British shipbroker Braemar has returned to trading on the London Stock Exchange after a more than four-month suspension.
The stock was suspended on July 3 after the London-headquartered firm missed a financial reporting deadline over an internal probe into legacy broking deals. The investigation announced at the end of June caused the shares to dive from around £2.78 to as low as £2.20.
The case described by Braemar as “comprehensive and complex” involved several transactions between 2006 and 2013, which ended in the company recognising £2m provision in its accounts, mostly related to unpaid legacy commissions arising from contracts in 2013. Non-recurring costs of around £2.5m will also be booked in the current financial year concerning the investigation.
In the financial year ended February 28, the company, with over 380 brokers, reported a 51% hike in revenue of £152.9m, generating a 100% increase in underlying operating profit of £20.1m. Profit after tax was down by 67% to £4.6m after goodwill impairment of £9.1m and expensed acquisition costs of £2m.
Braemar joined the official list of the London Stock Exchange in November 1997. The company opened on Tuesday at £2.33, only to jump to £2.68, and has since been trading between £2.53 and £2.69 at the time of reporting.
