Braemar profits slip despite strong showing from shipbroking unit

Braemar now expects underlying pre-tax profits to come in somewhere between £6.8m and £7.2m, below the £7.7m recorded in its trading year that ended on 28 February 2018.

The AIM-listed group said its shipbroking unit had performed well over the second half, with divisional profit set to top expectations, but noted that its Naves' subsidiary had seen profit fall below expectations despite an extremely active year.

However, Naves had built-up an "extensive" pipeline of mandated business and retainer income which was expected to stand the company in good stead over the coming year, with expectations at the time of the acquisition set to be exceeded.

According to management, its technical division was continuing to experience "challenging conditions", with the board now working on a structural change to the unit, and its logistics division, Cory Brothers, had traded "robustly" and was now expected to deliver profits in line with market expectations.

Looking forward, Braemar said the outlook for the current trading year was positive, with its shipbroking division continuing to "trade strongly" and a solid performance in the group's financial division as its "extensive pipeline of business" materialises.

As of 1300 GMT, Braemar shares had dipped 0.15% to 164.75p.