Braemar shares to be suspended as investigation delays annual results
Braemar shares to be suspended as investigation forces shipbroker to delay publication of annual results
- Ongoing probe into transaction of around $3m (£2.4million) dating back to 2013
- Board ‘not comfortable’ with how it ‘has been historically represented’
- Shares in Braemar will be suspended from next Monday, 3 July
Braemar shares will be suspended next week after the shipbroker revealed an ongoing investigation will force it to delay the publication of its annual results.
The London-based company has been carrying out an investigation into a transaction of around $3million (£2.4million) dating back to 2013 and involving payments made through to 2017.
It said the board ‘is not presently comfortable’ with how ‘the transaction has been historically represented and the remaining liability recorded in the company’s balance sheet’.
Results delay: Braemar said it won’t be able to publish its results on time due to a probe
The company has appointed the London-based specialist firm FRP Advisory to assist with the investigation, and has established a specific investigation committee chaired by its non-executive chair to oversee this.
Braemar said it is unlikely that it will be able to publish its annual results by the end of June due to the ongoing investigation, breaching the Financial Conduct Authority’s disclosure guidance and transparency rules.
‘As the company does not expect to be able to comply with this requirement, the group will request that trading in the company’s ordinary shares be suspended with effect from 7.30am on 3 July 2023,’ it told shareholders.
Braemar shares dropped 17 per cent to 231p in afternoon trading on Monday. The stock has lost around 11 per cent of its value over the last year.
However, Braemar also said it does not expect the probe’s findings to affect its results for the year that ended on 28 February.
The group is still eying record revenue ‘of not less’ than £150million and an underlying operating profit of not less than £20million, nearly double the £10.1million it made in 2022.
In recent years Braemar has been selling off its non-core divisions to focus on helping ship-owners and their customers to transport goods around the world.
Cargo includes oil and gas, heavy metals, wheat, grain and logs, all essential commodities in demand across the globe.