UK shipbroking group Braemar Shipping Services is expecting annual profit to beat market expectations following strong trading.
The London-listed company said underlying earnings are forecast to be £9.8m ($12.9m) in the 12 months to 28 February, slightly above consensus.
Its full results will be released on 25 May.
“The board is delighted with the performance of the business for the financial year and looks to the future with confidence,” Braemar said in a trading update.
The strategy to expand the business has allowed the company to take advantage of strong market conditions, the statement added.
“The group has traded well throughout the year,” the broker said.
The strong operating performance and the sale of logistics division Cory Brothers will cut net debt from £8.9m on 28 February to below £3m.
The board expects to pay a final dividend of 4 pence per share, giving a total of 6 pence for the year, up from 5 pence in the previous 12 months.
Braemar said its compliance with sanctions put in place as a result of the Russian war in Ukraine is not expected to have any material effect on trading.
Trading has started strongly
“Trading at the beginning of the new financial year has started strongly, with the group benefiting from both increased scale and generally favourable market conditions,” the company said.
A deal to sell Cory Brothers was announced on 1 March.
The buyer is Vertom Cory Holdings for a price of between £10.25m and £15.5m, spread over three earn-out periods ending on 31 December 2024.
The all-cash deal will see a first payment of £6.5m, and three more instalments based on future profit.
The disposal marked the end of Braemar’s strategy of simplifying its services to focus on shipbroking under chief executive James Gundy.
