Braemar Shipping Services Plc (LON:BRMS) has, once again, demonstrated the efficacy of its acquisition programme of the past few years. While earnings look set to plateau in the immediate future due to the ongoing challenging trading conditions, the group has the financial ability to sustain its investment strategy and continue group development. We have trimmed our estimates.
Profits In Line
Braemar’s underlying FY16 pre-tax profits are in line with our estimates, rising from an adjusted £11.2m to £13.4m. The two principal positives were the strong tanker market, which boosted shipbroking income, while Braemar Engineering earned substantial fees on a major LNG consultancy contract. Other businesses responded positively to challenging trading conditions. EPS rose 9% to 34.7p, providing 1.3x cover for an unchanged dividend of 26.0p.
To read the entire report Please click on the pdf File Below