Braemar (LSE: BMS)

Last close As at 18/06/2024

GBP2.88

−3.50 (−1.20%)

Market capitalisation

GBP95m

Braemar is the second largest shipbroker in the world, providing broking services to the dry cargo, deep sea tanker, specialised tanker and sale and purchase markets. It also addresses the fast-growing areas of offshore and renewables, securities and financial markets.

The global deep sea shipping fleet has been steadily expanding. A key driver has been growing international trade, which is likely to continue and should be a direct benefit to the shipbroking industry. Some charter rates are currently very high, for example tanker ship charter rates, while others, like the Baltic Dry Index, are broadly within a historical average range, and other indicators, such as fleet age and low new vessel order books for certain key trades, point to greater future demand, thus balancing risks and growth.

Latest Insights

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Braemar — Diversification underpins resilience

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Braemar — Diversification paying dividends

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Braemar — Interims in line, growth strategy developing

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Grant Foley

    CFO

  • James Gundy

    CEO

  • Nigel Payne

    Chairman

Balance Sheet

Forecast net cash (£m)

2.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (2.5) 13.8 0.7
Relative 0.0 7.5 (6.1)
52 week high/low 310.0p/224.0p

Financials

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 will update our forecasts and valuation for FY24 results in due course.

Y/E Feb Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2023A 152.9 23.4 18.0 37.85 7.6 6.5
2024A 152.8 20.4 14.6 32.42 8.9 7.6
2025E 152.5 20.8 15.3 34.31 8.4 4.5
2026E 152.5 21.2 16.0 37.06 7.8 3.8

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