Braemar Shipping Services said it had been a challenging year, with significant surplus of tonnage in many sectors, as it reported an increase in revenue and maintained its dividend.
Revenue for the year ended 29 February 2012 rose to £133.5m, in line with market forecasts, and compared to £126.1m in 2011. Pre-tax profit fell to £9.8m in the year from £13.2m a year earlier. Analysts had expected pre-tax profit of £11m for the year.
Basic EPS fell to 33.84p from 48.41p while cash at 29 February 2012 declined to £17.5m from £25.6m before. The group maintained its final dividend of 17p per share, giving a full year payment of 26p.
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Commenting on the results and outlook chairman Graham Hearne said, "This has been a challenging year for shipping with a significant surplus of tonnage in many sectors. While activity remained strong, chartering rates and vessel values suffered and shipbroking income fell as a result. However, the Technical, Logistics and Environmental divisions all performed well.
Revenues from the Technical, Logistics and Environmental divisions climbed £19.2m to £83.7m and now represent 63% of total group revenues, up from 51% in 2011.
Looking ahead Braemar said the shipping markets are likely to feel the effects of the tonnage surplus for a few years to come.
"The principal forces working to re-balance the fleet are the continuing growth in demand from Asia for energy and raw materials and the scrapping of older ships. However, the pace of correction is difficult to assess because of the uncertain macroeconomic picture. In this environment shipbroking activity is likely to remain high but with continuing pressure on margins," the group said in a statement.
"Braemar is well-equipped to trade in the competitive and challenging markets," Hearne added.
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