London-based Braemar, a specialist in investment, chartering and risk management, is delaying its annual results for the 12 months ended 28 February 2023 over an investigation into a 2013 transaction.
The London-listed expert revealed on Monday that the board of the company and the Group’s auditors have been carrying out an investigation into a particular transaction of circa $3m, which originated in 2013, and involves payments being made through to 2017.
According to a London Stock Exchange filing, “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.”
Upon conclusion of the investigation, should this liability be released, it would not affect the underlying trading profit or cash position of the company for FY23.
The investigation into this transaction and any related matters which may arise, is still ongoing, and the board of the company has appointed FRP, an independent specialist firm, to assist with the investigation and has established a specific investigation committee, chaired by the Group’s non-executive Chairman, to oversee the matter.
As a result, the company’s final results for FY23 will be delayed until this work has completed and will not be published by 30 June 2023, as Braemar explains in the LSE filing.
Braemar reconfirmed in the filing its expectation of reporting record revenue and record profitability for FY23, with revenue for the year of not less than £150m in comparison with the year 2022 which was £101.3m, underlying operating profit of not less than £20m, also compared to 2022 which was £10.1m, and net cash of £6.9m at the year end.
Braemar mentions that it remains to the board’s intention to recommend a final dividend of 8 pence per share, up from 2022 which was 7 pence, to shareholders for approval at the forthcoming annual general meeting, representing a dividend for the year of 12 pence per share, a 33% increase over the previous year compared to 2022 which was 9 pence.
“Under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, the company is required to publish its audited FY23 results by 30 June 2023. 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 7.30 a.m. on 3 July 2023,” as it is explained by Braemar.
As it is also mentioned in the LSE filing, the company will provide further updates on expected timings for publication of its FY23 results in due course, whilst it expects to request a restoration of the listing of its ordinary shares on publication of its FY23 results.