London-listed shipbroker Braemar is evaluating potential deals to grow its business after posting a bigger profit for its first half.
In the six months ended 31 August, the group logged net earnings of £2.1m ($2.7m), against £1.6m in the same period a year ago.
Braemar said the business performed well, with solid growth in the investment and risk advisory segments more than offsetting a weaker chartering division.
The company remains on track to meet its target of doubling 2021’s underlying operating profit on a sustainable basis.
The board said it continues to view the future of the business with confidence and has declared an interim dividend of 4.5 pence per share, up 13% on the same period last year.
Revenue was up at £76m, from £74.9m.
Underlying operating profit rose 9% to £7.3m.
Net cash stood at £3.3m from £3.1m a year ago.
Braemar said its forward order book is “strong” at $85.8m.
There was an increase in average commissions per fixture that offset lower fixture numbers overall, reflecting longer voyage times due to geo-political events impacting fleet availability, the company explained.
Market conditions remain healthy, Braemer added.
Opportunities exist
“Opportunities exist for both organic and inorganic growth with a number of complementary opportunities being considered, and the executive team remains focused on further executing the group’s growth strategy,” the broker said.
Chief executive James Gundy added: “We nevertheless remain disciplined in our approach, ensuring that any acquisitions are complementary and enhance our existing business.”
The CEO added he was delighted with the performance.
“Our strategy has been to build a business that can deliver sustainable profits through a more balanced and diversified shipbroking and securities offering, and this is now evident,” Gundy said.
“As we continue to scale, we remain focused on cost control and efficiencies,” he added.
The group said chartering showed resilience despite being weaker than the prior period, primarily driven by less deep sea tanker activity, although this was partly offset by a strong performance from the offshore desk.
The underlying operating profit for the division was down at £6.1m from £6.4m a year ago.
Total revenue for the sale-and-purchase desk was £14m, up 25% year on year.
Secondhand asset values continued to be strong across all vessel types and newbuilding interest remained high with limited newbuilding slots available, Braemar said.
“Given the high asset values, and demand, activity in the demolition space continued to be weaker,” it added.
