploration. A programme of business restructuring, led by a new management team, has already been completed and is expected to yield circa £6.0 million of annualised cost savings starting from 2017/18
  • Logistics division grew its Agency business significantly, winning several global contracts. In addition, we are implementing a business improvement programme in its smaller Freight Forwarding arm

David Moorhouse CBE, Chairman of Braemar, commenting on the results and the outlook said:

“As previously announced, Braemar experienced a challenging year and all of our divisional teams worked hard to deliver business performance for the Group. Tough action was taken in the Technical division to restructure our businesses and address the cost base in this economic climate. Despite this we have maintained our core skills and capabilities and, as a result, are well placed for the future.”

“The current financial year has started in line with the Board’s expectations and we remain confident in our long term strategy to grow the business through both organic and acquisitive business development.”

SUMMARY FINANCIAL RESULTS

* Underlying measures above are before non recurring specific items, including restructuring costs, gain on sale of shares in The Baltic Exchange and acquisition related costs:

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: +44 (0) 20 3142 4100

Louise Evans, Finance Director: +44 (0) 20 3142 4100

Stockdale Securities

Robert Finlay / Antonio Bossi / Henry Willcocks:  +44 (0) 20 7601 6100

Buchanan

Charles Ryland / Victoria Hayns / Stephanie Watson: +44 (0) 20 7466 5000


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