Not sure I agree, they are stating the facts, the forward order book is the forward order book, as long as they are consistent each year in how they present it, if they are then not a problem
Exceptionals esp the "investigation" of over £2m should hopefully be history
Net Cash still despite all that, should grow this year, making the EV/EBITDA ratio even lower, if management are not up to it, an acquirer will take a look IMO...
The one I do have an issue is such a big forex loss....surely the CFO should be hedging with that sort of risk?
DYOR |
All seems to designed to egg things up. Unnecessary and very easy to spot IMO. |
Significant exceptionals... |
Lots of dilution from share options (diluted EPS only 29.96, ignoring exceptionals). |
The order book not so interesting when you read "forward order book of $83m at the end of February 2024 ($38m of which is for the financial year ending February 2025). |
Positive results as previously indicated in their trading update. The 36% increase in their Risk Advisory division was particularly impressive. Their future prospects look very good especially with the forward order book of $83m |
EV/EBITDA looks wrong IMO, too low, net cash, decent yield, forward order book way ahead of last year, corporate troubles behind it....time to look forward, glad I topped up....DYOR |
In line results as already flagged show 36.62p EPS - a historic P/E of 8.3 - and a very positive outlook, with order books up a whopping 47% at $82.6m.
Operating profit would have been higher at £20.6m compared to £20.1m, if it hadn't been for acquisition-related costs and an unfavourable foreign exchange swing totalling £4.1m.
The outlook is rather promising:
"The overall market outlook remains positive. Geo-political and natural events, as well as environmental considerations are leading to longer voyage times, and global seaborne trade continues to grow, while the total fleet size remains at similar levels.
We started FY25 with a strong forward order book at $82.6m, and will continue to invest in our people, offices, and technology, whilst taking advantage of a fragmented shipbroking market to hire and make acquisitions. I look forward to another strong performance by the Group." |
Nice:
"Braemar brokers first-ever container freight futures deal on SGX in ‘volatile’ market
Freight forward agreements for containers have never been done before on the Singapore Exchange
22 May 2024
A landmark futures deal is paving the way to make freight-rate risk more manageable in boxship markets, following the closing of the first-ever container derivatives trade on the Singapore Exchange on Tuesday.
The deal was brokered by Braemar Securities, the freight forward agreements (FFA) desk of Braemar Shipping Services group, and was cleared by the Singapore Exchange (SGX).
An unnamed US investment bank sold its June contract for the China/East Asia to northern Europe route at $5,650 per feu, one of the benchmark routes that make up the Freightos Baltic Index (FBX) for container freight.
etc" |
I suspect the £79,646 trade at 303p reported late was a nice-sized buy which unlocked the door for today's rise.
New recent highs chart-wise now.
With the double whammy of known good results coming on Thursday, combined with the likely promotion to the FTSE Small Cap to be confirmed on June 5th, hopefully these gains will be extended by some way in the next few weeks. |
Looks like the Risk feature, mentioned by Riv above, has stimulated some long overdue and welcome interest here. Todays 9% rise is not based on any great trading volume - circa 100,000 shares, around double the average daily figure - but upon a significant number of small retail trades (average size just under 2000 shares) throughout the day. Probably see a little bit of profit taking before the close. |
What on earth is happening here, only a very small holding for me but ive watched it go vertical from mid morning on big volume, surely the 23/5 FY24 numbers must have been leaked !!!! |
This reads well - there's more, but it's subscription-only:
"Newcomer of the year: Braemar Securities Energy Risk Awards 2024:
By Stella Farrington 17 May 2024
Ship-broker’s natural gas desk hits the ground running with new products
Energy Risk’s 2024 Newcomer of the year, Braemar Securities, has set out to disrupt the natural gas market, offering new products and a mainly voice-brokered service to a growing client base of corporates, financials and shipping companies. The interdealer broker for commodity derivatives launched its natural gas and carbon-broking desk in October 2022. Since its first Dutch TTF natural gas trade in February 2023, the firm has onboarded clients including utilities, trading houses, investment" |
Bought some more today ahead of results on Thursday - any predictions for the dividend |
The Braemar CEO made £4.1m last year
That is MORE than FTSE100 tech stock Sage's CEO! |
Acquisition expenses should not be excluded IMO
Such a huge gap between statutory EPS and adjusted EPS tells you all you need to know.
This is not a Clarkson. |
Good to see the bid price up to 290p now, with sales being readily absorbed at a small premium to the offer price.
Overall BMS remains extremely cheap imho - a break above 300p could see a big jump as the markets digest the opportunity. |
 hpcg but in this case it is definitely NOT a conventional acquisition related expenditure item. Instead it looks like trying to exclude genuine employee costs in a fudged 'adjustment'. This was an acquisition made in December 2022 that will still have acquisition related costs in the second half they are just going to be reporting soon. In fact it is completely the opposite of what it sounds like you think it is - it is not a one time item at all
Acquisition-related items
Following the acquisition of Southport Maritime Inc. in December 2022, due to the requirement for ongoing employee service, the upfront cash payment of £6.0 million and IFRS 2 charge related to share awards made to the sellers and existing employees of Southport are treated as a post-combination remuneration expense. The total expense related to amounts linked to ongoing employee service in connection with the acquisition of Southport was £1.8 million (2022: £nil) in the six months to August 2023. The period of required employee service is three years from the acquisition date. |
'underlying operating profit of not less than £18m...' with market cap of around £90m.
Is a market cap of £180m (10 x profit) reasonable? |
Dan - that is a conventional adjustment and one of the few I personally endorse unless the company is a serial acquirer and it is part of the business model. It doesn't happen every year and so truly can be removed from underlying performance. You can choose to ignore it and just use the statutory number when making your own investment decisions. |
@ Rivaldo any clues
Can anyone understand their acquisition related expenditure and why that should be an adjusted item? It's very material but to me looks like a complete fudge adjustment |
Braemar (BMS) Full Year results webinar
Tuesday, 28 May, 1:00pm
Braemar CEO, James Gundy, CFO, Grant Foley and COO, Tris Simmonds will present the Group’s results for full year 2024, followed by a Q&A session.
Register here: bit.ly/BMS_FY24_webinar |
The impending promotion to the Small Cap Index, with the review on the 29th May, should cause some decent tracker fund/institutional buying for a start.
And of course we know the results on 23rd May (next Thursday) will show BMS's rating to be extremely cheap given at least 38p historic EPS, plus a 13p dividend and a net cash position.
And in particular the substantial order book - up 47% on last year - should back up a positive outlook. |
Thanks. Totally agree with everything they say.
The trading volume here is miniscule though, what needs to happen for that to change? |
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