Braemar Shipping Services (Braemar) has reported a hefty boost in profits, powered by rising revenues and a strong order book, as it looks to massively expand its operations.
The international shipbroker also simplified its operations during the 12 months of trading up to February 2022, launching a new growth strategy centred on shipbroking and corporate finance.
Its full year results reveal that the group enjoyed a 21 per cent rise in revenues from continuing operations to £101.3m, alongside a 31 per cent increase in underlying operating profits, which climbed to £10.1m from £7.7m last year.
The company’s order book has increased 15 per cent to £42.7m, while cash flow from operating activities spiked 61 per cent to £20.5m.
Braemar has also announced separately today that trading during the first five months of the current financial year has been very strong, benefitting significantly from the strength of the US dollar.
As a result, the outturn for the current financial year is expected to be well ahead of the board’s previous expectations with underlying operating profit expected to be not less than £20.0m.
It has also disposed of of non-core investments in AqualisBraemar, Cory Brothers, and Wavespec.
Meanwhile, underlying earnings per share increased 100 per cent, with final dividend of 7.0p per share recommended to reflect the strong cashflow and confidence in the business.
The total dividend for the year has been finalised at 9.0p per share (2021: 5.0p)
Braemar’s core ambition is to double the size of the business through strategic hires and acquisitions in refocused areas of business.
It believes that scale has become increasingly important within our industry to service the needs of its clients and to provide the group with enhanced geographical and product diversification.
This is key to reducing the impact of cyclical markets, and to create further cost efficiencies.
James Gundy, Group Chief Executive Officer of Braemar, said: “I am extremely proud of the performance of the Group in my first full year as Group Chief Executive Officer. The strong trading results are testament to the hard work and dedication of our team and to our clear and focused strategy, delivered by a united new board and management team. Our achievements this year have been a huge collaborative effort, and our team spirit positions us well for future growth.”