Braemar Shipping Services Share Discussion Threads

[topvest] 31/7/2022 20:34

It's all around the audit work on the discontinued operations from what I can see. That's always complex as it requires the already stretched auditor to complete a separate audit of the disposed entity at the disposal date, which may have been planned late in the day or not at all. Sometimes that gets to be problematic and it sounds like they weren't very well prepared on all fronts. The dividend point is a common PLC error and is not in itself a big concern. Combined with the delay though, it implies that either the Finance team and/or the auditor are not on the top of their game!

[shalder] 27/7/2022 15:57

I imply no "skulduggery". But corporate entities operate within a regulatory framework and (as acknowledged by the company) someone may have failed to ensure that actions taken are compliant.

[grahamburn] 27/7/2022 15:23

IMO the last three posts are somewhat harsh - and imply possible corporate skulduggery without foundation. The information regarding the delay in the accounts was covered openly and honestly in the RNS issued on 1 July. Indeed, it was the main subject in that RNS.

[shalder] 27/7/2022 13:12

Totally agree your comments, especially re the manner of putting this out buried in an AGM announcement.

[florence141414] 27/7/2022 12:59

It’s certainly possible. I cut half my position this morning. If it was just that they paid a dividend without filing accounts, then I wouldn’t be so concerned. It’s the combination of that with the previous announcement of accounts on a specific date, subsequent cancellation of that announcement only a few days later, no new date given and hinting today that they are unlikely to be out by the AGM on the 19th. I’m not sure but I believe that would only leave them 12 days until they would have to ask for an official reporting extension. I also don’t like that this was hidden in an RNS titled 'Notice of Annual General Meeting' makes it seem like they were trying to slip the bad news by us. It’s a shame because operationally they seem to be going gangbusters. I expect that when we finally do get results for FY22 we’ll see profits around the 8-10m mark with guidance that FY23 is on course to be even better. I would certainly buy back in if the market gets jittery when it realises just how late these accounts are likely to be.

[shalder] 27/7/2022 12:01

Is there a bit of a corporate governance issue going on here? See AGM announcement.

[cwa1] 21/7/2022 18:43

Kleinwort adding:- https://www.investegate.co.uk/braemar-shipping--bms-/rns/holding-s--in-company/202207210933072942T/

[cwa1] 13/7/2022 07:29

Clarkson update released this morning... Trading Update Clarkson PLC, the world's leading provider of integrated shipping services, today announces that trading in the first half of the year has been strong and, as a result, the Company is expecting to report unaudited underlying profit before tax for the six months to 30 June 2022 of not less than £42million. Performance has been strong across all divisions, with the Broking division, which has a market-leading position in nearly all the key shipping sectors, performing particularly well. While mindful of macroeconomic conditions, the Board nevertheless remains confident in the outlook for the business and expects results for the year ending 31 December 2022 to be materially ahead of its previous expectations. The Company will publish its Interim results on Monday 8 August 2022.

[2vdm] 07/7/2022 07:40

Good luck. I'm holding, albeit at a loss. Bought in too early, but feel happy for the medium term as the world starts to recover.

[cwa1] 06/7/2022 09:34

Must be completely bonkers-but I've decided to have a few of these this morning. Fingers crossed...

[edmundshaw] 06/7/2022 08:00

The market says... nothing. It's a market. Famously personified as Mr. Market by Benjamin Graham to describe the irrational and contradictory aspects "he" displays on frequent occasions.

[1knocker] 04/7/2022 10:50

The comentatators say one thing, the market says something else. How does an investment in Braemar compare with an investment in just about any other shipping stock? I have been making out like a bandit on Star Bulk Carriers which I bought late last year.. Huge quarterly dividend and volatile enough to trade in and out to get the capita invested down without missing a divi.

[edmundshaw] 04/7/2022 10:30

Deferring of results again is not great news, and I can understand some people might panic. But the trading update alongside the deferral looks very positive. Braemar is slowly changing along with the board. I am hopeful we will have good results. The outlook plus four months of good H1 performance for the current year is not to be sniffed at. I added on the dip.

[1knocker] 04/7/2022 10:15

What a complete dog Braemar is. I topped up at 234 last October and sold that tranche at 279 last month. Why oh why did I not have the sense to get rid of my entire holding?

[cwa1] 21/6/2022 17:23

Increase in holding just announced:- https://www.investegate.co.uk/braemar-shipping--bms-/rns/holding-s--in-company/202206211700556949P/

[1knocker] 25/5/2022 22:18

BMS is a dog.Nothing seems to move the share price up, and the dividend is not great either. I am making out like a bandit on Star Bulk Carriers (up 35% since my purchase late last year, and the current divi is over 35% pa of my purchase price. Zim is going great guns too. The market seems to have no confidence in BMS. It may have analysts talking of £4, but will it even make £3? History is against it holding such a level, even it reaches it. If we get any decent spike up, I'm out. Probably ought just to take the medicine and flog it now. Better prospects elsewhere. Sorry to pour cold water, but realism is all in investing.

[grahamburn] 25/5/2022 18:17

The Edison initiation of coverage is well worth reading in full............ https://www.edisongroup.com/publication/ambition-to-double-size-in-four-years/30929/

[tole] 25/5/2022 17:53

https://masterinvestor.co.uk/equities/quick-small-cap-catch-ups-bms-sur-and-saa/Braemar Shipping Services (LON:BMS) – 400p a share valuationThe leading international shipbroking group employs some 360 people across the globe, operating from 14 offices for both its shipbroking and its financial divisions.It is enjoying strong trading and is currently operating ahead of management expectations.Towards the end of next month, we will see the group declare its results for the year to end February.On Monday of this week Edison Investment Research initiated coverage of the group, which by now you must have realised, is one of my favourites.Andy Murphy, the Edison analyst, is looking for revenues to have fallen from £111.8m to £101.1m for the last year.Pre-tax profits, however, could well have ended the year up from £8.1m to £8.7m, worth 20.8p (20.0p) in earnings but with a leap in the dividend from 5.0p to 7.0p per share.For the current year to end February 2023 he sees £105.2m revenues, a much better £11.5m profit, with earnings leaping to 27.9p and even a 2p lift in dividend to 9.0p per share.What really encourages me about Edison's new coverage is that they are valuing the group's shares at a 45% premium to the current 275p in the market.So, a 400p valuation tag underlines my continued enthusiasm for the company and its shares.Could they be a short-term purchase just ahead of the figures to be announced in a few weeks?Whatever you do as a holder, just stay firm.

[cwa1] 23/5/2022 16:02

https://www.edisongroup.com/publication/ambition-to-double-size-in-four-years/30929/ Valuation: DDM model suggests 400p/share Braemar is trading on a P/E of 10.1x in FY23e, a material discount to the only other quoted shipbroker, Clarkson, which trades on c 18x in FY22e. We believe such a large differential is unjustified as it gives no credit for the growth ambition and proven ability to execute, suggesting upside in Braemar’s rating. We value Braemar at 400p/share based on a dividend discount model (DDM) with a 7.25% cost of capital and a growth rate of 5.5%. This valuation implies a P/E of c 17x, a c 5% discount to Clarkson, and a terminal growth rate of c -5% in our DCF model. Furthermore, we believe there is upside to earnings forecasts and the potential for a re-rating of the shares, which would suggest a higher valuation than 400p is possible if management can successfully deliver the growth strategy.

[cwa1] 20/5/2022 07:17

20 May 2022 Update on current trading and publication of full year results for the year ended 28 February 2022 Braemar Shipping Services Plc (LSE: BMS), a leading international Shipbroker and provider of expert advice in shipping investment, chartering and risk management services, is pleased to confirm that it expects underlying operating profit* for the financial year ended 28 February 2022 ("FY22") to be in line with the board's previously upgraded expectations of at least GBP9.8m (FY21: 7.7m). Trading in the new financial year is strong and the Group is benefitting from both its increased scale and the current favourable market conditions. Current trading is well ahead of the board's previous expectations set at the start of the new financial year, with the result that underlying operating profit for the year ended 28 February 2023 is now expected to be not less than GBP12m against existing market consensus of GBP10m. As a result of the strength of current trading, positive outlook and confidence in its growth strategy, the board now expects to recommend a final dividend of 5p per share for FY22 making a total of 7p for the financial year (FY21: 5p per share). The board now expects to release its full audited results for FY22 in the latter half of June 2022, to allow time for the Group's auditors to complete their work including in particular the audit work on the sale of Cory Vertom which was completed just prior to the year end. Further details of the results publication will be provided in due course.

[1knocker] 19/5/2022 10:53

That should be good for us anyway. Ripping off the MOD is like taking sweets from a child. We might as well have our share of the spoils.

[cwa1] 19/5/2022 07:20

Interesting announcement with the announcement of a 7 year contract with the MOD:- https://www.investegate.co.uk/braemar-shipping--bms-/rns/braemar-signs-contract-with-ministry-of-defence/202205190700130071M/

[cwa1] 17/5/2022 07:20

Notice of Retail Investor Presentation Braemar Shipping Services Plc (LSE: BMS), a leading international Shipbroker and provider of expert advice in shipping investment, chartering, risk management and logistics services, is pleased to announce that James Gundy, CEO and Nick Stone, CFO will provide a live presentation relating to the Group's preliminary results for the year ended 28 February 2022 via the Investor Meet Company platform on 26 May 2022 at 1:00pm BST. The online presentation is open to all existing and potential shareholders. Investors can sign up to Investor Meet Company for free and meet Braemar Shipping Services PLC via: https://www.investormeetcompany.com/braemar-shipping-services-plc/register-investor Investors who already follow Braemar Shipping Services PLC on the Investor Meet Company platform will automatically be invited. Questions can be submitted pre-event via the Investor Meet Company dashboard until 9am the day before the meeting or at any time during the live presentation.

[1knocker] 14/5/2022 00:13

The problem is that we and analysts have been saying that this is seriously undervalued for ages, but it shows no sign of re-rating. It seems to possible to make money on just about any shipping stock save Braemar.