Braemar Shipping Services is the second largest shipbroker in the world, providing broking services to the dry cargo, deep sea tanker, specialised tanker and sale and purchase markets. It also addresses the fast-growing areas of offshore and renewables, securities and financial markets.
More Braemar Shipping Services content >Investment summary
Braemar recently completed a corporate transformation that will see it move away from being a widely spread shipping services company, to grow into a clearly focused shipbroking operation. Allied to the transformation is the company’s growth strategy, supported by growing global trade, and shipping’s status as the most energy-efficient and lowest carbon method of freight transport, that has management focused on doubling the business inside four years. We value the shares at 400p, a significant premium to the current price, but see greater upside as evidence of success is delivered over the next two to three years.
Y/E Feb |
Revenue (£m) |
EBITDA (£m) |
PBT (£m) |
EPS (fd) (p) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 83.7 | 11.4 | 6.7 | 13.43 | 20.9 | N/A |
| 2022A | 101.3 | 13.5 | 8.9 | 18.79 | 15.0 | N/A |
| 2023E | 130.6 | 23.6 | 19.1 | 38.15 | 7.4 | N/A |
| 2024E | 112.5 | 19.9 | 15.9 | 30.41 | 9.2 | N/A |
Industry outlook
The global deep sea shipping fleet has been steadily expanding. A key driver has been growing international trade, which is likely to continue and should have a direct benefit on the shipbroking industry. While some charter rates are currently very high, for example container ship charter rates, others like the Baltic Dry Index are broadly within a historical average range and other indicators such as fleet age and low new vessel order books for certain key trades point to greater future demand, thus balancing risks and growth.
Last updated on 28/09/2022Content on Braemar Shipping Services
Sector |
|---|
|
Industrials
Access more Industrials content
|
Share price graph
Balance sheet |
|
|---|---|
| Forecast net cash (£m) | 5.9 |
| Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||
| *% relative to local index | |||||||||||||||
Key management |
|
|---|---|
| Nigel Payne | Chairman |
| James Gundy | CEO |
| Nick Stone | CFO |
| Nick Arthur | Head of Corporate Affairs |