Chinese demand for materials boosts Braemar

15th Jan 2010 13:50

An upturn in world trade in the last six months has been driving improved shipping activity at Braemar, the provider of broking, consultancy, technical and other services to the shipping, marine and energy industries. In an upbeat trading update, the company said it has benefited from a dry bulk market that proved more resilient than many expected in 2009, especially towards the end of the year. The company attributed much of the resilience to demand from China and, to a lesser extent, India.The company said that a number of operators have been scrapping older ships and this has been a boon to the company's broking business, especially in the container and tanker sectors.Although tanker market rates were soft for much of 2009, there has been some improvement in rates in recent months while the group's transaction numbers remain strong. The established Technical, Logistics and Environmental divisions are all performing in line with expectations, the company added.Broker Charles Stanley said the interim management statement underpinned its full year 2010 profit before tax forecast of £13.2m. The broker is forecasting 'a cash balance at the forthcoming year end of £21.9m, the equivalent of 25% of the current market capitalisation.'