Shipbroking group Braemar has appointed a sole corporate broker to help bolster its presence in the stock market and achieve its growth plans.
The London-listed group on Friday said it has hired Canaccord Genuity with immediate effect.
Grant Foley, Braemar’s chief financial officer, told TradeWinds: “We are pleased to appoint Canaccord as our sole corporate broker and believe that they are a great partner to help us achieve the next stage of our exciting growth plans.”
Speaking to TradeWinds in May, CEO James Gundy said Braemar “will continue to invest in our people, offices and technology, while taking advantage of a fragmented shipbroking market to hire and make acquisitions”.
He said Braemar also wants to add to the geographic spread of its activities.
A sole corporate broker acts as a conduit between a company and the markets, monitoring the company on an ongoing basis.
The broker’s role is to identify potential issues and opportunities in financial markets.
Braemar’s share price has risen by almost 8% this year to date. Its shares were trading at £295.50 ($380.83) shortly after the market opened on Friday.
By way of comparison, rival shipbroking group Clarksons has seen a 24% rise in its stock so far. Its London-listed shares were changing hands at £3,905 during early trading on Friday.
Analysts expect Braemar to book an underlying annual operating profit of £18.2m this year, according to consensus estimates. Revenue is expected to be £152.7m.
Net profit for its financial year to 29 February was unchanged at £4.6m, the same as in the previous 12 months. Revenue also matched the prior year’s figure at £153m.
Earlier this month, UK asset management firm Schroders revealed it has taken a 5.1% stake in Braemar, making it the brokerage’s fourth-largest shareholder.
A number of Braemar sale-and-purchase brokers were said to have left the company earlier this month, some of whom are rumoured to have joined rival SSY.
In July, Braemar promoted three London-based company veterans to lead its key tanker business.
