Braemar Share Discussion Threads

[neilyb675] 20/5/2019 07:57

...the sausage

[spooky] 20/5/2019 07:48

Whenever i read a set of BMS results i always get the feeling that they are trying to hide something.

[neilyb675] 20/5/2019 07:43

better than I expected

[masurenguy] 20/5/2019 07:13

20 May 2019
Preliminary Results for the year ended 28 February 2019

Strong Strategic and Financial Progress Achieved

Braemar Shipping Services plc (LSE: BMS), a leading international provider of broking, financial, consultancy, technical and logistics services to the shipping, marine, energy, offshore and insurance industries, today announces preliminary results for the year ended 28 February 2019.

Financial Highlights

-- Good progress achieved with revenue from continuing operations increased by 14% to GBP117.9m (2018: GBP103.0m)
-- 25% increase in underlying operating profit to GBP9.1m (2018: GBP7.3m)
-- Underlying basic EPS growth of 19% to 23.32p (2018: 19.57p)
-- Final dividend of 10.0p giving an unchanged full year dividend of 15.0p, covered 1.6 times (2018 15.0p covered 1.3 times)
-- Discontinued operations showing a loss of GBP22.7m mainly attributable to GBP21.3m book loss on disposal of Technical Division business units.
-- Net debt of GBP7.8m up from GBP2.4m, including the cash in discontinued operations

Business Highlights

-- Shipbroking traded ahead of expectations and in particular had a strong second half, notably in Dry Cargo and Tankers, forward order book maintained at $43m.
-- Encouraging first full year trading of Financial Division with a broadening client base and growing pipeline of business. We believe that our expectations at the time of acquisition will be met.
-- Post year end disposal of loss-making Technical Division business units in return for a significant equity investment in a larger and stronger business.
-- Steady trading from Logistics with an increase in margins and underlying profit.
-- Newly simplified Group structure focused on core activities to deliver higher margin services to the maritime industry.
-- Significant Board changes to help drive long-term sustainable shareholder value.

Ronald Series, Chairman of Braemar, commenting on the results and the outlook said: "Braemar achieved good progress during 2018 but there is still much more to do and further opportunities to develop as we return the Group to growth. It is an exciting time for Braemar, having reached a good solution for the majority of the Technical division. The Group is now well set to focus on our Shipbroking, Financial and Logistics businesses which have good prospects. I look forward to working with the Board and senior team and reporting on further progress during 2019."

[edmundshaw] 14/5/2019 09:33

Ah. They had not updated their investor calendar when I checked it this morning. and I missed that date move - thanks.

[spypat] 14/5/2019 09:28

Results will be out on 20/5/19, according to yesterday's news article:
"Braemar will now announce its results for the 12 months to 28 February 2019 on 20 May 2019, four business days later than originally planned to allow for management commitments connected with this transaction. Following this, the Braemar management team is meeting with Braemar shareholders, as organised by its advisors. Please contact Buchanan, contact details below, for further details."

[wjccghcc] 14/5/2019 09:28

They said yesterday they were delaying them until 20/5 due to the Aqualis transaction.

[spooky] 14/5/2019 08:15

Good question. The management of this company are absolutely shocking IMO.

[edmundshaw] 14/5/2019 08:13

Where are today's results??

[topvest] 13/5/2019 19:17

Seems sensible and there is holding is such that they can probably equity account for the larger business. Might even be earnings accretive.

[mount teide] 13/5/2019 07:47

RNS - Sale of Technical Division

'...The Technical division has continued to face tough market conditions, and despite the wide ranging restructuring programme undertaken in 2016, the financial performance of the division has been disappointing in 2018 and in the first quarter of 2019.'

"We are delighted to be announcing the sale of substantially all of Braemar's Technical division to Aqualis ASA in exchange for an equity stake in the enlarged group. Our respective businesses fit well together and the combination will create a market leading position in Offshore, Marine, Adjusting and Renewables services with global coverage which will enable the stronger combined business to unlock significant revenue and cost synergies.

We strongly believe that the enlarged Aqualis group, which will retain the Braemar name and trade as AqualisBraemar, will bring numerous benefits and opportunities to both clients and employees going forward.

As the largest shareholder in AqualisBraemar, we look forward to developing the business with the management team, which has an excellent track record of growing businesses in these sectors."

Effectively admitting Braemar did not have the expertise to successfully manage and grow a Technical Services business through the full commodity/shipping market cycle - begs the question some of us have been asking for years: why did the company take exposure to a sector of the market it did not have the management skill set to be competitive in?


' "AqualisBraemar", will be entitled to use the "Braemar" brand pursuant to a licence agreement, which is anticipated to remain in place for at least three years from completion of the Combination ' Why force Aqualis to be burdened with a new name that associates it with a company that has performed so poorly over the last 5+ years compared to its peers?

[this_is_me] 13/5/2019 07:30

That seems a sensible plan to get value out of loss making businesses.

[cwa1] 13/5/2019 07:29

Interesting development:-

[shiv1986] 07/5/2019 08:47

ADVFN is hosting an investor event for a firm within Industrial Transportation; Avation plc, on the 21st May to find out about their future prospects.

Sign up to attend this event:

[grahamburn] 23/4/2019 15:11

Probably best to put that quote into the greater context of the article by Ian Cowie who writes regularly about running his own portfolio. On Sunday he was discussing his "mistakes" and why he has held on to some of them - Braemar being the first one in the article as follows:
______________________________

Ian Cowie: One share has sunk without trace. Now I’m hoping for a resurrection
My stake in Braemar Shipping has plunged ingloriously, but all investors should expect the odd clanger

Ian Cowie’s shares in Braemar Shipping’s have suffered, as have those in Vodafone, Versarien and Dignity, but dividends have proved some consolation

Easter Sunday is as good a time as any to hope for resurrection, and this DIY investor can always dream that bright ideas which seem to have died a death might spring to life again eventually. Sad to say, there is no sign of that yet among the worst of Cowie’s clangers — shares I hold that have lost 10% or more of their value.

Despite global stock markets enjoying their longest bull run, or period of rising prices, on record, my “forever”; fund still contains six stonking stinkers. Laugh if you like, but the unvarnished truth is that you can’t win them all and every portfolio will contain some losers. So, without further ado, here they are.

Braemar Shipping has proved my barmiest idea yet, having sunk by an eye-watering 57%, according to the investment platform Hargreaves Lansdown’s gains and losses calculator. All I can say in mitigation is that that takes no account of dividends, and the shipping broker currently yields an income equal to 8.7% of its share price.

So, even as the water laps my chin, I am hanging on in hope. Not that I found much comfort when I asked Laith Khalaf, senior analyst at Hargreaves Lansdown, to scan the horizon.

He told me: “Braemar’;s profits and share price have tanked because it’s heavily reliant on the oil industry, which goes through peaks and troughs depending on commodity markets. The shares trade on an extremely undemanding six times corporate earnings but that reflects the company’s weak performance.”

[masurenguy] 23/4/2019 13:05

“Braemar’s profits and share price have tanked because it’s heavily reliant on the oil industry, which goes through peaks and troughs depending on commodity markets. The shares trade on an extremely undemanding six times corporate earnings but that reflects the company’s weak performance.”
Laith Khalaf, Senior Analyst, Hargreaves Lansdown, 22 April 2019, The Sunday Times

[mount teide] 15/4/2019 07:13

Non Exec Chairman Appointment - the performance of the company over the last half decade or so strongly suggested the last thing Braemar needed is yet another Chartered Accountant with no shipping or ports industry experience!

[lindowcross] 06/4/2019 10:04

Worrying too that whoever wrote the recent update can't spell "augur", shows lack of attention to detail. Whatever would the late-lamented L K Hyman have made of that?

[mount teide] 25/3/2019 10:28

'The Group's Technical division continues to experience challenging conditions and the Board is working on a structural change.'

Despite a strong performance from the Shipbroking division, it seems the Technical Division is continuing to act as a drag on overall performance.

This is disappointing, since it strongly suggests the restructuring of the Technical Division that was carried out some 18 months ago has not proved as successful as expected - particularly when considering there has been an improvement in these markets over the last year, albeit from a deep recession low.

During the latter years of an 8 year shipping and oil market decline/recession stage (2008-2016) and the early recovery stage years of a new shipping/commodity market cycle - as mentioned previously for a Shipbroking firm to have had extremely modest Shipping and Ports sector expertise on the Board was concerning. To compound this by having a large exposure to the Offshore/Oil service sector without any industry expertise on the Board could be considered irresponsible, bordering on reckless and, would strongly bring into question the Board's credibility to run such a company - as the Company's share price performance since the Shipping and Oil markets bottomed in H1/2016 and entered a new market cycle recovery phase compares very poorly with their shipbroking sector peers.


AIMHO/DYOR

[wjccghcc] 25/3/2019 09:46

Stockdale cuts forecasts (again) for 2020/21 due to Technical. They really need to sort it before there can be any substantial rerating.

[edmundshaw] 25/3/2019 09:01

...on the other hand if things are mucking along and the dividend is maintained, this is at a yield of over 9%. That is remarkably cheap.

[edmundshaw] 25/3/2019 08:57

Rather a blah statement given the recent rise in the BDI. I hope that is just management being cautious, but the Technical Division seems to be an ongoing issue...

[this_is_me] 25/3/2019 08:27

Overall everything going OK. the virtues of having more than one string to your bow are evident.

[gargoyle2] 20/3/2019 13:31

Share price hasn't been this low since early 2003. There seems to be support at around 100p. Other than that, this looks like its heading lower.