Economic conditions are turbulent the world over but shipping is buoyant and industry specialist Braemar is riding the waves. 

Chief executive James Gundy recently revealed record results for the year to February 28, doubling profit to £20 million, upping the dividend by 33 per cent to 12p and expressing confidence in the long-term future of the business.

Midas recommended Braemar in 2020, when the shares were 99p and the firm was in the midst of a turnaround strategy following years of underperformance. Today, the stock is £3.03. 

Riding the waves: Midas recommended Braemar in 2020, when the shares were 99p and the firm was in the midst of a turnaround strategy

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Non-core divisions have been sold off and the business is now firmly focused on what it does best – helping ship-owners and their customers to transport goods reliably and cost-effectively around the world.

Cargo includes oil and gas, heavy metals, wheat, grain and logs, even bags of cement – all essential commodities, in demand across the globe. 

Until recently, traders would tend to take out one-year contracts with ship-owners. Now, firms are anxious to lock in deals. Five-year contracts are increasingly common, giving Braemar more certainty about the future.

Gundy, a shipbroker with nearly 30 years of experience, has expanded the business too, opening up in new parts of the world and increasing its presence in the lucrative shipping finance and futures markets.

Midas verdict: Braemar shares have tripled in three years and supporters believe they could rise still further, from £3.03 to more than £4.50. With dividends set to increase along the way, the stock is a firm hold for all but the most cautious mariners.

Traded on: Main market Ticker: BMS Contact: braemar.com or 020 3142 4100