Last close As at 05/08/2026
GBP2.28
— 0.00 (0.00%)
Market capitalisation
GBP76m
Research: Industrials
Braemar’s H125 results reflect a continuation of the successful diversification strategy that has been deployed for the last three years. Revenue was robust, up 1%, and operating profit increased 9%, highlighting operational leverage. Braemar’s underlying markets retain strong fundamentals that include increasing global demand and an aging global fleet; this bodes well for the future and is reflected in its robust forward order book. The company remains on track to achieve market expectations for this financial year.
Braemar |
Solid H1 driven by diversification, outlook robust |
H125 results |
General industrials |
6 November 2024 |
Share price performance
Business description
Analyst
Braemar is a research client of Edison Investment Research Limited |
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Braemar’s H125 results reflect a continuation of the successful diversification strategy that has been deployed for the last three years. Revenue was robust, up 1%, and operating profit increased 9%, highlighting operational leverage. Braemar’s underlying markets retain strong fundamentals that include increasing global demand and an aging global fleet; this bodes well for the future and is reflected in its robust forward order book. The company remains on track to achieve market expectations for this financial year.
Year end |
Revenue (£m) |
PBT* (£m) |
EPS* |
DPS |
P/E |
Yield |
02/23 |
152.9 |
18.0 |
45.5 |
12.0 |
5.8 |
4.5 |
02/24 |
152.8 |
14.6 |
39.6 |
13.0 |
6.7 |
4.9 |
02/25e |
152.5 |
14.7 |
44.4 |
14.0 |
6.0 |
5.3 |
02/26e |
152.5 |
14.6 |
47.7 |
16.0 |
5.6 |
6.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Braemar reported H125 revenue of £76.0m, up 1% in sterling terms and 3% in US dollar terms, the latter being a better measure of the underlying performance of the group. Underlying operating profit, including acquisition-related expenditure, was up 9% to £7.3m (H124: £6.7m), highlighting the operational leverage now within the business. Underlying operating profit excluding acquisition-related expenditure, which is a better measure of underlying performance, was £7.9m, compared to £7.6m in the previous year. This implies the business is well positioned to achieve its target of doubling FY21 operating profit of £8.9m.
The diversification strategy is now well established and the benefits of it are evident. In Chartering (66% of group revenue), revenues declined c 5%, largely driven by a fall in the number of tanker fixtures, offset by higher commissions. However, despite this weakness, Investment Advisory (c 19% of revenue) grew 19%, driven by strength in the Sales and Purchase market, and Risk Advisory (15% of revenue) grew 16% as market participants looked to hedge exposure and financial participants heightened interest. The company opened a new office in South Korea that, although small, highlights the ongoing diversification strategy. Investors can expect further diversification.
In the period, average revenue per head remained strong at £181k (H124: £184k), which in US dollar terms is $227k, down slightly from $228k. Costs remained under control, rising just 1% despite an inflationary environment.
As a result of the group’s trading performance and the increased confidence of management, the interim dividend was raised 12.5% to 4.5p (H124: 4.0p). Braemar ended the period with net cash of £3.3m, up 5% on the previous year, highlighting the company’s cash-generative nature. The outlook for the group is encouraging, underpinned by the forward order book that stood at $80.9m at the end of August, (29 February 2024: $82.6m; 31 August 2023: $67.2m), which had risen to $85.8m at 30 September 2024.
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Research: Industrials
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