James Kidwell is leaving Braemar Shipping Services at what he sees as a natural breaking point but with some disappointment the company remains undervalued by investors on the London Stock Exchange.
Kidwell’s exit was announced Thursday morning to close the curtain on a career that started with the shipbroker in 2002 as chief financial officer and continued as chief executive after he replaced co-founder Alan Marsh in 2012.
In a wide-ranging interview after the announcement, Kidwell reflected on his highs and lows in the post, his potential next moves and how his exit would allow him more time to follow his daughter’s career as an aspiring opera singer.
A keen cricket fan with ties to Middlesex County Cricket Club, Kidwell joked his departure this month was not linked to the pending start of the Ashes series between England and Australia. But he said stepping away now was good for both parties.
'It’s good for the company and me'
“There is a natural break point now having come to the end of the financial year,” Kidwell said.
Braemar has just held its AGM, the future of the technical business had been resolved with the sale to Aqualis and the board is much changed following the appointment of a new chairman and fresh directors.
“I feel, also having done 17 years at Braemar, now is a good time for me to do something different and for the company to look at things with fresh eyes and fresh impetus. It’s good for the company and me.”
Kidwell, who was 57 at the time of Braemar’s last annual report, revealed the idea of retirement had been on his mind for some time, however, discussions over the specific timing of the move had only begun “relatively recently”.
'Shares under-valued'
Thursday's development has not come as a complete surprise to the London shipping community, with murmurs of a possible exit having grown louder in the past months.
While Braemar has been acquisitive and vocal in its plans for further expansion, critics have regularly pointed at its share price and compared its market capitalisation with rival Clarksons – the company that Braemar’s founders left to set up the business in 1983.
“Right now, the company is under-valued and the share price is not what it should be,” Kidwell said.
“It’s a disappointment to be retiring at a relative low point. But I think all the ingredients exist in the company and in the group to change that quite rapidly.
“I look forward to watching that happen as I think the platform exists.”
Kidwell was at the head of Braemar when it merged with tanker specialist ACM Shipping, a deal he orchestrated with Johnny Plumbe under the code-name “project claret”.
The past couple of years have also seen a move into finance with the takeover of German restructuring specialist NAVES, a push into the futures space following the acquisition of Atlantic Brokers Holdings and this year’s transaction with Aqualis.
Kidwell said the merger and acquisition deals were obvious highlights of his tenure, with his small part in a gas chartering deal with a major UK private company that created a new ship-type for a fresh trade and a long-standing relationship also singled out.
Untapped potential
“I’m really proud of what Braemar is actually. The combination of the divisions we have now, and the interest in Aqualis Braemar, is a very strong one,” Kidwell said.
“There is a lot of untapped potential and [executive chairman] Ron Series and the executive team will, I’m sure, articulate to the market some of what they plan to do in the not too distant future.
“Being a listed company, there are always positives and negatives about that. But one of the great positives is it gives you the ability to do things — buy businesses and to build the business.
“Yes, you have the public search light on you all the time – which is a pressure – but the greater financial flexibility it offers is in my view a good and exciting prospect.”
Kidwell, a former financial director of Boosey & Hawkes Music Publishers, said his immediate plans involved a holiday and watching his daughter perform in a number of concerts.
Future ideas — plural
He said the board position he holds at Oslo-listed AqualisBraemar following the spin-off of much of the technical division is likely to be vacated given it's “a Braemar seat” and described any return to an executive position as “very unlikely”.
“I have got loads of ideas but no plans,” Kidwell said. “One of the things I’m looking forward to doing over the summer is turning those ideas into plans.
“I’m going to take a good long time off and enjoy some time away from work and with the family.
“Who knows what the future holds? At the moment, I’m totally agnostic on where I head.”
He added: “I would favour more plural interests, which may include a charitable organisation.
“At this point I’m not looking for loads of suggestions. I’m going to take some time out and reflect on what I really do want to do next.”
