Braemar Plc “Remarkably low valuation on strong trading” says Gervais Williams

Braemar plc (LON:BMS) is the topic of conversation when Co Fund Manager Gervais Williams of Premier Miton Investors caught up with DirectorsTalk for an exclusive interview to discuss the UK listed market and some of his holdings in Miton UK MicroCap Trust plc.

DirectorsTalk asked: Moving on to the perhaps lesser-known world of shipping and shipbroking. Braemar plc has  just released a very impressive trading update, could you tell us a bit more about the company?

Gervais Williams said:

It’s involved in shipbroking, it’s like stockbroking, when you need a ship to transport oil and other products, they can book the ships for you. It’s a very specialist market, the UK leads the world in this area.

The key about Braemar is that it’s actually gone through transition with a new leadership where it’s taking market share. It’s made some acquisitions and it’s got a much more significant global footprint. Although it’s trading pretty well, it’s had some pretty strong trading statements in the last 12 months, it’s valuation is still standing at a remarkably low level. We think that its cash generation is going to be quite strong in the next few years so it’s absolutely the kind of stock we would love to have in the MINI trust.

In Edison’s latest company research dated 4 April 2023, it noted:

The strong full year trading update confirms that Braemar is in a good position to capitalise further on robust markets and management action taken over the last two years. The debt-free balance sheet leaves Braemar well-positioned to drive its future growth strategy, as previously outlined. The trading outlook is promising and Braemar should be able to leverage its strong balance sheet in pursuit of strategic growth. We have raised our FY24 and FY25 estimates but retain our DDM-based 520p per share valuation.

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