Braemar (LON:BMS): A Decade of Growth for Shareholders

As an investor, you're always on the lookout for companies that can deliver consistent returns. One such company that has caught my eye is Braemar Plc (LON:BMS), a leading provider of investment, chartering, and risk management advice to the shipping and energy markets. Over the last five years, Braemar's shareholders have earned a compound annual growth rate (CAGR) of 10%, a testament to the company's strong performance and growth strategy.



So, what has driven Braemar's impressive shareholder returns? Let's dive into some key factors:

1. Diversification: Braemar has expanded its operations across various shipping and energy markets, including dry cargo, deep sea tanker, specialised tanker, sale and purchase, offshore, and renewables. This diversification has helped the company mitigate risks associated with relying on a single market and has contributed to its steady growth.
2. Revenue Growth: Braemar's revenue has grown significantly over the past five years. In the last reported year (FY24), revenue was £152.9 million, up from £101.3 million in FY22. This growth can be attributed to the company's expansion into new markets and acquisitions, such as Southport Maritime and Madrid Tanker desk.
3. Acquisitions: Braemar has made strategic acquisitions that have contributed to its growth. For instance, the acquisition of Southport Maritime Inc. and Madrid Tanker desk has performed well in their first full year as part of the Group, realizing opportunities and benefits of being part of Braemar's global business.
4. Forward Order Strength: Braemar's forward order has strengthened throughout the year, standing at $82.6 million as at 29 February 2024, 47% higher than the $56.2 million as at 28 February 2023. This indicates that the company has a strong pipeline of future business, which contributes to its earnings growth.
5. Dividend Growth: Braemar has consistently increased its dividends over the past five years. In FY24, the final dividend was 9.0 pence per share, up from 4.0 pence per share in FY20. This dividend growth has contributed to shareholders' overall earnings.



Braemar's strategy of providing investment, chartering, and risk management advice to the shipping and energy markets has driven its shareholder returns through a combination of revenue growth, cost control, and strategic acquisitions. The company's strong performance over the last five years is a testament to its ability to adapt to market conditions and capitalize on opportunities.

As an investor, it's essential to stay informed about companies like Braemar that have a proven track record of delivering consistent returns. By understanding the key factors driving their growth, you can make more informed decisions about your portfolio and potentially benefit from their success. So, keep an eye on Braemar Plc (LON:BMS) and consider adding it to your watchlist or even your portfolio.