Braemar (LSE: BMS)

Last close As at 22/02/2024

GBP2.67

−8.00 (−2.91%)

Market capitalisation

GBP88m

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 tanker 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.

Latest Insights

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Industrials | Update

Braemar — Interims in line, growth strategy developing

Industrials | Update

Braemar — Suspension lifted; interims due 29 November

Industrials | Flash note

Braemar — FY23 and H124 results to be released

Industrials | Update

Braemar — Year-end strength drives upgrades

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Grant Foley

    CFO

  • James Gundy

    CEO

  • Nigel Payne

    Chairman

Balance Sheet

Forecast net cash (£m)

4

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (9.34) (4.64) (13.17)
Relative (11.51) (7.13) (9.65)
52 week high/low 312.5p/224.0p

Financials

Braemar’s H124 results were in line with expectations with revenues up by 8%, but operating profits were down, having been hit by one-off costs. The underlying operations continue to expand and diversify, and the company remains well-positioned to drive its future growth strategy. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have maintained our underlying revenue and operating profit estimates for FY24 and FY25 and retain our 520p per share valuation, offering c 77% upside.

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 101.3 13.5 8.9 18.79 14.2 6.9
2023A 152.9 23.4 18.0 37.85 7.1 6.0
2024E 150.2 20.1 15.0 36.39 7.3 5.6
2025E 150.2 20.4 15.8 36.97 7.2 3.9

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