Braemar

LSE: BMS

Market Cap£107m

Last Close 330p

Braemar 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.

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Investment summary

The strong interim results and robust trading in H2 so far confirm that Braemar is in a good position to capitalise on management action taken over the last two years. The disposal of non-core assets and the debt-free balance sheet leave Braemar well-positioned to drive its future growth strategy, as previously outlined. The new Natural Gas desk is one such example. The trading outlook is promising and Braemar will be able to leverage its strong balance sheet in pursuit of strategic growth. We retain our existing FY estimates and our DDM based 520p per share valuation.

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 24.5 N/A
2022A 101.3 13.5 8.9 18.79 17.5 N/A
2023E 130.6 23.6 19.2 38.17 8.6 N/A
2024E 112.5 19.9 15.9 30.46 10.8 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 28/11/2022
Content on Braemar
Braemar – Evidence of strategic success should drive value
Industrials | research Update | 24 November 2022
Aerial front view of a cargo tanker traveling over calm sea
Braemar Shipping Services – Steaming purposefully into clear waters
Industrials | research Update | 30 August 2022
Aerial front view of a cargo tanker traveling over calm sea
Braemar Shipping Services – Ambition to double size in four years
Industrials | research Initiation | 23 May 2022
Aerial front view of a cargo tanker traveling over calm sea
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Share price graph
Balance sheet
Forecast net cash (£m) 5.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 11.0 14.3 56.4
Relative* 4.1 13.3 54.4
52-week high/low 340.0p/201.0p
*% relative to local index
Key management
Nigel Payne Chairman
James Gundy CEO
Nick Stone CFO
Nick Arthur Head of Corporate Affairs