Sparks - Braemar

Braemar reported a strong set of H127 results, with revenue of £74.3m up 16% y-o-y (H126: £63.9m),  in line with Edison expectations. Revenues grew by double digits in all three segments: Chartering (+18%), Risk Advisory (+17%) and Investment Advisory (+10%). Disruption to shipping through the Strait of Hormuz lifted chartering rates and asset values. Underlying operating  profit after £1.4m of strategic investment was £6.0m, up 7% y-o-y (H126: £5.6m) and was also in line with Edison expectations. Strong H127 operating net cash generation of £8.4m (H126: £1.0m) with zero net debt (FY26: £2.9m) supports investment. Strategic investments enabled Braemar to make good progress on its 2027 targets with seven new brokers hired so far this year versus a target of 10, the launch of the power desk in Risk Advisory, embedding AI in the business and an expanded trainee programme. All of these support future growth and margin improvement, while Braemar continues to evaluate potential complementary acquisitions that meet the company’s criteria, including earnings accretion.

Braemar’s interim dividend of 2.75p (2.5p) reflects confidence in the future. Trading since the period end has remained strong and in line with company consensus expectations for revenue of £142.7m and £14.2m underlying operating profit. The forward order book has seen further strengthening to $80.7m as at end September from $73.6m at end August (H126: $73.8m, FY26: $72.5m). The company reiterated its FY30 targets for £200m in revenue and 15% underlying operating margin, which are supported by the solid balance sheet, strong markets and accelerated growth investments.