- Braemar Shipping Services has lowered its forecast for underlying operating profit before interest, acquisition related costs and tax for the year ended 28 February to £3.0m-£3.5m.

This excludes a one off gain before tax from disposal of its interest in The Baltic Exchange of £1.7m and one off costs associated with restructuring of approximately £2.7m.

It said this lower forecast was largely attributable to the Technical division and, to a much lesser extent, the freight forwarding element of its Logistics business.

It said the Shipbroking division, which is the largest part of the group generating over 40% of expected Group revenue, traded well, met its objectives and was on track to meet expectations for the year.

A trading update said: "However, the Technical division has continued to underperform.

"The previously outlined weakness in the oil and gas sectors has worsened further than the Board originally anticipated, impacting the division in several ways not least a marked deterioration in replacement work.

"Accordingly, we have significantly expanded the management actions originally announced in August 2016 to realign the business.

"This wide ranging restructuring programme to significantly change the management and operating structure of the division is now substantially complete and has resulted in significant reductions in its ongoing cost base.

"It is expected that the annualised cost savings will be in excess of £6m for the next financial year.

"Within the smaller Logistics division, the port agency business continued to perform strongly, although the freight forwarding business was affected by a reduction in market activity. Overall, the Logistics division's performance has fallen but this will only have a small impact on the overall Group results."

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