Braemar Shipping Services : Interim Results Presentation November 2020
November 11, 2020 at 05:05 am EST
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Braemar Shipping Services plc
Interim Results Presentation
November 2020
'Strong Shipbroking performance in volatile markets'
Ronald Series, Chairman
ronald.series@braemar.com
+44 (0) 20 3142 4100
James Gundy, CEO Shipbroking Division
Group CEO Designate
james.gundy@braemar.com
+44 (0) 20 3142 4100
Nick Stone, Chief Operating Officer & Finance Director
nick.stone@braemar.com
+44 (0) 20 3142 4100
OVERVIEW
"Shipbroking drives stronger performance"
Strong first half trading especially from Shipbroking in the first quarter
Underlying Operating Profit increased by 33% to £5.6m (2019: £4.2m)
Strong margin growth in Shipbroking, partially due to lower costs
Higher success fees for Financial but offset by bad debt provisions
Lower revenue but margins maintained in Logistics
Sales process for Engineering Division, Wavespec underway
Share of AqualisBraemar underlying profit increased to £0.6m (2019: £0.0m)
Shipbroking to drive future strategic direction - James Gundy to be new Group CEO
Full year trading outlook in line with market expectations
2
Expert advice in shipping investment, chartering and risk management
www.braemar.com
Summary Results
£m
H1 2020/21
H1 2019/20
FY 2019/20
Revenue
56.3
(2%)
57.6
117.7
Underlying Operating Profit
5.6
33%
4.2
11.0
Underlying Profit before tax
5.7
59%
3.6
9.4
Reported Profit/(loss) before tax
3.7
(0.8)
6.3
Underlying EPS
16.3p
46%
11.2p
29.5p
Dividend per share
0.0p
5.0p
5.0p
Net Operating cash flow
6.6
(1.5)
10.3
Net Debt
30.2
42.0
30.3
Improved cash generation
Underlying profit before tax increase of 59% despite 2% lower revenue
Underlying EPS increase of 46%
Debt includes deferred acquisition consideration and loan notes
Comparatives restated for discontinued operations
3 Expert advice in shipping investment, chartering and risk management
www.braemar.com
Segmental Underlying Results - from continuing operations
Shipbroking
Financial
Logistics
Central
H1 2020/21
Revenue
Profit
Margin
£m
£m
%
39.3
6.1
16%
3.5
0.7
20%
13.5
0.6
4%
(1.7)
56.3
5.6
10%
H1 2019/20
FY 2019/20
Revenue
Profit
Margin
Revenue
Profit
Margin
£m
£m
%
£m
£m
%
38.7
4.9
13%
82.4
11.8
14.%
3.3
0.9
27%
5.9
1.1
19%
15.6
0.6
4%
29.4
1.0
3%
(2.1)
(2.9)
57.6
4.3
7%
117.7
11.0
9%
Group margin improvement from 7.5% to 10.1%
Engineering treated as discontinued operations during sale process
Central costs lower due to FX losses in previous period
4
Expert advice in shipping investment, chartering and risk management
www.braemar.com
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Braemar Shipping Services plc published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 10:04:01 UTC
Braemar PLC is an international shipbroker. The Company provides expert advice in investment, chartering, and risk management to enable its clients to secure sustainable returns and mitigate risk in the volatile world of shipping and energy. The Companyâs operations are diversified across tankers, dry cargo, sale and purchase, renewables, financial and offshore. The Company operates through three segments: Investment advisory, Chartering, and Risk advisory. The Investment advisory segment provides investment consultancy, new build advisory, sales and purchase brokerage, asset valuation, recycling/end of life, and capital raising and corporate finance. Its Chartering segment includes cost-saving solutions, creating and protecting deals, cross-desk collaboration, first-mover initiatives, and freight consultancy. The Risk advisory segment includes derivatives brokerage, asset utilization, loan restructuring, loan portfolio management, and carbon offsetting brokerage.
BRAEMAR PLC 
