UK shipbroker Braemar is heading for its best-ever profit after a strong year in shipping markets.
The London-listed shop said on Wednesday that its underlying operating earnings for the 12 months ended 28 February will be at least £20m ($24.5m), against £10.1m a year ago.
“The board is delighted to announce that Braemar has achieved record revenue and record profitability for the financial year,” the company said.
Braemar expects revenue to be not less than £150m, up from £101.3m in the previous annual period, as it follows a simplified strategy of focusing on shipbroking and finance following non-core divestments.
Cash generation has also been strong, and net cash should come in at £6.9m as of 28 February.
The company had net debt of £9.3m a year ago.
The cash figure is after paying for the $14m cash and shares takeover of broker Southport Maritime in the US and the recruitment of the Medco tanker team in Madrid, both in December.
“Trading in the first few weeks of the financial year has started well and the board looks forward to the rest of the year with confidence,” Braemar said.
Directors are recommending a dividend of eight pence per share, up from seven pence last year.
Together with the interim dividend of four pence, this is a 33% rise from the 2022 financial year.
Full results will be announced by the end of May.
In February, Braemar beefed up its securities operation with a new oil derivatives desk.
The decision to set up the operation was spurred by growing client demand, the London-listed company told TradeWinds.
The service will be led by new recruit Rebecca Reed-Sperrin, who was poached from Marex Spectron in January.
In December last year, the group also grew its Athens office by adding a corporate finance desk.
