London-listed shipbroking group Braemar has unveiled the final part of its corporate restructuring strategy as it chases a doubling of earnings by 2025.
The company said its separate operations such as Braemar ACM Shipbroking and finance arm Braemar Naves are being brought together into a single brand identity under the Braemar name.
The “integrated and streamlined” corporate strategy focuses on shipbroking and corporate finance, and a commitment to invest in decarbonisation.
Over the last 18 months, Braemar has divested all its non-core engineering and logistics assets, invested in leading digital technologies, expanded its global footprint, and added more staff.
Chief executive James Gundy told TradeWinds that the idea was always to bring Braemar back to its core shipbroking and finance operations.
“This is just highlighting the end of this cycle of the strategy, pushing out there that here we are as a revitalised business again, back to its core basics,” he said.
“We are feeling like we’re in a strong place. It was time for rebranding and launching a new website to get everyone feeling very positive about the situation.”
Gundy explained that he and chief operating officer Tris Simmonds are working very closely together on where the company wants to get to.
After reducing debt, he said “this is the final hurdle we want to achieve”.
Braemar believes the shipping market is growing in complexity as environmental regulation and economic necessity combine to increase the importance of the expert advice that Braemar provides.
Climate change pledge
The broker also pledged to invest to facilitate “climate-smart” shipping.
Braemar said it is the only shipping services company to publicly align its environmental, social and corporate governance (ESG) framework with four of the 17 United Nations Sustainable Development Goals.
Gundy said: “It takes expertise and experience to secure sustainable returns and mitigate risk in the volatile world of shipping.
“From the Energy Efficiency Design Index (EEDI) and the EU’s Emissions Trading System to sanctions and ship recycling, there’s no shortage of challenges ahead for our clients. For our experienced, expert team this presents a huge opportunity – financially, socially, and environmentally.”
In May, Braemar said its underlying operating profit is expected to be at least £12m ($15m) in the 12 months to 28 February 2023.
Guidance for the previous year that ended in February 2022 remained at £9.8m or above, slightly higher than consensus, following its March update. These results are due in the next few weeks.
Simmonds told TradeWinds that the new move is a big step towards drawing group companies together under one brand, “a known brand in the space that people are used to dealing with”.
“All of the different entities that have come into Braemer over the years, it’s time to unite it all under one name, instead of Braemar ACM, Braemar Atlantic, Braemar Naves,” he said.
The plan is to create a unified internal culture.
“This is where we are now,” Simmonds said. “We may have been something slightly different in the past, but we’ve sorted out all of our space now, and we’ve got huge buy-in from all the staff. It’s a really positive step for us I think.”
Gundy said: “The strategy was sorting the business out. We’ve done that and more, now it’s about building things.”
The company is still listed in London under the name Braemar Shipping Services, but he added that this could also be changed down the line.
