The restructured financial advisory division of UK shipbroker Braemar Shipping Services is being tipped for a strong year as German activity increases.
Braemar Naves is based in Hamburg, with secondary operations in London and Singapore.
Underlying operating profit was marginally lower at £1m ($1.4m) in the year to 28 February due to an increase in bad debt provisions.
But the company has now been integrated into Braemar's shipbroking division and more than €2.9m ($3.5m) of debt due before the end of December 2022 has been deferred until at least September 2025.
Braemar chief executive James Gundy told TradeWinds it has been a "good thing" to sort these issues out.
"It enables me to think forward," he said. "There is a big synergy between us."
He also believes Hamburg could become a key office for the group: "We are looking to grow that. We have a few ideas in the German region that would increase the Hamburg staff."
Gundy said Braemar Naves has made a good start to the year with deals underway.
"I am very much positive for that business this year," he added.
The company has been very involved in the rampant containership market.
"It's their backyard. It's been great," Gundy said.
"I've seen markets go up and down. I've always believed you strike when the market is down, because you believe it will come back.
"It's definitely coming back. Dry cargo is having a phenomenal time as well."
Greek gains
At the beginning of the financial year, Braemar Naves suffered from a few European financing projects evaporating as Covid-19 took hold.
But the Singapore office concluded the acquisition financing of secondhand vessels by bringing in Japanese lease capital.
The shortfall of European financing mandates was replaced by an unexpected increase in restructuring activity last summer, when two such deals were finalised in Greece.
Later in the year, refinancing activity came back into focus and a large restructuring-related refinancing project was concluded, which had been underway for more than 18 months.
Several clients also bought back and refinanced their loans with German banks, international lenders and private equity funds with the advisory support of Braemar Naves.
In the second half of the year, it diversified further through merger and acquisition business in transshipment, heavylift and ultra-high-power batteries for the maritime and aerospace industries.
"At the very end of the financial year, Braemar Naves managed to take advantage of the boom in container shipping by successfully selling containerships for clients with whom they had previously been involved in the loan restructuring," the group added.
Braemar Naves also helped a long-standing client entering the container leasing market with a large acquisition.
Braemar revealed it has set up a new environmental. social and governance committee led by Nick Stone, chief operating officer and finance director.
This will support individual offices in decarbonisation, but also help industry efforts to develop greener fuel, making sure the transport Braemar gets involved in is less polluting.
