Braemar plc (LON:BMS) long-term growth strategy remains firmly in focus following a meeting between Edison Investment Research and the shipbroker’s recently appointed chief financial officer, Richard Heading.
In its latest research note from Edison Investment Research, analyst Jonathan Day said the meeting reinforced confidence in the company’s strategic direction and management approach. Heading joined Braemar as CFO on 29 June 2026, filling the vacancy created when former CFO Grant Foley moved into the chief executive role on 2 July 2026.
Day described the initial meeting positively, writing: “We believe his experience is highly complementary, and his views and messaging entirely consistent with the strategic plan, further supporting execution.”
Heading brings experience from several financial and professional services businesses. Until 31 March 2026, he was CFO and chief risk officer at listed specialist currency and asset manager Record. Before that, he spent more than five years at IG Group Holdings as group finance director and 15 years at Willis Towers Watson, where he progressed into CFO roles.
Edison sees useful overlap between that background and Braemar’s operations. Experience at Record and IG is considered relevant to Braemar’s expanding securities activities, while Heading’s time at Willis Towers Watson provided exposure to a relationship-led broking environment.
Braemar’s strategy to 2030
The latest note suggests Heading’s priorities are closely aligned with Braemar’s previously outlined growth strategy through to 2030.
One important element is the recruitment of broker teams capable of bringing additional business volumes to the group. Edison notes that due diligence remains important when assessing potential hires, with Braemar focused on bringing in the right people rather than pursuing expansion for its own sake.
Mergers and acquisitions could also play a role over time. The shipbroking market remains fragmented, and management expects further consolidation. However, Braemar has demonstrated a disciplined approach to potential transactions, with no recent opportunities meeting its criteria.
Increasing headcount could also improve operating leverage as the business grows. Edison believes greater scale could provide Braemar with additional expertise and market data, potentially creating further opportunities to monetise its market knowledge and research capabilities.
Financial and operational highlights
The research note includes estimates suggesting a recovery in profitability over the coming two financial years.
- FY26 revenue was £135.6 million, with reported profit before tax of £4.6 million.
- Edison forecasts FY27 revenue of £141.7 million and reported profit before tax of £10.8 million.
- FY28 revenue is forecast to rise further to £148.8 million, with profit before tax reaching £15.3 million.
- Diluted continuing EPS is forecast at 26.72p for FY27 and 34.97p for FY28.
- The dividend is forecast to increase from 7.0p in FY26 to 7.5p in FY27 and 8.5p in FY28.
- Braemar reiterated on 2 July that it remained confident of delivering profitable growth in line with market expectations for FY27 revenue of £139.7 million and underlying operating profit before acquisition-related expenditure of £14.2 million.
The difference between Edison’s £141.7 million FY27 revenue forecast and the £139.7 million market expectation cited in the trading update reflects the separate forecast measures presented in the research note.
Chartering outlook remains supportive
Braemar’s chartering activities continue to be influenced by changing global trade routes and geopolitical developments.
Heading noted that new trade patterns and routes are emerging in response to conflict in the Middle East, helping products move through alternative channels. Charter rates may fluctuate, but Edison said the longer-term backdrop remains supportive, pointing to expected demand growth and the backlog of new ships.
The group operates across dry cargo, deep sea tanker, specialised tanker and sale and purchase markets, alongside offshore and renewables, securities and financial markets. The breadth of these activities gives Braemar exposure to several parts of the global shipping and maritime economy.
Edison sees significant valuation upside
At the time of the 3 August 2026 research note, Braemar shares were priced at 221p and the company had a market capitalisation of approximately £73 million.
Edison’s earnings-based valuation stands at 370p per share, which the research house said implied almost 70% upside from the share price stated in the report.
The valuation is supported by Edison’s expectations for improving earnings and the company’s strategic plan to 2030. However, the analyst also identifies execution as the principal risk. Other risks include changes in the macroeconomic and geopolitical environment and movements in chartering rates.
Investors will now have another important opportunity to assess progress when Braemar publishes its half-year results in November.
Braemar enters its next phase with a new CFO, a recently appointed chief executive and a clearly articulated strategy to 2030. Edison Investment Research’s meeting with Richard Heading appears to have reinforced its view that management remains aligned around that plan.
The broker’s forecasts point towards improving profitability over FY27 and FY28, while its 370p valuation remains substantially above the 221p share price quoted in the research note. Delivery will remain important, particularly against an unpredictable shipping and geopolitical backdrop, but the November half-year results should provide investors with a useful indication of how Braemar is progressing against its objectives.
