UK shipbroker Braemar has made a strong return to the London Stock Exchange after a four-and-a-half-month suspension.
The London shop applied for a trading halt on 3 July after missing a financial reporting deadline as it examined legacy broking deals.
The Financial Conduct Authority said in a filing on Tuesday that the stock would be restored from 0730 GMT.
The stock jumped to £2.68 ($3.36) in early trading, up 15%.
The share had closed at £2.33 on the last day before the suspension, 16% down from £2.79 before the announcement of the probe in June.
The share had gone as low as £2.20 on 26 June, the day it announced the investigation.
Braemar was trading at £2.42 a year previously.
Last week, the brokerage finally published its annual results and revealed the cost of the “complex” probe.
This ultimately focused on a review of several transactions between 2006 and 2013.
“The board and the group have acted promptly to address the process and control areas that were identified as requiring improvement, including taking key remedial actions and the necessary steps to comply with the group’s legal and regulatory obligations,” the London shop added.
Unsettled commissions
The deals were described as “primarily historical unsettled commissions payable”.
A provision of £2m ($2.5m) has been made. Of this, £1.7m related to unsettled commissions recorded in 2017 upon completion of the relevant contracts, which originated in 2013.
Even now, Braemar cannot say “with certainty” what the final outcome will be in respect of these obligations.
But the provision is “the current best estimate of the amount required to settle the obligations”, it added.
A one-off cost of £2.5m will be reported in the current financial year regarding the investigation.
