Braemar (BMS) H1 2025 earnings summary

Executive summary

• Revenue increased 1% year-over-year to £76.0 million, reflecting resilience from business diversification and strong performance in securities and investment advisory.

• Underlying operating profit before acquisition-related items rose 5% to £7.9 million, with operational leverage and operating costs up just 1%.

• Statutory profit before tax nearly doubled, up 89% to £3.6 million, due to lower exceptional items.

• Interim dividend increased 13% to 4.5p per share, reflecting confidence in outlook and a progressive dividend policy.

• Strategy focused on talent acquisition, geographic expansion, and M&A continues to deliver, with diversification and recent acquisitions enhancing resilience.

Financial highlights

• Investment advisory revenue grew 19% to £14.8 million, driven by strong sale and purchase activity.

• Risk advisory (securities) revenue up 16% to £11.5 million, now 15% of group revenue.

• Chartering revenue declined 5% to £49.8 million due to weaker tanker performance, offset by higher average commissions and longer voyage durations.

• Sale and purchase revenues increased 25%, while corporate finance remained subdued.

• Revenue per head remained strong at £181,000, slightly down from £184,000 year-over-year.

Outlook and guidance

• Management remains confident for the full year, citing a strong forward order book and positive market outlook for the next five years.

• Forward order book at end of August was $80.9 million, up 20% year-over-year, with $28 million expected to land in the second half.

• Market conditions remain healthy, with a strong forward order book of $85.8 million as of 30 Sep 2024.

• On track to meet FY25 market expectations: revenue £152.7 million, underlying operating profit £17.8 million.

• Pipeline of complementary acquisitions under active consideration.