London-listed shipbroker Braemar Shipping Services is expecting a big jump in earnings as most shipping markets continue to thrive.
The company has followed a positive trading update in September with another one this month ahead of its half-year results in November.
Bosses continue to be encouraged by the delivery of the broker's growth strategy and the resulting improved performance of the group.
Underlying operating profit for the six months to 31 August should come in at about £6.9m ($9.44m), well ahead of the £5.6m logged in the same period last year.
This is due to "the strength in depth and diversification of the group's shipbroking service lines, together with the general strength in many of the group's shipbroking markets," the James Gundy-led company said.
The earnings figure excludes specific acquisition and disposal related items but includes the operating profits of logistics arm Cory Brothers, which is classed as a discontinued operation in preparation for its planned joint venture with Vertom.
Healthy environment
The group said the overall trading environment continues to be positive.
The full-year forecast to 28 February 2022 is for operating profit of £10.8m, against £8.9m in the previous 12 months.
This is 15% ahead of the board's previous guidance.
The board expects to declare a £0.02 dividend per share for the first six months, after reintroducing payouts this year.
The company's forward orderbook has increased in the first half of the year and is expected to close at $56m, compared with the $43m logged at the end of February, Braemar had said in September.
Braemar beat market consensus and its own forecasts with net profit of £5.1m in the year to 28 February, against £4m in the previous 12 months.
Revenue dipped to £111.8m from £117.6m, but it booked a £2.2m profit on selling half its stake in LNG and LPG consultancy AqualisBraemar in the period. The rest of the shares were sold later in 2021.
