Sparks - Braemar

Braemar’s FY26 results were in line with its 25 March FY26 trading statement. Revenues of £135.6m were down 4% y-o-y (FY25 £141.9m) and underlying operating profit (pre acquisition-related expenditure of c £1m) was £13.2m (FY25 £16.7m), a decline of 21% y-o-y or £12.2m if the expenditure is included. The weakness in FY26 was primarily related to chartering in H1, with revenues in H2 of £71.7m up 12% vs H1 £63.9m reflecting building momentum in H226. H2 underlying operating profit of £7.6m was up 36% vs the £5.6m achieved in H1. Management highlights that the solid results for the year reflect the diversification and resilience of the business illustrated by divisional revenue growth: FY26 revenues in Chartering were -16% y-o-y while Investment Advisory was +6% y-o-y and Risk Advisory +29%. Net debt for the year ending February 2026 was £2.9m and the company has since moved to a net cash position.

Trading in the first two months of FY27 has been strong and the forward order book stands at U$77.9m, up 7% compared to U$72.5m at the end of February (FY25 U$82.2m). For FY27 the company intend to support growth by hiring 10 new brokers, implementing AI, establishing one new Risk Advisory desk and completing one complementary M&A transaction. Although almost no ships are transiting the Strait of Hormuz, Braemar has a strong US presence that is mitigating Middle East-related weakness. The company is comfortable with what it sees as FY27 consensus underlying operating profit of c£14.2m. Longer term, Braemar highlights that the structural demand drivers for its services remain compelling and management remains confident of further progress and of delivering on its 2030 targets including annual revenue of £200m and a 15% underlying operating profit margin.