Braemar Shipping Services (LSE:BMS) PLC announced an increase its dividend for the year to end-February 2022 and raised its profit forecast for the current financial year on the back of strong trading and favourable market conditions.
Current trading is well ahead of its previous expectations, the international shipbroker said in a trading statement. It now expects underlying operating profit for the year to 28 February 2023 to be not less than £12mln, compared with market forecasts of £10mln.
Underlying operating profit for the financial year ended 28 February 2022 will be in line with the company’s previously upgraded expectations of at least £9.8m (FY21: 7.7m), it said.
“Trading in the new financial year is strong and the group is benefitting from both its increased scale and the current favourable market conditions,” Braemar said.
As a result of the strength of current trading, positive outlook and confidence in its growth strategy, the company intends to recommend a final dividend of 5p per share for FY22, making a full-year total of 7p, up from 5p the year before.
Braemar said it aims to release its FY22 results in the latter half of June to allow time for its auditors to complete their work, including in particular the audit on the sale of Cory Vertom, which was completed just prior to the year end.
Shares were up 1.89% at 270p midmorning, having risen as high as 282p in opening trade.