Braemar (LSE: BMS)

Currency in GBP

Last close As at 25/01/2023

GBP3.15

−2.50 (−0.79%)

Market capitalisation

GBP104m

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.

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.

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • James Gundy

    CEO

  • Nick Arthur

    Head of Corporate Affairs

  • Nick Stone

    CFO

  • Nigel Payne

    Chairman

Balance Sheet

Forecast net cash (£m)

5.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.8 6.4 25.0
Relative 2.8 (3.7) 22.0
52 week high/low 340.0p/220.0p

Financials

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 23.5 N/A
2022A 101.3 13.5 8.9 18.79 16.8 N/A
2023E 130.6 23.6 19.2 38.17 8.3 N/A
2024E 112.5 19.9 15.9 30.46 10.3 N/A

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Industrials

The emergence of mega-constellations

Industrials

Internet in the sky

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