Braemar (LSE: BMS)

Last close As at 12/07/2024

GBP3.03

1.50 (0.50%)

Market capitalisation

GBP100m

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 be a direct benefit to the shipbroking industry. Some charter rates are currently very high, for example tanker ship charter rates, while 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 — Diversification underpins resilience

Industrials | edison tv

Braemar – executive interview

Industrials | Update

Braemar — Diversification paying dividends

Industrials | Update

Braemar — Interims in line, growth strategy developing

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)

2.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.3 11.4 30.0
Relative 4.8 6.8 14.6
52 week high/low 310.0p/233.0p

Financials

Braemar’s FY24 results were in line with expectations, with revenues flat but operating profits down, having been hit by one-off costs and strong comparatives. The underlying operations continue to expand and diversify, which drove an 8% increase in FY24 fixtures, and the company remains well-positioned to drive its future growth strategy. The trading outlook for FY25 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 FY25 and FY26, but rolled over the base year for the valuation, which results in a modest increase in the valuation from 500p to 535p per share, offering c 70% upside.

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2023A 152.9 23.4 18.0 37.85 8.1 7.0
2024A 152.8 20.4 14.6 32.42 9.5 8.2
2025E 152.5 20.8 15.3 34.31 8.9 4.8
2026E 152.5 21.2 16.0 37.06 8.3 4.0
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