Last close As at 05/08/2026
GBP2.28
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Market capitalisation
GBP76m
Research: Industrials
Braemar’s FY24 trading update was in line with expectations, with revenues of c £150m and underlying operating profit of c £18m. 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 estimates for FY24 and FY25, but edge down the valuation based on the lower FY24 dividend expectations. The revised valuation offers nearly 100% upside.
Braemar |
Diversification paying dividends |
FY24 trading update |
Industrial support services |
20 March 2024 |
Share price performance
Business description
Next events
Analyst
Braemar Shipping Services is a research client of Edison Investment Research Limited |
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Braemar’s FY24 trading update was in line with expectations, with revenues of c £150m and underlying operating profit of c £18m. 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 estimates for FY24 and FY25, but edge down the valuation based on the lower FY24 dividend expectations. The revised valuation offers nearly 100% upside.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
02/22 |
101.3 |
8.9 |
23.1 |
9.0 |
11.0 |
3.6 |
02/23 |
152.9 |
18.0 |
45.5 |
12.0 |
5.6 |
4.7 |
02/24e |
150.2 |
15.0 |
45.4 |
13.0 |
5.6 |
5.1 |
02/25e |
150.2 |
15.8 |
46.6 |
14.0 |
5.4 |
5.5 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
FY24 revenue and profit in line
Braemar’s trading update for the 12 months ending 29 February confirmed a robust trading environment, with revenue expected to be not less than £150m (FY23: £153m) and underlying operating profit, before including £1.5m of the Madrid tanker desk costs, of £18.0m (FY23: £20m). Both figures are in line with our expectations as our forecast of £16.7m operating profit included the Madrid costs.
Year-end net cash lower, DPS up 1p to 13p
The group ended the year with net cash of £1m (FY23: £7m) after expensing c £2.6m on the previously announced internal investigation, tax payments and share buybacks. Braemar intends to recommend a final dividend of 9p/share (FY23: 8p/share), delivering a total dividend for FY24 of 13p, up from 12p last year and in line with its progressive dividend policy.
Outlook encouraging with c 100% valuation upside
The outlook is encouraging, evidenced by the underlying global trade situation (the IMF raised global GDP growth estimates by 0.2% to 3.1% in February) and the forward order book, which was up 47% to US$83m, driven primarily by activity in the Sale and Purchase division. FY24 results are expected to be released by the end of May. We have maintained our estimates for FY24 and FY25 but edged down our FY24 dividend expectations from 13.5p to 13.0p, which implies a modest reduction in our previous valuation of 520p to 500p per share, based on our dividend discount model.
Exhibit 1: Financial summary
£m |
2019 |
2020 |
2021 |
2022 |
2023 |
2024e |
2025e |
2026e |
||
28-February |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
||||||||||
Revenue |
|
|
117.9 |
117.7 |
83.7 |
101.3 |
152.9 |
150.2 |
150.2 |
150.2 |
EBITDA |
|
|
10.4 |
14.4 |
11.4 |
13.5 |
23.4 |
20.1 |
20.4 |
20.8 |
Normalised operating profit |
|
|
9.1 |
11.0 |
7.7 |
10.1 |
20.1 |
16.7 |
17.1 |
17.4 |
Amortisation of acquired intangibles |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Exceptionals |
(12.5) |
(3.8) |
(1.5) |
(0.3) |
(2.5) |
(2.6) |
(1.3) |
0.0 |
||
Share-based payments |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Impairment |
0.0 |
0.0 |
0.0 |
0.0 |
(9.1) |
0.0 |
0.0 |
0.0 |
||
Other |
0.5 |
0.7 |
0.0 |
0.0 |
3.0 |
(2.5) |
0.0 |
0.0 |
||
Reported operating profit |
(2.9) |
7.9 |
6.2 |
9.7 |
11.5 |
14.1 |
15.8 |
17.4 |
||
Net Interest |
(0.2) |
(1.4) |
(1.1) |
(1.2) |
(2.0) |
(1.8) |
(1.3) |
0.2 |
||
Joint ventures & associates (post tax) |
0.0 |
(0.3) |
0.0 |
(0.0) |
(0.0) |
0.0 |
0.0 |
0.0 |
||
Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
8.9 |
9.4 |
6.7 |
8.9 |
18.0 |
15.0 |
15.8 |
17.6 |
Profit Before Tax (reported) |
|
|
(3.1) |
6.3 |
5.1 |
8.5 |
9.5 |
9.9 |
14.5 |
17.6 |
Reported tax |
(1.5) |
0.0 |
(1.6) |
(1.8) |
(4.9) |
(2.5) |
(3.6) |
(4.4) |
||
Profit After Tax (norm) |
7.3 |
9.4 |
5.1 |
7.0 |
13.2 |
12.5 |
12.2 |
13.2 |
||
Profit After Tax (reported) |
(4.7) |
6.3 |
3.6 |
6.7 |
4.6 |
7.4 |
10.9 |
13.2 |
||
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Discontinued operations |
(22.7) |
(2.3) |
1.0 |
7.2 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
7.3 |
9.4 |
5.1 |
7.0 |
13.2 |
12.5 |
12.2 |
13.2 |
||
Net income (reported) |
(27.4) |
4.0 |
4.5 |
13.9 |
4.6 |
7.4 |
10.9 |
13.2 |
||
Basic average number of shares outstanding (m) |
31 |
31 |
31 |
31 |
29 |
28 |
26 |
25 |
||
EPS - basic normalised (p) |
|
|
23.78 |
30.19 |
16.23 |
23.06 |
45.48 |
45.36 |
46.57 |
53.28 |
EPS - diluted normalised (p) |
|
|
21.79 |
27.28 |
13.43 |
18.79 |
37.85 |
36.39 |
36.97 |
41.82 |
EPS - basic reported (p) |
|
|
(88.63) |
12.88 |
14.45 |
45.56 |
15.85 |
26.89 |
41.51 |
53.28 |
Dividend (p) |
5.00 |
5.00 |
5.00 |
9.00 |
12.00 |
13.00 |
14.00 |
15.00 |
||
Revenue growth (%) |
14.4 |
(0.2) |
(28.9) |
21.0 |
50.9 |
(1.8) |
0.0 |
0.0 |
||
EBITDA Margin (%) |
8.8 |
12.3 |
13.6 |
13.4 |
15.3 |
13.4 |
13.6 |
13.8 |
||
Normalised Operating Margin |
7.7 |
9.4 |
9.2 |
9.9 |
13.1 |
11.1 |
11.4 |
11.6 |
||
BALANCE SHEET |
||||||||||
Fixed Assets |
|
|
91.7 |
114.7 |
106.6 |
99.8 |
97.7 |
94.2 |
90.7 |
87.2 |
Intangible Assets |
86.0 |
86.2 |
86.1 |
80.9 |
75.4 |
74.2 |
73.1 |
72.0 |
||
Tangible Assets |
2.0 |
11.9 |
9.8 |
7.1 |
5.3 |
3.0 |
0.6 |
(1.8) |
||
Investments & other |
3.7 |
16.5 |
10.7 |
11.9 |
17.0 |
17.0 |
17.0 |
17.0 |
||
Current Assets |
|
|
71.9 |
68.3 |
50.3 |
49.8 |
80.3 |
83.4 |
94.9 |
108.0 |
Stocks |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Debtors |
37.1 |
39.5 |
33.4 |
35.8 |
43.3 |
49.4 |
49.6 |
49.6 |
||
Cash & cash equivalents |
24.1 |
28.7 |
16.4 |
14.0 |
36.0 |
33.1 |
44.4 |
57.4 |
||
Other |
10.6 |
0.0 |
0.4 |
0.0 |
1.0 |
1.0 |
1.0 |
1.0 |
||
Current Liabilities |
|
|
92.0 |
78.9 |
54.0 |
43.4 |
65.8 |
63.8 |
67.0 |
69.9 |
Creditors |
44.9 |
47.6 |
47.8 |
39.9 |
58.4 |
56.7 |
56.7 |
56.7 |
||
Tax and social security |
1.4 |
1.3 |
1.3 |
1.6 |
4.1 |
1.8 |
2.9 |
3.7 |
||
Short term borrowings |
35.8 |
25.1 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other |
9.8 |
4.8 |
4.9 |
1.9 |
3.3 |
5.4 |
7.4 |
9.5 |
||
Long Term Liabilities |
|
|
13.2 |
44.9 |
39.9 |
34.8 |
35.4 |
35.4 |
35.4 |
35.4 |
Long term borrowings |
4.6 |
2.6 |
2.7 |
2.8 |
2.9 |
2.9 |
2.9 |
2.9 |
||
Other long term liabilities |
8.6 |
42.2 |
37.3 |
32.0 |
32.6 |
32.6 |
32.6 |
32.6 |
||
Net Assets |
|
|
58.4 |
59.2 |
62.9 |
71.5 |
76.7 |
78.4 |
83.1 |
89.8 |
Minority interests |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Shareholders' equity |
|
|
58.4 |
59.2 |
62.9 |
71.5 |
76.7 |
78.4 |
83.1 |
89.8 |
CASH FLOW |
||||||||||
Op Cash Flow before WC and tax |
(1.8) |
9.7 |
8.8 |
12.0 |
12.8 |
13.3 |
17.9 |
21.0 |
||
Working capital |
4.6 |
(0.4) |
4.1 |
5.2 |
4.1 |
(5.7) |
1.9 |
2.1 |
||
Exceptional & other |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Tax |
(1.1) |
1.2 |
(0.8) |
(2.2) |
(4.4) |
(4.9) |
(2.5) |
(3.6) |
||
Other |
6.1 |
1.4 |
1.8 |
6.2 |
11.4 |
2.9 |
2.4 |
1.0 |
||
Net operating cash flow |
|
|
7.8 |
11.8 |
13.9 |
21.3 |
23.9 |
5.6 |
19.8 |
20.4 |
Capex |
(2.4) |
(1.7) |
(1.1) |
(1.2) |
(0.8) |
(1.6) |
(1.6) |
(1.6) |
||
Acquisitions/disposals |
(1.7) |
(6.3) |
3.7 |
(8.1) |
5.4 |
1.4 |
1.3 |
1.3 |
||
Net interest |
(0.9) |
(1.5) |
(1.2) |
(0.8) |
(1.8) |
(1.8) |
(1.3) |
0.2 |
||
Equity financing |
23.0 |
3.9 |
(28.9) |
(2.5) |
1.4 |
1.4 |
1.4 |
1.4 |
||
Dividends |
(4.6) |
(4.6) |
0.6 |
(2.1) |
(3.2) |
(3.9) |
(4.3) |
(4.6) |
||
Other |
(2.4) |
0.0 |
(0.9) |
(7.0) |
(6.8) |
(4.0) |
(4.0) |
(4.0) |
||
Net Cash Flow |
18.7 |
1.6 |
(13.9) |
(0.5) |
18.1 |
(2.9) |
11.3 |
13.1 |
||
Opening net debt/(cash) |
|
|
2.4 |
11.7 |
20.0 |
8.8 |
9.3 |
(6.9) |
(4.0) |
(15.3) |
FX |
(1.1) |
(0.8) |
(0.7) |
0.3 |
2.6 |
0.0 |
0.0 |
0.0 |
||
Other non-cash movements |
(26.9) |
(9.0) |
25.8 |
(0.3) |
(4.5) |
0.0 |
0.0 |
0.0 |
||
Closing net debt/(cash) |
|
|
11.7 |
20.0 |
8.8 |
9.3 |
(6.9) |
(4.0) |
(15.3) |
(28.4) |
Source: Company accounts, Edison Investment Research. Note: FY24 numbers will be updated following the release of full results.
|
|
Research: TMT
Boku’s strategy to widen its offering within the local payment method (LPM) market accelerated FY23 revenue growth to 30%, with 15% growth from the core direct carrier billing (DCB) business and supplemented by 153% growth from eWallets and real-time payments. EBITDA grew 27% y o y as the company continued to invest in building out its LPM network from a technological and regulatory perspective. With all major merchants using or planning to use Boku’s wider portfolio of payment methods, the company should benefit from faster growth in the non-card payment market and be able to leverage the investment it has made in its mobile-first platform to drive growth in earnings and cash generation.