Seven months of trading from recently acquired ACM Shipping boosted Braemar Shipping's (BMS) shipbroking business nicely last year. The deal involved £6.2m in exceptional costs - which explains the drop-off in pre-tax profits - but operating profits in the shipbroking division soared 27 per cent in the second half. Chief executive James Kidwell says it's "hard to judge" whether a 5 per cent improvement in the forward order book can also be attributed to the merger. But he's adamant "there's more to come" from the newly combined businesses.
Last year's oil price squeeze left operating profits 13 per cent lower in the group's technical division. Mr Kidwell says the outlook remains challenging for the offshore department, but he points out that oil price volatility "works both ways" for diversified businesses such as Braemar. Bumper oil production - a main driver of the low oil price - has also left tanker freight rates at an eight-year high.