Braemar Shipping Services is still seeking a chief executive after the retirement of James Kidwell last July.
But the UK company, the parent of broker Braemar ACM Shipbroking, has promoted chief financial officer Nick Stone to group chief operating officer to help fill the gap. Stone, who joined last April, will retain his finance brief.
Executive chairman Ron Series will continue in the top management role.
"I congratulate Nick on this well-earned appointment, and look forward to his continuing the significant contribution that he has made to the group since his appointment as group finance director," said Series.
He added that the board requested that I take on the executive chairman job on an interim basis, as Braemar works to define its future structure and direction.
"It has always been the board’s intention to appoint a new CEO when the time is right and we will update shareholders when there is progress in this matter," he said.
Back in black
On Tuesday, the London-listed company announced a net profit of £4m ($5m) for the fiscal year ending on 29 February, against a loss of £27.4m in the previous 12 months, when it was hit by discontinued loss-making offshore, marine and adjusting businesses.
Revenue grew to nearly £121m from £118m over the same period.
The shipbroking performance was described as "excellent", with underlying operating profit of £11.7m up 26% from last year.
Despite the Covid-19 pandemic changing the outlook, Series said: "We have started this year positively, particularly in shipbroking, with current trading well supported by a strong forward order book and we look forward to the future with cautious optimism."
A new office in Athens has helped grow the business, Braemar said.
The forward orderbook has grown from $43m at 1 March 2019, to $50m on the same date this year, and has been added to since.
Shipbroking revenue increased 9% to £82.4m, largely driven by the tanker desk, particularly in the second half of the year, but all desks had a good year, the company said.
"The tankers desk had its best year in recent times and despite uncertainty and volatility within the market delivered a strong increase in revenue," Braemar said.
Tanker team expanded
The VLCC team increased its market coverage and is at the forefront of the ever-growing Chinese and Indian markets, the outfit added.
"We are well-placed to continue to grow in these regions, having offices in Singapore and India to serve these markets," the company said.
Braemar has added new brokers to the refined product and aframax team, which also generated new business, and it is continuing to look for opportunities to add to other areas.
Financial division Braemar Naves had a "disappointing" year, however.
Although it remained "very active", revenue fell from £7m in 2019 to £5.9m due to lower levels of transaction-related fees.
Operating profit was £1.1m, down from £2.1m.
The business made good progress with retainer-based advisory fees, particularly in the restructuring advisory space and the number of mandated clients has continued to grow, it added.
No more divestments
Braemar logistics company Cory Brothers underwent a year of restructuring and cost management that delivered increased profits at £1m, from £0.8m in the prior year.
This is despite revenue that fell 9% to £29.3m.
The strategic review of the division has concluded that "in the current market, taking into account the probable impact of the Covid-19 pandemic, the opportunities potentially to be provided by Brexit, and the likelihood of some consolidation within the agency market, our investment in Cory Brothers should be maintained".
Braemar will look to expand Cory's operations in the UK after reduced operating costs and improving its technology base.
It hopes the company can provide "a platform from which to participate in possible consolidation within the industry and to grow this business in future years".
Looking ahead, the broker said it is still too early to determine the full impact of the coronavirus outbreak.
"Although current trading is not yet showing any further evidence of decline, we believe it will be some time before we are able to know the full effects with confidence," Braemar added.
"We expect the market to remain volatile for the rest of the year, and for the shipbroking division to continue to win business and grow market share during this period, as we continue to invest in our people and to expand into areas of opportunity."
For Braemar Naves, the current disruption in the value of shipping portfolios, particularly in the cruiseship market, offers additional opportunities for growth for its strategic and restructuring advice.
