Braemar Shipping BMS Half Yearly Report

  Braemar Shipping (BMS) - Half Yearly Report

RNS Number : 7944P
Braemar Shipping Services PLC
30 October 2012




                                      

                        BRAEMAR SHIPPING SERVICES PLC



30 October 2012

  

      Unaudited interim results for the six months ended 31 August 2012

                                      

                                      

Braemar Shipping Services plc  ("Braemar", "the Company"  or the "Group"),  an 
international  provider  of  shipping,  marine  and  energy  services,   today 
announces unaudited half-year results for the six months ended 31 August 2012.



      FINANCIAL HIGHLIGHTS

· Revenue from continuing  operations up by 29%  to £79.4 million  (interim 
2011/12: £61.5 million)

· Pre-tax profit £5.2 million (interim 2011/12: £5.0 million)

· Pre-tax profit before amortisation of acquisition related intangibles and
non-recurring income up by 27% to £6.1 million (interim 2011/12: £4.8 million)

· Basic EPS 17.70p (interim 2011/12: 17.60p)

·  EPS  before   amortisation  of  acquisition   related  intangibles   and 
non-recurring income up by 26% to 21.06p (interim 2011/2012: 16.76p)

· Interim dividend of 9.0p per share unchanged (interim 2011/12: 9.0p)

· Cash of £17.3 million (31 August 2011: £9.3 million) and no debt



Sir Graham Hearne, chairman of Braemar, said:



"Braemar has delivered a strong  first half performance in tough,  competitive 
markets, with  each of  the  divisions performing  well  and making  a  strong 
contribution.



Seaborne trade remains strong  and is likely to  continue to grow, though  any 
significant recovery in shipping markets is unlikely in the near term. We have
a broad range  of international shipping  and energy services  which equip  us 
well to respond to future challenges."

                                      

                                     ENDS

For further information, contact:

Braemar Shipping Services
 James Kidwell        Tel +44 (0) 20 7535 2881
 Martin Beer          Tel +44 (0) 20 7535 2650
Pelham Bell Pottinger
 Damian Beeley        Tel +44 (0) 20 7861 3139

 Zoe Pocock           Tel +44 (0) 20 7861 3961
Elaborate Communications
 Sean Moloney          Tel +44 (0) 1296 682356
Westhouse Securities
 Henry Willcocks      Tel +44 (0) 20 7601 6115





Notes to editors

Braemar Shipping Services plc is a leading international provider of  broking, 
consultancy, technical, logistics and other  services to the shipping,  marine 
and energy industries. The business is organised into the following segments:
Shipbroking, Technical, Logistics and Environmental.



It is  listed  on the  Official  List of  the  London Stock  Exchange  in  the 
Industrial Transport sector.



Principal businesses:



Shipbroking

Braemar  Seascope  provides  chartering,  sale  and  purchase  and  consulting 
shipbroking services to  international ship owners,  charterers and  financial 
institutions operating in the tanker, gas, chemicals, offshore, container  and 
dry bulk  markets. The  company  has shipbroking  offices  in the  UK,  China, 
Australia, Singapore, India and Italy.



www.braemarseascope.com



Technical

Braemar Technical  Services provides  a range  of specialist  services to  the 
marine, energy and  insurance industries. The  principal business arms  within 
the division are:



Braemar Adjusting - provides loss adjusting and other expert witness  services 
to the  energy (oil  and  gas), marine,  power  and other  related  industrial 
sectors. It has  offices in  London, Houston,  Singapore, Calgary  and Rio  de 
Janeiro.



Braemar Offshore -  provides specialised marine  and offshore services  mainly 
performing pre-risk  marine  warranty  surveys.  It has  offices  in  the  UK, 
Australia, China, India, Indonesia, Malaysia, Singapore, Thailand and Vietnam.



Braemar incorporating  The Salvage  Association  ("Braemar SA")  -  undertakes 
vessel damage surveys and provides marine consultancy to the shipping, energy,
offshore and insurance industries. The Salvage Association was acquired in May
2011 and it has a network of offices in Asia, Europe and the United States.



Braemar  Engineering  -  provides  consultant  marine  engineering  and  naval 
architecture services  to  the  shipping and  offshore  markets  from  offices 
throughout the Far East  and London. It was  expanded with the acquisition  of 
Braemar Casbarian in July 2011 which provides consulting engineering  services 
mainly to the  offshore industry in  the Gulf  of Mexico from  offices in  New 
Orleans, Houston and Trinidad.



www.braemar.com



Logistics

Cory Brothers Shipping  Agency provides  port agency,  freight forwarding  and 
logistics services in the UK and Singapore.



www.cory.co.uk



Environmental

Braemar Howells provides pollution response and advisory services primarily in
the UK, New Zealand and Africa. It has earned an international reputation  for 
its work for the insurance industry  in handling the containers from  stricken 
vessels - the MSC Napoli in 2007 and the MSC Rena which is on-going.



www.braemarhowells.com





            INTERIM ANNOUNCEMENT - SIX MONTHS ENDED 31 AUGUST 2012

                                      

                             CHAIRMAN'S STATEMENT



Results

Braemar has delivered a  strong first half  performance in tough,  competitive 
markets.



Group revenues increased by 29% to £79.4 million from £61.5 million last  year 
and underlying pre-tax profits (excluding amortisation of acquisition  related 
intangibles and a non-recurring gain in the first half of last year) increased
by 27% to £6.1  million compared with £4.8  million. Reported interim  pre-tax 
profits were £5.2 million (interim 2011/12: £5.0 million).



Underlying earnings  per share  (before  amortisation of  acquisition  related 
intangibles and a  non-recurring gain)  rose by  26% to  21.06p compared  with 
16.76p last year. Reported  earnings per share  were 17.70p (interim  2011/12: 
17.60p).



Trading

All  divisions  made  a  strong  contribution  and  have  performed  well.  Of 
particular note has been the important  work undertaken by Braemar Howells  in 
handling the cargo from the stricken container ship "MSC Rena" in New  Zealand 
which has earned  many plaudits in  the industry and  was responsible for  £15 
million of revenue  in this half.  We have played  a key role  for the  vessel 
owner and  insurer  in  safe-guarding  the  environment  while  working  in  a 
sensitive area  often  in difficult  conditions.  Braemar Howells  has  proved 
itself to be  the trusted partner  of choice to  handle such incidents  having 
fulfilled a similar role in  2007 off the coast  of southwest England for  the 
"MSC Napoli".



The shipping industry continued to struggle with a surplus of tonnage in  most 
sectors. This  was  not helped  by  a weaker  rate  of growth  in  most  large 
economies, especially those in  the Far East which  in recent years have  been 
the engine for shipping demand. However,  the process of market correction  is 
underway as is evident in  the acceleration of demolition. Shipbroking  income 
has benefitted from increased spot chartering  volumes in the main tanker  and 
bulker sectors,  offset by  the weaker  average freight  rates. The  sale  and 
purchase market was relatively quiet as values have continued to fall and  the 
availability of bank  finance remains a  constraint, though our  share of  the 
activity, particularly in demolition, has been good.



Braemar Technical  Services is  beginning to  show its  growth potential.  The 
disciplines it offers are being marketed jointly and are increasingly used  in 
collaboration, especially  on  larger  energy projects.  We  are  involved  in 
several significant energy projects and have seen high activity in South  East 
Asia, Australia and Canada.  Ship surveying and  loss adjusting services  have 
performed solidly and have opportunities to grow.



Our Logistics division -  Cory Brothers - has  grown its ship agency  business 
substantially both in the  UK and Singapore,  including winning a  substantial 
new hub management contract.  Logistics activity was  lower compared with  the 
strong prior first half and the  Olympics were less beneficial than  expected, 
but prospects are good.



Directors

As announced at the AGM,  James Kidwell took over  as chief executive in  June 
2012 having  been finance  director since  2002, and  Alan Marsh  and  Quentin 
Soanes stepped down from the board on 31 July 2012 with both remaining  active 
in the  Group. Subsequently,  Martin  Beer has  joined  the board  as  finance 
director from 15 October 2012.



Dividend

The board has declared an unchanged interim dividend of 9.0 pence. The interim
dividend will  be paid  on Friday  14  December 2012  to shareholders  on  the 
register at the close of business on Friday 16 November 2012.



Outlook

The work  on "MSC  Rena" is  beginning  to wind  down and  is expected  to  be 
complete by the end of the financial year.



Collectively the Shipbroking, Technical  and Logistics divisions are  expected 
to continue broadly at their first half rate of activity for the remainder  of 
the year.



Seaborne trade remains strong  and is likely to  continue to grow, though  any 
significant recovery in shipping markets is unlikely in the near term. We have
a broad range  of international shipping  and energy services  which equip  us 
well to respond to future challenges.



Sir Graham Hearne CBE

Chairman

29 October 2012



                    CHIEF EXECUTIVE'S REVIEW OF ACTIVITIES



I am  delighted  to have  taken  over as  chief  executive having  enjoyed  10 
exciting years as finance director during which Braemar grew significantly  in 
size, geographical spread and through  the acquisition and development of  new 
profitable services. The strategy for the Group remains unchanged - we aim  to 
grow our  international  shipbroking,  shipping, marine  and  energy  services 
businesses and expect to do so organically and by acquisition.



Over the past few years shipping has become increasingly competitive as  fleet 
growth has outstripped demand resulting in a steady fall in vessel values  and 
freight rates. While seaborne trade remains strong, owners' earnings are under
extreme pressure and there is now a "survival of the fittest" mentality  which 
inevitably leads to a focus on strategies to improve efficiency.



Braemar's role in this market is often to recognise opportunities and  provide 
solutions for  our  clients.  We  do this  across  each  of  our  shipbroking, 
logistics, engineering,  surveying and  environmental consulting  disciplines. 
The Group's broad capabilities  have served our  clients and our  shareholders 
well over this period.



Shipbroking

Revenue of £24.2 million in the first half was similar to the same period last
year (£24.0 million) and interim divisional operating profit was £2.9  million 
compared with £3.5 million last  year (divisional operating profit is  defined 
as operating  profit before  amortisationof acquisition  related  intangibles, 
non-recurring items and central costs and is consistently used throughout  the 
divisional review).  We  are investing  across  the division  in  our  people, 
systems, research  and  analytical functions  which  will ensure  that,  in  a 
changeable market, Braemar remains at the forefront in the efficient provision
of client service.



The global dry bulk fleet grew by 9%  between 1 January and 1 October 2012  as 
newbuilding deliveries exceeded demolition. The rate of scrapping has  notably 
increased with the  2011 full-year  equivalent volume  scrapped in  2012 by  1 
September. Demand for large bulk cargoes - iron ore, coal and grain - is still
growing and likely to continue  to do so for  some time. However, the  cooling 
Chinese economy has  meant that  the growth  in steel  production has  slowed, 
leaving  iron  ore  inventories  at  relatively  high  levels.  A  number   of 
high-profile iron ore production projects have been scrapped or delayed as the
price of ore has fallen  close to the cost of  production and for most of  the 
period the  smaller  vessels have  out-earned  the Capesize  sector  which  is 
particularly responsive to the  iron ore trade.  Nevertheless the majority  of 
our dry cargo broking  teams are based  in the East  and their performance  in 
this market has been good.



Our deep sea tanker  teams have performed well  in the first half  benefitting 
from a  steady  growth in  single  voyage transaction  volumes.  Time  charter 
business is low with charterers and owners reluctant to commit in the  present 
climate, but  there  are  some signs  that  the  level of  client  enquiry  is 
beginning to increase.



The net global fleet growth in deep sea tankers was 3.5% between 1 January and
1 October 2012 reflecting  the newbuilding delivery peak  in 2012. Exports  of 
crude oil  from the  Arabian  Gulf have  continued to  grow  and much  of  the 
increase is destined for the East where domestic consumption has been  growing 
fast. To meet  this demand new  refining capacity is  being developed in  Asia 
which will have an increasing effect on trading patterns. The USA's dependency
on  imported  crude  is  declining   mainly  because  of  lower   consumption, 
improvements in fuel efficiency, changes in supply patterns and the growth  of 
domestic production. However, the significant production from West Africa  and 
South America allows  owners to  triangulate and  improve their  returns in  a 
market affected by a surplus of tonnage.



Our specialised tanker team  has performed consistently with  a good level  of 
longer-term contract  business,  mostly with  European  clients whom  we  have 
served for many  years. Braemar Quincannon  (our Singapore and  Shanghai-based 
joint venture) has  performed steadily in  the far eastern  gas and  chemicals 
markets that they serve.



LNG  transportation  is  set  to  expand,   both  for  voyage  and  for   term 
requirements, with both existing production and new project development on the
increase. Our team is making in-roads in this emerging sector particularly  as 
we are able to provide both commercial and technical shipping advice.

The global container market remains a challenging environment with a fight for
market share  among the  large lines  against the  backdrop sluggish  consumer 
demand. We have been building our teams in London and Singapore in preparation
for a cyclical recovery.



Vessel values and newbuilding  prices have continued to  slide in the  tanker, 
bulker and container sectors,  although the rate of  descent has slowed  quite 
significantly. Second  hand  activity  remains  relatively  low  but  we  have 
concluded a high share of business in  the thin market. Yard order books  have 
shortened considerably and pricing is expected to become keener in their quest
for new  orders. Unsurprisingly  demolition activity  has been  brisk and  the 
steel price has been relatively  firm. We play an  active role in this  market 
for a wide range of clients.



In a steady market our offshore vessel desk has seen increased earnings during
the past  six months.  Business  in the  Far East  is  increasing and  we  are 
actively expanding our presence in that region, while at the same time we have
been successful  in  concluding term  business  in East  Africa.  The  outlook 
continues to be positive, driven by strong E&P activity.



Technical

Braemar Technical Services grew its first  half revenue to £19.1m from  £15.5m 
last year which resulted in the  divisional operating profit rising to  £1.7m, 
56% higher than last year. The  growth came substantially from our  activities 
in the Far East where our Offshore, Engineering and Surveying businesses  were 
all extremely busy. We are involved  in a number of long-term offshore  energy 
projects in the  Asia Pacific  region, providing marine  warranty surveys  and 
engineering consulting and  have set up  a new office  in Thailand to  further 
penetrate this market. It is expected that the energy related activity in the
Asia Pacific region will continue to experience growth in the years to come.



Braemar Salvage Association, our vessel damage survey arm, which was  acquired 
in May 2011, has performed in line with our expectations. It has expanded  our 
technical services office network  considerably and we are  now able to  offer 
our full range  of services across  all key geographies.  Braemar SA has  also 
worked in collaboration with Braemar Howells on the MSC Rena.



Braemar  Adjusting  has  performed  steadily  without  benefitting  from   any 
significant client claim incidents  in the period. Our  office in Calgary  has 
been considerably more active on work in  the tar sands region and the Rio  de 
Janeiro office is picking up new offshore business.



Braemar Engineering is involved in  plan-approval work for several LNG  vessel 
construction projects, which would normally  lead to site supervisory work  in 
due course. Offshore  engineering work  in the Gulf  of Mexico  has been  more 
limited than expected which has constrained Braemar Casbarian's activities  in 
that area, although its work in Trinidad has continued well.



Logistics

Cory Brothers  reported first  half revenues  of £18.9  million compared  with 
£19.7 million in the prior half and divisional operating profits were  similar 
at £1.1 million (2011/12:  £1.1 million). Our UK  and Singaporean ship  agency 
businesses have  performed  well and  gained  market share.  Recently  we  won 
several important new customers including  the award of a multi-year  contract 
to manage a  European hub  for a  large oil company.  This is  a testament  to 
Cory's systems and ability to service big international clients.

The Logistics performance was a little lower than last year because the  prior 
period included  a  high-level  of one-off  project  forwarding  business.  In 
addition the impact of the London Olympics  on the cruise business was not  as 
beneficial as originally thought, or for  the logistics arm where some  client 
activity was temporarily  re-focused. Nevertheless our  logistics business  is 
busy with a number of interesting projects in development.

Environmental

Braemar Howells' work in dealing with the distressed and sunken cargo together
with cargo debris washed ashore from the stricken container ship MSC Rena  has 
been a key  contributor to the  divisional result. Revenues  of £17.3  million 
compared with  £2.3 million  in  the previous  half and  divisional  operating 
profits of £2.0 million compared with a break-even position last year.  Nearly 
all of this growth is attributed to the MSC Rena project. We are recognised as
being highly experienced  in providing environmental  support services in  the 
marine environment, particularly by the insurance industry, for which we  play 
a vital role in containing the cost of a claim.

The environmental business has  a regular flow of  business from customers  on 
retainer contracts and the provision of consulting services. Periodically  the 
response team will be engaged in the management of a serious incident, as  has 
been the case in New Zealand over  the past 12 months. Our involvement is  now 
winding down and is likely to be completed by the end of this year.

The division's  return  on  capital,  since  acquisition  in  2006,  has  been 
extremely good although the incident-driven nature of the business means  that 
its year-on-year earnings profile is volatile.



Foreign exchange

The majority of the Group's income is US$ denominated and the average rate  of 
exchange for conversion of US$ income in the six months to 31 August 2012  was 
$1.57/£ (interim 2011/12: $1.61/£,  full year 2011/12:  $1.60/£). The rate  of 
translation as at 31 August 2012 was $1.59/£.

Taxation

The effective underlying rate of corporate  tax on profits was 28.6%  (interim 
2011/12: 28.6%). The rate is higher  than the UK standard rate of  corporation 
tax due to disallowed expenses and the mix of overseas profits.

Cash flow

Cash balances were £17.3 million at 31 August 2012 compared with cash of  £9.3 
million at 31 August 2011 and £17.5 million at 29 February 2012. Conversion of
profits into operational cash flow was high due to better collections  arising 
from a particular focus  on areas in which  payments have traditionally  been 
slow  and  because   the  mix   of  business   favoured  quicker   conversion. 
Discretionary capital expenditure in  the Group was  low with net  acquisition 
payments totalling £0.3  million in  respect of  a time  charter forward  book 
(Orca  Shipping  Limited)  and  £0.4  million  expended  on  property,  plant, 
equipment and computer software.

Principal risks

The directors consider that the  principal risks and uncertainties that  could 
have a material  effect on the  Group's performance are  unchanged from  those 
identified on page  15 of the  2012 Annual Report.  These include market  risk 
arising from changes in freight rates, vessel values or activity levels in the
shipping market; operational risks  including ineffective internal systems  or 
controls, loss of key management  and staff, professional errors or  omissions 
and the failure of support services such as communications systems and  public 
utilities; foreign exchange  risk from  fluctuations in  the value  of the  US 
dollar; liquidity  risk arising  from funding  requirements; and  credit  risk 
leading to the non-payment of invoices.

Capital management

The Group has held  positive cash balances  and no debt  for nearly 10  years. 
This approach provides a  level of security for  our services businesses  over 
the shipping  cycle and  enables  the Group  to  take advantage  of  strategic 
acquisition opportunities.  Capital  consists  of  ordinary  shares,  retained 
earnings and cash and  the group also has  an undrawn bank overdraft  facility 
for £8.0  million.  The  board monitors  underlying  business  performance  to 
determine the ongoing allocation of capital for executive and staff  incentive 
schemes, acquisition  appraisals  ahead of  potential  business  combinations, 
investment in  property,  plant  and  equipment  and  the  level  of  declared 
dividends.





James Kidwell

Chief Executive

29 October 2012



Statement of Directors' responsibilities



The directors  confirm, to  the best  of  their knowledge,  that this  set  of 
consolidated interim  financial information  has been  prepared in  accordance 
with IAS34 as adopted by the  European Union, and that the interim  management 
report herein includes a fair review of the information required by DTR  4.2.7 
and DTR 4.2.8 of the Disclosure and Transparency rules of the United Kingdom's
Financial Securities Authority.



The directors  of Braemar  Shipping Services  PLC are  listed in  the  Braemar 
Shipping Services PLC Annual Report for 29 February 2012.





By order of the board















J. R. V. Kidwell, Chief Executive

Braemar Shipping Services plc

Consolidated Income Statement

                                         Unaudited      Unaudited      Audited
                                     Six months to  Six months to   Year ended
                                       31 Aug 2012    31 Aug 2011  29 Feb 2012
Continuing operations          Notes         £'000          £'000        £'000
Revenue                          4          79,355         61,521      133,474
Cost of sales                             (26,989)       (15,685)     (36,922)
Gross profit                                52,366         45,836       96,552
Operating costs
Operating costs excluding
amortisation of other
intangible assets                         (46,412)       (41,176)     (85,806)
Non-recurring income and
expense                         11              -            991           69
Amortisation of other
intangible assets                            (918)          (760)      (1,458)
                                          (47,330)       (40,945)     (87,195)
Operating profit                 4           5,036          4,891        9,357
Finance income                                 104             46          213
Finance costs                                 (45)           (10)         (32)
Share of profit after tax from
joint ventures                                  88            102          252
Profit before taxation                       5,183          5,029        9,790
Taxation                         5         (1,485)        (1,441)      (2,888)
Profit for the period                        3,698          3,588        6,902
Attributable to:
Equity holders of the parent                 3,678          3,555        6,841
Non-controlling interest                        20             33           61
Profit for the period                        3,698          3,588        6,902
Earnings per ordinary share      6
Basic - pence                               17.70p         17.60p       33.84p
Diluted - pence                             16.82p         17.26p       32.53p







Consolidated Statement of Comprehensive Income

                                         Unaudited      Unaudited      Audited
                                     Six months to  Six months to   Year ended
                                       31 Aug 2012    31 Aug 2011  29 Feb 2012
                              Notes          £'000          £'000        £'000
Profit for the period                        3,698          3,588        6,902
Other comprehensive income /
(expense)
Foreign exchange differences on
retranslation of foreign operations          (386)            536          341
Cash flow hedges - net of
tax                                           (36)           (83)         (70)
Total comprehensive income
for the period                               3,276          4,041        7,173
Attributable to:
Equity holders of the parent                 3,256          4,008        7,112
Non-controlling interest                        20             33           61
Total comprehensive income
for the period                               3,276          4,041        7,173

Braemar Shipping Services plc

Consolidated Balance Sheet

                                          Unaudited  Unaudited    Audited
                                              As at      As at      As at
                                          31 Aug 12  31 Aug 11  29 Feb 12
Assets                             Notes      £'000      £'000      £'000
Non-current assets
Goodwill                                     30,451     30,200     30,416
Intangible assets                             2,151      3,221      2,630
Property, plant and equipment                 6,059      6,750      6,257
Investments                                   1,800      1,746      1,895
Deferred tax assets                           1,149      1,650      1,665
Other receivables                               226        236        233
                                             41,836     43,803     43,096
Current assets
Trade and other receivables                  44,890     43,731     46,973
Derivative financial instruments                 95        154        136
Restricted cash                               2,523         -        335
Cash and cash equivalents                    17,311      9,295     17,467
                                             64,819     53,180     64,911
Total assets                                106,655     96,983    108,007
Liabilities
Current liabilities
Derivative financial instruments                 21          -          7
Trade and other payables                     33,991     28,704     36,953
Current tax payable                           1,137      1,579      1,674
Provisions                                      402        305        345
Client monies held as escrow agent            2,523          -        335
                                             38,074     30,588     39,314
Non-current liabilities
Deferred tax liabilities                      1,241        975      1,130
Trade and other payables                          -        550        400
Provisions                                      358        228        325
                                              1,599      1,753      1,855
Total liabilities                            39,673     32,341     41,169
Net assets                                   66,982     64,642     66,838
Equity
Share capital                        9        2,163      2,110      2,160
Share premium                        9       12,079     11,080     12,018
Shares to be issued                         (3,515)    (4,071)    (3,695)
Other reserves                      10       26,242     26,776     26,664
Retained earnings                            29,773     28,555     29,471
Total shareholders' equity                   66,742     64,450     66,618
Non-controlling interest                        240        192        220
Total equity                                 66,982     64,642     66,838

Braemar Shipping Services plc

Consolidated Cash Flow Statement



                                             Unaudited   Unaudited     Audited
                                            Six months  Six months  Year ended
                                             31 Aug 12   31 Aug 11   29 Feb 12
                                     Notes       £'000       £'000       £'000
Profit before tax for the period                 5,183       5,029       9,790
Adjustments for:
- Depreciation of property, plant
and equipment                                      527         619         990
- Amortisation of computer software                 84           -         259
- Amortisation of other intangible
assets                                             918         760       1,458
- Loss on sale of property, plant
and equipment                                        -           -         118
- Non-recurring income and expense
from acquisition and disposal of
businesses                                           -       (991)       (423)
- Finance income                                 (104)        (46)       (213)
- Finance expense                                   45          10          32
- Share of profit of joint ventures               (88)       (102)       (252)
- Share based payments                             497         204         513
Financial instruments                             (11)           -       (120)
Changes in working capital
- Trade and other receivables                    2,126         900     (3,305)
- Trade and other payables                     (3,421)    (13,142)     (3,985)
Provisions                                          75         (5)         172
Cash generated from operations                   5,831     (6,764)       5,034
Interest received                                  104          71         213
Interest paid                                     (45)        (35)        (32)
Tax paid                                       (1,563)     (2,368)     (3,858)
Net cash generated from / (used in)
operating activities                             4,327     (9,096)       1,357
Cash flows from investing activities
Dividends from joint ventures                      187          74          74
Acquisition of subsidiaries, net of
cash acquired                         11         (279)     (2,711)     (3,106)
Purchase of property, plant and
equipment                              8         (384)       (336)     (1,050)
Other long-term receivables                          7           2           5
Net cash used in investing
activities                                       (469)     (2,971)     (4,077)
Cash flows from financing activities
Proceeds from issue of ordinary
shares                                              64           3         991
Dividends paid                         7       (3,537)     (3,421)     (5,233)
Purchase of own shares                           (156)     (1,004)     (1,222)
Net cash used in financing
activities                                     (3,629)     (4,422)     (5,464)
Increase / (decrease) in cash and
cash equivalents                                   229    (16,489)     (8,184)
Cash and cash equivalents at
beginning of the period                         17,467      25,634      25,634
Foreign exchange differences                     (385)         150          17
Cash and cash equivalents at end of
the period                                      17,311       9,295      17,467



Braemar Shipping Services plc

Consolidated Statement of Changes in Equity



                                   Shares
                    Share   Share   to be    Other Retained         Non-controlling   Total
                  capital premium  issued reserves earnings   Total        interest  equity
            Notes   £'000   £'000   £'000    £'000    £'000   £'000           £'000   £'000
At 1 March
2012                2,160  12,018 (3,695)   26,664   29,471  66,618             220  66,838
Profit for
the period              -       -       -        -    3,678   3,678              20   3,698
Foreign
exchange
differences             -       -       -    (386)        -   (386)               -   (386)
Cash flow
hedges net
of tax                  -       -       -     (36)        -    (36)               -    (36)
Total
recognised
income and
expense in
the period              -       -       -    (422)    3,678   3,256              20   3,276
Dividends
paid          7         -       -       -        -  (3,537) (3,537)               - (3,537)
Issue of
shares                  3      61       -        -        -      64               -      64
Purchase of
own shares              -       -   (156)        -        -   (156)               -   (156)
ESOP shares
allocated               -       -     336        -    (336)       -               -       -
Credit in
respect of
share
option
schemes                 -       -       -        -      497     497               -     497
Balance at
31 August
2012                2,163  12,079 (3,515)   26,242   29,773  66,742             240  66,982
At 1 March
2011                2,110  11,077 (3,275)   26,323   28,424  64,659             159  64,818
Profit for
the period              -       -       -        -   3,555   3,555             33   3,588
Foreign
exchange
differences             -       -       -      536        -     536               -     536
Cash flow
hedges net
of tax                  -       -       -    (83)        -    (83)               -    (83)
Total
recognised
income in
the period              -       -       -      453    3,555   4,008              33   4,041
Dividends
paid          7         -       -       -        -  (3,421) (3,421)               - (3,421)
Issue of
shares                  -       3       -        -        -       3               -       3
Purchase of
own shares              -       - (1,004)        -        - (1,004)               - (1,004)
ESOP shares
allocated               -       -     208        -    (208)       -               -       -
Credit in
respect of
share
option
schemes                 -       -       -        -      205     205               -     205
Balance at
31 August
2011                2,110  11,080 (4,071)   26,776   28,555  64,450             192  64,642



BRAEMAR SHIPPING SERVICES PLC

UNAUDITED NOTES TO THE FINANCIAL INFORMATION

FOR THE SIX MONTHS ENDED 31 AUGUST 2012



1. General information

The interim  consolidated financial  statements of  the Group  for the  period 
ended 31 August 2012 were authorised for issue in accordance with a resolution
of the directors on 29 October 2012. Braemar Shipping Services plc is a Public
Limited Company incorporated and domiciled in England and Wales.

The term 'Company' refers to Braemar Shipping Services plc and 'Group'  refers 
to the Company  and all  its subsidiary  undertakings and  the employee  share 
ownership trust. The  address of its  registered office is  35 Cosway  Street, 
London, NW1 5BT, United Kingdom.

These interim  condensed consolidated  financial  statements do  not  comprise 
statutory accounts within  the meaning  of Section  434 of  the Companies  Act 
2006. The audited statutory accounts for the year ended 29 February 2012 have
been delivered to the Registrar of Companies in England and Wales. The  report 
of the auditors on those accounts was unqualified, did not contain an emphasis
of matter paragraph and  did not contain any  statements under Section 498  of 
the Companies Act 2006.



Forward-looking statements

Certain statements in  this half-yearly report  are forward-looking.  Although 
the Group believes  that the expectations  reflected in these  forward-looking 
statements are reasonable, we  can give no  assurance that these  expectations 
will prove to have  been correct. Because these  statements involve risks  and 
uncertainties, actual results  may differ materially  from those expressed  or 
implied by these  forward-looking statements.  We undertake  no obligation  to 
update any forward-looking statements whether as a result of new  information, 
future events or otherwise.



Accounting estimates and critical judgements

Preparation of the Group's financial statements requires the use of  estimates 
and critical  judgements  that  affect  the reported  amounts  of  assets  and 
liabilities, income  and expense.  Management  make specific  applications  of 
judgement, not  involving  estimation, in  the  preparation of  the  financial 
statements, in particular the approach to revenue recognition. Principal areas
where assumptions and estimates have a significant risk of causing a  material 
adjustment to the carrying  amount of assets and  liabilities within the  next 
financial year are  in respect  of the  impairment review  of goodwill,  other 
intangible assets and impairment of trade receivables.



2. Basis of preparation and statement of compliance

This consolidated interim  financial information  for the  half-year ended  31 
August  2012  has  been  prepared  in  accordance  with  the  Disclosure   and 
Transparency Rules  of  the Financial  Services  Authority and  with  IAS  34, 
'Interim  financial  reporting'  as  adopted  by  the  European  Union.   The 
half-yearly  condensed  consolidated  financial  report  should  be  read   in 
conjunction with  the  annual  financial  statements for  the  year  ended  29 
February 2012, which have been prepared in accordance with IFRSs as adopted by
the European Union.



3. Accounting policies

Changes in accounting policies

The  accounting  policies  adopted  in   the  preparation  of  these   interim 
consolidated financial  statements are  consistent with  those of  the  annual 
financial statements for the year ended 29 February 2012, as included in those
annual financial statements.  New standards and  interpretations in issue  but 
not yet  effective  as  at  the  date  of  authorisation  of  these  financial 
statements are deemed  not to have  a material  impact on the  results or  net 
assets of the group.



4. Segmental information

              Shipbroking Technical Logistics Environmental Inter-division   Total
Six months to
31 August
2012                £'000     £'000     £'000         £'000          £'000   £'000
Revenue            24,193    19,129    18,896        17,278          (141)  79,355
Divisional
operating
profit              2,904     1,658     1,075         2,012             -   7,649
Amortisation
of other
intangible
assets              (395)     (415)     (108)            -              -   (918)
Segment
result              2,509     1,243       967         2,012             -   6,731
Unallocated
other costs                                                                (1,695)
Operating
profit                                                                       5,036
Finance
income/(cost)
- net                                                                           59
Share of profit from joint ventures                                             88
Profit before
taxation                                                                     5,183
Taxation                                                                   (1,485)
Profit for
the period
attributable
to
shareholders
from
continuing
operations                                                                   3,698
Segment
operating
assets             41,705    26,020    13,688         2,459             -  83,872
                                                                                 
Six months to
31 August
2011
Revenue            23,951    15,539    19,719         2,312             -  61,521
Divisional
operating
profit              3,535     1,063     1,116            61             -   5,775
Amortisation
of other
intangible
assets              (289)     (374)      (95)           (2)             -   (760)
Non-recurring
income and
expense                -       991        -            -             -     991
Segment
result              3,246     1,680     1,021            59             -   6,006
Unallocated
other costs                                                                (1,115)
Operating
profit                                                                       4,891
Finance
income/(cost)
- net                                                                           36
Share of profit from joint ventures                                            102
Profit before
taxation                                                                     5,029
Taxation                                                                   (1,441)
Profit for
the period
attributable
to
shareholders
from
continuing
operations                                                                   3,588
Segment
operating
assets             42,720    26,806    12,871         1,895              -  84,292



4. Segmental information (continued)

              Shipbroking Technical Logistics Environmental Inter-division   Total
Year ended 29
February 2012       £'000     £'000     £'000         £'000          £'000   £'000
Revenue            49,813    31,954    37,630        14,529          (452) 133,474
Divisional
operating
profit              7,121     1,833     1,888         1,857             -  12,699
Amortisation
of other
intangible
assets              (531)     (838)      (87)           (2)             - (1,458)
Non-recurring
income and
expense             (354)       423        -            -             -      69
Segment
result              6,236     1,418     1,801         1,855             -  11,310
Unallocated
other costs                                                                (1,953)
Operating
profit                                                                       9,357
Finance
income/(cost)
- net                                                                          181
Share of profit from joint ventures                                            252
Profit before
taxation                                                                     9,790
Taxation                                                                   (2,888)
Profit for
the period
attributable
to
shareholders
from
continuing
operations                                                                   6,902
Segment
operating
assets             42,334    25,051    13,575         5,685             -  86,645



Segment assets consist  primarily of intangible  assets (including  goodwill), 
tangible fixed assets,  receivables and other  assets. Receivables for  taxes, 
cash and cash equivalents and investments have been excluded.



5. Taxation

Current tax expense  for the  interim periods  presented is  the expected  tax 
payable on the  taxable income  for the  period, calculated  as the  estimated 
average annual effective income tax rate applied to the pre-tax income of  the 
interim period. Current tax for current  and prior periods is classified as  a 
current liability to the extent that it  is unpaid. Amounts paid in excess  of 
amounts owed are classified as a current asset.

The amount  of  deferred tax  provided  is based  on  the expected  manner  of 
realisation or settlement of  the carrying amount  of assets and  liabilities, 
using tax rates that are enacted or substantively enacted at the balance sheet
date

The Group's consolidated effective tax rate for the six months ended 31 August
2012 was 28.6% (six months ended 31 August 2011: 28.6%, year ended 29 February
2012: 29.5%).



6. Earnings per share

                                   Six months to  Six months to  Year ended 29
                                     31 Aug 2012    31 Aug 2011       Feb 2012
                                           £'000          £'000          £'000
Profit for the period attributable
to shareholders                            3,678          3,555          6,841
                                           Pence          pence          pence
Basic earnings per share                   17.70          17.60          33.84
Effect of dilutive share options          (0.88)         (0.34)         (1.31)
Diluted earnings per share                 16.82          17.26          32.53
Profit for the period attributable         4,376          3,384          7,895
to shareholders before
amortisation of other intangible
assets and non-recurring items
                                           Pence          pence          Pence
Basic earnings per share                   21.06          16.76          39.05
Effect of dilutive share options          (1.05)         (0.33)         (1.51)
Diluted earnings per share                 20.01          16.43          37.54



7. Dividends

The following dividends were paid by the Group:



                                     Six months to  Six months to   Year ended
                                       31 Aug 2012    31 Aug 2011  29 Feb 2012
                                             £'000          £'000        £'000
Ordinary shares of 10 pence each
Final of 17.0 pence per share (2011:
17.0 pence per share)                        3,537          3,421        3,421
Interim of 9.0 pence per share paid              -              -        1,812
                                             3,537          3,421        5,233



The Directors have  declared an  interim dividend  of 9.0  pence per  ordinary 
share, payable  on 14  December 2012  to shareholders  on the  register on  16 
November 2012.





8. Goodwill, other intangible assets and property, plant and equipment

                                             Goodwill, tangible and intangible
                                                                        assets
                                                                          £000
Six months ended 31 August 2012
Opening net book amount at 1 March 2012                                 39,303
Acquisition of subsidiaries (see note
11)                                                                        468
Additions                                                                  384
Depreciation and amortisation                                          (1,529)
Exchange movements                                                          35
Closing net book amount at 31 August 2012                               38,661
Six months ended 31 August 2011
Opening net book amount at 1 March 2011                                 39,596
Acquisition of a subsidiary                                              1,476
Additions                                                                  336
Depreciation and amortisation                                          (1,379)
Exchange movements                                                         142
Closing net book amount at 31 August
2011                                                                    40,171





9. Share capital

                               Number of  Ordinary    Share
                                  shares    Shares  Premium   Total
                             (thousands)      £000     £000    £000
At 1 March 2012                   21,600     2,160   12,018  14,178
Shares issued and fully paid          33         3       61      64
At 31 August 2012                 21,633     2,163   12,079  14,242
At 1 March 2011                   21,096     2,110   11,077  13,187
Shares issued and fully paid           1         -        3       3
31 August 2011                    21,097     2,110   11,080  13,190





9. Share capital (continued)

The Group's ESOP trust  acquired 36,331 of the  company's shares in the  first 
half of the year for £156,000.

During the  six months  ended  31 August  2012 72,750  shares  at a  value  of 
£243,000 that were awarded to  employees in May 2008  as part of the  Deferred 
Bonus Plan (the Plan) were delivered to  them in May 2012 following the  three 
year vesting period. Details of the Plan are disclosed in the annual financial
statements for the year ended 29 February 2012.

In addition,  26,664  shares  at a  value  of  £93,000 that  were  awarded  to 
executive directors  in May  2007  as part  of  the long-term  incentive  plan 
("LTIP") were delivered  to them  in May  2012 due  to performance  conditions 
being met.  Details  of  the  LTIP  are  disclosed  in  the  annual  financial 
statements for the year ended 29 February 2012.





10. Other reserves

                   Capital             Deferred                         Total
                redemption  Merger consideration Translation Hedging     other
Group              reserve reserve       reserve     reserve reserve  reserves
                     £'000   £'000         £'000       £'000   £'000     £'000
At 1 March 2012        396  21,346         (389)       5,209     102    26,664
Cash flow
hedges
- Transfer to
net profit              -      -            -          -   (136)     (136)
- Fair value
gains in the
period                  -      -            -          -      88        88
Foreign
exchange
differences             -      -            -       (386)      -     (386)
Deferred tax on
items taken to
equity                  -      -            -          -      12        12
At 31 August
2012                   396  21,346         (389)       4,823      66    26,242
At 1 March 2011        396  21,346         (389)       4,798     172    26,323
Cash flow
hedges
- Transfer to
net profit              -      -            -          -   (236)     (236)
- Fair value
gains in the
period                  -      -            -          -     120       120
Foreign
exchange
differences             -      -            -         536      -       536
Deferred tax on
items taken to
equity                  -      -            -          -      33        33
At 31 August
2011                   396  21,346         (389)       5,334      89    26,776



All other reserves are attributable to the equity holders of the parent
company.



11. Acquisitions

On 30 April 2012 the Group acquired 100% of the share capital of Orca Shipping
Limited for a total cash consideration of £820,000. Initial consideration paid
was £741,000 satisfied by cash from existing resources. Deferred consideration
of £79,000 is payable within the next year and will be settled wholly in cash.

The  acquired  business   contributed  revenues  and   a  net  profit   before 
amortisation of £49,000  to the group  for the period  from acquisition to  31 
August 2012.

Details of provisional net assets acquired  are set out below. The fair  value 
of the  intangible assets  relates to  the  value of  the forward  order  book 
acquired and customer relationships.

                                          Acquiree's
                                            carrying   Fair value  Provisional
                                              amount  adjustments   Fair value
                                               £'000        £'000        £'000
Cash and cash equivalents                        509            -          509
Intangible assets                                  -          468          468
Receivables                                       36            -           36
Payables                                        (25)            -         (25)
Current tax liability                           (60)            -         (60)
Deferred tax liability                             -        (108)        (108)
Net assets acquired by the Group                 460          360          820
Purchase consideration
- cash paid                                                               741
- deferred consideration                                                   79
Total consideration                                                        820
Outflow of cash to acquire the business,
net of cash acquired:
- cash consideration                                                      741
- cash and cash equivalents in
subsidiary acquired                                                      (509)
Cash outflow on acquisition                                                232



In addition, an  amount of £47,000  was incurred  in the six  months ended  31 
August 2012 in respect of an acquisition from a previous period.

In the six months ended  31 August 2011, the  Group acquired the business  and 
certain  assets  of  BMT  Marine   and  Offshore  Surveys  Limited  from   the 
Administrator, Deloitte,  for  a  cash  consideration  of  £2.4  million.  The 
difference between the  consideration paid and  the fair value  of the  assets 
acquired resulted in a non-recurring gain of £991,000.





12. Related parties



The Group's related parties are unchanged from 29 February 2012 and there have
been no significant  related party  transactions in  the six  months ended  31 
August 2012.



For further information about the Group's related parties, please refer to the
Group's annual financial statements for the year ended 29 February 2012.

INDEPENDENT REVIEW REPORT TOBRAEMAR SHIPPING SERVICES PLC



Introduction

We have been engaged by the company  to review the condensed set of  financial 
statements in the  half-yearly financial report  for the six  months ended  31 
August 2012 which  comprises the consolidated  income statement,  consolidated 
statement of comprehensive  income, consolidated  balance sheet,  consolidated 
cash flow statement, consolidated statement of changes in equity.

We have  read the  other information  contained in  the half-yearly  financial 
report and  considered  whether  it contains  any  apparent  misstatements  or 
material  inconsistencies  with  the  information  in  the  condensed  set  of 
financial statements.

This report is made solely to the company in accordance with the terms of  our 
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the  DTR") of the  UK's Financial Services  Authority 
("the UK FSA"). Our review has been  undertaken so that we might state to  the 
company those matters we are required to state to it in this report and for no
other purpose. To the  fullest extent permitted  by law, we  do not accept  or 
assume responsibility to anyone  other than the company  for our review  work, 
for this report, or for the conclusions we have reached.



Directors' responsibilities

The half-yearly  financial  report is  the  responsibility of,  and  has  been 
approved by, the directors.  The directors are  responsible for preparing  the 
half-yearly financial report in accordance with the DTR of the UK FSA.

As disclosed  in note  2 the  annual  financial statements  of the  group  are 
prepared in accordance with IFRSs as adopted  by the EU. The condensed set  of 
financial statements included  in this half-yearly  financial report has  been 
prepared

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