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Braemar benefitting from ACM merger, still looking to expand

Braemar benefitting from ACM merger, still looking to expand
Braemar Shipping Services has stated it is still looking to expand, as its full year 2014 results show a boost in revenue and underlying profit, although the bottom line was hit by one-off restructuring costs.

The company ended its 2014 financial year GBP5.4m ($8.3m) in the red, as one-off costs relating to its restructuring and merger with ACM were recorded. Setting aside those costs, the underlying profit for the year was up 21% to GBP11.3m, and revenue increased 16% to GBP145.8m.

For the second half of the year, where the two companies were combined, a profit was reported GBP4.2m, this represents a 27% improvement on the GBP3.3m earned by the two separate companies in the preceding year. Half of the company's $58m forward order book relates to the coming year, and overall the forward orderbook has grown by 5%.

The drop in the price of oil had a negative effect on the offshore desk which was outweighed by an increase in activity for the tanker desk, the largest of Braemar's four shipbroking teams. VLCCs and suezmax tankers had a particularly strong second half of the year, as rates exceeded those seen for the previous five years.

“Our objective is to build the Braemar brand to be the most valued provider of knowledge and skill based services to the shipping and offshore markets on a global basis," said James Kidwell, chief executive of Braemar Shipping Services. "The merger with ACM, developing stronger broking teams globally, has been a significant step in this direction, but it is far from the last. We will continue to look to expand in all divisions.”