Braemar – a disappointing Trading Update, the shares could just hang fire for some while yet, a reluctant Hold at 243p, brokers TP 320p

Mark Watson-Mitchell
Sep 28
3 min read

Mark Watson-Mitchell – 29.09.2025

Last Thursday morning, the £74m-capitalised Braemar (LON:BMS) issued a trading update for the six months to end-August, stating that its first-half revenue is expected to be approximately £63.8m (£76.0m).

Underlying profit before acquisition-related expenditure is anticipated to be around £5.5m (£8.0m).

Net debt at the end of August 2025 increased to £5.6m (£2.5m), following the completion of a £2.0m share buyback.

The group's forward order book remains strong at $73.8m ($80.9m).

It is worth noting that the total forward order book covers revenue that will be earned in future periods up until 2039.

The board's expectations for the full year remain unchanged.

The Business

Braemar declares that it provides expert advice in shipping investment, chartering, and risk management to enable its clients to secure sustainable returns and mitigate risk in the volatile world of shipping.

The group’s experienced brokers work in tandem with specialist professionals to form teams tailored to its customers' needs, and provide an integrated service supported by a collaborative culture.

Management Comment

CEO James Gundy stated that:

"We have made good progress with our strategic priorities and continue to benefit from the resilience of our diversified business model.

Our solid H1 performance was achieved despite a challenging trading environment, ongoing weaker chartering rates and competition for talent across the industry.

Looking ahead, the market fundamentals continue to be robust, and the Group remains in a strong position to take advantage of opportunities.

Our forward order book is strong and improving, and charter rates, particularly in Tankers, have increased since the start of H2, underpinning our confidence in the full year outlook.

We remain focused on delivering our long-term strategic plan."

Brokers View

Analyst Damian Brewer, at Canaccord Genuity Capital Markets, rates the group’s shares as a Buy, with a 320p Target Price.

For the current year to end-February 2026, he is estimating group sales will fall to £133.2m (£141.9m), with adjusted pre-tax profits falling to £11.5m (£14.6m), easing earnings to 23.1p (29.9p), while paying out a maintained 7.0p per share dividend.

For the 2027 Trading Year, he goes for a rebound to £142.7m sales, £14.0m profits, 28.3p earnings and keeping that 7.0p dividend.

The year to end-February, Brewer reckons, could see £160.0m sales, £18.5m of profits, 37.3p of earnings and an increased dividend of 8.7p per share.

My View

I am very disappointed with my Braemar selection, even though they have been as high as 342p since I first selected the shares in December 2019, then at 185p. they reacted to Covid a few months later, when I reselected them @ 99p in May 2020.

Despite that substantial 245% increase in five and a half years, I remain disappointed because the promoted promise of profits performance has not ensued.

I like the business, its global coverage, and its potential – but on recent performance, I am unhappy with the group’s ability to adjust rapidly to its environment.

Talk of better rates in the Trading Update last week goes against the messages that I am seeing from within the shipping sector generally.

I feel that we could see this share price 'treading water'