Braemar Shipping Services PLC AGM Trading Update (9134I)
June 22 2017 - 8:10AM
UK Regulatory
TIDMBMS
RNS Number : 9134I
Braemar Shipping Services PLC
22 June 2017
BRAEMAR SHIPPING SERVICES PLC
("Braemar", "the Company" or "the Group")
22 June 2017
AGM Trading Update
At the Annual General Meeting of the Company to be held at 2pm
today, James Kidwell, the Company's Chief Executive, will make the
following statement:
I am pleased to report that, albeit against a disappointing
comparative period for last year, trading profit for the Group for
the first quarter of the current year to February 2018, has
improved. While revenues were lower, as expected, profitability
improved as the benefit of the cost savings measures taken last
year were realised.
Shipbroking
Trading for the first quarter in the Shipbroking division has
been good and results show a significant improvement on the prior
year's equivalent performance. The tanker desk, the largest sector
of Braemar's Shipbroking business, has achieved improved trading
volumes despite lower freight rates. Our sale and purchase and
projects desks have started the year strongly and, most pleasingly,
we have concluded some significant newbuilding and long term
project business which will benefit future years. The dry cargo
desk has shown a marked improvement in performance reflecting its
recovering market. Our Offshore desk is ahead of the prior year
with some increase in activity although the offshore market remains
low due to asset over-capacity.
Technical
The first quarter's performance of the Technical Services
division shows a modest improvement against prior year. Solid
revenue in the incident led businesses (including Loss Adjusting,
Marine and Response) have offset a lower performance in Offshore
and Engineering which are mainly influenced by energy related
projects. However, the effect on profitability of lower project
income is much reduced by the cost savings measures we took last
year. Over the last few months there have been stronger signs of
project related activity as evidenced by the volume of new tenders
in the market. Conversion of these opportunities into income will
take time, but the overall market picture is more encouraging than
it was twelve months ago.
Logistics
Revenue in the Logistics division is in line with prior year
equivalent although there has been some margin degradation due to
the business mix.
Outlook
Whilst the improved performance at this early stage of the
financial year is encouraging, our end markets remain challenging.
Accordingly, the Board's expectation for the year as a whole
remains unchanged. The Group is well financed with a strong balance
sheet and we continue to actively seek opportunities to invest in
complementary activities which will augment our service offering
and deliver long term growth.
The Group will release its interim results for the six months
ending 31 August 2017 on Monday 23 October 2017.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, contact:
Braemar Shipping Services
James Kidwell, Chief Executive Tel +44 (0) 20 3142
4100
Louise Evans, Finance Director Tel +44 (0) 20 3142
4100
Stockdale Securities
Robert Finlay / Antonio Tel +44 (0) 20 7601
Bossi / Henry Willcocks 6100
Buchanan
Charles Ryland / Victoria Tel +44 (0) 20 7466
Hayns / Stephanie Watson 5100
Notes to Editors:
About Braemar Shipping Services plc
Braemar Shipping Services plc is a leading international
provider of knowledge and skill-based services to the shipping,
marine, energy, offshore and insurance industries. Founded in 1972,
Braemar employs approximately 850 people worldwide across its
Shipbroking, Technical and Logistics divisions.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, visit www.braemar.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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