Firstly, let me thank UK Value Investor for bringing Braemar Shipping Services (LON:BMS) to my attention, here and here. After my own research, I decided to add some to my high-yield sub-portfolio and attended their AGM on 22nd June to learn more.

See Braemar's annual report for details. Braemar's business comprises four areas of operation: i) Shipbroking, ii) Technical Services (Warranty services, Marine Consultancy, Vessel surveys etc), iii) Logistics & Environmental (Pollution control, salvage etc).

 

Investment metrics

What attracted me to the business, as an investor, is an attractive yield, backed by a strong earnings track record and sound balance sheet. Here is a summary snapshot of some key investment metrics (you should DYOR as the figures may not be up to date):

BMS

2010/11

2011/12f

Share price (p)

468.0

 

Shares in issue (m)

21.1

 

Mkt cap (£m)

98.7

 

Turnover (£m)

126.1

127.0

EPS (p)

47.4

48.2

P/E

9.9

9.7

NTAV (£m) 

32.0

 

NTAV/share (p)

151.8

 

Net cash (£m)

25.6

 

Cash/share (p)

121.3

 

Dividend (p)

26.0

26.3

Yield

5.6%

5.6%

ROCE

19.7%

 

Year End

28th February

2011/12 figures are based on current broker consensus forecasts. Braemar has no bank debt.

I hold BMS within my high-yield sub-portfolio, as I believe it will offer a solid yield and a measure of inflation protection. Note that Braemar has so far continued to produce strong profits throughout the GFC (Global Financial Crisis). Founding directors continue to have "skin in the game" with around 12% of the shares between them.

AGM - General

The AGM, on 22nd June, was well attended, with around 20 shareholders present. I was pleased to see that well known poster "AliceInWonder1" was also there…

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