Stockpicker
Braemar is another leading global shipbroker . A September trading update showed revenues increased nearly 50 % over six months , while underlying operating profits were up almost 90 %, demonstrating a positive trend in translating revenues into profits . Substantial US dollar earnings have also contributed to revenue growth . Net debt of around £ 6m is expected to be replaced by a positive cash position next year and , with almost all sectors of shipbroking performing strongly , the outlook remains positive . Braemar is yielding about 4 % and it increased its latest final dividend by 40 %. The company is trading on a P / E multiple of around 7x estimated 2023 earnings .
Tufton Oceanic Assets is an investment company that operates a fleet of second-hand ships and adjusts the mix of vessels to match market opportunities . It has recently seen strong performance in bulk carriers – ships carrying cargoes such as grain and coal – and an improving market for tankers . Tufton is well positioned to meet new regulations on emissions and sees an opportunity to increase rates for its fleet . Its dividend yield is currently about 7.4 % and its net asset value ( NAV ) grew 6.2 % in the second quarter . It is trading on a 25.5 % discount to NAV , compared with a longer-term average of about 5 %.
Issue 89 - November 2022 / 75 /