Braemar Plc (LSE:BMS), a provider of investment, chartering, and risk management services for the shipping and energy sectors, reported a decline in revenue and profit for the first half of FY2026, as challenging market conditions and currency headwinds weighed on results.
The company expects H1 revenue to be around £63.8 million, down 16% from £76.0 million in the same period last year. Underlying profit before acquisition-related costs is projected at £5.5 million, compared with £8.0 million in H1 2025, a 31% decrease.
Braemar attributed the weaker results to lower chartering rates, geopolitical volatility, and a significantly weaker US dollar. However, it highlighted that its diversified business model helped mitigate some of these challenges, with solid performances in both the Investment Advisory and Risk Advisory divisions.
“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,” said James Gundy, Group CEO of Braemar.
Despite the first-half challenges, the company maintained its full-year outlook, noting signs of an improving market environment. Its forward order book remained strong at $73.8 million at the end of August 2025, down from $80.9 million a year earlier, and strengthened further in September.
Braemar also reported that chartering rates have improved at the start of the second half, particularly in Tankers, and sale and purchase activity is increasing. The company expects its performance to be weighted toward the second half, consistent with historical trends.
Net debt stood at £5.6 million at the end of August 2025, up from £2.5 million at the end of FY2025, following completion of a £2.0 million share buyback program.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply