London shipbroker Galbraiths pushed up operating earnings for 2021 as it reduced salary costs, a filing has revealed.
The latest annual report at Companies House showed net profit for the year dropped to £2.99m ($3.7m), from £4.48m in 2020.
But the company, which has since tied up a merger with Swiss broker Ifchor, was boosted by a gain of £4.4m in 2020 after it exited a defined pension scheme.
Revenue was down slightly at £15.6m, from £17.5m, due to lower shipping rates impacting commissions.
Director Edward Royle noted more efficient cost control had driven a notable increase in operating income to £3.36m, from £1.52m the year before.
Administrative expenses fell to £12.2m, against £16m.
Wages and salaries were pushed down to £7.1m, from £10.4m in the previous year.
Galbraiths is paying no dividend, as in 2020.
Royle noted a healthy cash position at year-end of £7.85m, down from £9.2m in 2020.
“The company has significant resources to continue developing the business,” he added.
The director said 2022 got off to a good start, with revenue and earnings increasing.
S&P improving
“The markets continued to be unpredictable for all sectors. However the sale and purchase (S&P) market has shown an underlying improved strengthening, which the company is well positioned to take advantage of,” he added.
The broker is still looking to grow market share from London and its overseas offices.
The aim is to also smooth market volatility by focusing on more long-term income streams, it said.
The 2021 growth of S&P, newbuilding and time charter forwards books should be reflected in future results, the company believes.
Royle, writing in August, said so far no adverse effects had been experienced from the pandemic or the war up to that point in 2022.
The pension scheme was offloaded to Galbraith Holdings.
The shipbroker called the pension a “legacy” provision. The transfer will avoid the need for further provisions in the future, it added in last year’s report.
At the start of 2020, the scheme showed a liability of £5m.
