Braemar Plc has reported better-than-expected unaudited half-year results for the six months ending August 31, as a result of what it dubbed strong trading and a continued growth strategy of focusing on core shipbroking business.
Underlying results, excluding disposals and other non-recurring items, saw a 95% increase in operating profit to £10.9 million, versus £5.6m in the first half of FY 2021/22. Reported revenues were up 46% to £69.4 million, or 36% in constant currency when removing the estimated £3m benefit from favourable foreign exchange rates.
These figures were described as materially ahead of expectations at the start of the year, resulting from “the increased scale and breadth of broking operations which achieved significantly higher trading activity and transaction volumes during the period.” Chartering accounted for £44.9m of total revenues, compared to £26.8m in H1 FY 21/22, while shipping investment advisory produced £16.3m (£15.0m) and shipping risk advisory £8.2m (£5.6m).
Regarding outlook, the Group said its forward prospects remain “very positive” despite the macro-economic backdrop, thanks to the company’s growing scale and diversification across the shipping industry.
CEO James Gundy said: “It’s clear that we’ve unlocked great potential through our growth strategy, are delivering the performance that I promised our shareholders on my appointment in January 2021 and are well on track to double our profits by 2024. Our growing scale and sectoral diversification means we are also set for strong performance throughout the business cycle.”