Braemar PLC

FY26 revenue was GBP 135.6 million, down GBP 6.3 million or 4% year over year. Underlying operating profit was GBP 13.2 million, down 21%, and underlying EPS was GBP 0.2423, down 23%. Underlying operating margin was 10% for the year, versus 9% in H1 and 11% in H2. Risk Advisory revenue increased 29% to GBP 28.8 million; chartering revenue fell 16%; investment advisory increased by GBP 2 million. Operating cash flow was GBP 12.1 million, year-end net debt was GBP 2.9 million, and the board recommended a final dividend of GBP 0.045 per share, taking the full-year dividend to GBP 0.07 per share, unchanged from last year. Forward-looking, management said the forward order book was $72.5 million at year-end and had risen to just under $78 million by the end of April. They said trading in the first two months of the new year was strong, they expect approval for the European OTF in the first half of this financial year, and they continue to target GBP 200 million of revenue by FY30.

James Gundy framed the last five years as a transformation: simplifying the business, cutting debt, expanding the security business, and building a more diversified platform. He emphasized that Braemar is now less dependent on any one shipping segment and has a broader global footprint, with offices expanding from 14 to 19 and a stronger order book. His tone was confident and reflective, especially as he handed the CEO role to Grant Foley, while stressing he remains active in broking.

Grant Foley said FY26 was resilient and in line with expectations despite weaker chartering rates, especially in the first half. He highlighted revenue of GBP 135.6 million, underlying operating profit of GBP 13.2 million, 10% margin, underlying EPS of GBP 0.2423, and operating cash flow of GBP 12.1 million. He also noted disciplined capital allocation: GBP 1.6 million of dividends paid, GBP 2 million of share buybacks, GBP 4.1 million of shares purchased for the employee share ownership plan, GBP 2.6 million paid to settle convertible loan notes, and GBP 1.9 million paid to settle the independent investigation provision. He said net debt was GBP 2.9 million at year-end and that the group returned to a cash positive position in March.

Analysts asked about sustainability, offshore vessel ordering, staff turnover, leverage discipline around M&A, and whether shares are undervalued. Management said revenue sustainability comes from further diversification within ship broking and securities, while environmental sustainability is addressed through client advisory on vessel purchases. On offshore, they said the market is rebounding and they would expect more activity, though owners are taking their time on newbuilding decisions. On M&A and leverage, they said they remain disciplined but flexible if a deal creates sustainable shareholder value; on valuation, they acknowledged the shares appear undervalued but said small caps remain depressed and institutional interest should improve as the business scales.