Braemar Shipping Interim Results

Financial highlights include:

• Revenue from continuing operations $109.6m (2007: $74.1m), a rise of 48% (23% excluding acquisitions)
• Pre-tax profit from continuing operations $15.6m (2007: $11.3m), up 38% (18% excluding acquisitions)
• Basic EPS from total operations 33.51p (2007: 23.66p), up 42%
• Increased interim dividend of 8.5p per share (2007: 8.00p)
• Strong balance sheet with cash of $17.6m and no debt

Operational highlights include:

• Wide mix of shipping operations offsets downturns in particular markets
• Non-broking activities now make up 20% of operating profits before central costs
• Strong performance driven by development in technical services (marine services, marine engineering services, loss adjusting), and energy-based activities
• Braemar Steege (specialist loss adjuster) acquired in March 2008 and performing well

Market Overview points:

• Recent turmoil presents opportunities to build business further
• Probable slowdown in ordering of new ships and possibility of some cancelled orders
• Demand for iron ore in likely to see some recovery after the recent slow down
• Energy related activity businesses seeing continued market strength

Commenting on the results and outlook, Sir Graham Hearne, Chairman, said: “Our strategy remains to position the Group as a leading player in a selective range of marine and shipping services. We believe this will provide the Group with resilience to weather adverse conditions and a platform from which we can take advantage of suitable opportunities. Unprecedented economic events have introduced uncertainty but we remain cautiously optimistic about the future.”

Alan Marsh, Chief Executive, said “Despite the market this is a set of record results for Braemar which gives us confidence that our expectations for the full year out-turn will be met. Careful operational and financial management has resulted in a strong cash position with no debt and an increased dividend payment to shareholders.”