Braemar Shipping Services : Unaudited interim results for the six months ended 31 August 2019

Shipbroking leads stronger performance

Braemar Shipping Services plc (LSE: BMS), a leading international provider of shipbroking, financial advisory, logistics and engineering services principally to the shipping and energy industries, today announces its unaudited half-year results for the six months ended 31 August 2019.

	Underlying results*			Reported results**
	H1 2019/20	H1 2018/19	Change	H1 2019/20	H1 2018/19
	£m	£m	%	£m	£m
Revenue	59.5	57.4	4%	59.5	57.4
Operating profit/(loss)	3.7	3.7	0%	(1.1)	(2.3)
Profit/(loss) before tax	3.0	3.5	(14)%	(1.3)	(2.8)
Earnings/(loss) per share	9.4p	9.8p	(4)%	(4.4)p	(9.0)p
Dividend per share	5.0p	5.0p	-	5.0p	5.0p

OPERATIONAL KEY POINTS

• Strong performance from shipbroking, especially in second quarter, achieving 9% revenue growth and underlying operating profit growth of 16% in the first half
• Benefits of investment across shipbroking division now evident, improving the balance in broking strengths
• Divestment of the Offshore, Marine and Adjusting businesses completed in June 2019
• Steady trading in Logistics with performance unchanged
• Financial division busy with a growing pipeline of mandated business and retainer income but saw low transaction completions in the period
• Appointment of new Chairman and Finance Director in the period creating a refreshed Board to focus on strategic growth

FINANCIAL KEY POINTS

• Revenue in the first half was £59.5 million, showing growth of 4%
• Underlying operating profit from continuing operations maintained at £3.7 million (Reported operating loss reduced from £2.3 million to £1.1 million)
• Interim dividend maintained at 5.0p
• Net debt of £18.8 million (2018: £9.3 million) from increased utilisation of revolving credit facility
• Trading for the full financial year remains in line with current expectations

* Underlying profit measures above are before non-recurring specific items, including acquisition-related charges

** Reported results from continuing operations only

Reconciliation of underlying profit before tax to reported (loss)/profit before tax for the period from continuing operations:

	H1 2019/20	H1 2018/19
Underlying profit before tax	£3.0m	£3.5m
Acquisition related charges	£(3.4)m	£(6.1)m
Acquisition related finance costs Exceptional operating costs	£(0.3)m £(1.4)m	£(0.2)m -
Share of associate profit	£0.8m	-
Reported loss before tax for the period	£(1.3)m	£(2.8)m

Acquisition related charges includes costs directly associated with the purchase of NAVES and Atlantic as well as the run off of the equity-based retention programme established in connection with the merger with ACM Shipping Group plc. Exceptional costs relate to restructuring costs in the Logistics division and Board changes during the period.

Ronald Series, Executive Chairman of Braemar, commenting on the results and the outlook said: 'I am pleased to report strong performance in our core Shipbroking division. Our investment in the division has positioned it well to capitalise on the improving conditions across the shipping markets. This investment coupled with our longstanding track record and reputation as a leading global shipbroker underpins our revenue growth. The Financial division remains very busy although its profitability continues to depend on the incidence and timing of completed transactions. The management team continues to work hard in focussing the business in each of our core areas. The Board has been significantly refreshed in recent months and is focused on returning Braemar to growth. We look forward to the second half with confidence and our trading for the full financial year remains in line with our expectations.'

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, contact:

Braemar Shipping Services
Ronald Series, Executive Chairman	Tel [phone]
Nicholas Stone, Finance Director	Tel [phone]
finnCap
Matt Goode/ James Thompson/ Kate Washington	Tel [phone]
Buchanan
Charles Ryland / Stephanie Watson / Matilda Abraham	Tel [phone]