Braemar Share Discussion Threads

[grahamhacker] 26/6/2023 07:32

Key words are "underlying trading" - suggesting a possible write down of a balance sheet entry (historic). don't really understand why it takes so long to review!

[cwa1] 26/6/2023 07:16

Publication of FY23 results & investigation into a 2013 transaction

Braemar (LSE: BMS), a provider of expert investment, chartering, and risk management advice to the shipping and energy markets, provides an update on its annual results for the 12 months ended 28 February 2023 ("FY23") together with details of an on-going investigation into a historic transaction.



Trading Update

As announced on 22 March 2023, Braemar is pleased to reconfirm its expectation of reporting record revenue and record profitability for FY23, with revenue for the year of not less than £150m (2022: £101.3m), underlying operating profit of not less than £20m (2022: £10.1m) and net cash of £6.9m at the year end. It remains the board's intention to recommend a final dividend of 8 pence per share (2022: 7 pence) to shareholders for approval at the forthcoming annual general meeting, representing a dividend for the year of 12 pence per share, a 33% increase over the previous year (2022: 9 pence).



Publication of FY23 results & investigation into 2013 transaction

During the past two years, in addition to establishing and developing the Group's growth strategy, the board has focused on ensuring that proper procedures are in place to deliver good practice throughout the business as it scales. As part of this work, the board and the Group's auditors have been carrying out an investigation into a particular transaction of circa $3m, which originated in 2013, and involves payments being made through to 2017.



The board is not presently comfortable with the manner in which the transaction has been historically represented and the remaining liability recorded in the Company's balance sheet. Upon conclusion of the investigation, should this liability be released, it would not affect the underlying trading profit or cash position of the Company for FY23.



The investigation into this transaction and any related matters which may arise, is still ongoing. The board has appointed FRP, an independent specialist firm to assist with the investigation and has established a specific investigation committee, chaired by the Group's non-executive Chairman, to oversee the matter. As a result, the Company's Final results for FY23 will be delayed until this work has completed and will not be published by 30 June 2023.



Under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, the Company is required to publish its audited FY23 results by 30 June 2023. As the Company does not expect to be able to comply with this requirement, the Group will request that trading in the Company's ordinary shares be suspended with effect from 7.30 a.m. on 3 July 2023.



The Company will provide further updates on expected timings for publication of its FY23 results in due course. The Company expects to request a restoration of the listing of its ordinary shares on publication of its FY23 results.

[gotabsirius] 25/6/2023 21:24

Looks like that extension was within the Covid extension

[gotabsirius] 25/6/2023 16:51

Yes but it took them until 30 August to get accounts finalised last year after several delays....

[gotabsirius] 25/6/2023 16:47

If you look back to last year they had similar issues and accounts weren't completed and released until 30 August. Worth reading those update for 2022 accounts as it sounds complications are in Forex and due to acquitions, of which there was another in current accounts

[1pvh] 25/6/2023 16:45

Let's hope not! BDO have been company auditors for nearly 5 years and carried out an extensive audit last year according to the accounts

[cs44] 25/6/2023 16:23

It would appear that a suspension is in order tomorrow to prevent a disorderly market. This is unfortunate for anyone requiring funds but hopefully not too serious for the longer term investor. The resignation of the finance director was a low key event with a less than eulogistic farewell. Does this point to incompetence rather than anything more serious?

[gotabsirius] 25/6/2023 14:12

They still have 2 months before being struck off at Companies House? So potentially 30 August or we lose our investment?

[cwa1] 25/6/2023 13:15

Just what we needed :-((

[pyemckay] 21/6/2023 09:27

What are the consequences?

[edmundshaw] 21/6/2023 08:01

Seems plausible... and I am wondering if accounts are not going to be ready by the end of June now.

[grahamhacker] 13/6/2023 10:25

I'm now wondering if the delay in publishing the accounts was due to the Capital reduction process (just recently approved by the court), which in turn makes the dividend passage clearer?

[rivaldo] 12/6/2023 08:14

Nice plug from Motley Fool:



"Riding the wave of global trade

Near the top of my buy list right now is leading international shipbroker Braemar (LSE: BMS).

A shipbroker acts as a specialist intermediary between shipowners and charterers that need to transport cargo. And Braemar operates across all time zones and major shipping hubs, including Shanghai, Singapore, Mumbai, and Sao Paulo.

As well as chartering though, the firm provides expert advice in investment and risk management. So its offerings are well diversified, making its income less cyclical.

In a trading update back in March, the company announced it had achieved record revenue and profitability for the financial year ended 28 February. The shipbroker expects underlying profit of at least £20m from revenue of £150m.

That would put the stock on a bargain price-to-earnings (P/E) multiple of about six. The shares offer a dividend yield of 4.1%. The payout is healthily covered three times by anticipated earnings.

One risk worth considering is that the shipping sector will need decarbonising, which will cost billions. But Braemar also runs a carbon offsetting brokerage service, so looks very well positioned."

[shalder] 06/6/2023 21:38

So promotion to small cap index will be effective at about the same time as revised date for full year accounts are released: could be interesting.

[edmundshaw] 06/6/2023 14:22

Better trackers used to be quite sophisticated in how they add in new entrants, I assume they still are. I recall at a pension presentation (for my defined contribution scheme) L&G explaining how they managed the exposure and the buying/selling on index changes, which explained how they tracked pretty closely without levying extortionate management charges (for a large pension fund).

However, some trackers haD pretty dire performance, even losing 5% in a year against the index they were supposed to track. I am going back a couple of decades, mind...

[rivaldo] 06/6/2023 09:14

BMS were indeed promoted to the FTSE Small Cap Index last week. Changes take effect from 19th June, so it'll be interesting to see if there's any increased buying up to and after that date.

[rivaldo] 30/5/2023 09:58

The next FTSE indexes review takes place tomorrow (Wednesday), with changes taking effect from 19th June.

It looks like BMS will be promoted to the Small Cap index, which should prompt some tracker index buying in advance of and after the promotion:

[rimau1] 24/5/2023 10:56

I added on the silly dip. Not only is it becoming fairly common to delay accounts in 2023 they are duty bound to note in the rns if there are any sinister reasons for the delay. Remember we have also bought several broking desks/teams in the financial year so probably requires more work.

[cwa1] 23/5/2023 20:54

1pvh, that could easily be correct. However it would take just a few words to explain that in the news release. Instead of that we've been given nothing and left to speculate. Very poor form IMHO

[1pvh] 23/5/2023 20:28

Probably the delay has been caused by the restructuring of the set up of the company announced recently. Accounts were delayed last year as well but everything turned out ok.

[grahamhacker] 23/5/2023 19:49

I have registered my disapproval to the FD this evening, citing the RNS postponement without explanation, having been trailed as 'by end of May.' Also publishing after hours, instead of early morning! I realise as a public company I will not get any explanation but believe it's important to register disapproval.

[grahamhacker] 23/5/2023 17:06

I agree nearly 3 months is plenty of time to get accounts produced and audited. Perhaps they are waiting another month to provide forward guidance. I agree, an explanation should be given, as without it, suggests they need more time for 'something.'

[cwa1] 23/5/2023 16:49

So...

The Company intends to announce its financial results for the year ended 28 February 2023 by the end of May 2023.

to...

The board of Braemar Plc (LSE: BMS) announces that the publication of the Group's accounts for the year ended 28 February 2023 will be released in the second half of June 2023.

Without so much as a word of explanation. Very disappointing and treating shareholders in a very cavalier fashion

For the record I'm not suggesting anything is wrong or even that results will be less good than expected, just think a brief explanantion should be given for the delay