British shipbroker asks for trading in shares to be suspended

British shipbroker Braemar has confirmed it will not meet a deadline to publish its full-year results, due to an ongoing investigation into its accounts. The firm has asked for trading in its shares to be suspended from Monday (3 July 2023.)

The company, which provides broking services to the dry cargo, deep sea tanker, specialised tanker and sale and purchase markets, also gives advice in shipping investments.

The firm’s stock fell 17 per cent on Monday (26 June 2023) after it announced that its auditors are continuing to investigate a $3m transaction from 2013 that involved payments being made up until 2017.

As a result, the company will fail to meet the Friday deadline (30 June 2023) set by the Financial Conduct Authority (FCA) for the publication of its audited full-year results.

In a statement, Braemar says: “The board is not presently comfortable with the manner in which the transaction has been historically represented and the remaining liability recorded in the company’s balance sheet.”

The statement confirms that FRP Advisory Group, an independent specialist advisor, has been appointed to assist with the investigation, and has set up a committee headed by Braemar’s non-executive chair.

Braemar has been listed in London since 1997.

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 impact its results for the year that ended on 28 February 2023. The firm is still expecting to report a full-year record revenue (of at least £150m) and record underlying operating profits (at least £20m).

The company expects to request a restoration of the listing of its ordinary shares on publication of its FY23 results.