Results reading: Unaudited Half Year Results
The headline figures only confirm the 29 September trading update: revenue of £74.3m, underlying operating profit of £6.0m and zero net debt. What is new is a higher consensus revenue figure (£142.7m, up from £139.5m) with profit unchanged at £14.2m, a forward order book of $80.7m at 30 September, and a 59% fall in Corporate Finance revenue that leaves that unit's goodwill only £0.4m above its carrying value.
What changed against what was known
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Worse
Corporate Finance revenue fell 59% in the half, a weak spot the trading update did not mention, and it has triggered an impairment indicator.
“Total revenue for Corporate Finance in HY27 was 59% lower than in HY26, mainly reflecting reduced demand for financing advisory services, as owners with strong balance sheets and ready access to competitively priced bank debt had less need for alternative...” -
New
Management now says the 10.0% underlying margin, before the £1.4m of strategic investment, was up from 8.8%. After that spend, the margin was about 8.1% (£6.0m on £74.3m, our calculation), below last year's 8.8%, so the 15% FY30 target relies on the new hires paying back.
“Excluding the impact of that new investment, the underlying operating margin increased to 10.0% from 8.8% in the prior year.” -
Better
Consensus revenue for FY27 has risen to £142.7m from £139.5m, yet consensus underlying operating profit is unchanged at £14.2m, so analysts expect more revenue at a lower margin.
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Better
The forward order book at 31 August was $73.6m (the trading update said $73.4m, and it is flat on HY26), but it rose to $80.7m by 30 September. That is the first sign of improvement, though it only recovers part of the fall from $77.9m at 30 April.
Then · 29 Sep 2026 · HY27 Trading Update“Strong forward order book3 of $73.4m (FY26: $72.5m and HY26: $73.8m).” -
New
Reported operating profit rose 85% to £5.6m, mainly because specific items fell from £2.1m to £0.4m once the Southport Maritime service period ended, not because trading improved by that much (underlying profit was up 7%).
“Reported operating profit increased 85% to £5.6m (HY26: £3.0m) as specific items fell to £0.4m (HY26: £2.1m) following the end of the Southport Maritime Inc. post-acquisition service period.” -
New
The interim dividend was raised 10% to 2.75p, which the trading update had not announced.
“The board has declared an increased interim dividend of 2.75 pence per share (HY26: 2.5 pence) in line with the capital allocation framework announced in May 2025 reflecting the continued confidence in Braemar’s future prospects.”
What the notes say – not in the headline numbers
Corporate Finance goodwill is above its carrying value by only £0.4m. The note says the poor performance of the business is an impairment indicator.
With revenue down 59% in the half, a small shortfall against forecasts could trigger a goodwill write-down.
“The recoverable amount of the Group’s goodwill relating to Corporate Finance exceeds its carrying value by £0.4 million.”The impairment test rests on five years of management estimates of revenue growth and cost inflation, so it assumes the Corporate Finance business recovers from its current weak position.
The thin headroom depends on forecasts that the 59% revenue fall in the half has not yet supported.
“Business performance over the next five years - The estimated cash flows were based on the approved annual budget for the financial year and projections for the remainder of the year and following four years which are based on management’s estimates of...”The reverse stress test shows the Group could absorb a revenue fall of about 34% before breaching covenants or running short of liquidity, after cost mitigations.
This is a wide buffer, though the directors' view of the outlook leans on Hormuz-driven rate volatility.
“The results of this exercise showed that the Group could withstand revenue reductions of c.34% before it was forecast that covenants would be breached or liquidity insufficient, after taking into account reasonable cost mitigations and other cash...”Net debt of zero comes from £30.4m of cash set against £30.4m of RCF borrowings. Undrawn headroom on the £40.0m facility fell to £9.5m from £13.5m at February. Covenants are 2.5x EBITDA leverage and 4x interest cover.
Zero net debt is not zero gross debt, and the undrawn RCF headroom shrank in the half, which matters for acquisition capacity.
“As at 31 August 2026 the Group’s net debt was £nil (at 28 February 2026: net debt £2.9 million) with available headroom in the £40.0 million RCF of £9.5 million (at 28 February 2026: £13.5 million) (net debt is calculated as cash less secured RCF).”Current payables rose £3.8m to £41.1m, mainly higher employee-related payables (£31.3m against £27.8m) from bonus accruals. The company says this contributed to operating cash flow of £8.4m (HY26: £1.0m).
Part of the cash improvement is accrued bonuses that will be paid out later, so it is a timing effect rather than lasting cash generation.
“Current trade and other payables increased by £3.8m to £41.1m (28 February 2026: £37.3m), including employee-related payables of £31.3m (28 February 2026: £27.8m), which reflect higher bonus accruals in line with the stronger trading performance.”Promises management made Track record →
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On track
By FY30: £200m revenue, 15% underlying operating margin, £30m Risk Advisory revenue, net debt below 1.5x EBITDA.
Targets unchanged. HY27 margin is about 8.1% after investment. Risk Advisory revenue is £14.7m for the half against £28.8m for FY26, and net debt is zero.
“The board remains confident in building a £200m revenue business with a 15% underlying operating margin by FY30” -
Not addressed
Release the $2.5m NCA-related provision in due course.
No mention of the NCA-related provision in the half-year material.
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Partly
In FY27: hire 10 brokers, set up one Risk Advisory desk, complete one M&A deal.
Power desk set up and 7 of 10 brokers hired. No acquisition completed yet; opportunities are only under evaluation.
“Establishing the power desk meets one of our FY27 targets and we are pleased to be attracting strong, proven talent with seven senior brokers hired so far against a full year target of ten brokers.” -
On track
Profitable growth in FY27 in line with market expectations, with second-half conversion of investments.
Guidance reiterated. Conversion of the £1.4m of investment into profit is expected in the coming periods, so it is not yet shown in the figures.
“Trading since the period end has been in line with the board’s expectations”
No longer mentioned
Dubai International Financial Centre office
Last said · 21 May 2026 · Final Results“Approval received in May for an office in the Dubai International Financial Centre”Cape Town office and expansion into Africa
Last said · 21 May 2026 · Final Results“Expansion into new jurisdiction with the opening of the Cape Town office, Braemar's first office in Africa”
Not in this report at all – which can mean nothing, or a plan quietly dropped.
Watch at the next report
- Whether second-half underlying operating profit reaches about £8.2m, the amount needed to meet the £14.2m consensus, as the £1.4m of investment starts to earn revenue.
- Whether the remaining three senior broker hires and the first acquisition are completed in FY27.
- Corporate Finance revenue and the £0.4m goodwill headroom, as well as undrawn RCF headroom (£9.5m) if an acquisition is made.
Read 4 Nov 2026 against the last statement, the previous results and the open promises. Quotes are the company's words; the rest is our reading. Not investment advice.