Last close As at 05/08/2026
GBP2.28
— 0.00 (0.00%)
Market capitalisation
GBP76m
Research: Industrials
Following the release of the delayed, but in-line FY23 results covering the period to February 2023, trading in Braemar shares recommenced on 21 November. Now that the internal investigation into the accounting treatment of historical transactions has concluded, Braemar is due to release its H124 results on 29 November. The company remains well-positioned to drive its future growth strategy, as previously outlined. 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 profit estimate for FY24 and trimmed it for FY25, but retain our 520p/sh valuation.
Braemar |
Suspension lifted; interims due 29 November |
FY23 results |
Industrial support services |
22 November 2023 |
Share price performance
Business description
Next events
Analyst
BraemarBraemar is a research client of Edison Investment Research Limited |
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Following the release of the delayed, but in-line FY23 results covering the period to February 2023, trading in Braemar shares recommenced on 21 November. Now that the internal investigation into the accounting treatment of historical transactions has concluded, Braemar is due to release its H124 results on 29 November. The company remains well-positioned to drive its future growth strategy, as previously outlined. 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 profit estimate for FY24 and trimmed it for FY25, but retain our 520p/sh valuation.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
02/22 |
101.3 |
8.9 |
23.1 |
9.0 |
12.1 |
3.2 |
02/23 |
152.9 |
18.0 |
45.5 |
12.0 |
6.9 |
4.3 |
02/24e |
150.2 |
15.0 |
40.5 |
13.5 |
7.1 |
4.8 |
02/25e |
150.2 |
15.6 |
39.9 |
14.0 |
7.2 |
5.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Strong growth highlighted by in-line results
Braemar’s delayed FY23 results confirmed that revenue rose 51% to £152.9m and that underlying operating profit almost doubled to £20.1m, both figures in line with previous guidance. Underlying EPS increased by 65% to 46.22p and a total dividend for the year of 12.0p (FY22: 9.0p) was declared, implying almost four times cover. Braemar ended the year with net cash of £6.9m, a positive swing of £16.2m from last year’s net debt position of £9.3m.
Investigation leads to modest BS reclassification
An internal independent investigation carried out this year into several historical transactions between 2006 and 2013 meant that Braemar was unable to publish its FY23 Report and Accounts by 30 June. This resulted in the suspension of trading on 3 July. The investigation has now concluded with a £2.0m balance sheet reclassification. The company can now proceed as ‘normal’ and the shares have been relisted. H124 results are due to be released on 29 November.
Valuation: DDM based valuation retained at 520p/sh
The outlook statement contained within the FY23 results suggests a robust trading environment in FY24 and into FY25 and an expectation that underlying operating profit from FY25 would be ‘not less than £18m’, excluding c £1.1m of costs relating to the acquisition of the Madrid office. Previously we had forecast underlying operating profit in FY24 and FY25 of £18.0m and £19.2m, respectively, which moves down to £16.7m and £17.1m, including the acquisition costs that will be included in the underlying operating profit figure, but in reality are not seen by Braemar as ‘underlying costs’. Therefore, adding back these costs gives a ‘true’ underlying operating profit of £18m and £18.2m, which is unchanged in FY24 and a £1.0m cut in FY25, reflecting increased caution further out. However, we retain our dividend discount model-based valuation of 520p/sh as dividend forecasts are unchanged.
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 |
Exceptionals |
(12.5) |
(3.8) |
(1.5) |
(0.3) |
(2.5) |
(1.3) |
(1.3) |
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 |
15.4 |
15.8 |
17.4 |
||
Net Interest |
(0.2) |
(1.4) |
(1.1) |
(1.2) |
(2.0) |
(1.8) |
(1.5) |
(0.6) |
||
Joint ventures & associates (post tax) |
0.0 |
(0.3) |
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 |
15.6 |
16.8 |
Profit Before Tax (reported) |
|
|
(3.1) |
6.3 |
5.1 |
8.5 |
9.5 |
11.2 |
14.2 |
16.8 |
Reported tax |
(1.5) |
0.0 |
(1.6) |
(1.8) |
(4.9) |
(2.8) |
(3.6) |
(4.2) |
||
Profit After Tax (norm) |
7.3 |
9.4 |
5.1 |
7.0 |
13.2 |
12.2 |
12.0 |
12.6 |
||
Profit After Tax (reported) |
(4.7) |
6.3 |
3.6 |
6.7 |
4.6 |
8.4 |
10.7 |
12.6 |
||
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 |
12.2 |
12.0 |
12.6 |
||
Net income (reported) |
(27.4) |
4.0 |
4.5 |
13.9 |
4.6 |
8.4 |
10.7 |
12.6 |
||
Basic average number of shares outstanding (m) |
31 |
31 |
31 |
31 |
29 |
30 |
30 |
30 |
||
EPS - basic normalised (p) |
|
|
23.78 |
30.19 |
16.23 |
23.06 |
45.48 |
40.54 |
39.90 |
41.91 |
EPS - diluted normalised (p) |
|
|
21.79 |
27.28 |
13.43 |
18.79 |
37.85 |
33.99 |
33.45 |
35.14 |
EPS - basic reported (p) |
|
|
(88.63) |
12.88 |
14.45 |
45.56 |
15.85 |
27.83 |
35.49 |
41.91 |
Dividend (p) |
5.00 |
5.00 |
5.00 |
9.00 |
12.00 |
13.50 |
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 |
85.1 |
91.9 |
100.2 |
Debtors |
37.1 |
39.5 |
33.4 |
35.8 |
43.3 |
51.1 |
51.1 |
51.1 |
||
Cash & cash equivalents |
24.1 |
28.7 |
16.4 |
14.0 |
36.0 |
33.1 |
39.8 |
48.2 |
||
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 |
68.6 |
71.5 |
74.2 |
Creditors |
44.9 |
47.6 |
47.8 |
39.9 |
58.4 |
61.2 |
61.2 |
61.2 |
||
Tax and social security |
1.4 |
1.3 |
1.3 |
1.6 |
4.1 |
2.1 |
2.8 |
3.5 |
||
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 |
75.3 |
75.6 |
77.8 |
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 |
75.3 |
75.6 |
77.8 |
CASH FLOW |
||||||||||
Op Cash Flow before WC and tax |
(1.8) |
9.7 |
8.8 |
12.0 |
12.8 |
14.5 |
17.6 |
20.2 |
||
Working capital |
4.6 |
(0.4) |
4.1 |
5.2 |
4.1 |
(2.9) |
2.1 |
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) |
(2.8) |
(3.6) |
||
Other |
6.1 |
1.4 |
1.8 |
6.2 |
11.4 |
2.9 |
2.7 |
1.8 |
||
Net operating cash flow |
|
|
7.8 |
11.8 |
13.9 |
21.3 |
23.9 |
9.7 |
19.6 |
20.5 |
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 |
1.3 |
1.3 |
1.3 |
||
Net interest |
(0.9) |
(1.5) |
(1.2) |
(0.8) |
(1.8) |
(1.8) |
(1.5) |
(0.6) |
||
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) |
(4.4) |
(4.6) |
||
Other |
(2.4) |
0.0 |
(0.9) |
(7.0) |
(6.8) |
(8.0) |
(8.0) |
(8.0) |
||
Net Cash Flow |
18.7 |
1.6 |
(13.9) |
(0.5) |
18.1 |
(2.9) |
6.7 |
8.4 |
||
Opening net debt/(cash) |
|
|
2.4 |
11.7 |
20.0 |
8.8 |
9.3 |
(6.9) |
(4.0) |
(10.8) |
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) |
(10.8) |
(19.2) |
Source: Company data and Edison Investment research
|
|
Research: TMT
SenSen has won a major contract with Australia’s National Heavy Vehicle Regulator (NHVR), generating A$1.5m in upfront revenue and c A$500,000 in annual recurring revenue. This is a major scale-up with an existing customer, providing important validation of both SenSen’s technology and its ‘land and expand’ strategy, while retaining significant upsell potential through expanding deployments across other NHVR jurisdictions. The deal provides good support for our FY24 forecasts and strengthens the company’s prospects for delivering sustained, scalable growth.