Braemar Seascope Group plc 
Annual Repor t 2007
Braemar Seascope Group plc
Braemar Seascope Group plc   Annual Repor t and Accounts 2007 Braemar Seascope is a leading integrated provider of broking and 
consultancy services to the shipping industry. Headquartered in London, 
it also has offices in Australia, China, India, Brazil and Singapore.
Cory Brothers is a leading UK shipping agent with a fast growing freight 
forwarding and logistics business.
Wavespec is a worldwide market leader in the marine technical 
supervision of LNG and other vessel construction.
DV Howells is a leading UK pollution response and environmental 
services provider.
www.braemarseascope.com
Shipping services on a global scale
1 Financial highlights
2 Overview of the business
3 Chairman’s statement
4 Chief Executive’s review of the business
10 Board of directors
12 Report of the directors
15 Corporate governance
18 Remuneration report
22 Independent auditors’ report
23 Consolidated income statement
23 Statement of recognised income and expenses
24 Balance sheet
25 Cash flow statement
26 Notes to the accounts
50 Five year financial summary
52 Shareholder information
53 Offices and contacts
Contents
Braemar Seascope Group plc – offices and contacts
Designed and produced by Loewy Group +44 (0)20 7798 2000
Braemar Seascope Limited
35 Cosway Street, London NW1 5BT
Tel: +44 (0)20 7535 2650
www.braemarseascope.com
Braemar Seascope Group plc company number: 2286034
Sale and Purchase
Tel: +44 (0)20 7535 2600
Fax: +44 (0)20 7535 2601
Email: snp@braemarseascope.com
Offshore – Aberdeen
Tel: +44 (0)1224 628 470 
Fax: +44 (0)1224 621 444 
Email: offshore@seascope-abz.
co.uk
Gas Chartering
Tel: +44 (0)20 7535 2616
Fax: +44 (0)20 7535 2646
Email: gas@braemarseascope.com
Dry Cargo Chartering
Tel: +44 (0)20 7535 2666
Fax: +44 (0)20 7535 2667
Email: drycargo@braemarsea-
scope.com
Crude Tanker Chartering
Tel: +44 (0)20 7535 2626
Fax: +44 (0)20 7535 2627
Email: tankers@braemarseascope.
com
Chemical Chartering
Tel: +44 (0)20 7535 2656
Fax: +44 (0)20 7535 2646
Email: chemicals@braemarsea-
scope.com
Container Chartering
Tel: +44 (0)20 7535 2867
Fax: +44 (0)20 7535 2601
Email: teu@braemarseascope.com
Large Product Chartering
Tel: +44 (0)20 7535 2630
Fax: +44 (0)20 7535 2663
Email:tankers@braemarseascope.
com
Research  
Tel: +44 (0)20 7535 2699  
Fax: +44 (0)20 7535 2601 
E-mail: research@braemarsea-
scope.com
Offshore – London
Tel: +44 (0)20 7903 2700
Fax: +44 (0)20 7903 2701
Email: offshore@seascope.co.uk
Small Product Chartering
Tel: +44 (0)20 7535 2662
Fax: +44 (0)20 7535 2646
Email: maritime@braemarseacope.
com
Overseas
Beijing
Room 1909-1902, Building B
Winterless Center
No. 1 Xidawang Road
Chaoyang District
Beijing
China
Tel: +86 10 6538 8989
Fax: +86 10 6538 8986
E-mail: beijing@braemarseascope.
com
Singapore
50 Raffles Place #21-04
Singapore Land Tower
Singapore 048623
Tel: +65 6533 0198
Fax: +65 6536 9381
Email: singapore@braemarsea-
scope.com.au
Shanghai
Shanghai Representative Office
317, The Bund 12
Zhong Shan Dong Yi Road
Shanghai 200002
China
Tel: +86 21 6321 2233
Fax: +86 21 6321 2244
E-mail: shanghai@braemarsea-
scope.com
Melbourne
424 St. Kilda Road
Melbourne
Victoria 3004
Australia
Tel: +61 3 9867 2177
Fax: +61 3 9867 5962
Email: bunker@braemarseascope.
com.au
Perth
Unit 4, Churchill Court
353 Hay Street
Subiaco, Perth
WA 6008
Australia
Tel: +61 8 9388 0536
Fax: +61 8 9388 0536
Email: perth@braemarseascope.
com.au
Braemar Seascope India 
PVT Limited
A-13 Defence Colony
New Delhi 110 024
India
Tel: +91 11 4155 2501
Fax: +91 11 4155 2505
Email: delhi@braemarseascope.
co.in
Braemar Quincannon 
Shanghai
Tel: +86 21 6329 0939
Fax: +86 21 6321 2244
Email: chartering@bqshai.com
Braemar Quincannon 
Singapore
Tel: +65 6533 0069
Fax: +65 6536 3459
Email: ship@braemarquincannon.
com.sg
Agency, forwarding and logistics
Cory Brothers Shipping 
Agency Limited
Cory House, 21 Berth
Tilbury Dock 
Essex RM18 5JT
Tel: +44 (0)1375 843 461 
Fax: +44 (0)1375 840 743 
Cory Logistics
PD House, Parker Avenue
Felixstowe 
Suffolk IP11 4RP
Tel: +44 (0)1394 674 822 
Fax: +44 (0)1394 673 740
www.cory.co.uk
DV Howells Limited
The MPSC 
Milford Haven 
Pembrokeshire 
SA73 3QA
Tel: +44 (0)1646 366 340 
Fax: +44 (0)1646 696 343 
Wavespec Limited
Fullbridge Mill
Fullbridge
Maldon
Essex CM9 4LE
Tel: +44 (0)1621 840 447
Fax +44 (0)1621 840 457
E-mail: inbox@wavespec.com
Website: www.wavespec.com
Cory also has offices at Grangemouth, Leith, Invergordon, Newcastle, 
Middlesborough, Hull, Immingham, Ipswich, Isle of Grain, Sheerness, 
Southampton, Bristol, Newport, Milford Haven, Liverpool and Rugby.
Environmental services Technical support services
DV Howells also has offices at 
Falmouth, Bristol, Gatwick, Harlow, 
Didcot, Huddersfield, Rotherham 
and Perth
Braemar Seascope Group plc  Annual Report 2007     5 Braemar Seascope Group plc  Annual Report 2007     
•  Adjusted pre-tax profits £11.0m (2006: £10.3m)*
•  Pre-tax profit £10.1m (2006: £10.3m)
•  Adjusted EPS 37.11p (2006: 37.03p)*
•  Basic EPS 32.29p (2006: 37.03p)
•  Forward book at record level with US$30m deliverable this year
•  Net cash £14.6m (2006: £13.6m)
•  Final dividend 12.25p per share (up 6.5%), full year 19.0p (2006: 18.0p) up 5.6%
     *Adjusted profits and earnings are adjusted to exclude an impairment charge taken at the half year.
Financial highlights results for the year ended 28 February 2007
Dividends pence Adjusted profit before tax 
£m*
Employee numbers
2003-4 under UK GAAP and 2005-7 under IFRS
*Adjusted profit before tax and earnings per share is shown before impairment charges in 2005 and 2007. See page 8.
2003 2004 2005 2006 2007
10.36
20.16
29.50
37.03
37.11
12.0
13.0
16.0
18.0
19.0
3.5
4.1
9.0
10.3
11.0
154 
243
264
328
413
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
328
Adjusted earnings per 
share pence*     Braemar Seascope Group plc  Annual Report 2007
 
Main offices
Joint venture offices
• Chartering
•  Sale and purchase  
including newbuilding,  
second hand and demolition
• Special projects
• Valuations
• Research
•  Technical services (Wavespec)
• UK port agency (Cory)
•  Pollution response 
(DV Howells)
Tankers
• Crude oil
• Large and small products
• Chemicals
• Gas
• LNG
• Multi-purpose vessels
Dry cargo
• Bulk carriers
• Multi-purpose vessels
Containers Offshore
• Supply vessels
• Rig support vessels
• UK liner agency (Cory)
•  Freight forwarding/ 
logistics
Group activities
Braemar Seascope Group plc provides specialist shipbroking, ship agency, marine 
technical consultancy services and pollution response services to international 
ship owners, charterers and other clients.
Vessel types Vessel types
Sao Paulo
Wavespec, 
Maldon, Cory 
Bros and  
DV Howells Braemar Seascope Group plc  Annual Report 2007     
Chairman’s statement
The Group is performing well and has posted results reflecting 
another good year. The adjusted pre-tax profits increased by 7% 
to £11.0m compared to £10.3m last year and adjusted earnings 
per share were 37.11 pence compared to 37.03 in 2006. Reported 
pre-tax profits were £10.1m (2006: £10.3m) and reported earnings 
per share were 32.29 pence. The difference between the adjusted 
and reported result was attributable to an impairment charge 
taken in the first half of £0.95m. 
The Group’s shipbroking operations benefited from trading 
conditions which remained generally favourable during the year 
and performed well though the results were adversely affected 
by a weaker US dollar. Continued newbuilding activity and an 
increase in long-term chartering business saw growth in the 
forward order book to a record level which helps to underpin 
future years’ earnings. We expanded our international footprint 
through the establishment of new dry cargo chartering offices  
in Singapore and Sao Paolo and we also consolidated our  
interest in the container market through the acquisition of 
the 50% minority interest in Braemar Container Shipping and 
Chartering Limited for £1.2m.
 
Our strategy for extending the range of shipping services 
provided has begun to bear fruit and our non-broking businesses 
contributed 17% of the adjusted operating profits, driven by 
strong year-on-year income and profit growth from both Cory 
Brothers and Wavespec. During the year these services were 
expanded with the creation of an environmental services division 
through the acquisition of DV Howells in March 2006 and Hi-bar 
in September 2006 for a maximum combined consideration of 
£0.9m. DV Howells provides pollution incident response services 
for the oil majors and other transportation companies and we 
are very proud of the role they played and their continuing 
involvement in the environmental protection of the UK coastline 
where the container vessel MSC Napoli is beached. We have also 
increased our presence in the UK ship agency market through the 
purchase of Gorman Cory which will take place over two years. 
We are pleased with the progress made in building our non-
broking businesses and we expect to continue to invest in these 
sectors as attractive opportunities arise.
The Directors are recommending that the name of the company 
changes to Braemar Shipping Services PLC. The name Braemar 
Seascope is identifiable with our shipbroking business and we 
do not intend to change the name for our shipbroking trading 
companies around the world. However, the Group has now 
successfully extended its services beyond shipbroking and will 
continue to do so. We have reached a point when we consider it 
both helpful and appropriate to recognise the broadening of the 
business with a change in the name which reflects its current and 
future composition.
The Directors are recommending for approval at the Annual 
General Meeting a final dividend of 12.25 pence per ordinary 
share, to be paid on 31 July 2007 to shareholders on the register 
at the close of business on 6 July 2007. Together with the 6.75p 
interim dividend the Company’s dividend for the year is 19.0 
pence (2006: 18.0 pence), a rise of 5.6%. The dividend is covered 
2.0 times by adjusted earnings.
These results are a testament to the skill, hard work and 
commitment of staff across the Group and on behalf of the  
Board I thank all concerned for their contribution to this year. 
After many years as an executive director Iain Shaw retired from 
the Group in June 2006 and I would like to express our gratitude 
for his significant contribution both as a shipbroker and director. 
I am delighted that Denis Petropoulos and Quentin Soanes 
agreed to join the Board in January 2007 as executive directors. 
They have both worked for the Group for many years and their 
experience will be of great value in the future.
Shipping has experienced large and rapid changes in freight 
rates and vessel values over the course of the last five years. This 
volatility is likely to remain while the demand for seaborne trade 
continues to grow and we expect our broadly-based shipping 
services business to benefit while these conditions persist. 
Sir Graham Hearne
10 May 2007
“ All our businesses are 
growing and we are  
expanding our range  
of shipping services” 
Sir Graham Hearne 
Chairman     Braemar Seascope Group plc  Annual Report 2007
Our businesses
The size and scope of our business has increased significantly over the last few 
years. The financial contribution and employee numbers of the Group’s business 
segments is shown below:
£10.3m £68.5m
Group turnover
355
Group employees
Shipbroking 
Braemar Seascope
Environmental 
services
DV Howells
Technical  
shipping support 
Wavespec
Bunker trading 
Braemar Seascope
£8.7m*
Profit
£0.1m
Profit
£0.9m
Profit
£0.2m
Profit
£0.6m
Profit
£40.5m
Turnover
£33.4m
Turnover
£23.5m
Turnover
£3.2m
Turnover
£6.6m
Turnover
205
Employees
2
Employees
149
Employees
39
Employees
18
Employees
Ship agency, forwarding  
and logistics 
Cory Brothers,
Morrisons, Planetwide
Group performance by business segment
£10.5m*
Operating profit
£107.2m
Group turnover
413
Group employees
*Operating profit is stated before the shipbroking impairment of £950,000. Braemar Seascope Group plc  Annual Report 2007     
“  Our business is more  
broadly-based than  
ever and we see further  
opportunities to expand”
Chief Executive’s review of the business
The progress made across the Group over the last year continues 
to be encouraging. All of our operations have been performing 
well and we have grown the business in line with our strategy of 
expanding into complementary service areas and by increasing 
our geographic presence. We now have more than 400 employees 
worldwide based at 35 offices, of which eight are overseas, and 
our shipping services business is more diverse than ever before. 
With shipping activity remaining strong, we see no shortage of 
opportunity to continue our controlled growth in the same vein.  
A review of the market and our activities during the year is set  
out by segment below.
Shipbroking 
Shipbroking activities are undertaken under the name of 
Braemar Seascope from offices in London, Shanghai, Beijing, 
Singapore, Melbourne, Perth and Aberdeen. Revenues in 2006/7 
increased to £40.5m (2006: £39.7m) and adjusted operating 
profits were £8.7m (2006: £9.0m). The operating profit margin 
(before impairment charge) for the division was 21.6% in 2007 
(2006: 22.7%), reflecting a shift towards lower margin chartering 
business in the year. There was an average of 205 employees of 
whom 68% were fee earning and 25% were based overseas  
(2006: 189 employees).
In each of the dry market sectors freight rates dipped from the 
start of our financial year when the Baltic Dry Index (“BDI”) 
stood at 2,708, reaching a low in May 2006 (BDI 2,416) before 
recovering over the remainder of the financial year (BDI 4,765). 
The BDI currently stands at 6,585. The capesize market curve 
was particularly steep in both directions with the strong recovery 
driven by Chinese demand, during which we were able to 
conclude a number of long-term period charters at high rates. 
There has also been a considerable growth in vessel supply 
although there is still sufficient market tightness to produce 
significant fluctuations in rates from time to time. Currently 
the market is affected by load port congestion, especially in 
the east coast coal ports of Australia. This has helped reduce 
the supply of vessels and thereby to strengthen freight rates. 
Following our investment in Australia, this year we opened an 
office in Singapore and in Sao Paolo, both of which are becoming 
increasingly important as shipping centres. In view of the 
strength of the market and our investments, we expect our  
dry activities to become a more significant part of our business  
in future.
Deep sea tanker chartering increased both income and 
transaction volumes over last year, and the value of longer term 
period business grew significantly over the year. At the start of 
the financial year the Baltic Dirty Tanker Index (“BDTI”) stood at 
1,109 falling to a low of 951 in April 2006 but recovering strongly 
to reach a 12 month peak of 1,602 in August and closing at 1,101 
on 28 February 2007. It currently stands at 1,296. The weakness 
in tanker freight rates at the start of the financial year was caused 
by OPEC cutbacks which led to reduced refining. However, as the 
oil price rose from $60/barrel to $70/barrel supply restraints 
were relaxed and refineries moved quickly to source crude which 
became much in demand causing a rapid rise in freight rates. 
With increased refining came the increased demand for the 
carriage of refined products and although rates did not return to 
the high levels of the previous year, they did remain steady for 
most of the second and third quarters. In addition the constant 
Chinese and Indian demand for crude supplied not only from the 
Middle East but also from Atlantic producers in West Africa and 
the Caribbean maintained a healthy employment of large crude 
carriers. Delivery of newbuildings into the tanker markets during 
the course of 2006 has increased the deadweight available to 
carry oil which has meant that after the market weakened in 
the fourth quarter, rates did not recover as quickly following the 
increased volumes at the start of our new year. However, it is 
encouraging to note that despite the steady growth of the fleet 
during the first quarter of our new year the spot market was 
notably active with short-term demand for crude. As the year 
progresses we expect to see continuing demand from the major 
refining centres, but the growth in the tanker fleet prior to the 
phasing out of older tonnage will mean the market is likely to  
be more volatile.
Alan Marsh 
Chief Executive     Braemar Seascope Group plc  Annual Report 2007
Offshore had its best ever year driven by high activity levels and 
charter rates and the successful conclusion of some good sale 
and purchase and project transactions, some of which will benefit 
the company for many years to come. Worldwide oil and gas 
exploration has been very active and continues to be so, giving 
confidence for the coming year.
We consolidated our container business midway through the 
financial year with the purchase of the remaining 50% interest 
in Braemar Container Shipping and Chartering Limited in August 
2006. After a reasonably strong market in the first half of the year 
container charter rates fell in the second half of the year before 
recovering strongly during the first quarter of 2007. During 2006 
global growth in container volume was 10.8% and fleet capacity 
grew by 16.5%, and in 2007 the growth is expected to be in the 
region of 10-11% for container volumes and 14.5-15% for growth 
in fleet capacity. The desk performed well throughout the year in 
a rapidly changing market and we expect a similar performance 
to last year given the forecast growth in capacity, providing world 
trade is maintained. 
As at 1 March 2007 we had concluded business that should 
generate revenues in excess of $30m in the new financial year  
(1 March 2006 for the next twelve months: US$26m). 
Ship agency, forwarding and logistics
Revenues increased to £23.4m (2006: £15.9m) and operating 
profits were £0.9m (2006: £0.6m) and the Company’s 
achievements were also recognised by its customers when in 
April 2007 Cory was voted number one in the Lloyds Loading  
List Customer Service Awards 2006. 
The year overall has seen Cory consolidating its acquisitions 
made late 2005 and early 2006, and concentrating on 
organic growth with average staffing increasing from 120 to 
149. Growth was driven primarily by the liner, logistics and 
forwarding business, where revenues showed month-on-month 
improvements throughout the financial year. 
Chief Executive’s review of the business continued
Deep water construction 
vessel fixed by our offshore 
department for a minimum  
of five years.
The coastal tanker market benefited from larger contract volumes 
and falling bunker costs towards the end of the year providing 
a stimulus to activity. Deep sea chemical parcel tankers had a 
steady year with an upturn in rates in the fourth quarter due to a 
combination of increasing demand and the prospect of the latest 
biofuel regulations coming into force. This trend should continue 
during 2007 through to 2008 and while there will be seasonal 
fluctuations the market is expected to remain firm.
The LPG freight market is expected to strengthen over the next 
twelve months as new product streams and market participants, 
such as China, compete in the market for tonnage. 
The LNG transportation market remains at low levels for short-
term employment due to the delivery of new vessels, committed 
for long-term LNG transportation, the projects for which have 
since been delayed by between one and three years. However, 
such vessels will be absorbed in the long-term projects that 
they were originally intended for and while there are some 
uncommitted vessels in the market these will, in time, achieve 
gainful employment. 
Sale and purchase enjoyed another very successful year. There 
was a shift in the business with less high value second-hand 
transactions than in 2005/6 but a record year for newbuildings 
where the income is received over 2-3 years on average. The 
demand for new ships is borne out in the extended shipyard 
order books and in a tendency for payment terms to reflect 
larger up-front contracted values. The newbuilding forward order 
book is now at its highest level (both in terms of the number 
of ships and commission value) with ship deliveries stretching 
out to 2010/11. Over the last six months there has been a very 
significant increase in the market value of bulk carriers which 
is commensurate with the rise in dry freight rates and we have 
recently concluded a number of transactions at historically high 
values. Demolition business remains a small part of sale and 
purchase activity but we expect it to increase in the coming years 
in line with the phase-out of single hull tankers.
Significant business is 
transacted by the Group for 
export of minerals from Port 
Hedland, Australia. Braemar Seascope Group plc  Annual Report 2007     
The increase in liner, logistics and forwarding was driven primarily 
by sustained strong demand with in excess of 13,200 forwarding 
jobs being handled in the year compared with 9,700 last year. 
These were mostly on key logistics contracts supplemented 
with a number of one-off projects. Whilst most of the activity 
is handled out of Felixstowe, we have been developing 
forwarding activities from certain existing agency locations, 
thereby increasing the scope and capability of Cory as a whole. 
Planetwide, the forwarding acquisition made in 2005, performed 
in line with our growth expectations. During the year it handled 
1,860 of the forwarding jobs and was also able to add new 
consolidation routes to the Middle East. 
Port agency handled 17% more port calls in 2006/7 maintaining 
a leading position in an increasingly competitive market. New 
income streams commencing in early 2007 should see this 
growth continue through the remainder of 2007 and into 2008. 
The acquisition of the business and assets of Gorman Shipping, 
which handles over 750 vessels per annum concentrated on 
the Mersey and the Manchester Ship Canal, has significantly 
strengthened our UK agency activities. The business has been 
combined with the existing Cory Liverpool office making it one of 
the foremost ships’ agents in the area. Morrison Tours, a highly 
seasonal business linked closely to the cruise industry around 
the UK has added to its customer base and improved the take-up 
of the shore excursions on offer. 
With further new pieces of business being won in both agency 
and liner, logistics and forwarding, activity levels should continue 
to be maintained in all areas in the coming year. 
Technical shipping support – Wavespec
Revenues increased to £6.6m (2006: £5.2m) and operating 
profits were £0.6m (2006: £0.3m) in line with the growth in 
activity levels. The average headcount during the year was 18 
employees (2006: 17 employees) with a further 50 engineers sub-
contracted to clients within this segment (2006: 45 consultants). 
Currently, the company has site supervision teams at three 
shipyards for the construction of up to 48 new LNG vessels in 
connection with the Qatargas II project and this is expected to 
generate a positive contribution for the Company for several 
years. It is also fulfilling a similar role in connection with LNG 
vessel construction for use on the Sakhalin gas project.  
Wavespec has also been active in the development of the 
seaborne transportation of compressed natural gas, working 
with Braemar Seascope to provide technical and commercial 
assistance for a number of projects. 
Environmental services – DV Howells 
DV Howells was acquired in March 2006 and has contributed 
revenue of £3.2m and operating profits of £0.2m in the eleven 
months since it joined the Group. The average headcount 
during the year was 39 full-time employees compared to 
34 at acquisition. The addition of Hi-bar in September 2006 
completed the response coverage across the UK and enhanced 
the Company’s training and consultancy capability. The Company 
has had a busy year and has integrated well into the Group. 
Of particular note is the major role the Company has played 
following the grounding of the mini-bulker Sumni in the Orkney 
Islands and the container vessel MSC Napoli in Devon. Services 
provided, some of which are still on-going, include pollution 
control, beach clearance, decontamination wash-down facility 
and the handling of hazardous container cargoes. The Company 
also won important contracts to provide incident response 
services in Angola and for the Ministry of Defence (“MOD”), both 
of which illustrate the potential of the business to grow in the UK 
and overseas. 
Bunker trading
Revenues increased to £33.4m (2006: £7.7m), representing a  
full year’s contribution, and operating profits were £62,000 
(2006: £30,000).
Bunker sales have been lower than expected due to a 
combination of the drought conditions and high oil prices, which 
has to some extent limited demand in the Australasian region. 
Looking forward, the Australian resources and minerals sector is 
enjoying significant growth which should be a basis for increased 
bunker sales in the future. We are currently in the process of 
reviewing our strategic options with regard to this business.
MSC Napoli: 
DV Howells is playing a 
major role in environmental 
protection and clean up.
One of the Qatargas II LNG 
vessels – construction 
supervised by Wavespec.     Braemar Seascope Group plc  Annual Report 2007
Chief Executive’s review of the business continued
Anangel Pride: fixed by  
our dry cargo team on  
period charter.
MV Timca: one of eight 2,900 
lane metre container-RoRos 
ordered by Spliethoff for 
Transfennica, Finland, to carry 
paper products.
Financial review
Profits and earnings
Reported pre-tax profits were £10.1m (2006: £10.3m). Adjusted 
pre-tax profits (before an impairment charge) increased by 7% to 
£11.0m on revenues of £107.2m (2006: £68.5m). As indicated at 
the half year, given the performance of all business segments in 
broadly favourable markets, we expected the operating profits 
in the second half of the year to show an improvement over the 
first half. Second half operating profits for 2006/7 were £5.8m 
compared with £4.7m (before impairment) in the first half and 
£4.7m in the second half of 2005/6. The trading improvement 
shows sustained business growth across all segments.
A reconciliation of reported profits to adjusted profits is set out 
in the table below. The impairment charge is not a cash cost and 
arose because at the half year, after a relatively weak market, a 
more prudent view was taken of the estimated future earnings 
from the Australian business.
  2006/7  2005/6 
   £’000 £’000
Adjusted profits before impairment  
charge and tax  11,026 10,293
Impairment of Braemar Seascope  
Pty goodwill (950) – 
Reported profit before tax  10,076  10,293
   Pence Pence
EPS (pre impairment charge)  37.11 37.03
Impairment of goodwill (4.82) –
Basic EPS 32.29 37.03
The weighted average number of shares increased from 19.38m 
to 19.72m for 2006/7.
Margins
Operating profits are stated after deducting both cost of sales 
and operating costs. Cost of sales comprises bunker payments, 
freight and haulage and payments to sub-contractors. The 
operating profit margin (before impairment) of 9.8% in 2007 
compares with 14.4% in 2006. The reduction is mainly due to the 
increased relative contributions of the non-broking businesses 
which generate returns at lower margins but which are less 
volatile. The margin in shipbroking was lower due to an increase 
in operating costs totalling 3.4% mainly in respect of staff costs 
and the establishment of new overseas offices. A summary of the 
segment margins is set out below.
Operating margins before impairment 
  2006/7  2005/6
Shipbroking 21.6% 22.7%
Ship agency, forwarding and logistics 3.9% 3.6%
Technical shipping support 8.3% 5.6%
Environmental services 7.0% n/a
 14.1% 16.2%
Bunker trading 0.2% 0.4%
Total 9.8% 14.4%
Foreign exchange
The average rate of exchange for conversion of US dollar income 
during the financial year, after taking account of hedging, was 
$1.86/£ (2006: $1.80/£) and at 28 February 2007 the balance 
sheet rate for conversion was $1.97/£ (28 February 2006: 
$1.75/£). If the 2006/7 US dollar denominated income had been 
translated at the 2005/6 average exchange rate, it would have 
been higher by approximately £1.2 million. At 28 February 2007 
the Group held forward currency contracts to sell US$6 million at 
an average rate of $1.95/£ and currency options giving the right 
to sell US$1.1 million for AU$ at a rate of 0.78. 
Taxation
The tax rate on reported profit before tax was 35.8% (2006: 
30.3%). The underlying rate, excluding the share of net profits 
from joint ventures and the effect of the impairment charge,  
was 33.3% (2006: 31.0%). Braemar Seascope Group plc  Annual Report 2007     
Felixstowe’s Trinity 
Terminal: Cory Brothers 
handle at least one ship 
per day through this port.
Cash flow and acquisitions
The cash balance increased over the year by £1.0m to £14.6m 
(2006: £13.6m). Operating cash flow generated in the year was 
£9.7m, from which the major cash outflows before expenditure 
on acquisitions were £0.7m for the purchase of fixed assets, 
£3.4m on corporation tax and £3.6m for dividend payments. 
Net cash expended on acquiring businesses was £2.5m, offset 
by £0.7m of cash in the acquired balance sheets, in respect of DV 
Howells and Hi-bar (£0.6m), 50% of Braemar Container Shipping 
and Chartering (£1.2m), 41% of Gorman Cory (£0.2m) and 
Planetwide (£0.5m). This does not include further potential cash 
consideration of, in aggregate, £1.1m dependent on profitability.
Treasury risk management
The Board sets the Group’s treasury policy covering financing 
decisions and treasury risk management, the objective of which 
is to manage the Group’s financial risk exposures in an effective 
manner. The Finance Director is responsible for day-to-day 
treasury risk monitoring and activity which is reviewed by the 
Board through regular reporting. The Group uses financial 
instruments to hedge underlying exposures and not for 
speculative purposes.
Liquidity risk: The Group has no net debt and did not have at 
any time during the year. An overdraft facility of £3.0m with the 
Group’s principal relationship bank, the Royal Bank of Scotland 
plc, is maintained for financial flexibility and in order to improve 
treasury efficiency and performance. 
Foreign exchange risk: The majority of the Company’s 
shipbroking, technical services and bunker trading income is US 
dollar denominated and changes in the rate of exchange relative 
to £ sterling, and to a lesser extent the Australian and Singapore 
dollar, can have an effect on the reported results and net assets. 
From time to time the Group enters into forward foreign exchange 
contracts and currency options to limit the effect of currency 
fluctuations. 
Interest rate risk: The Group has an exposure to interest rates in 
relation to its cash balances, the majority of which are held in the 
UK. Surplus cash (in £s or US$s) is deposited at institutions with 
strong credit ratings and deposits are short term in nature.
Alan Marsh
10 May 2007  0    Braemar Seascope Group plc  Annual Report 2007
J.S. Denholm (50)  
Non-executive Director
Appointed a Director on 
25 July 2002. A qualified 
chartered accountant, he is 
Chairman of J&J Denholm 
Limited and the Anglo 
Eastern Management Group 
Limited. He is a member of 
the executive committee 
of the Baltic International 
Maritime Council and a 
director of the Chamber  
of Shipping Limited.
D.G. Moorhouse (60)  
Non-executive Director
Appointed a Director on  
19 January 2005. He 
is currently Executive 
Chairman of Lloyd’s Register 
and a trustee of the 
National Maritime Museum. 
Until recently he was an 
advisor on technology 
exports to the DTI and 
deputy Chairman of the 
UK’s Foundation for Science 
and Technology. Formerly 
he was Chairman and 
Chief Executive Officer of 
Kvaerner Process, Chairman 
and Chief Executive of 
Trafalgar, John Brown and a 
director of John Brown plc.
Board of directors
R.D. Agutter (65)  
Non-executive Director
Appointed a Director  
on 6 November 2001. 
A qualified chartered 
accountant, he was a senior 
corporate finance partner 
in KPMG, a firm of public 
accountants. He is the 
senior independent non-
executive Director.
Sir Graham Hearne (69) 
Chairman
Appointed a Director on  
7 October 1999 and 
Chairman on 26 November 
2002. A qualified solicitor, 
he was formally Chairman  
of Enterprise Oil plc. He is 
non-executive Chairman  
of Catlin Group Limited 
and Static Energy Corp, 
and non-executive Director 
of N M Rothschild and 
Sons Limited and Rowen 
Companies Inc.
Non-executive Directors
  Braemar Seascope Group plc  Annual Report 2007     
Executive Directors
D. Petropoulos (50) 
Executive Director
Appointed a Director on 
10 January 2007. He has 
worked in tanker chartering 
all his professional life 
and was a founding 
director of Braemar 
Tankers Limited, which 
was acquired by Braemar 
Seascope in 2001. He is 
joint Managing Director 
of Braemar Seascope 
Limited, the Group’s 
principal shipbroking 
subsidiary and has specific 
responsibility for the 
Group’s tanker chartering 
activity encompassing 
deep sea crude and clean 
product, gas, chemicals 
and specialised tanker 
chartering. 
J.R.V. Kidwell (45)  
Finance Director
Appointed a Director on  
1 August 2002. He qualified 
as a chartered accountant 
with Price Waterhouse in 
1988, and then worked in 
a number of financial roles 
for Carlton Communications 
plc between 1989 and 2001, 
leaving as Group Financial 
Controller. He was Finance 
Director of Boosey and 
Hawkes Music Publishers 
Limited until June 2002.
A.R.W. Marsh (57)  
Chief Executive
He was a founder member 
of Braemar Shipbrokers 
Limited in 1983 and on 
7 March 2001 he was 
appointed Chief Executive 
of Braemar Seascope 
Group plc and Chairman of 
Braemar Seascope Limited 
and Wavespec Limited. He 
is a Fellow of the Institute 
of Chartered Shipbrokers 
and a director of ITIC 
Limited, the professional 
and indemnity club for ship 
agents, ship brokers and 
ship managers.
Q. B. Soanes (52)  
Executive Director
Appointed a Director on 
10 January 2007. He has 
worked as a sale and 
purchase shipbroker for 
most of his professional life 
and was a founding director 
of Braemar Shipbrokers 
Limited, which merged 
with Seascope Shipping 
Holdings plc in 2001 to form 
Braemar Seascope Group 
plc. He is joint Managing 
Director of Braemar 
Seascope Limited and has 
responsibility for business 
development in the Group. 
He is also Chairman of 
the Group’s wholly-owned 
subsidiaries, Cory Brothers 
Shipping Agency Limited 
and DV Howells Limited. 
I.M. Shaw served as an Executive Director until his retirement on 21 June 2006.     Braemar Seascope Group plc  Annual Report 2007
 
newbuilding transactions, time (or period) charters where  
income is earned over the life of the charter and uncompleted  
spot transactions. 
The majority of shipping transactions is concluded in US dollars 
with our commission income also being derived in US dollars.
Ship agency, forwarding and logistics: Ship agency, forwarding 
and logistics is undertaken by Cory Brothers which has 19 offices 
most of which are based in UK ports. Its income is fee-based and 
substantially £ sterling denominated. Fees are earned every time 
a ship makes a call into port, when the company is the appointed 
agent. Agency services provided include settlement of port dues, 
handling customs clearance and making ad-hoc arrangements 
for the vessel as required. Fees are normally determined under 
multi-year contracts which are often long-standing but technically 
terminable at short notice. Cory Brothers is agent for a number of 
major oil, gas and chemical companies and other ship owners. Its 
income is therefore a function of the number of clients it has and 
their level of port call activity.
The freight forwarding and logistics business operates both in 
tandem with the agency business and separately in its own right. 
In some instances the business is conducted under contract on the 
basis of an agreed tariff per shipment with the shipment volumes 
determined by the client, while in others cases the company 
receives a fee per box handled either as an import or an export. 
There are also individual forwarding projects which are negotiated 
separately. In all cases volumes and client activity levels are a key 
factor in driving income and profits, along with the company’s 
ability to find cost-effective solutions to suit the logistics needs. 
Volumes are difficult to predict and the company must seek and  
win a regular flow of new business to grow.
Technical shipping support: Wavespec provides independent, 
technical shipping services for ship owners and charterers 
who have taken in newbuildings from owners on long-term 
commitments. It is able to offer expertise in all types of vessel 
construction but has built up a reputation as a market leader for 
technical services in the construction of LNG carriers. 
Generally the business is divided between ships’ plan approval work 
which is normally quoted for on a project basis, and site supervisory 
work covering the vessel’s construction at the shipyard. This is 
operated on an agreed day rate basis for each engineer provided 
under contract to the client. Many construction projects will involve 
both plan approval and site supervisory services during the life of 
the project. The shipping engineering skills Wavespec has access 
to mean it is well placed to play a leading role in the development 
of new designs and technologies. The Group is currently playing 
a leading role in both a technical and commercial capacity in the 
development of seaborne transportation of compressed natural gas, 
and Wavespec is an integral part of the Group’s advisory capability 
in such an area. In addition Wavespec also acts as consultants in 
the offshore sector carrying out FMEA (Failure Mode and Effect 
Analyses) and DP (Dynamic Positioning) assessments. 
Environmental services: DV Howells provides a wide variety  
of environmental services from nine bases around the UK, 
principally for customers operating in the UK in the shipping, 
transport and oil industries, and other customers whose activities 
Report of the directors for the year ended 28 February 2007
The Directors submit their report and the audited accounts for 
the year ended 28 February 2007, which were approved by them 
on 10 May 2007.
Principal activities and review of business
The Company operates through a number of subsidiaries and 
joint ventures. A review of the Group’s activities including 
risks, business drivers, key performance indicators and future 
prospects is contained in the Chief Executive’s review of the 
business on pages 4 to 9. The Group’s business segments and 
their activities are described below.
Shipbroking: The shipbroking market is both international and 
fragmented. While there are only a small number of broking 
houses that provide the full range of services we provide there 
are many private brokers specialising in niche areas of the 
shipping market, which makes market share difficult to assess. 
Few, if any, contractual or exclusive client relationships exist, but 
many relationships have been created and developed over a long 
time based on the quality of service and advice provided. We 
represent a significant number of major ship owners, charterers, 
shipyards, trading houses, banks, demolition businesses and 
other commercial ventures based around the globe. There is no 
particular bias or theme to our client base. 
The shipbroking business is never a principal in a shipping 
transaction – it does not own ships or charter vessels for its own 
account. Income is derived from commissions earned on shipping 
transactions in which the Group has acted as broker, and is 
therefore a function of the number of transactions concluded for 
delivery in the year and the average freight rates or vessel values 
applicable to those transactions.
Transaction numbers are influenced by a combination of the 
supply and demand for ships, the number of skilled, experienced 
brokers operating in the group, and the competition from other 
broking houses (both for transactions and brokers). The demand 
for ships is related among other factors to world trade, economic 
growth particularly in the major economies, interest and 
exchange rates, and price and supply of raw materials, mainly 
for oil, iron ore and coal. The supply of available ships for a 
particular market is affected by factors such as shipyard capacity, 
order backlog, the propensity for yards to build ships of a certain 
type, speed of vessels, and regulations on ships’ ages which 
may accelerate scrapping. Overlaying all of these considerations 
are other events that can have a significant short-term impact 
on trade and trading patterns and may, for the most part, be 
unpredictable. Most importantly, the supply of oil or refined 
products is subject to OPEC and other political decisions, war and 
the threat of war, new pipelines and global warming. In the dry 
market the demand for coal and ore has been driven by industrial 
and economic growth in the Far East with short-term factors such 
as port congestion and raw material contractual pricing also 
having an influence on freight rates.
Part of the income in any particular year is derived from business 
that has already been concluded but has yet to complete, 
because for example, the delivery of the vessel has not occurred. 
Similarly at the end of the year some of the transacted spot 
business may not have been completed and therefore not 
invoiced at year-end. This forward book of business comprises  Braemar Seascope Group plc  Annual Report 2007     
 
interface with ports, motorways, railways and airports. Services 
provided include carrying out the post-incident clean up of oil, 
chemical, biological and radiological incidents; tank cleaning; 
environmental surveys; contingency planning; consultancy and 
training for customers including the IMO, overseas governments, 
coastguards, ports, harbours and international oil companies.  
As part of its role DV Howells maintains a response network with 
full UK coverage, comprising emergency equipment and a team  
of incident response staff on permanent 24-hour standby. 
Some of its business is provided under multi-year contracts 
typically including a retainer fee and an agreed incident call out 
rate. Key contracts of this type are with the Maritime Coastguard 
Agency, Network Rail and the MOD. Other business arises on a 
one-off basis as incidents occur and the company is invited to 
tender and respond. Since most income is related to the number 
of incidents or the time required for post-incident services to 
be completed, the predictability of income above a core level is 
not easy. As part of the Group DV Howells is well placed to grow 
its customer relationships and this development should see the 
benefit of a greater predictive pattern to the overall business.
Bunker trading: This activity is undertaken from Australia and 
involves the purchase of bunkers from oil companies against 
matched sales to ship owners or operators.
Results and dividends
The group profit before taxation for the year amounted to 
£10.1m (2006: £10.3m). Details of the results are set out in the 
consolidated income statement on page 23 and in the related 
notes. Details of dividends paid during the period are set out 
in note 8 to the Accounts. The Directors are recommending the 
payment of a final dividend of 12.25 pence per share on 31 July 
2007 to shareholders on the register at the close of business  
on 6 July 2007.
Directors and their interests
The Directors of the Company during the year and at the date 
of this report are shown on pages 10 and 11. The Directors’ 
beneficial interests, including family interests in the shares  
of the Company at 28 February 2007, were as follows:
 28 Feb 2007 28 Feb 2006
R.D. Agutter 5,000 5,000
J.S. Denholm 7,000 7,000
Sir Graham Hearne 2,500 2,500
J.R.V. Kidwell 47,250 6,000
A.R.W Marsh 1,148,502 1,143,502
D.G. Moorhouse – –
D. Petropoulos 568,191 568,191
(1)
Q.B. Soanes 1,146,010 1,146,010
(1)
I.M. Shaw n/a
(2)
 208,760
(1)
 On appointment on 10 January 2007
(2)
 Retired 21 June 2006
The Directors’ interests in share options are set out on page 21.  
The Directors, in common with other employees of the Group,  
also have an interest in 331,495 (2006: 321,495) ordinary 10p 
shares held by Close Trustees Guernsey Limited on behalf of 
the Employee Share Ownership Plan. During the year the Board 
resolved to acquire additional shares in the market to be used 
for employee share awards. 10,000 shares were acquired at an 
average price of 373 pence.
The Directors held no material interest in any contract of 
significance entered into by the Company or its subsidiaries 
during the period. There have been no changes in Directors’ 
interests between 28 February 2007 and 10 May 2007.
Share capital
During the year ended 28 February 2007 the Company issued 
354,573 new shares pursuant to the exercise of employee  
share options. 
Substantial shareholdings
The Directors have been notified or are aware of the following 
persons who directly or indirectly are interested in 3% or more  
of the issued ordinary share capital of the Company.
Directors %
A.R.W. Marsh 5.68%
Q.B. Soanes 5.67%
Others
Barclays plc 8.71%
AXA Framlington 8.32%
Legal & General 3.99%
R.L. North 3.42%
Purchase of own ordinary shares
The Directors are authorised to make market purchases of the 
Company’s ordinary shares under an authority granted by the 
Annual General Meeting held on 21 June 2006. No purchases were 
made under this authority during the year. In accordance with ABI 
Investor Protection Guidelines, the maximum number of ordinary 
shares which may be acquired is 10% or less of the Company’s 
issued ordinary shares as at 10 May 2007. The Directors will 
seek the renewal of this authority at the 2007 Annual General 
Meeting in Resolution 10 in accordance with the Company’s 
Articles of Association. The Directors have no immediate intention 
of exercising the authority but they will keep the matter under 
review. Purchases will only be made if they result in an expected 
increase in earnings per share and will take into account other 
available investment opportunities, appropriate gearing levels 
and the overall position of the Company. Any shares purchased 
in accordance with this authority will subsequently be cancelled. 
The total number of options to subscribe for shares that were 
outstanding as at 10 May 2007 was 700,544, being 3.5% of the 
issued share capital. If the authority to purchase shares is used 
in full, the proportion of issued share capital represented by this 
number of options would amount to 4.1%.
Employment policies
The Group recognises that its employees are a key stakeholder in 
the business and that they play a vital role in its future success. 
The involvement of employees in the Group’s performance is 
encouraged where appropriate through participation in the annual 
discretionary bonuses and share options that may be granted 
under an approved share option scheme. The Group keeps its 
employees informed of all matters affecting their interests through 
managerial consultation and internal memoranda.      Braemar Seascope Group plc  Annual Report 2007
 
In preparing these financial statements the Directors are required to:
•  Select suitable accounting policies and then apply them consistently;
•  Make judgements and estimates that are reasonable and prudent;
•  State that the financial statements comply with IFRSs as adopted 
by the European Union and IFRSs issued by IASB; and 
•  Prepare the financial statements on the going concern basis, 
unless it is inappropriate to presume that the Group will 
continue in business, in which case there should be supporting 
assumptions or qualifications as necessary. 
The Directors confirm that they have complied with the above 
requirements in preparing the financial statements. The Directors 
are responsible for keeping proper accounting records that disclose 
with reasonable accuracy at any time the financial position of 
the Company and the Group and to enable them to ensure that 
the financial statements and the Directors’ Remuneration Report 
comply with the Companies Act 1985 and, as regards the Group 
financial statements, article 4 of the IAS Regulation. They are also 
responsible for safeguarding the assets of the Company and the 
Group and hence for taking reasonable steps for the prevention  
and detection of fraud and other irregularities.
Auditors and disclosure of information to auditors
In the case of each of the persons who are Directors at the time 
when the report is approved, the following applies:
•  So far as the Director is aware, there is no relevant audit 
information of which the Company’s auditors are unaware; and
•  He has taken all the steps that he ought to have taken as a 
Director in order to make himself aware of any relevant audit 
information and to establish that the Company’s auditors are 
aware of that information.
A resolution to reappoint PricewaterhouseCoopers LLP as auditors 
to the company at remuneration to be agreed by the Directors will 
be proposed at the forthcoming Annual General Meeting. 
By Order of the Board
James Kidwell 
10 May 2007
  
Report of the directors for the year ended 28 February 2007 continued
The Group seeks to achieve consistency in its employment policies 
although differences in local conditions and legal requirements 
can arise due to the international nature of the business. The 
Group is committed to equal opportunities for all employees 
with full and fair consideration being given to applications 
for employment by those with a disability. Where an employee 
becomes disabled while in employment of a Group company, every 
effort is made to find continuing employment where possible. 
Community and environment
The Group takes an active role in environmental and community 
matters. Its activities in these areas vary by division. Braemar 
Seascope’s London office is located adjacent to a state school 
of multi-denominational faiths for which the Company has given 
funds to improve facilities and certain employees have voluntarily 
become involved in reading to pupils and as part of the school’s 
governance. The office is also actively working on a paper 
recycling initiative. DV Howells provides its clients with pollution 
response services including incident clean-up, training staff 
and assisting in developing response plans for environmental 
incidents. Wavespec is involved in environmental considerations 
through the development of designs for new liquefied natural gas 
and compressed natural gas carriers. The Group seeks to comply 
with all applicable regulations and legislation.
Payments to suppliers
Group companies are responsible for agreeing the terms and 
conditions under which business transactions with their suppliers 
are conducted. It is Group policy that payments to suppliers are 
made in accordance with these terms, provided that the supplier 
is also complying with all relevant terms and conditions. The 
Company has no trade creditors.
Donations
During the year the group made charitable donations amounting  
to £20,662 (2006: £26,781) to a range of different charities.  
No political donations were made during the period.
Financial instruments
The Group’s financial risk management objectives and policies 
are set out in corporate governance on pages 15 to 17.
Statement of Directors’ responsibilities in respect  
of financial statements
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the Directors 
have prepared the Group and Parent Company financial 
statements in accordance with International Financial Reporting 
Standards (IFRSs) as adopted by the European Union. In 
preparing these financial statements, the directors have also 
elected to comply with IFRSs, issued by the International 
Accounting Standards Board (IASB). The financial statements are 
required by law to give a true and fair view of the state of affairs 
of the Company and the Group and of the profit or loss of the 
Group for that period. Braemar Seascope Group plc  Annual Report 2007     
 
Braemar Seascope Group plc is committed to ensuring high 
standards of corporate governance. This statement together 
with the remuneration report on pages 18 to 21 describes how 
the Company has applied the principles of good corporate 
governance during the year ended 28 February 2007. The 
Board endorses the main principles and provisions set out in 
the Combined Code on Corporate Governance of the Financial 
Reporting Council (“The Combined Code”), which was published 
on 1 July 2003. The Board believes that the Company has been 
compliant with the Code throughout the year.
The Board
The Board is responsible to shareholders for the effective 
direction and control of the Group and it aims to provide 
entrepreneurial leadership within a framework of prudent and 
effective controls enabling risks to be assessed and managed.
The Board currently comprises four independent non-executive 
Directors and four executive Directors. 
The non-executive Directors, none of whom has fulfilled an 
executive role within the Company, are appointed for an initial 
three-year term serving under letters of engagement, which 
contain a formal one-month notice period. Sir Graham Hearne 
chairs the Board and is not a member of any of the Board’s 
sub-committees. Richard Agutter is the senior independent 
non-executive Director and he chairs the Audit Committee; 
John Denholm chairs the Remuneration Committee and David 
Moorhouse chairs the Nominations Committee. 
The executive Directors are engaged under service agreements, 
each of which can be terminated at 12 months’ notice. During the 
year Iain Shaw retired as an executive Director on 21 June 2006, 
and Quentin Soanes and Denis Petropoulos were appointed 
executive Directors on 10 January 2007. 
The Board believes that its current composition is appropriate 
having regard to the Company’s size and activities. 
The Board met seven times during the year and the attendance 
by the Directors is set out below. Board meetings include reviews 
of financial and business performance and consideration and 
monitoring of business risks and opportunities. The following 
matters are specifically reserved for the Board’s consideration 
and approval:
• The Group strategy;
• The Group budget;
• Major capital expenditure, disposals or leasing arrangements;
• Choice of key corporate advisors;
• Acquisitions and disposals;
•  Group financial and treasury policy including dividends  
and borrowing;
•  Establishing Board committees and setting their terms  
of reference; and
• Internal control arrangements.
On a periodic basis the Board receives reports on its activities 
from the senior management of a subsidiary company or a head 
of department. All directors are provided with appropriate and 
timely information and are properly briefed on Board matters. In 
the furtherance of his duties any director may take independent 
professional advice or receive training, if necessary, at the 
Company’s expense. The executive Directors (including those 
appointed during the year) attended a briefing on their legal 
responsibilities as directors provided by the Group’s legal advisor.
 
During the year the Board and its committees conducted a review 
of the effectiveness of their operations. The review process 
entailed individual meetings of the Chairman and each Director 
and the completion of an assessment questionnaire by each 
Director for submission to the Company Secretary. Non-executive 
Directors meet without the presence of executive Directors from 
time to time.
Under the Company’s Articles of Association, Directors should 
submit themselves for re-election every three years. The 
Director retiring by rotation at the Annual General Meeting and 
offering himself for re-election is Alan Marsh. Quentin Soanes 
and Denis Petropoulos are offering themselves for appointment 
by shareholders. The Nominations Committee and the Board all 
unanimously support these elections. Biographical information 
on the Directors can be found on pages 10 and 11 of this Annual 
Report and Accounts.
Relations with shareholders
The Board recognises the importance of maintaining good 
communications with both institutional and private shareholders. 
For several years the Group has pursued an active investor 
relations programme conducted primarily through regular 
meetings of the Chief Executive and Finance Director with existing 
and potential institutional investors following both the interim 
and preliminary announcements of the results of the Group. 
Feedback on shareholder meetings is provided via the Group’s 
corporate stockbroker or public relations advisor. Corporate 
announcements are also made available on the Company’s 
website, which can be accessed at: www.braemarseascope.com
The Company encourages attendance at its Annual General  
Meeting where each resolution is separately put to the meeting  
 and where the Chairman and/or Chief Executive makes a statement 
on the current year’s performance to date and the near-term 
financial outlook.
Corporate governance for the year ended 28 February 2007     Braemar Seascope Group plc  Annual Report 2007
 
The Committee places great emphasis on the cost-effectiveness, 
independence and objectivity of the audit function. Company 
policy is that fees paid to auditors for non-audit services do not 
exceed audit fees unless such non-audit services are reviewed and 
approved by the Audit Committee.
In addition to the Audit Committee meetings, the Chairman of the 
Committee has regular meetings with the group audit partner.
Nominations Committee:
Non-executive Directors: David Moorhouse (Chairman),  
Richard Agutter and John Denholm.
The Nominations Committee considers the balance of skills and 
experience of the Board membership and makes recommendations 
to the Board on the appointment of new Directors. For each new 
appointment the Nomination Committee considers, amongst other 
things, the appropriateness of the qualifications and experience 
of the candidate for the role to be fulfilled and their availability 
to devote time to the job. In the case of Denis Petropoulos’s 
appointment, the Nominations Committee considered all these 
factors along with his extensive experience in tanker chartering 
shipbroking. In respect of Quentin Soanes, the Committee followed 
a similar process with particular consideration of his experience 
in shipbroking and also the business development of non-broking 
businesses. These factors made both candidates suitable Directors 
and the Committee did not therefore, use a search firm. Details of 
the Directors’ other professional commitments are set out in the 
biographical details on pages 10 and 11.
The Nominations Committee also reviews the appointment of 
non-executive Directors at the expiration of their three-year service 
letter of appointment.
Remuneration Committee
Non-executive Directors: John Denholm (Chairman), Richard Agutter 
and David Moorhouse. A report of the Remuneration Committee is 
set out on pages 18 to 21.
Risk management and internal control
The Directors acknowledge the requirements of the Combined 
Code and seek to review all aspects of risk management in relation 
to each part of the Group. These risks include, but are not limited 
to, staff errors and/or omissions, non-compliance with industry 
standard procedures, loss of broker teams, effectiveness of internal 
control systems, industry sector consolidation, currency exposure, 
credit risk and the effectiveness of financial control. Management 
monitor these risks through internal management meetings, 
subsidiary board meetings and regular dialogue with departmental 
heads. A summary of key risks and internal controls is prepared 
for consideration at the Audit Committee on an annual basis. The 
Company also holds professional indemnity insurance to an amount 
considered adequate for its size and potential exposure.
Board committees
The number of meetings of the Board and its committees and the 
attendance of those meetings by each member is set out below:
  Audit Remuneration Nominations 
Number of meetings Board Committee Committee Committee
Non-executive Directors
Sir Graham Hearne  7/7    
Richard Agutter  7/7 3/3 3/3 2 / 2
John Denholm  7/7 3/3 3/3 2 / 2
David Moorhouse  5/7 3/3 3/3 2 / 2
 
Executive Directors 
Alan Marsh  7/7     
James Kidwell  7/7     
Quentin Soanes (1) 1/ 1     
Denis Petropoulos (1) 1/ 1     
Iain Shaw (2)  3/3     
(1)  Quentin Soanes and Denis Petropoulos were appointed on  
10 January 2007.
(2) Iain Shaw retired on 21 June 2006.
Each of the Board committees comprises solely non-executive 
Directors. The composition and responsibilities for the Audit, 
Remuneration and Nominations Committee are as follows:
Audit Committee
Non-executive Directors: Richard Agutter (Chairman),  
John Denholm and David Moorhouse.
Although the Board as a whole has a statutory responsibility for 
the preparation and publication of the Company’s accounts, the 
Audit Committee reports to the Board and takes responsibility  
for the following matters:
•  Review of the internal control procedures and risk assessment 
processes;
•  Planning with the external auditors the half-year review and full-
year audit programme including agreement with the external 
auditors of the nature and scope of the audit, together with the 
level of the audit fee set in the context of the overall audit plan;
•  Reviewing with the external auditors their audit findings 
and responses to the matters raised, including any issues or 
reservations the auditors may have;
•  Reviewing the half-year and annual financial statements before 
they are submitted to the Board;
•  Setting the policy on the appointment of the external auditors 
for the supply of non-audit services having regard to the level  
of fees for both audit and non-audit work;
• Reviewing the need for an internal audit department; and
• Reviewing the insurance arrangements for the Group.
Corporate governance for the year ended 28 February 2007 continued Braemar Seascope Group plc  Annual Report 2007     
 
The Directors acknowledge their responsibility for the 
implementation and effectiveness of the Group’s system of 
internal controls. These are designed to identify and counter 
the particular risks to which the Group is exposed. By their 
very nature these controls can only provide reasonable but 
not absolute assurance against material misstatement or loss. 
The effectiveness of the system of internal controls has been 
reviewed by the Audit Committee during the year. Due to its 
current size and structure, it has not been considered necessary 
to have a dedicated full-time internal audit function, though the 
need for one is kept under review. 
A Group budget is prepared annually and approved by the Board. 
The performance of the Group and the individual operating 
units are monitored against budget throughout the year and 
significant variances are investigated. Regular re-forecasts for 
the remainder of the financial year are prepared during the year. 
An internal system of checks and authorisations is operated 
and independent audits are conducted in relation to the ISO 
9001:2000 certification, which both Braemar Seascope Limited 
and Cory Brothers Shipping Agency Limited undertake. There is 
also an internal “whistleblowing” procedure through which any 
member of staff may raise, in confidence, any concerns they may 
have about the way the Group is run or business is conducted.
The Group has foreign currency exposure which arises as a result 
of the majority of its shipbroking earnings being denominated in 
US dollars while the majority of its costs are denominated in  
£ sterling. The treasury policy and objective in relation to foreign 
currencies is to limit the exposure to currency risk by covering 
a proportion of expected foreign currency denominated future 
income up to two years forward. This exposure is managed 
through the use of treasury instruments: principally forward 
foreign exchange contracts and currency options. The Group 
manages its exposure to fluctuations in interest rates by pooling 
its UK bank accounts under an offset agreement. The Board 
monitors treasury activity through regular reporting by the Finance 
Director. The Group does not enter into speculative transactions. 
Accountability and audit
A statement of the Directors’ responsibilities for preparing the 
financial statements is included in the Report of the Directors  
on page 14.
Going concern
After making enquiries, the Directors have a reasonable 
expectation that the Company and Group has adequate  
resources to continue to trade for the foreseeable future.  
For this reason, they continue to adopt the going concern  
basis in preparing the accounts.
      Braemar Seascope Group plc  Annual Report 2007
 
Base salary
Each executive Director’s base salary is reviewed annually on 
performance, achievement of objectives and comparative salaries. 
The base salaries of the Chief Executive and the Finance Director 
were increased with effect from 1 March 2006 following  
the 2006 review.
Annual bonus
The Remuneration Committee believes that a significant proportion 
of an executive Director’s overall remuneration package should be 
an annual bonus based on the performance of the Group, in order 
to provide an incentive to management and to align their interests 
with those of the shareholders. The bonus policy, which was 
established two years ago, rewards executives based on achieving 
earnings per share in excess of a hurdle figure. This excess is then 
applied to a weighting selected for each participant. The hurdle 
figure for the year ended 28 February 2007 was 16.4 pence giving 
an excess of 20.7 pence. The Committee raised the hurdle by 3% 
over the prior year taking into account factors such as the relative 
strength and cyclical nature of the shipping markets and their 
influence on the base hurdle figure, the relative importance of less 
cyclical non-broking businesses and the general rate of inflation.
Where an executive Director had specific responsibilities for a 
subsidiary company or section of the Group, the Remuneration 
Committee believes it appropriate that an element of the executive 
Director’s annual bonus should be determined by reference to that 
responsibility. In the year to 28 February 2007 the annual bonus 
awarded to Alan Marsh and James Kidwell was determined solely 
with reference to the performance of the Group and a component of 
the annual bonus awards for Denis Petropoulos and Quentin Soanes 
was determined with reference to the performance of the Group.
The Group also operates a Deferred Bonus Plan (“the plan”) 
whereby part of the annual performance-related bonus is  
delivered in shares, on a discretionary basis, to staff including 
executive Directors. Under the plan the shares are held in an 
employee trust for three years after which the employee beneficiary 
will become absolutely entitled to the shares provided they remain 
in employment with the Group (or have ceased to be employed 
in certain specified circumstances). In respect of the year to 28 
February 2007 awards over 107,500 shares were made at an 
estimated total cost of £531,700.
The annual bonus is not pensionable. Executive Directors may  
elect to sacrifice some or all of their bonus entitlement in favour  
of an equivalent company pension contribution.
Pensions
The Group’s trading subsidiaries operate a number of defined 
contribution pension schemes or make other similar arrangements 
for individual members as appropriate. The assets of the scheme 
are held separately from those of the Company in an independently 
administered fund. The pension cost charge represents 
contributions payable by the Company to the fund and the  
various individual employees’ retirement plans.
The Remuneration Committee comprises the following non-
executive Directors: John Denholm (Chairman), Richard Agutter 
and David Moorhouse. The Chairman and Chief Executive attend 
as required.
The responsibilities of the Committee are:
•  To determine on behalf of the Board and the shareholders the 
Group’s overall policy for executive remuneration;
•  To determine all aspects of the individual remuneration 
packages for each of the executive Directors of the Company, 
including their base salary and all performance-related 
elements including bonus arrangements, profit share schemes, 
equity participation schemes, other long-term incentive 
schemes, pension and other benefits;
•  To review the introduction and to determine the terms of all 
bonus, profit share or equity participation schemes or any other 
schemes intended to reward and incentivise employees of the 
group and to review the participation of the executive Directors 
and senior executives in such schemes, including the award of 
any bonuses and the grant of rights or options thereunder; and
•  To maintain an overview of policy in relation to the 
remuneration and conditions of service of other senior 
executives within the Group.
In discharging these responsibilities the Committee takes advice 
from the Chief Executive, Alan Marsh, and, as appropriate, 
independent consultants. In the current year the Remuneration 
Committee took advice from Nabarro, who also provide legal 
services to the Group, in relation to the Long-Term Incentive  
Plan (“LTIP”). 
Remuneration policy
The remuneration of the executive Directors is determined after a 
review of the individual’s performance and after taking account of 
comparable arrangements for other companies of similar size or 
activity. The Remuneration Committee believes that the executive 
Directors should be rewarded fairly, competitively and at a level 
that will attract, motivate and retain directors of an appropriate 
calibre. The Committee also believes that the Company’s 
remuneration policy should seek to align, so far as possible, the 
executive Directors’ remuneration with the performance of the 
Group. No Director is involved in deciding his own remuneration.
The executive Directors’ remuneration packages are reviewed  
on a regular basis and presently comprise:
• A competitive base salary;
• Annual bonus based on performance;
•  Defined contribution scheme pension contributions linked  
to base salary;
• Life and medical insurance and similar benefits; and
• Share options and LTIP awards.
Remuneration report for the year ended 28 February 2007 Braemar Seascope Group plc  Annual Report 2007     
 
Benefits
Benefits provided relate mainly to the provision of medical, life 
and permanent health insurance.
Share options
The Company operates a discretionary share option scheme 
called The Braemar Seascope Group 1997 Executive Option 
Scheme (“The 1997 Scheme”) and an all-employee save-as-
you-earn option scheme called The Braemar Seascope Group 
PLC 2003 Savings-Related Share Option Scheme (“The SAYE 
Scheme”). The total number of shares that may be issued or 
issuable in any ten-year period under both schemes (or any  
other Group share schemes) cannot exceed 10% of the  
Company’s issued share capital (calculated at the date of  
grant of the relevant option).
The SAYE Scheme
Under The SAYE Scheme options may be granted to employees 
(including Executive Directors) to acquire a number of shares in 
the future at a price that is up to 20% below the share price at 
the time the option is granted. The grant of the option is linked 
to a contract to make monthly savings to build up the amount 
required to pay the option exercise price. The SAYE Scheme was 
first launched in July 2003 and awards have been made on 4 
August 2003, 10 June 2004, 21 June 2005 and 5 December 2006. 
All employees who participate in The SAYE Scheme are entitled  
to do so on the same terms.
The Remuneration Committee believes The SAYE Scheme, which 
offers staff a tax effective way of saving money and acquiring  
an equity interest in the Company, both helps attract and retain 
staff and aligns the interests of staff and shareholders. As at  
28 February 2007, there were options outstanding over 332,194 
shares under The SAYE Scheme (2006: 397,854 shares) of which 
15,277 shares were under options held by Executive Directors 
(2006: 25,000 shares).
Discretionary options
Under The 1997 Scheme the Remuneration Committee may grant 
options to employees (including executive directors) to acquire 
shares in the Company at a price fixed at the market value at 
the time of grant of the options. Options granted under The 
1997 Scheme can normally only be exercised if the performance 
conditions attached to the options have been met. Under The 
1997 Scheme no employee can hold, in any ten-year period, 
options over shares with a total market value (measured at  
the date of granting the options), which exceeds four times  
his remuneration (excluding benefits in kind).
The table showing the Directors’ share incentives is set out  
on page 21.
Performance conditions
Options granted under The 1997 Scheme have since July 2002 
been subject to a performance condition that the growth in the 
Company’s average adjusted earnings per share over a period of no 
less than three financial years must exceed the growth in the retail 
prices index (RPI) over the corresponding period by no less than 
3% per annum compounded. None of the options granted prior to 
2002 remain outstanding. The performance condition was chosen 
to test whether or not there had been a sustained and significant 
improvement in the Group’s financial performance over a 
continuous period. There is no retesting of performance conditions.
The Remuneration Committee determines whether the 
performance condition has been met using earnings per 
share information contained in the Group’s Annual Report and 
Accounts, after obtaining confirmation from the auditors that  
the calculation has been performed in accordance with the terms 
of the scheme. During the year the Committee determined that 
the options granted in August 2003 had met the performance 
condition and had therefore vested.
The Remuneration Committee considers that discretionary 
share options can be an appropriate method of incentivising 
senior executives. While it is the intention to use the new 
LTIP to incentivise senior management, the grant of options 
under The 1997 Scheme will remain a possibility. However, the 
Remuneration Committee proposes to bring the performance 
conditions attached to any future grant of options under The  
1997 Scheme into line with the performance conditions attached 
to the long-term incentive awards by raising the required rate 
of growth in average adjusted earnings per share from RPI plus 
3% to RPI plus 4%. As at 28 February 2007 there were 368,350 
options outstanding under The 1997 Scheme (2006: 525,000 
shares), of which 35,000 were held by Executive Directors  
(2006: 70,000 shares).
Long-Term Incentive Plan (“LTIP”)
The Remuneration Committee established a new LTIP during the 
year which was approved by shareholders at the Annual General 
Meeting on 21 June 2006. Participation in the plan will initially be 
limited to executive Directors and senior managers.
The LTIP will deliver benefits to participants in the form of either 
an option to subscribe for ordinary shares at nominal value or 
a conditional right to receive ordinary shares. The awards will 
normally vest over a period of three years, provided there has 
been sustained and significant improvement in the Group’s 
financial performance over the corresponding period. It is 
proposed that the performance targets which will apply to  
the initial awards made under the LTIP will be based on  
earnings per share. 
The performance test to be applied to the initial awards is based 
on the Group’s earnings per share over a period of three years. 
The awards will vest as to 50% of the shares if the Group’s 
earnings per share has increased by RPI plus 4% and will vest 
as to 100% of the shares if the Group’s earnings per share has 
increased by RPI plus 10% and will vest as to between 50% and 
100% of the shares on a sliding scale if the Group’s earnings per 
share has increased by RPI plus more than 4% but less than 10%. 
Providing the performance test has been met, the awards will 
vest in three tranches: one third on each of the third, fourth and 
fifth anniversaries of the date of the awards.  0    Braemar Seascope Group plc  Annual Report 2007
 
Non-executive Directors 
The remuneration of the non-executive Directors is determined by 
the Board with reference to comparable organisations and roles.
The performance graph
Set our below is the Company’s total shareholder return 
performance over the last five years compared with the FT all share 
index. The index has been chosen as it represents the overall return 
achieved in the UK equity market.
It is proposed that, following the publication of these accounts, 
awards will be made under the LTIP over 20,000 shares to each  
of the Executive Directors.
Contracts of service
The executive Directors have entered into service agreements 
with the Company and the independent non-executive Directors 
serve under letters of engagement for an initial three-year 
term. In the event of early termination of service contracts, 
each Director is entitled to compensation equal to their basic 
salary and contractual benefits for the notice period as set out 
below. The policy on termination payments to Directors is that 
the Company does not normally make payments beyond its 
contractual obligations. In exceptional circumstances, an  
ex-gratia payment may be considered based on the circumstances 
of the Director’s departure and their past contribution.
Details of Directors’ service contracts are as follows:
   Date of Unexpired Notice 
   contract term period
Executive 
Alan Marsh 30 Nov 04  12 months 12 months
James Kidwell 20 Feb 03 12 months 12 months
Denis Petropoulos 10 Oct 01 12 months 12 months
Quentin Soanes 7 Mar 01 6 months 6 months
Non-executive   
Sir Graham Hearne 02 May 06 24 months 1 month
Richard Agutter 18 Nov 04 6 months 1 month
John Denholm 07 Dec 05  18 months 1 month
David Moorhouse 19 Jan 05 8 months 1 month
Remuneration report for the year ended 28 February 2007  continued
2006 2002 2003 2004 2005
50
100
200
250
300
150
2001
2002 2007 2003 2004 2005 2006
50
100
150
200
250
300
350
400
Braemar Seascope Group plc
FTSE All Share Braemar Seascope Group plc  Annual Report 2007     
 
Directors’ emoluments (audited)
For the year ended 28 February 2007 the individual emoluments by Director are as follows:
    Performance-        
  Salary/ related     Year ended Year ended 
   fees bonus Benefits Pension  28 Feb 07 28 Feb 06 
  £  £  £  £  £  £ 
Executive Directors
Alan Marsh  339,240  290,680 4,124 3,125 637,169 607,970
James Kidwell  200,000  174,516 2,432 30,000 406,948 365,572 
Denis Petropoulos (1) 22,759 137,258 266 3,414 163,697      n/a
Quentin Soanes (1) 25,735 237,258 389 – 263,382  n/a
Iain Shaw (2)  55,000  – 1,840 8,249 65,089 257,555
 
Non-executive Directors
Sir Graham Hearne  85,000 – – – 85,000    61,250
Richard Agutter  35,000 – – – 35,000    35,000
John Denholm  35,000 – – – 35,000    35,000
David Moorhouse  35,000 – – – 35,000    35,000
 832,734 839,712 9,050 44,788 1,726,284 1,397,247
(1)  Appointed 10 January 2007. The performance-related bonus was in respect of their contributions over the whole year and was  
awarded subsequent to their appointment.
(2) Retired 21 June 2006.
Directors’ share incentives (audited)
The numbers of ordinary shares subject to options held by Directors and granted under The 1997 Scheme and under The SAYE Scheme 
are set out below:
          Date options  
    Date of Number at   Number at Exercise exercised/ Date options 
  Grant 01 Mar 06 Exercised Granted 28 Feb 07 price (pence) exercisable expire
James Kidwell 1997 Scheme 05 Aug 03 35,000 (35,000) – – 181.5 30 Aug 06 
  1997 Scheme 15 Jun 04 35,000 – – 35,000 245 15 Jun 07 15 Jun 14
  SAYE 04 Aug 03 6,250 (6,250) – – 148 29 Aug 06 
 SAYE 05 Dec 06 – – 3,009 3,009 314 06 Dec 09 06 Jun 10
         
Alan Marsh SAYE 10 Jun 04 6,250 – – 6,250 199 10 Jun 07 10 Feb 08
         
Denis Petropoulos SAYE 04 Aug 03 6,250 (6,250) – – 148 29 Aug 06 
  SAYE 05 Dec 06 – – 3,009  3,009 314 06 Dec 09 06 Jun 10
         
Quentin Soanes SAYE 04 Aug 03 6,250 (6,250) – – 148 29 Aug 06 
  SAYE 05 Dec 06 – – 3,009  3,009 314 06 Dec 09 06 Jun 10
The closing mid-market share price on 28 February 2007 was 400.5 pence and the range of closing prices during the financial year 2006/7  
was 353 pence to 464 pence. SAYE options were granted at a 20% discount to the prevailing market price.
At the date of James Kidwell’s 1997 Scheme exercise the share price was 395.5 pence giving an unrealised gain of £74,900 over the exercise price.
At the date of James Kidwell’s, Quentin Soanes’ and Denis Petropoulos’ SAYE Scheme exercises, the share price was 406.25 pence giving them 
each an unrealised gain of £16,140 over the exercise price.
No other director who served during the year held any share options. Directors’ interests are set out on page 13.
Non-executive Directors are not permitted to participate in The 1997 Scheme or The SAYE Scheme.
John Denholm 
Chairman, Remuneration Committee 
10 May 2007     Braemar Seascope Group plc  Annual Report 2007
 
We read other information contained in the Annual Report and 
consider whether it is consistent with the audited financial 
statements. The other information comprises only the Report of 
the Directors, the unaudited part of the Remuneration Report, the 
Chairman’s Statement, the Chief Executive’s review of the business, 
the Corporate Governance Statement and the five year financial 
summary. We consider the implications for our report if we become 
aware of any apparent misstatements or material inconsistencies 
with the financial statements. Our responsibilities do not extend to 
any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards 
on Auditing (UK and Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on a test basis, of evidence 
relevant to the amounts and disclosures in the financial statements 
and the part of the Directors’ Remuneration Report to be audited. 
It also includes an assessment of the significant estimates and 
judgments made by the directors in the preparation of the financial 
statements, and of whether the accounting policies are appropriate 
to the group’s and company’s circumstances, consistently applied 
and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements and the part of the 
Directors’ Remuneration Report to be audited are free from material 
misstatement, whether caused by fraud or other irregularity or 
error. In forming our opinion we also evaluated the overall adequacy 
of the presentation of information in the financial statements and 
the part of the Directors’ Remuneration Report to be audited.
Opinion
In our opinion:
•  the group financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union, of the 
state of the group’s affairs as at 28 February 2007 and of its profit 
and cash flows for the year then ended;
•  the parent company financial statements give a true and fair 
view, in accordance with IFRSs as adopted by the European Union 
as applied in accordance with the provisions of the Companies 
Act 1985, of the state of the parent company’s affairs as at 28 
February 2007 and cash flows for the year then ended;
•  the financial statements and the part of the Directors’ 
Remuneration Report to be audited have been properly prepared 
in accordance with the Companies Act 1985 and, as regards the 
group financial statements, Article 4 of the IAS Regulation; and
•  the information given in the Directors’ Report is consistent with 
the financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
West London
14 May 2007
We have audited the group and parent company financial 
statements (the ‘‘financial statements’’) of Braemar Seascope 
Group plc for the year ended 28 February 2007 which comprise 
the Consolidated Income Statement, the Group and Parent 
Company Balance Sheets, the Group and Parent Company Cash 
Flow Statements, the Group and Parent Company Statements of 
Recognised Income and Expense and the related notes. These 
financial statements have been prepared under the accounting 
policies set out therein. We have also audited the information in 
the Remuneration Report that is described as having been audited.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, 
the Directors’ Remuneration Report and the financial statements 
in accordance with applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union 
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the 
part of the Remuneration Report to be audited in accordance 
with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland). This report, including 
the opinion, has been prepared for and only for the company’s 
members as a body in accordance with Section 235 of the 
Companies Act 1985 and for no other purpose. We do not, in 
giving this opinion, accept or assume responsibility for any other 
purpose or to any other person to whom this report is shown or 
into whose hands it may come save where expressly agreed by 
our prior consent in writing.
We report to you our opinion as to whether the financial 
statements give a true and fair view and whether the financial 
statements and the part of the Directors’ Remuneration Report 
to be audited have been properly prepared in accordance with 
the Companies Act 1985 and, as regards the group financial 
statements, Article 4 of the IAS Regulation. We also report to 
you whether in our opinion the information given in the Report 
of the Directors is consistent with the financial statements. The 
information given in the Report of the Directors includes that 
specific information presented in the Chief Executive’s review 
that is cross referred from the principal activities and review of 
business section of the Report of the Directors. 
In addition we report to you if, in our opinion, the company has 
not kept proper accounting records, if we have not received all 
the information and explanations we require for our audit, or if 
information specified by law regarding directors’ remuneration 
and other transactions is not disclosed.
We review whether the Corporate Governance Statement reflects 
the company’s compliance with the nine provisions of the 
Combined Code (2003) specified for our review by the Listing 
Rules of the Financial Services Authority, and we report if it 
does not. We are not required to consider whether the board’s 
statements on internal control cover all risks and controls, or 
form an opinion on the effectiveness of the group’s corporate 
governance procedures or its risk and control procedures.
Independent Auditors’ Report to the members of Braemar Seascope Group plc Braemar Seascope Group plc  Annual Report 2007     23
     Year ended Year ended 
      28 Feb 2007 28 Feb 2006 
Continuing operations   Notes £’000 £’000
Revenue   2 107,200 68,497
Cost of sales    (53,529) (21,271)
Gross profit    53,671 47,226
Operating costs    (44,121) (37,336)
Amortisation of other intangibles   12 (284) (287)
Impairment of goodwill   11 (950) –  
Operating costs excluding amortisation of other intangibles and impairment of goodwill   (42,887) (37,049)
Operating profit   2,3 9,550 9,890
Finance income   6 335 162
Finance costs   6 (16) (2)
Share of profit from joint ventures and associates    207 243
     
Profit before taxation    10,076 10,293
Taxation   7 (3,604) (3,115)
Profit for the year     6,472 7,178
Attributable to:
Equity holders of the parent   27 6,367 7,178
Minority interest   29 105 –  
Profit for the year    6,472 7,178
Earnings per ordinary share 
Basic – pence   9  32.29p  37.03p
Diluted – pence   9  31.87p  36.18p
 
   Group  Company
   Year ended Year ended Year ended Year ended 
   28 Feb 2007 28 Feb 2006 28 Feb 2007 28 Feb 2006 
  Notes £’000 £’000 £’000 £’000
Profit attributable to shareholders  6,472 7,178 6,015 4,532
Foreign exchange differences on retranslation of foreign operations 25 (70) 83 –   –  
Tax on items taken directly to or transferred from equity 7 260 576 –  –  
Cash flow hedges:
 – Transferred to income statement in year 25 40   (1,401) –   –  
 – Losses deferred in equity 25 17   (40) –   –  
Recognised income and expense for the year  28 6,719 6,396 6,015 4,532
Attributable to: 
Ordinary shareholders  6,614 6,396 6,015 4,532
Minority interest  29 105 –   –   –  
   6,719 6,396 6,015 4,532
Consolidated income statement
for the year ended 28 February 2007
Statement of recognised income and expenses
for the year ended 28 February 2007 24    Braemar Seascope Group plc  Annual Report 2007
Balance sheet
as at 28 February 2007
   Group  Company
   As at As at As at As at 
   28 Feb 2007 28 Feb 2006 28 Feb 2007 28 Feb 2006
Assets Notes £’000 £’000 £’000 £’000
Non-current assets 
Goodwill 11 22,606 22,480 –   –  
Other intangible assets 12 1,582 462 –   –  
Property, plant and equipment 13 5,478 5,034 –   –  
Investments 14 1,538 1,611 35,927 36,560
Deferred tax assets 7 642 510 –   –  
Other receivables 15 81 58 81 58
   31,927 30,155 36,008 36,618
Current assets 
Inventories 16 70 – –   –
Trade and other receivables 17 21,750 17,717 8,137 4,979
Derivative financial instruments 18 27 12 –   –
Cash and cash equivalents 19 14,634 13,567 –   52
    36,481 31,296 8,137 5,031
Total assets  68,408 61,451 44,145 41,649
Liabilities 
Current liabilities 
Short term borrowings 20 –   –   1,507 2,073
Derivative financial instruments 18 –   99 –   –  
Trade and other payables 21 29,011 25,490 538 698
Current tax payable  2,402 2,224 –   –  
Finance leases 22 –   11 –   –  
Provisions 23 294 288 –   –  
   31,707 28,112 2,045 2,771
Non-current liabilities   
Deferred tax liabilities 7 283 139 –   –  
Provisions 23 169 343 –  –  
   452 482 –   –  
Total liabilities  32,159 28,594 2,045 2,771
Total assets less total liabilities  36,249 32,857 42,100 38,878
Equity 
Share capital 24 2,023 1,988 2,023 1,988
Capital redemption reserve 24 396 396 396 396
Share premium 25 8,554 8,046 8,554 8,046
Merger reserve 25 21,346 21,346 21,346 21,346
Other reserves 25 (722) 47 – –
Shares to be issued 26 (1,047) (997) (1,047) (997)
Retained earnings 27 5,390 2,031 10,828 8,099
Group shareholders’ equity 28 35,940 32,857 42,100 38,878
Minority interest 29 309 – –   –
Total equity 28 36,249 32,857 42,100 38,878
The accounts on pages 23 to 49 were approved by the Board of Directors on 10 May 2007 and were signed on its behalf by:
 
Sir Graham Hearne, Chairman J.R.V. Kidwell, Finance Director
The notes on pages 26 to 49 form part of these accounts Braemar Seascope Group plc  Annual Report 2007     25
   Group  Company
   Year ended Year ended Year ended Year ended 
   28 Feb 2007 28 Feb 2006 28 Feb 2007 28 Feb 2006 
  Notes £’000 £’000 £’000 £’000
Cash flows from operating activities 
Cash generated from operations 30 9,668 13,769 3,624 4,068
Interest received  335 156 –   –  
Interest paid  (16) (1) (3) (87)
Tax paid  (3,413) (3,210) –   –  
Net cash generated from operating activities  6,574 10,714 3,621 3,981
Cash flows from investing activities 
Dividends received from joint ventures  263 239   –   –  
Acquisition of subsidiaries, net of cash acquired  (1,844) (521) –   –  
Purchase of property, plant and equipment  (654) (387) –   –  
Proceeds from sale of property, plant and equipment  25 29 –   –  
Purchase of investments  – (36) (8) (36)
Other long-term assets  (23) 37 (23) 37
Net cash used in investing activities  (2,233) (639) (31) 1
Cash flows from financing activities 
Proceeds from issue of ordinary shares  569 535 569 535
Dividends paid  (3,595) (3,194) (3,595) (3,194)
Dividends paid to minority interest  (100) – –   –
Purchase of own shares  (50) (360) (50) (360)
Payment of principal under finance leases  (11) (28) –   –  
Net cash used in financing activities  (3,187) (3,047) (3,076) (3,019)
Increase in cash and cash equivalents  1,154 7,028 514 963
Cash and cash equivalents at beginning of the year  13,567 6,539 (2,021) (2,984)
Foreign exchange differences  (87)   –   –   –  
Cash and cash equivalents at end of the year  14,634 13,567 (1,507) (2,021)
Balance sheet analysis of cash and cash equivalents 
Cash and cash equivalents  14,634 13,567 – 52
Short-term borrowings  –   – (1,507) (2,073)
Cash and cash equivalents at end of the year  14,634 13,567 (1,507) (2,021)
Cash flow statement
for the year ended 28 February 2007 26    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
General information
The Group and Company financial statements of Braemar Seascope Group plc for the year ended 28 February 2007 were authorised for issue in 
accordance with a resolution of the Directors on 10 May 2007. Braemar Seascope Group plc is a Public Limited Company incorporated in England 
and Wales.
The term ‘Company’ refers to Braemar Seascope Group plc and ‘Group’ refers to the Company and all of its subsidiary undertakings and the 
employee share ownership plan trust.
1.  Accounting policies
a) Basis of preparation
The Group and Company financial statements have been prepared in accordance with EU Endorsed International Financial Reporting Standards 
(IFRS), IFRIC interpretations and the Companies Act applicable to companies reporting under IFRS. 
The financial statements have been prepared under the historic cost convention except for the derivative financial instruments, which are measured 
at fair value. 
The Group and Company financial statements are presented in pounds sterling and all values are rounded to the nearest thousand pounds (£’000) 
except where otherwise indicated.
No income statement is presented for Braemar Seascope Group plc as provided by Section 230 of the Companies Act 1985. 
The principal accounting policies adopted in the presentation of these financial statements are set out below.
b) Basis of consolidation
The consolidated financial statements incorporate the accounts of the Group and the Company made up to 28 February each year.
The results of subsidiaries, which are entities that are directly or indirectly controlled by the company, are consolidated using the purchase 
method of accounting, from the date on which control of the net assets and operation of the acquired company are effectively transferred to the 
Group. Similarly, the results of subsidiaries divested cease to be consolidated from the date on which control of the net assets and operations 
are transferred out of the Group. Control exists where the Group has the power to govern the financial and operating policies of the entity so as to 
obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account.
The interest of minority shareholders is stated at the minority’s proportion of the value of the assets and liabilities recognised and is presented 
separately within total equity in the consolidated balance sheet.
Investments in joint ventures and associates and where the Group has significant influence but not control are equity accounted and carried in 
the balance sheet at cost plus post-acquisition changes in the Group’s share of net assets of the associate or joint venture, less any impairment in 
value. The income statement reflects the Group’s share of the post-tax result of the joint venture or associate.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
c) Use of estimates and critical judgements
The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that 
affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during 
the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results ultimately 
may differ from those estimates.  Principal areas where the assumptions and estimates have a significant risk of causing a material adjustment to the 
carrying amount of assets and liabilities within the next financial year are estimated impairment of goodwill (see note 11) and provisions (see note 23).
d) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the Company and the revenue can be 
reliably measured.
Revenue of the Group consists of commission arising from tanker and dry cargo charter broking, sale and purchase broking, offshore broking, 
financial consultancy arrangement fees, fees for the supply of technical and agency services, fees for environmental services and income for the 
supply of bunkers. The policies for accounting for revenue are as follows:
 i)  Shipbroking – income is recognised when the Company has a contractual entitlement to commission, normally the point at which there is 
completion of contractual terms between the principals of a transaction.
 ii)  Agency, forwarding and logistics – agency income is recognised at the point when the ship sails from the port. Forwarding and logistics 
income is recognised on a shipment basis. Where the Group acts as a principal rather than as agent, the turnover and costs are shown gross.
 iii)  Technical services – fee income is recognised as invoiced for work performed and/or in accordance with the agreement.
 iv) Environmental services – revenue is recognised at the contractual rates, as labour hours are delivered and direct expenses incurred.
 v)  Bunker trading – revenue is recognised when sales and purchases of bunkers are contracted.
Revenue of the Company consists of dividends from investments. Dividend income from investments is recognised when the shareholders’ legal 
rights to receive payment have been established.
e) Foreign currencies
The functional currency of the Group is pounds sterling. Transactions in currencies other than pounds sterling are recorded at the rates of exchange 
prevailing on the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the 
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currency are recognised in the income statement. Braemar Seascope Group plc  Annual Report 2007     27
In order to manage its exposure to certain foreign exchange risks, the Group enters into derivative financial instruments contracts; mainly forward 
contracts (see the following page for details of the Group’s accounting policies in respect of such derivative financial instruments).
Assets and liabilities of overseas subsidiaries and associates are translated into pounds sterling at the exchange rates ruling at the balance sheet 
date. Trading results are translated at the average rates for the period. Exchange differences arising on the consolidation of the net assets of 
overseas subsidiaries are dealt with through the foreign currency translation reserve, whilst those arising from trading transactions are dealt with 
in the income statement. On disposal of a business, the cumulative exchange differences previously recognised in the foreign currency translation 
reserve relating to that business are transferred to the income statement as part of the gain or loss on disposal.
f) Taxation
The taxation expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the income statement 
because it excludes items of income and expense that are taxable or deductible in other years and it further excludes items that are never taxable 
or deductible. The Group and Company’s liability for current tax is calculated using rates that have been enacted or substantively enacted by the 
balance sheet date.
Full provision is made for deferred taxation on all taxable temporary differences. Deferred tax assets and liabilities are recognised separately on 
the balance sheet. Deferred tax assets are recognised only to the extent that they are expected to be recoverable. Deferred taxation is recognised 
in the income statement unless it relates to taxable transactions taken directly to equity, in which case the deferred tax is also recognised in equity. 
The deferred tax is released to the income statement at the same time as the taxable transaction is recognised in the income statement. Deferred 
taxation on un-remitted overseas earnings is provided for to the extent a tax charge is foreseeable.
g) Goodwill
On the acquisition of a business, fair values are attributed to the net assets (including any identifiable intangible assets) acquired. Goodwill arises 
where the fair value of the consideration given exceeds the fair value of the net assets acquired. Goodwill is recognised as an asset and is reviewed 
for impairment at least annually. Impairments are recognised immediately in the income statement. Goodwill is allocated to cash generating units 
for the purposes of impairment testing. On the disposal of a business, goodwill relating to that business remaining on the balance sheet is included 
in the determination of the profit or loss on disposal. Goodwill written off to reserves prior to 1998 has not been reinstated and will not be included 
in determining any subsequent profit or loss on disposal. As permitted by IFRS1 goodwill on acquisitions arising prior to 1 March 2004 has been 
retained at prior amounts and will be tested annually for impairment.
h) Other intangible assets
Intangible assets acquired as part of a business combination are stated in the balance sheet at their fair value at the date of acquisition less 
accumulated amortisation and any provisions for impairment. The amortisation of the carrying value of the capitalised forward order book and 
customer relationships is charged to the income statement over an estimated useful life determined by either the expected due dates for future 
income in the case of forward order books or the expected duration of customer relationships. Other intangible assets are amortised over an 
expected life of two to ten years. The carrying values of intangible assets are reviewed for impairment at least annually or when there is an 
indication that they may be impaired. 
 
i) Property, plant and equipment
Property, plant and equipment are shown at historical cost less accumulated depreciation and any impairment in value.
Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset, on a straight-line basis over its 
expected useful life as follows (except for long leasehold interests which are written off against the remaining period of the lease):
Motor vehicles – three years
Computers – four years
Fixtures and equipment – four years
j) Investments
Investments in associates and joint ventures where the Group has significant influence but not control are accounted for under the equity 
method of accounting. Investments are carried in the balance sheet at cost plus post acquisition changes in the Group’s share in the net assets of 
associates and joint ventures, less any impairment in value.  The income statement reflects the Group’s share of the results of the operations of 
associates and joint ventures.
Investments in associates and joint ventures together with any other unlisted investments where the Group has no significant influence are booked 
at cost less any impairment in value.
Investments in the Company are shown at cost less impairment.
k) Impairment
The carrying amount of the Group’s assets, other than financial assets within the scope of IAS 39 and deferred tax assets, are reviewed each 
balance sheet date to determine whether there is an indication of impairment. If any such indication exists, the assets’ recoverable amount is 
estimated. The recoverable amount is determined based on value in use calculations, which require the use of estimates. An impairment loss is 
recognised in the income statement whenever the carrying amount of the assets exceeds its recoverable amount.
Where an impairment loss subsequently reverses, the carrying amount of the assets with the exception of goodwill and other intangibles is 
increased to the revised estimate of its recoverable amount. This cannot exceed the carrying amount prior to the impairment charge. An impairment 
recognised in the income statement in respect of goodwill and other intangibles is not subsequently reversed. 28    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
l) Derivative financial instruments and hedging 
Derivatives are initially recognised at fair value and are subsequently re-measured at their fair value at each balance sheet date. Recognition of the 
resulting gain or loss depends on whether the derivative is designated as a hedging instrument and, if it is, the nature of the item being hedged. 
Changes in the fair value of derivatives that do not qualify for hedge accounting are recognised immediately in the income statement. The Group 
designates derivatives that qualify for hedge accounting as a cash flow hedge where there is a high probability of the forecast transactions arising. 
The effective portion of changes in the fair value of these derivatives is recognised in equity. The gain or loss relating to the ineffective portion is 
recognised immediately in the income statement. Amounts accumulated in equity are dealt with in the income statement at the same time as the 
gains or losses on the hedged items. When a forecast transaction is no longer expected to occur, the cumulative gains or losses that were reported 
in equity are immediately transferred to the income statement. 
When a hedging instrument expires or is sold, terminated or exercised, or the entity revokes designation of the hedge relationship but the hedged 
forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the 
above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss 
recognised in equity is recognised immediately in the income statement.
The fair value of forward foreign exchange contracts, which are traded in active markets, is based on quoted market prices at the balance sheet date. 
m) Inventories
Inventories are valued at the lower of cost and net realisable value.
n) Trade and other receivables
Trade and other receivables are recognised and carried at the lower of their original value and recoverable amount. Impairment is made where there 
is evidence that the balances will not be recovered in full.
 
o) Cash and cash equivalents
Cash and short-term deposits included in the balance sheet comprise cash in hand and short-term deposits with an original maturity of three 
months or less.
Cash and cash equivalents included in the cash flow statement includes cash and short-term deposits, net of bank overdrafts.
p) Provisions
Provisions are recognised when the Group has a present obligation (legal or otherwise) as a result of a past event and it is probable that an outflow 
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the 
obligation. If material, the provisions are discounted using an appropriate current pre-tax interest rate.
q) Share-based payments
The fair value at the date of grant of share-based remuneration, principally share options, is calculated using a binomial pricing model and charged 
to the income statement on a straight-line basis over the vesting period of the award. The charge to the income statement takes account of the 
estimated number of shares that will vest. All share-based remuneration is equity settled. The balance sheet entry is included in reserves. Shares 
issued in respect of the deferred bonus plan are valued at the market value on the date the shares are purchased.
The Company reflects the fair value of the share-based payments as an investment in its subsidiaries.
The Group has taken advantage of the transitional provisions IFRS 2 “Share-based Payments” in respect of equity settled awards and has applied 
IFRS2 only to equity settled awards granted after 7 November 2002 that had not vested before 1 March 2005. 
r) Commissions payable
Commissions payable to clients are recognised in trade creditors due within one year on the earlier of the date of invoicing or the date of receipt of cash.
s) Pension scheme arrangements
The Group operates several defined contribution pension schemes. The assets of the schemes are held separately from those of the Company in an 
independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.
t) Leasing
A finance lease is a lease that transfers substantially all the risks and rewards of ownership of an asset. Assets acquired under finance leases are 
recorded in the balance sheet as property, plant and equipment at their fair value and depreciated over the shorter of their estimated useful lives 
and their lease terms. Obligations under such agreements are included in liabilities net of the finance charge allocated to future periods. All other 
leases are operating leases, and the rental of these is charged to the income statement as an expense on a straight-line basis over the lease term. 
Operating lease income is recognised in the income statement as it is earned.
u) Segmental analysis
The Group’s primary segmental analysis is based on its five business segments: Shipbroking; Ship agency, forwarding and logistics; Technical 
shipping support; Environmental services; and Bunker trading. This is consistent with the way the Group manages itself and with the format of the 
Group’s internal financial reporting. 
The secondary analysis is presented according to the geographic markets comprising UK and Australia and the rest of the world. The Group’s 
geographical segments are determined by the location of the Group’s assets and operations.
Costs are allocated between segments on an actual basis. Braemar Seascope Group plc  Annual Report 2007     29
v) Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements in the period in which the dividends 
are approved by the Company’s shareholders.
w) New standards and interpretations not applied
During the year, the IASB and IFRIC have issued standards and interpretations for accounting periods beginning on or after the effective dates 
detailed in the table below. In all instances the effective date is after the beginning of the current reporting period. 
International Accounting Standards (IAS/IFRS)     Effective date 
IFRS 7 Financial Instruments: Disclosures    1 January 2007
IAS 1 Amendment – Presentation of Financial Statements: Capital Disclosures    1 January 2007
IFRS 8 Operating Segments    1 January 2009
International Financial Reporting Interpretations Committee (IFRIC)     Effective date
IFRIC 8 Scope of IFRS 2     1 May 2006
IFRIC 9 Reassessment of Embedded Derivatives     1 June 2007
IFRIC 10 Interim Financial Reporting and Impairment     1 November 2006
IFRIC 11 IFRS2 – Group and Treasury Shares Transactions     1 March 2007
IFRIC 12 Service Concession Arrangements     1 January 2008
The directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the Group’s financial 
statements in the period of initial application.
2.  Segmental information
a) Business segments
For management purposes, the Group is currently organised into five operating divisions: Shipbroking; Ship agency, forwarding and logistics; 
Technical shipping support; Environmental services; and Bunker trading. These divisions are the basis on which the Group reports its primary 
segment information.
   Revenue   Profit for the year
   2007 2006 2007 2006 
   £’000 £’000 £’000 £’000
Shipbroking*  40,530 39,745 8,749 9,003
Ship agency, forwarding & logistics  23,449 15,851 911 568
Technical shipping support  6,623 5,202 553 289
Environmental services  3,229 –   225 –  
Revenue / operating profit excluding bunker trading and impairment  73,831 60,798 10,438 9,860
Bunker trading  33,369 7,699 62 30
Revenue / operating profit excluding impairment  107,200 68,497 10,500 9,890
Impairment – shipbroking*  –   –   (950) –  
Revenue / operating profit  107,200 68,497 9,550 9,890
Finance income – net    319 160
Share of profit from joint ventures and associates    207   243
Profit before taxation    10,076 10,293
Taxation    (3,604) (3,115)
Profit for the year    6,472 7,178
Minority interests – ship agency, forwarding and logistics    (105) –
Profit for the year attributable to shareholders    6,367 7,178
* Shipbroking operating profit for the year ending 28 February 2006 is £7,799,000 ( 2006: £9,003,000).
There are no sales between the business segments. 
      Depreciation and amortisation  
  Capital additions  of intangible assets
   2007 2006 2007 2006 
   £’000 £’000 £’000 £’000
Shipbroking  1,873 242 335 445
Ship agency, forwarding & logistics  592 1,526 314 175
Technical shipping support  54 5 9 6
Environmental services  951 –   144 –  
Operating group excluding bunker trading  3,470 1,773 802 626
Bunker trading  –  1 –   –  
Operating group  3,470 1,774 802 626
Capital expenditure comprises additions to property, plant and equipment, goodwill and other intangibles including additions resulting from 
business acquisitions. 30    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
2.  Segmental information continued
  Assets Liabilities  Net assets
  2007 2006 2007 2006 2007 2006 
  £’000 £’000 £’000 £’000 £’000 £’000
Shipbroking 38,762 33,703 17,366 14,348 21,396 19,355
Ship agency, forwarding & logistics 7,134 6,878 8,240 7,633 (1,106) (755)
Technical shipping support 1,575 1,867 90 268 1,485 1,599
Environmental services 2,099 –   925 –   1,174 –  
Operating group excluding bunker trading 49,570 42,448 26,621 22,249 22,949 20,199
Bunker trading 2,024 3,315 2,853 3,982 (829) (667)
Operating group 51,594 45,763 29,474 26,231 22,120 19,532
Cash and cash equivalents 14,634 13,567 –   –   14,634 13,567
Taxation 642   510 2,685   2,363 (2,043) (1,853)
Share of joint ventures and associates 755 828 – –   755 828
Other investments 783 783 –   –   783 783
Group 68,408 61,451 32,159   28,594 36,249 32,857
Segment assets consist primarily of intangible assets (including goodwill), tangible fixed assets, receivables and other assets. Receivables for 
taxes, cash and cash equivalents and investments have been excluded. Segment liabilities relate to the operating activities and exclude liabilities 
for taxes and short-term borrowings.
b) Geographical segment – by origin of invoice
The Group manages its business segments on a global basis. The operations are based in two main geographical areas being the UK and Australia. 
The UK is the home country of the parent.
  Revenue Capital additions  Assets
  2007 2006 2007 2006 2007 2006 
  £’000 £’000 £’000 £’000 £’000 £’000
United Kingdom 69,522 56,441 3,241 1,727 45,715 41,453
Australia 36,164 10,963 8 45 5,668 4,290
Rest of World 1,514 1,093 5 2 111 20
Operating group 107,200 68,497 3,254 1,774 51,594 45,763
c) Revenue analysis
All revenue arises from the rendering of services and the provision of goods in respect of bunker trading.
3.  Operating profit
Operating profits from continuing operations represent the results from operations before share of profits of joint ventures and associates, finance 
income, finance costs and taxation.
This is stated after charging/(crediting):
      2007 2006 
    Notes £’000 £’000
Staff costs   4 28,632 26,558
Depreciation on tangible fixed assets of which leased assets £nil ( 2006: £2,000)   13 518  339 
Amortisation of other intangible assets    12 284 287
Impairment of goodwill    11 950 –  
Operating lease rentals: 
 – Land and buildings    568 346
 – Other    93 11
Profit on sale of tangible fixed assets    (12) –  
Movements in bad debt provisions    145 139
Auditors’ remuneration    5 292 263
Freight and haulage – cost of sales    15,249 9,548
Bunker payments – cost of sales    32,871 7,516
Payments to sub contractors – cost of sales    5,409 4,207
Other operating costs    12,889 9,393
Net foreign exchange losses / (gains)    (238) (1,009) Braemar Seascope Group plc  Annual Report 2007     31
4.  Staff costs
a) Staff costs for the Group during the year (including Directors)
      2007 2006 
    Notes £’000 £’000
Salaries and wages      24,080 22,243
Other pension costs   32 1,577 1,699
Social security costs     2,666 2,372
Share-based payments     309 244
      28,632 26,558
No staff costs were incurred by the Company.
The numbers above include remuneration and pension entitlements for each Director. Details are included in the Remuneration Report on page 18.
b) Average number of full time employees
      2007 2006 
     Number Number
Shipbroking       205  189
Ship agency, forwarding & logistics       149  120
Technical shipping support       18  17
Environmental services    39 –
Bunker trading    2  2
        413  328
The Company had no employees. 
c) Key management compensation (including Directors)
The remuneration of key management including the eight Directors and one former Director of the Group is set out below. Two of these Directors 
were only Board Directors for part of the year but were key management employees for the entire year. Further information about the remuneration 
of individual Directors is provided in the Directors’ Remuneration Report on page 18.
      2007 2006 
     £’000 £’000
Salaries and short-term employee benefits       2,110  2,894
Post-employment benefits       86  515
Share-based payments       17  19
        2,213  3,428
Number of key management employees       9  10
5.  Auditors’ remuneration
A more detailed analysis of auditors’ services is given below:
   Group  Company
    2007 2006 2007 2006 
   £’000 £’000 £’000 £’000
Audit services 
 – Fees payable to company auditor for Company and Group  111 108 5 5
Non-audit services 
Fees payable to the Group’s auditor and its associates for other services:  
 – The audit of the Group’s subsidiaries pursuant to legislation  72 37 – –
 – Other services  25 45 – –
 – Tax services  84 93 –   –  
   292 283 5 5 32    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
6.  Finance income/(costs) – net
      2007 2006 
     £’000 £’000
Finance income: 
– Interest on bank deposits     335 162
Total finance income     335 162
Finance costs: 
 – Interest payable on bank loans and other loans     (16) –
 – On finance leases     – (2)
Total finance costs     (16) (2)
Finance income / (costs) – net     319 160
7.  Taxation
a) Analysis of charge in year
      2007 2006 
     £’000 £’000
Current tax  
UK Corporation tax charged to the income statement     3,697 3,148
UK adjustment in respect of prior years     (68) 16
Overseas tax on profits in the year    115 –
Overseas adjustment in respect of prior years     (16) 124
Total current tax     3,728 3,288
Deferred tax 
UK current year origination and reversal of timing differences     (69) (215)
UK adjustment in respect of prior years     (1) 17
Overseas current year origination and reversal of timing differences    (22) 12
Overseas adjustment in respect of prior years     (32) 13
Total deferred tax     (124) (173)
Taxation     3,604 3,115
The effective tax rate is higher in the year ended 28 February 2007 as a result of the impact of the impairment of goodwill.
        2007  2006
Tax on items charged to equity       £’000  £’000
Current  tax liability debit on exercised stock options       (242)  –
Deferred tax credit on stock options    (37) (144)
Deferred tax credit on cash flow hedges       19  (432)
Tax credit in the statement of recognised income and expense       (260)  (576)
        2007  2006
Reconciliation between expected and actual tax charge     £’000  £’000
Profit before tax       10,076  10,293
Profit before tax at standard rate of UK corporation tax of 30% (2006: 30%)       3,023  3,088
Expenses not deductible for tax purposes       760  299
Temporary differences       –    (245)
Joint venture income not subject to UK tax       (62)  (73)
Prior year adjustments       (117)  46
Total tax charge for the year       3,604  3,115
b) Deferred tax asset
        As at  As at 
        28 Feb 2007  28 Feb 2006
Analysis of the deferred tax asset       £’000  £’000
Accelerated capital allowances
 (includes £108,000 (2006: £64,000) of overseas accelerated capital allowances)      114 184
Short-term timing differences       528 326
        642  510 Braemar Seascope Group plc  Annual Report 2007     33
7.  Taxation continued
        2007  2006
The movement in the deferred tax asset       £’000  £’000
Balance at beginning of year       510  309
Movement to income statement       107  45
Movement to reserves       25  156
Balance at end of year       642  510
The closing deferred tax asset includes £53,000 (2006: £199,000) expected to reverse within the next 12 months of the balance sheet date.
 
c) Deferred tax liabilities
        As at  As at 
        28 Feb 2007  28 Feb 2006
Analysis of the deferred tax liability       £’000  £’000
Short-term timing differences       (283) (139)
        (283)  (139)
        2007  2006
The movement in the deferred tax liability       £’000  £’000
Balance at beginning of year       (139)  (526)
Acquisition in the year (see note 31)       (217)  (161)
Movement to goodwill (see note 11)    61 –
Movement to reserves       (5)  420
Movement to income statement       17  128
Balance at end of year       (283)  (139)
The closing deferred tax liability includes £9,000 (2006: £31,000) expected to reverse within the next 12 months of the balance sheet date.
There is no unprovided deferred tax (2006: £nil).
d) Proposed reduction of the rate of UK corporation tax
Proposals before the UK Parliament will reduce the rate of UK corporation tax from 30% to 28% with effect from 1 April 2008. Had this change  
been applied to the year ended 28 February 2007, the deferred tax asset would have been £603,000 and the deferred tax liability would have  
been £256,000.
8.  Dividends
Amounts recognised as distributions to equity holders in the year:
        2007  2006 
       £’000  £’000
Ordinary shares of 10 pence each  
Final of 11.5 pence per share for the year ended 28 February 2006 (2005: 10.0 pence per share)    2,255  1,902
Interim of 6.75 pence per share paid (2006: 6.5 pence per share)     1,340    1,271  
        3,595 3,173
In addition, the Directors are proposing a final dividend in respect of the financial year ended 28 February 2007 of 12.25 pence per share which  
will absorb an estimated £2.4 million of shareholders’ funds. It will be paid on 31 July 2007 to shareholders who are on the register of members on 
6 July 2007. The proposed final dividend is subject to approval by the shareholders at the Annual General Meeting and has not been included as a 
liability in these financial statements.
The right to receive dividends on the shares held in the Employee Share Ownership Plan (ESOP) has been waived (see note 26). The dividend saving 
through the waiver is £59,000 (2006: £53,000). 34    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
9.  Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares 
outstanding during the year, excluding 331,495 ordinary shares held by the employee share trust (2006: 321,495) which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive ordinary 
shares. The Group has one class of potential dilutive ordinary shares being those granted to employees where the exercise price is less than the 
average market price of the Company’s ordinary shares during the year.
  2007 2007 2007 2006 2006 2006 
  Weighted average Per share  Weighted average Per share 
 Earnings number amount Earnings number  amount 
 £’000 of shares pence £’000 of shares pence
Profit for the year attributable to shareholders 6,367 19,715,846 32.29 7,178 19,385,615 37.03
Effect of dilutive share options –  264,693 (0.42) –   452,339 (0.85)
Fully diluted earnings per share 6,367 19,980,539 31.87 7,178 19,837,954 36.18
The Directors have presented an additional measure of earnings per share based on earnings attributable to shareholders excluding impairments to 
allow comparison of underlying trading performance on a consistent basis. 
  2007 2007 2007 2006 2006 2006 
  Weighted average Per share  Weighted average Per share 
 Earnings number amount Earnings number  amount 
 £’000 of shares pence £’000 of shares pence
Basic earnings from above 6,367  19,715,846  32.29  7,178 19,385,615 37.03
Impairment of goodwill 950 –   4.82 –   –   –  
Adjusted earnings per share 7,317 19,715,846 37.11 7,178 19,385,615 37.03
10.  Profit for the financial year
In accordance with the exemptions allowed by section 230 of the Companies Act 1985, the Company has not presented its own profit and loss 
account. Of the results for the year to 28 February 2007 a profit of £6,015,000 (2006: profit of £4,532,000) has been dealt with in the accounts  
of the Company.
11.  Goodwill
Group        £’000
Cost 
At 1 March 2005        28,225
Additions        828
At 28 February 2006        29,053
Adjustment to previously reported goodwill        (30)
Additions (see note 31)        1,106
At 28 February 2007        30,129
Accumulated depreciation and aggregate impairment        
At 1 March 2005        6,573
Movement in year        –  
At 28 February 2006        6,573
Impairment recognised in the year        950
At 28 February 2007        7,523
Net book value at 28 February 2007        22,606
Net book value at 28 February 2006        22,480
During the year ended 28 February 2006 the company acquired Geo A Morrisons & Co (Leith) Limited with a net asset fair value of £84,000 for  
an estimated consideration of £435,000 (cash paid £254,000, with a deferred consideration of £181,000), resulting in goodwill on acquisition 
of £351,000. During the year ending 28 February 2007 the post-acquisition criteria relating to the deferred consideration have been completed 
and the total consideration has been reduced by £119,000. In addition, the fair value adjustment of £61,000 relating to the deferred tax on the 
capitalised customer relations and forward order book is not required. Accordingly goodwill arising on the acquisition of Geo A Morrisons & Co 
(Leith) Limited has been reduced to £171,000.
Similarly, the group acquired Planetwide Group Limited with a net asset fair value of £311,000 for an estimated total consideration of £788,000 
which included deferred consideration of £350,000. Following completion of the post-performance criteria the total consideration has been 
increased to £938,000 and the resulting goodwill has increased from £477,000 as at 28 February 2006 to £627,000 as at 28 February 2007. Braemar Seascope Group plc  Annual Report 2007     35
11.  Goodwill continued
Details of the acquisitions which took place during the year ended 28 February 2007 can be found in note 31.
All goodwill is allocated to cash-generating units. The allocation of goodwill to cash-generating units is as follows:
    2007 2006 
        £’000 £’000
Braemar Seascope Limited       17,399 17,399
Braemar Seascope Pty Limited       3,099 4,049
Wavespec Limited       204 204
Geo A Morrisons & Co (Leith) Limited       171 351
Planetwide Group Limited       627 477
Gorman Cory Limited    27 –
DV Howells Limited    365 –
Braemar Container Shipping & Chartering Limited    714 –
        22,606 22,480
These cash generating units represent the lowest level within the Group at which goodwill is monitored for internal management purposes.
The Group assesses the carrying value of goodwill with reference to recoverable amounts which are measured based on value in use. The forecast 
cash flows were based on the approved annual budget for the next financial year and management projections for the following four years which 
are based on estimated growth rates for revenue and costs plus a terminal value after the five-year projections. The growth rates used for revenue 
and costs were specific for each cash-generating unit and range from 2% to 3.5%. The terminal value is derived as a function of the discount rate 
and the growth rate after the fifth year. Management believes the forecast cash flows are achievable. Post-tax cash flows were discounted using an 
after tax discount rate of 7.2% for UK cash-generating units, being the Group’s weighted average cost of capital. Overseas forecast post-tax cash 
flows were discounted at 9.5%. Where an impairment has been identified a pre-tax rate has been applied to pre-tax forecast cash flows.
During the year ended 28 February 2007, an impairment charge of £950,000 in respect of Braemar Seascope Pty Limited was charged to the  
income statement. The impairment resulted from the activities of the Australian company performing below the expectations at acquisition.  
The recoverable amount for the cash generating unit was measured based on a value in use calculation. A pre-tax discount rate of 12.6% was 
used in the value in use calculation. The major sensitivities and their effect on the overall value are: growth in income, where a change of 1% adds 
approximately £750,000 to the value and increase in costs where a 1% change reduces the valuation by £550,000 and a 1% increase in the discount 
rate reduces the valuation by approximately £300,000.
The Company has no goodwill.
12.  Other intangible assets
Group        £’000
Cost 
At 1 March 2005        215
Additions         534
At 28 February 2006        749
Additions – acquired on acquisition of subsidiary (see note 31)        1,404
Exchange adjustments        –
At 28 February 2007        2,153
Amortisation 
At 1 March 2005        – 
Charge for the year included in operating costs        287
At 28 February 2006        287
Charge for the year included in operating costs        284
At 28 February 2007        571
Net book value at 28 February 2007        1,582
Net book value at 28 February 2006        462
In arriving at a valuation of customer relationships the Group has estimated attrition rates for non-contractual customer relationships and a 
discount rate of 7.2% has been applied to these amounts. During the year ended 28 February 2007, the Group capitalised the value of the customer 
relationships following the acquisition of the 50% interest in Braemar Container Shipping and Chartering Limited (£442,000) and DV Howells 
Limited (£180,000). Amortisation of these assets is charged to the income statement on a straight-line basis over ten and five years respectively. 
A further £282,000 has been capitalised for the forward order book for Braemar Container Shipping and Chartering Limited. This is charged to the 
income statement over a period of five years.  36    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
12.  Other intangible assets continued
Following the acquisition of Gorman Cory Limited on 1 March 2006, the group capitalised contracts to the value of £500,000. The contracts have  
an expected life of five years.
During the year ended 28 February 2006, the Group capitalised the value of the customer relationships following the acquisition of Geo A Morrisons 
& Co (Leith) Limited (£160,000) and Planetwide Group Limited (£332,000). Amortisation of these assets is charged to the income statement on a 
straight-line basis over five years. A further £42,000 has been capitalised for the forward order book for Geo A Morrisons & Co (Leith) Limited. This 
was fully amortised by 28 February 2006.
The Company has no intangible assets.
13.  Property, plant and equipment
   Fixtures &  
 Motor vehicles  Computers  equipment Long leasehold Short leasehold Total
Group £’000 £’000 £’000 £’000 £’000 £’000
Cost or fair value 
At 1 March 2005 9 582 766 4,532 271 6,160
Additions at cost –   111 190 86 –   387
Acquisition of subsidiaries –   –   25 –   –   25
Disposals –   –   (48) –   –   (48)
Exchange differences 1 10 22 –   –   33
At 28 February 2006 10 703 955 4,618 271 6,557
Additions at cost 89 381 181 3 –   654
Acquisition of subsidiaries (see note 31) 160 15 161 –   –   336
Disposals (19) –   (34) –   –   (53)
Exchange differences (1) (14) (23) –   –   (38)
At 28 February 2007 239 1,085 1,240 4,621 271 7,456
Accumulated depreciation      
At 1 March 2005 –   369 444 350 37 1,200
Charge for the year 2 54 203 70 10 339
Disposals –   –   (36) –   –   (36)
Exchange differences – 3 17 –   –   20
At 28 February 2006 2 426 628 420 47 1,523
Charge for the year 62 155 196 85 20 518
Disposals (8) –   (32) –   –   (40)
Exchange differences –   (5) (18) –   –   (23)
At 28 February 2007 56 576 774 505 67 1,978
Net book value at 28 February 2007 183 509 466 4,116 204 5,478
Net book value at 28 February 2006 8 277 327 4,198 224 5,034
The net book value of property, plant and equipment includes an amount of £nil (2006: £9,000) in respect of assets held under finance leases.
At 28 February 2007, Group entered into contractual commitments for the acquisition of property, plant and equipment amounting to £nil (2006: £nil).
The Company has no tangible fixed assets. Braemar Seascope Group plc  Annual Report 2007     37
14.  Investments
   Associate Unlisted  
  Joint ventures undertakings investments Total
Group  £’000 £’000 £’000 £’000
Goodwill  –   322 –   322
Share of net assets / cost  383 67 783 1,233
At 1 March 2005  383 389 783 1,555
Purchase of investments 
 – Share of net assets  18 –   –   18
 – Goodwill  18 –   –   18
Reclassifications 
 – Share of net assets  67 (67) –   –  
 – Goodwill  322 (322) –   –  
Exchange differences  16 –   –   16
Dividends received  (239) –   –   (239)
Share of joint ventures profits retained  243   –   243
Goodwill  340 –   –   340
Share of net assets / cost  488 –   783 1,271
At 28 February 2006  828 –   783 1,611
Conversion of joint venture to subsidiary 
 – Share of net assets  (4) –   –   (4)
Exchange differences  (13) –   –   (13)
Share of joint ventures profits retained  207 –   –   207
Dividends received  (263) –   –   (263)
Goodwill  340 –   –   340
Share of net assets / cost  415 –   783 1,198
At 28 February 2007  755 –   783 1,538
Braemar Container Shipping & Chartering Limited was a joint venture until 1 September 2006 when the Company became a wholly-owned 
subsidiary (see note 31).
On 28 April 2005 the Group and the Company invested £36,000 for a 10% interest in Braemar Quincannon Pte Limited at which point the associate 
company became a joint venture.
All Company investments are accounted for at cost less impairment.
   Associate / joint 
   venture Unlisted 
  Subsidiaries undertakings investments Total
Company  £’000 £’000 £’000 £’000
Cost  
At 1 March 2005  38,344 376 641 39,361
Share based payments  244 – –   244
Additions  – 36 – 36
Consideration adjustment (see note 35)  (2,194) –   –   (2,194)
At 28 February 2006  36,394 412 641 37,447
Share-based payments  309 – – 309
Additions  8 –   –   8
At 28 February 2007  36,711 412 641 37,764
Impairment 
At 1 March 2005 and 28 February 2006  887 –   –   887
Write down of investment in Braemar Seascope Pty Limited  950 –   –   950
At 28 February 2007  1,837 –   –   1,837
Net book value at 28 February 2007  34,874 412 641 35,927
Net book value at 28 February 2006  35,507 412 641  36,560
The Company invested £309,000 (2006: £244,000) in the subsidiaries of the Group in respect of share-based payment charges incurred in the year 
(see note 24). 
In addition, the Company acquired all issued share capital of DV Howells Limited (£1,000) and purchased the issued share capital of Braemar 
Seascope (Dry Cargo) Pte Limited (£7,000). 38    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
14.  Investments continued
A list of principal operating subsidiary and joint venture undertakings is as follows:
a) Subsidiaries
Particulars of subsidiary undertakings are as follows:
    Percentage of  Percentage of  
    ordinary shares  ordinary shares  
Name of company   Country Principal activity directly owned indirectly owned
Braemar Seascope Limited  England & Wales Shipbroking  100%
Braemar Seascope Valuation Limited  England & Wales Valuations  100%
Cory Brothers Shipping Agency Limited  England & Wales Ship agents 100%
Braemar Seascope Pty Limited   Australia Shipbroking 100%
Wavespec Limited  England & Wales Marine consultants 100%
Planetwide Limited   England & Wales Logistics  100%
Braemar Container Shipping & Chartering Limited  England & Wales Shipbroking  100%
Geo A Morrisons & Co (Leith) Limited  England & Wales Ship agents  100%
DV Howells Limited  England & Wales Environmental services 100%
Gorman Cory Limited  England & Wales Ship agents  41%
Braemar Seascope (Dry Cargo) Pte Limited  Singapore Shipbroking 100%
All subsidiaries have been owned at both 28 February 2006 and 2007 with the exception of DV Howells Limited, Gorman Cory Limited and Braemar 
Seascope (Dry Cargo) PTE Limited which were acquired during the year ended 28 February 2007.
Braemar Container Shipping & Chartering Limited was a joint venture until 1 September 2006 when the Company became a wholly-owned 
subsidiary (see note 31).
The Group acquired 41% of Gorman Cory Limited on 1 March 2006 ( see note 31). From acquisition, the Group has the power to govern the 
financial and operating policies of the entity so as to obtain benefits from its activities and therefore has effective control. The Group has therefore 
accounted for this entity as a subsidiary.
 
b) Joint ventures
Particulars of the joint venture companies which have been equity accounted are as follows:
      
    Percentage of  Percentage of  
    ordinary shares  ordinary shares  
    owned owned 
Name of company   Country Principal activity 2007 2006
Braemar Quincannon Limited  England & Wales Shipbroking 50% 50%
Braemar Seascope India (Private) Limited  India Shipbroking 50% 50%
Braemar Quincannon Pte Limited   Singapore Shipbroking 50% 50%
Braemar Container Shipping & Chartering Limited was a joint venture until 1 September 2006 when the Group purchased the remaining 50% of the 
ordinary share capital (see note 31).
The share capital of Braemar Quincannon Pte Limited is owned by the Company. All other joint ventures are indirectly owned by the Group.
All joint venture companies prepare their statutory accounts as at 28 February with the exception of Braemar Seascope India (Private) Limited  
(31 March) and Braemar Quincannon Pte Limited (31 December).
In relation to the Group’s interest in joint ventures, the assets, liabilities, income and expenses are shown below:
      2007 2006 
      £’000 £’000
Current assets     508 669
Non-current assets     33 37
Current liabilities     (124) (213)
Non-current liabilities     (2) (5)
      415 488
Income     1,562 1,622
Expenses     (1,185) (1,309)
      377 313
Taxation     (170) (70)
Share of post-tax results     207 243
Braemar Container Shipping & Chartering Limited has not been included in the balance sheet information as at 28 February 2007 as it was 
accounted for as a subsidiary.
The joint ventures have no significant contingent liabilities to which the Group is exposed.  Braemar Seascope Group plc  Annual Report 2007     39
14.  Investments continued
c) Unlisted investments
The Group’s unlisted shares principally include 1,200 (20%) ordinary £1 shares in London Tankers Brokers Panel and 7,500 (25%) ordinary £1 
shares London Ship Valuation Panel. These have been treated as investments and not equity accounted as the Company does not have significant 
influence as all investors in these companies have equivalent proportional influence. Subsequent to the year end the Company reduced its interest 
in London Tankers Brokers Panel to 16.7% following the sale of 200 shares for consideration of £200,000.
The unlisted investments are shown at cost since the potential market for the shares is restricted and therefore their fair value cannot be  
measured reliably.
15.  Other receivables
Other receivables of £81,000 (2006: £58,000) comprises of non-interest bearing loans to 16 (2006: 18) employees of Braemar Seascope Limited 
repayable over three years. 
16.  Inventories
Inventories of £70,000 carried on the balance sheet at 28 February 2007 comprise raw materials. 
 
17.  Trade and other receivables
     Group   Company
     2007 2006  2007  2006 
     £’000 £’000  £’000  £’000
Trade receivables    18,699 15,449 –  –  
Amounts due from subsidiary undertakings   –   –  7,526 4,342
Other receivables   1,284 1,033 611 637
Prepayments and accrued income   1,767 1,235 –   –
    21,750 17,717 8,137 4,979
Concentrations of credit risk with respect to trade receivables are limited due to the Group’s customer base being large and unrelated.  Due to this, 
the Directors believe there is no further credit risk provision required in excess of normal provisions for doubtful receivables, estimated by the 
Group’s management based on prior experience and their assessment of the current economic environment.
Included in the total trade receivables balance is £10.0 million (2006: £10.0 million) denominated in US dollars.
The Directors consider that the carrying amount of trade receivables approximate their fair value.
18.  Derivative and other financial instruments
a) Currency risk
The Group’s currency risk exposure arises as a result of the majority of its earnings being denominated in US dollars while the majority of its 
costs are denominated in pounds sterling. The Group manages the exposure to currency variations by spot and forward currency sales and other 
derivative currency contracts. 
At 28 February 2007 the Group had entered into forward contracts in the ordinary course of business for the sale of US dollars amounting to  
US$6.0 million (28 February 2006: US $14.5 million), expected to mature between April 2007 and May 2007.
During the year ended 28 February 2007, the Group also had the right to sell US$1.1 million for Australian $s at a rate of US$0.78=AU$1, in each  
of the months March 2007 through to July 2007.
In addition at 28 February 2006, the Group had entered into a variable forward window agreement to sell US$12.0 million in US$ 1.0 million 
tranches between 31 March 2005 and 2 March 2006.
The fair value/carrying value of the derivative financial instruments of the Group is as follows:
      2007    2006
    Book value Fair value Book value Fair value 
Financial instruments   £’000 £’000 £’000 £’000
Forward currency contracts  
Assets   17 17 12 12
Liabilities   – – (52) (52)
           
Currency options   
Assets / (liabilities)   10 10 (47) (47)
The net fair value of forward currency contracts that are designated and effective as cash flow hedges amounts to a £17,000 asset (2006: £40,000 
liability) which has been deferred in equity.
Amounts of £40,000 (2006: £1.4 million charge) have been credited to the income statement in respect of forward contracts which have matured 
during the period. 
Amounts of £47,000 (2006: £62,000 charge) have been credited to the income statement in respect of currency options that have matured during 
the year.  40    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
18.  Derivative and other financial instruments continued
Changes in the fair value of currency options amounting to £10,000 have been credited to the income statement in the year (2006: £122,000 charge).
The fair value of financial instruments is based on quoted market prices at the balance sheet date.
b) Interest rate risk
The Group minimises its exposure to interest rate risk by pooling sterling cash balances across the Group (see note 20).
The following table sets out the carrying amount, by maturity, of the Group’s financial instruments which are exposed to interest rate risk.
     2007 2006 
     Within one year Within one year
Group    £’000 £’000
Fixed rate: 
Finance leases (see note 22)    – (11)
Floating rate: 
Cash and cash equivalents (see note 19)    14,634 13,567
     14,634 13,556
     2007 2006 
     Within one year Within one year
Company    £’000 £’000
Floating rate:      
Cash and cash equivalents (see note 19)    –  52
Short term borrowings (see note 20)    (1,507)  (2,073)
     (1,507)  (2,021)
Cash balances are held on overnight deposits at floating rates depending on the prevailing market rates for the amount of funds deposited.
The other financial instruments of the Group are non-interest bearing.
c) Banking Facilities
The Group has an overdraft facility for £3.0 million (2006: multi-option facility of £4.0 million). At 28 February 2007 none of the facility had been 
drawn (2006: £nil). The Group operates a pooled banking facility for all sterling current account balances across the Group and has the legal right  
of offset. The Company and its subsidiaries have provided cross guarantees and fixed and floating rate charges over their assets to secure the 
above overdraft facility.
d) Credit risk
There are no significant concentrations within the Group or Company (see note 20 for details of bank offset arrangement).
19.  Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group (2007: £14.6 million; 2006: £13.5 million) and Company (2007: £nil ; 2006: £52,000). 
Cash balances are held on overnight deposits at floating rates depending on the prevailing market rates for the amount of future funds deposited. 
The carrying amount of these assets approximates their fair value.
20.  Short-term borrowings
     2007  2006
Company     £’000  £’000
Short-term borrowings       1,507  2,073
The Group has no short-term borrowings.
Short-term borrowings comprise the net bank overdraft facility repayable on demand or within 12 months. The Group operates a pooled banking 
facility for all sterling current account balances across the Group and has the legal right of offset. The Company’s short-term borrowings reflect the 
Company’s contribution to the pooling arrangement. The bank overdraft bears interest based on LIBOR. 
The Directors consider the carrying amount approximates the fair value of these liabilities. Braemar Seascope Group plc  Annual Report 2007     41
21.  Trade and other payables
    Group  Company
    2007 2006 2007 2006 
    £’000 £’000 £’000 £’000
Trade payables   15,518 12,842 –   –  
Amounts owed from subsidiary undertakings   –   –   525 685
Other taxation and social security   709 504 –   –  
Deferred consideration  1,123 531 –   – 
Other payables   166 567 13 13
Other accruals and deferred income   11,495 11,046 –   –  
    29,011 25,490 538 698
Included within deferred consideration is £738,000 being an estimate of the future consideration payable to acquire the remaining shares in 
Gorman Cory Limited. Half of this amount is payable after more than one year (note 31c).
The average credit period taken for trade payables is 26 days (2006: 22 days). The Directors consider that the carrying amount of trade payables 
approximates their fair value.
22.  Finance leases
The future minimum lease payments under finance leases, together with the present value of minimum lease payments are as follows: 
    Present value of 
   Minimum lease payments   minimum lease payments
    2007 2006 2007 2006
Group  £’000 £’000 £’000 £’000
Within one year    –  11  –  11
The weighted average lease term at 26 February 2006 was six months. Interest rates were fixed at the contract date. The Group’s obligations under 
finance leases are secured by the lessors’ charges over the leased assets. The fair value of the Group’s leased obligations approximates their 
carrying value.
23.  Provisions
    Employee 
     Onerous lease entitlements Total 
      £’000 £’000 £’000
At 1 March 2006     577 54 631
Foreign exchange     –   (3) (3)
Charged in the year     103 –   25
Utilised in the year     (262) –   (184) 
Other movements   – (6) (6)
At 28 February 2007     418 45 463
The onerous lease provision is principally in respect of the shortfall in rent taking account of sub-lease income until the lease expires in connection 
with one property and is expected to be utilised over the next year and a half.
Employee entitlements relate to statutory long service leave in Australia.
The maturity profile of the provisions is as follows:
            
     2007 2006 
    £’000 £’000
Within one year        294 288
Current liabilities       294 288
           
Between one and two years       169 176
Between two and five years       –   167
Non-current liabilities       169 343
Total provisions       463 631
The Company has no provisions. 42    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
24.  Share capital
    2007 2006 2007 2006 
Group and Company   Number Number £’000 £’000
a) Authorised  
Ordinary shares of 10 pence each   34,903,000 34,903,000 3,490 3,490
           
           
    2007 2006 2007 2006 
   Number Number £’000 £’000
b) Allotted and issued 
Fully paid ordinary shares of 10 pence each          
As at beginning of year   19,876,768 19,453,316 1,988 1,945
Shares issued and fully paid   339,173 388,452 34 39
Shares issued and unpaid   15,400 35,000 1 4
As at end of year   20,231,341 19,876,768 2,023 1,988
During the year ended 28 February 2007, 77,900 shares were issued at 137.5 pence and 77,250 shares were issued at 181.5 pence as part of the 
1997 Executive Scheme. 
In addition, 198,875 shares were issued at 148.0 pence and 548 shares were issued at 314.0 pence as part of the Save as You Earn (“SAYE”) Scheme. 
Of the 354,573, 15,400 shares remained unpaid at 28 February 2007. Payment was received after the balance sheet date.
During the year ended 28 February 2006 423,000 shares were issued at 137.5 pence as part of the 1997 Executive Scheme. Of the 423,000, 35,000 
shares remained unpaid at 28 February 2006. Payment was received after the balance sheet date. A further 452 shares were issued at 199.0 pence 
as part of the SAYE Scheme. 
The market value at the point when the options were exercised ranged from 361.0 pence to 459.0 pence. The average share price over the year, 
based on the mid market closing price, was 412 pence.
The Company has one class of ordinary shares which carry no right to fixed income.
c) Capital redemption reserve 
            
     2007 2006
Group and Company       £’000 £’000
Beginning and end of year       396 396
The capital redemption reserve arose on previous share buy-backs by Braemar Seascope Group plc.
d) Share-based payments
i. Share options
The Company operates a discretionary share option scheme, the Braemar Seascope Group 1997 Executive Option Scheme (“The 1997 Executive 
Scheme”) under which options are granted by the Remuneration Committee. The scheme is open to all UK employees and Executive Directors and 
the exercise price of the options granted were at the market price at date of grant. 
The Company also operates a SAYE Scheme. The scheme is open all UK employees and executive Directors and options were granted at 20% 
discount to the prevailing market price. 
Details of the share options in issue and the movements in the year are given below: 
 Share Year Number at    Number at Exercise Exercisable  
 scheme option granted 1 March 2006 Granted Exercised Lapsed 28 February 2007 price (pence) between
1997 Executive Scheme 
   2002 189,500 –   (77,900) –   111,600 137.5 2005-2012
   2003 117,500 –   (77,250) (1,500) 38,750 181.5 2006-2013
   2004 218,000 –   –   –   218,000 245.0 2007-2014
     525,000 –   (155,150) (1,500) 368,350 
SAYE
   2003 206,375 –   (198,875) (7,500) –   148.0 2006-2007
   2004 131,630 –   –   (7,386) 124,244 199.0 2007-2008
   2005 59,849 –   (548) (3,676) 55,625 314.0 2008-2009
   2006 –   152,325 –   –   152,325 314.0 2009-2010
    397,854 152,325 (199,423) (18,562) 332,194 
     922,854 152,325 (354,573) (20,062) 700,544  Braemar Seascope Group plc  Annual Report 2007     43
24.  Share capital continued
Share options granted in 2002 under the 1997 Executive Scheme are subject to a performance condition that the growth in the Company’s  
average adjusted earnings per share over a period of no less than three financial years must exceed the growth in the retail price index (RPI) over 
the corresponding period by no less than 3% per annum compounded. If the performance condition is not satisfied at this point, re-testing of the 
performance condition is permitted in subsequent financial years until the option lapses. The options granted in 2003 and 2004 retain the same 
performance criteria, with no re-testing. The base measurement period for the remaining options will be the average of the earnings per share (as 
published in the Group’s annual report and accounts) for the three financial years immediately preceding the grant of the relevant option. Exercise 
of an option is subject to continued employment. 
Options are valued using a binomial pricing model. The fair value per option granted and the assumptions used in the calculation are as follows:
     SAYE SAYE
Grant date    05 Dec 06 21 Jun 05
Share price at grant date    403.75p 380.00p
Exercise price    314.00p 314.00p
Number of employees    109 49
Shares under option    152,325 59,849
Vesting period (years)    3.0 3.0
Expected volatility    25.00% 30.40%
Option life (years)    3.5 3.5
Risk free rate    4.65% 4.24%
Expected dividends expressed as a dividend yield    4.70% 4.00%
Possibility of ceasing employment before vesting    5.00% 5.00%
Expectation of meeting performance criteria    100.00% 100.00%
Fair value per option    102.57p 102.40p
The expected volatility is based on historical volatility over the last four years. The risk free rate of return is based on LIBOR. 
A reconciliation of option movements during the year is shown below:
   2007 2007 2006 2006 
    Weighted average   Weighted average 
  Number exercise  price Number exercise price
Outstanding at 1 March  922,854 191.06p 1,287,899 167.77p
Granted  152,325 314.00p 59,849 314.00p
Exercised  (354,573) 153.25p (423,452) 137.57p
Lapsed  (20,062) 199.70p (1,442) 199.00p
Outstanding at 28 February  700,544 236.69p 922,854 191.06p
Exercisable at 28 February  150,350 148.84p 189,500 137.50p
      2007  2006 
      Contractual  Contractual
Weighted average remaining life (years)     4.3  4.7
ii. Deferred bonus plan
During 2005 the Company put in place a Deferred Bonus Plan (“the Plan”) whereby part of the annual performance-related bonus is delivered in 
shares, on a discretionary basis, to staff including Executive Directors. Under the Plan the shares are held in an employee trust for three years after 
which the employee beneficiary will become absolutely entitled to the shares provided they remain in employment.  Shares are valued at the share 
price at the date of grant. As at 28 February 2007 259,750 shares had been granted to employees (2006: 152,250). 20,000 shares have lapsed 
during the year.
The total charge for the year relating to all employee share-based payment plans was £309,000 (2006: £244,000), all of which related to equity-
settled share-based payment transactions (see note 26).  44    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
25.  Share premium, merger and other reserves
       Share 
   Deferred    premium,  
 Hedging Translation consideration Total Merger Share merger and  
 reserve reserve reserve other reserve reserve premium other reserves
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000
As at 1 March 2005 981 (8) –   973 7,505 21,346 29,824
Premium on shares issued in the year –   –   –   – 541 – 541
Cash flow hedges  
 – Transfer to net profit  (1,401) –   –   (1,401) –   –   (1,401)
 – Fair value losses in the year (40) –   –   (40) –   –   (40)
Foreign exchange differences –   83 –   83 –   –   83
Deferred tax on items taken to equity 432 –   –   432 –   –   432
Balance at 28 February 2006 (28) 75 –   47 8,046 21,346 29,439
Premium on shares issued in the year –   –   –   – 508 – 508
Cash flow hedges    
 – Transfer to net profit  40 –   –   40 –   –   40
 – Fair value losses in the year 17 –   –   17 –   –   17
Foreign exchange differences –   (70) –   (70) –   –   (70)
Deferred share consideration –   –   (738) (738) –   –   (738)
Deferred tax on items taken to equity (18) –   –   (18) –   –   (18)
As at 28 February 2007 11 5 (738) (722) 8,554 21,346 29,178
       Share 
       premium, 
     Share Merger merger and   
     premium reserve other reserves
Company     £’000 £’000 £’000
As at 1 March 2005      7,505  21,346  28,851
Premium on shares issued in the year    541 –   541
Balance at 28 February 2006     8,046 21,346 29,392
Premium on shares issued in the year    508 – 508
As at 28 February 2007     8,554 21,346 29,900
The hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedging instruments relating to hedged 
transactions that have not yet occurred of £17,000 asset (2006: £40,000 liability) net of the deferred tax liability of £6,000 (2006: £12,000 asset).
The translation reserve contains all foreign exchange differences arising from the translation of the Group’s net investment in overseas’ subsidiaries 
and joint ventures.
The deferred consideration reserve contains the estimated cost of acquiring the remaining 59% of Gorman Cory Limited (see note 31). 
The merger reserve arose principally in 2001 in relation to acquisitions of Braemar Shipbrokers and Braemar Tankers.
26.  Shares to be issued
Group and Company        £’000
At 1 March 2005        637
Share capital acquired in the year        360
At 28 February 2006        997
Share capital acquired in the year        50
At 28 February 2007        1,047
Shares to be issued are a deduction from shareholders’ funds and represent a reduction in distributable reserves.
An ESOP was established on 23 January 1995. The ESOP has been set up to purchase shares in the Company. These shares, once purchased, are 
held on trust by the Trustee of the ESOP , Close Trustees Guernsey Limited, for the benefit of the employees. As at 28 February 2007, the ESOP had 
purchased 331,495 (2006: 321,495) ordinary shares of 10p each at a total cost of £1,047,000 (2006: £997,000) including stamp duty associated 
with the purchase. The funding of the purchase has been provided by the Company in the form of an interest-free loan and the trustees have 
contracted with the Company to waive the ESOP’s right to receive dividends. The fees charged by the trustees for the operation of the ESOP are 
paid by the Company and charged to the income statement as they fall due. The shares owned by the ESOP had a market value at 28 February 2007 
of £1,342,554 (2006: £1,282,765). The distribution of these shares is determined by the Remuneration Committee and 202,250 shares had been 
allocated at 28 February 2007 (2006: 152,250). Braemar Seascope Group plc  Annual Report 2007     45
27.  Retained earnings
       Group Company 
       £’000 £’000
As at 1 March 2005      (2,362) 6,496
Profit attributable to shareholders for the year      7,178 4,532
Credit in respect of share option schemes    244 244
Deferred tax on items taken to equity    144 -
Dividends paid      (3,173) (3,173)
As at 28 February 2006      2,031 8,099
Profit attributable to shareholders for the year      6,367   6,015  
Credit in respect of share option schemes    309 -  
Deferred tax on items taken to equity    278 309
Dividends paid      (3,595) (3,595)
As at 28 February 2007      5,390 10,828
The Group‘s retained earnings contains the cumulative share-based payment charges of £710,000 (2006: £401,000) put through the income 
statement relating to share-based payments (see note 24) and the related deferred tax charge of £469,000 (2006: £191,000). 
The Company’s retained earnings contains the cumulative share-based payment charge of £710,000 (2006: £401,000) booked to the carrying  
value of investments.
28.  Statement of changes in total equity
     Share premium, 
   Capital Shares merger and 
  Share redemption to be other reserves Retained  Minority Total 
  capital reserve issued (see note 25) earnings Total interest equity
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At 1 March 2005 1,945 396 (637) 29,824 (2,362) 29,166 –   29,166
Recognised income and  
 expense for the year –   –   –   (926) 7,322 6,396 –   6,396
Dividends paid –   –   –   –   (3,173) (3,173) –   (3,173)
Issue of shares  43 –   –   541 –   584 –   584
Purchase of shares to be issued –   –   (360) –   –   (360) –   (360)
Credit in respect of share  
 option schemes –   –   –   – 244   244 –   244
At 28 February 2006 1,988 396 (997) 29,439 2,031 32,857 –   32,857
Recognised income and  
 expense for the year –   –   –   (31) 6,645 6,614 105 6,719
Acquisition –   –   –   –   –   –   304 304
Dividends paid –   –   –   –   (3,595) (3,595) (100) (3,695)
Issue of shares  35 –   –   508 –   543 –   543
Deferred share consideration –   –   –   (738) –   (738) –   (738)
Purchase of shares to be issued –   –   (50) –   –   (50) –   (50)
Credit in respect of share  
 option schemes –   –   –   – 309   309 –   309
At 28 February 2007 2,023 396 (1,047) 29,178 5,390 35,940 309 36,249
 
       Share premium, 
     Capital Shares merger and 
    Share redemption to be other reserves Retained Total 
    capital reserve issued (see note 25) earnings equity
Company   £’000 £’000 £’000 £’000 £’000 £’000
At 1 March 2005   1,945 396 (637) 28,851 6,496 37,051
Recognised income and expense for the year  –   –   –   –   4,532 4,532
Dividends paid   –   –   –   –   (3,173) (3,173)
Issue of shares    43 –   –   541 –   584
Purchase of shares to be issued   –   –   (360) –   –   (360)
Credit in respect of share option schemes  –   –   –   – 244   244
At 28 February 2006   1,988 396 (997) 29,392 8,099 38,878
Recognised income and expense for the year  –   –   –   –   6,015 6,015
Dividends paid   –   –   –   –   (3,595) (3,595)
Issue of shares    35 –   –   508 –   543
Purchase of shares to be issued   –   –   (50) –   –   (50)
Credit in respect of share option schemes  –   –   –   – 309   309
At 28 February 2007   2,023 396 (1,047) 29,900 10,828 42,100 46    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
29.  Minority interest
     Group 
     £’000
Balance at 1 March 2005 and 1 March 2006          –  
Acquisition (see note 31)          304
Profit for the year attributable to shareholders for the year        105
Dividends paid         (100)
At 28 February 2007          309
Minority interest represents the 59% interest of Gorman Cory Limited.
30.  Cash generated from operations
     Group    Company
   2007 2006 2007 2006 
   £’000 £’000 £’000 £’000
Profit for the year attributable to shareholders  6,472 7,178 6,015 4,532
Adjustments for:  
Taxation  3,604 3,115 –   (13)
Depreciation  518 339 –   –  
Profit on sale of property, plant and equipment  (12) (17) –   –  
Impairment of goodwill  950 –   950 –  
Amortisation of intangibles  284 287 –   –  
Share-based payments  309 244    
Finance income  (335) (162) –   –  
Finance costs  16 2 3 87
Share of profit from joint ventures and associates  (207) (243) –   –  
Changes in working capital (excluding effects of acquisitions of subsidiaries)        
 Decrease in stocks  7 –   – –
 (Increase) / decrease in trade and other receivables  (3,874) (129) (3,184)   9,811 
 Increase / (decrease) in trade and other payables  2,098 2,913 (160) (10,349)
 Increase / (decrease) in provisions  (162) 242 –   –  
Cash generated from operations  9,668 13,769 3,624 4,068
31.  Business combinations
The following acquisitions have taken place during the year ended 28 February 2007: 
a) Braemar Container Shipping and Chartering Limited
On 1 September 2006 the Group acquired the remaining 50% interest in Braemar Container Shipping and Chartering Limited that it did not already 
own for a cash consideration of £1.2 million.
The provisional fair value of the assets acquired was:
    Fair value 
       Book value  adjustments Fair value 
      £’000 £’000 £’000
Plant, equipment and machinery     6 –  6
Other intangible assets     –  724 724
Trade and other receivables     512 –   512
Trade and other payables     (1,243) (217) (1,460)
Cash     733 –   733
Net assets     515
Goodwill         714 
Less: share of joint venture net assets     (4)
          1,225
Consideration   
Cash consideration         1,225
Total consideration         1,225
The Group has capitalised customer relationships at a value of £442,000 and recognised the related deferred tax liability of £217,000. The expected 
life of the asset is up to ten years. In addition a further £282,000 of the forward order book was recognised with an expected life of five years. 
Included in the goodwill recognised above are certain intangible assets that cannot be individually separated and reliably measured due to their 
nature, including the workforce. Braemar Seascope Group plc  Annual Report 2007     47
31.  Business combinations continued
The results of operations as if the acquisition had been made at the beginning of the year are as follows:
 
     Pre-acquisition    
  Post-acquisition From 1 March  Pre-acquisition 
    From 1 Sep 2006 2006 to From 1 March 2006 From 1 March 2005 
  to 28 February  31 August to 28 February to 28 February 
  2007 2006 2007 2006 
    £’000 £’000 £’000 £’000
Revenue    1,915 1,317 3,232 1,784
Operating profit   728 366 1,094 293
Profit before taxation    739 366 1,105 301
Profit after taxation   518 256 774 225
The results for the pre-acquisition period to 31 August 2006 are based on management accounts, which have not been audited. Braemar Container 
Shipping and Chartering Limited had no other recognised income and expenses in the year.
b) DV Howells and Hi-bar
On 22 March 2006 a wholly-owned subsidiary of the Group which subsequently changed its name to DV Howells Limited acquired for a total 
consideration of £0.58 million, certain assets (including the name) of DV Howells Limited. This company also acquired certain assets of Hi-bar 
Limited for a consideration of £0.35 million on 29 September 2006.
The provisional fair value of the assets acquired was:
      Total book  Fair value  Fair 
 DV Howells Hi - bar value adjustments  value 
  £’000  £’000  £’000 £’000 £’000
Plant, equipment and machinery  274 38  312 – 312
Other intangible assets – –  – 180 180
Stocks 70  7  77 –   77
Trade and other receivables – 36 36 –  36
Trade and other payables – (36) (36) –  (36)
Net assets 344  45  389 180 569
Goodwill         365
          934
Consideration          
Cash consideration paid  400 125  525  –  525
Cash consideration payable 160  225  385  –  385
Transaction costs 15  9  24  –  24
Total consideration 575  359  934  –  934
The Group has capitalised the customer relationships of DV Howells at a value of £180,000. The expected life of this asset is up to five years. 
Included in the goodwill recognised above are certain intangible assets that cannot be individually separated and reliably measured due to their 
nature. These include brand and business knowledge.
The results of operations as if the acquisition had been made at the beginning of the year is as follows:
 
  Post-acquisition Pre-acquisition  Pre-acquisition 
    From 23 March 2006 From 1 March 2006  From 1 March 2006 From 1 March 2005 
  to 28 February  to 22 March to 28 February to 28 February 
  2007 2006 2007 2006 
    £’000 £’000 £’000 £’000
Revenue   3,368 283 3,651 3,717
Operating profit  208 (13) 195 430
Profit before taxation   198 (13) 185 387
Profit after taxation  133 (10) 123 259
The results for the pre-acquisition periods are based on management accounts which have not been audited. 48    Braemar Seascope Group plc  Annual Report 2007
Notes to the accounts
for the year ended 28 February 2007
31.  Business combinations continued
c) Gorman Cory Limited
The Group acquired a 41% interest in Gorman Cory Limited with effect from 1 March 2006 for a consideration of £0.2 million and an obligation to 
acquire the remaining 59% over a two-year period based on the performance of the company at an estimated cost of £0.7m which is included in 
trade and other payables and the deferred consideration reserve, since the goodwill arises only when the shares are purchased in future. After 
Gorman Cory Limited was formed it acquired the assets of Gorman Shipping Limited and certain assets from Cory Brothers Shipping Agency Limited.
The provisional fair value of the assets acquired was:
    Fair value 
       Book value  adjustments Fair value 
      £’000 £’000 £’000
Plant, equipment and machinery     18  –   18
Other intangible assets     –   500  500
Net assets     18  500  518
Minority interest        (304)
Net assets acquired by the Group     214
Goodwill          27
           241
Cash consideration          220
Transaction costs          21
Total consideration          241
The Group has capitalised the value of contracts at a value of £500,000. The expected life of the contracts is up to five years. 
Included in the goodwill recognised above are certain intangible assets that cannot be individually separated and reliably measured due to their 
nature. These include business knowledge and the work force.
The results of operations as if the acquisition had been made at the beginning of the year is as follows:
     Pre-acquisition 
      From 1 March 2006 From 1 March 2005 
    to 28 February to 28 February 
    2007 2006 
      £’000 £’000
Revenue     1,167 441
Operating profit    158 189
Profit before taxation     160 201
Profit after taxation    109 156
The results for the pre-acquisition period to 1 March 2006 are based on management accounts which have not been audited.
32.  Pensions
The Group participates in a number of defined contribution schemes. Contributions of £1,577,000 (2006: £1,699,000) were paid in the year and 
contributions of £nil were due to these schemes at 28 February 2007 (2006: £nil).
 
33.  Operating lease commitments
Future minimum rentals payable under non-cancellable operating leases as at 28 February are as follows:
    Land and buildings  
  Lease minimum Sub lease Net minimum lease  
  payments income repayments Other
2007   £’000 £’000 £’000 £’000
Within one year   769 (132) 638 146
Between two and five years   1,444 (14) 1,430 169
Over five years   362 –   362 –
    2,575 (146) 2,430 315 Braemar Seascope Group plc  Annual Report 2007     49
33.  Operating lease commitments continued
    Land and buildings  
  Lease minimum Sub lease Net minimum lease  
  payments income repayments Other
2006   £’000 £’000 £’000 £’000
Within one year   534 (160) 374 79
Between two and five years   654 (53) 601 72
Over five years   578 –  578 – 
    1,766 (213) 1,553 151
The Group leases various offices and a warehouse under non-cancellable operating lease agreements. The leases have various terms, escalation 
clauses and renewal rights. The Group also leases plant and machinery under non-cancellable operating lease agreements.
There were no commitments under operating leases in the Company.
34.  Contingent liabilities
The Company has given a guarantee to HM Customs and Excise in respect of duty deferment in the amount of £0.5 million (2006: £2.0 million). 
Further guarantees to HM Customs and Excise and third parties total £0.5 million (2006: £nil).
35.  Related party transactions
During the year the Group entered into the following transactions with joint ventures and associates:
      2007   2006 
  Recharges   Balance due Recharges Balance due 
 to Dividends   (to)/from to  (to)/from
Group   £’000 £’000  £’000 £’000 £’000
Delphis UK – – 24 – –
Braemar Container Shipping & Chartering Limited a)  973 264  – 1,602 (196)
Braemar Quincannon Limited  32 –  75 90 67
Braemar Seascope India (Private) Limited  – –  –   32 –  
London Tankers Broker Panel  252 –  –   196 –  
London Central Cruise Moorings  23 –  –   63 –  
London Ship Valuation Panel  – –  –   8  –  
a) Recharges and dividends relate to the period when the Group owned 50% of the company.
All companies are joint ventures except where stated. The nature of all recharges to related parties are carried out on an arm’s length basis.
Under the Merger Agreement dated 7 March 2001 between the Company and Braemar Shipbrokers Limited, the vendors gave a joint and several 
indemnity to the Company for any warranty and tax indemnity claims up to an aggregate of £10 million. 
During the year ended 28 February 2006 the Company received an assessment for corporation tax and interest totalling £2.2 million which is 
recoverable under the indemnity and which is currently being appealed. Following receipt of the assessment the Company received funds of £1.6 
million from the vendors which was paid to the Inland Revenue in order to prevent interest accruing. Such funds would become repayable to the 
vendors in the event that the appeal is successful. £0.6 million (2006: £0.6 million) remains outstanding pending the appeal result. The Company 
does not expect to incur any cost in respect of this assessment or these contingent liabilities.
The Chief Executive and a Director are Braemar Shipbrokers vendors and are therefore party to the transactions referred to above.  
Key management compensation is disclosed in note 4c. There are no other transactions with key management.
During the year the Company entered into the following transactions with subsidiaries and joint ventures:
       2007    2006 
   Funding Dividends Balance due Dividends Balance due 
 to received          (to)/from  received  (to)/from
Company  £’000  £’000  £’000  £’000  £’000
Braemar Shipbrokers Limited –         6,150   729  3,800    3,479  
Braemar Seascope Limited –              –    4,884   –    251  
Braemar Seascope Pty Limited   –  –     –   220    –  
Wavespec Limited –            400    1,012   600    612  
Cory Brothers Shipping Agency Limited  –             500    500   –    (160)
DV Howells Limited 400 – 400 – –
Portabella Limited  –  –                (525)    –    (525)   50    Braemar Seascope Group plc  Annual Report 2007
consolidated income statement 
Five year financial summary
   12 months to  12 months to 12 months to 12 months to 12 months to 
 Feb 2003 Feb 2004 Feb 2005 Feb 2006 Feb 2007 
   (1) (1) (2) (2) (2) 
   £’000 £’000 £’000 £’000 £’000
Group revenue including share of joint venture 26,919 30,794 45,203 68,497 107,200
Less share of joint venture  (157) (452) –  –  –  
Group revenue  26,762 30,342 45,203 68,497 107,200
Total operating expenses  (22,957) (25,877) (37,412) (58,607) (97,650)
Goodwill amortisation  (1,034) (1,065) –   –   –  
Goodwill impairment  –   –   (931) –   (950)
Amortisation of intangibles  –   –   –   (287) (284)
Exceptional items  479 –   –   –   –  
Other operating expenses  (22,402) (24,812) (36,481) (58,320) (96,416)
Operating profit  3,805 4,465 7,791 9,890 9,550
Finance (cost) / income-net  (348) (356) (25) 160 319
Share of profit from joint ventures and associates (3)  18 13 365 243 207
Profit before taxation  3,475 4,122 8,131 10,293 10,076
Taxation  (1,702) (1,723) (2,699) (3,115) (3,604)
Profit after taxation  1,773 2,399 5,432 7,178 6,472
Dividends           
Interim  856 856 1,134 1,271 1,340
Final proposed (4)  1,198 1,491 1,902 2,255  2,438
   2,054 2,347 3,036 3,526 3,778
 
Earnings per ordinary share – pence    
Basic  10.36p  13.96p   29.50p  37.03p  32.29p
Diluted  10.34p  13.63p   28.59p    36.18p   31.87p
(1) Prepared under UK GAAP
(2)Prepared under IFRS
(3) Share of profit from joint ventures and associates shown net of tax from 2005 onwards
(4) Proposed dividend not booked in accounts until paid from 2005 onwards. Braemar Seascope Group plc  Annual Report 2007     51
   At 28 Feb   At 28 Feb  At 28 Feb  At 28 Feb  At 28 Feb 
 2003 2004 2005 2006 2007 
   (1),(3) (2) (2) (2) (2) 
   £’000 £’000 £’000 £’000 £’000
Assets       
Non-current assets       
Goodwill 18,634 18,534 21,652 22,480 22,606
Other intangible assets –   –   215 462 1,582
Property, plant and equipment 4,514 4,963 4,960 5,034 5,478
Investments 1,019 1,430 1,555 1,611 1,538
Deferred tax assets 213 229 309 510 642
Other receivables 70 103 95 58 81
  24,450 25,259 28,786 30,155 31,927
Current assets      
Stocks –   –   –   –   70
Trade and other receivables 4,424 9,348 11,688 17,717 21,750
Derivative financial instruments –   –   –   12  27
Restricted cash –   –   4,434 –   –
Cash and cash equivalents 3,255 4,071 9,606 13,567 14,634
   7,679 13,419 25,728 31,296 36,481
Total assets 32,129 38,678 54,514 61,451  68,408
Liabilities 
Current liabilities      
Short term borrowings 2,500 2,113 3,067 –   –  
Derivative financial instruments –   –   –   99 –  
Loan stock 187 –   –   –   –  
Trade and other payables 5,873 12,728 17,092 25,490 29,011
Current tax payable 785 954 1,556 2,224 2,402
Dividends payable 1,199 (7) 21 –   –  
Finance leases 24 –   31 11 –  
Provisions –   –   41 288 294
Client monies held as escrow agent –   –   4,434 –   –  
  10,568 15,788 26,242 28,112 31,707
Non-current liabilities      
Deferred tax liabilities –   –   65 139 283
Loan stock (including convertible loan stock) 3,000 –   –   –   –  
Finance leases –   –   8 –   –  
Provisions 826 330 110 343 169
   3,826 330 183 482 452
Total liabilities 14,394 16,118 26,425 28,594 32,159
Total assets less total liabilities 17,735 22,560 28,089 32,857 36,249
Equity      
Share capital 1,719 1,862 1,945 1,988 2,023
Capital redemption reserve 396 396 396 396 396
Share premium 4,271 7,505 7,505 8,046 8,554
Merger reserve 18,302 18,302 21,346 21,346 21,346
Other reserves –   29 196 639 (722)
Shares to be issued (65) (65) (637) (997) (1,047)
Retained earnings (6,888) (5,469) (2,662) 1,439 5,390
  17,735 22,560 28,089 32,857 35,940
Minority interest –   –   –   –   309
Total equity 17,735 22,560 28,089 32,857 36,249
The amounts disclosed for 2003 are stated on the basis of UK GAAP because it is not practicable to restate amounts for the periods prior to the  
date of transition to IFRS. 
(1)  Prepared under UK GAAP restated to reflect own shares purchased as part of reserves rather than included in the investment carrying value
(2) Prepared under IFRS
(3) Prepared under UK GAAP restated to reflect non-current debtors.
consolidated balance sheet 
Five year financial summary 52    Braemar Seascope Group plc  Annual Report 2007
Shareholder Information
Registrars
Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
West Yorkshire
HD8 OLA
Tel 0870 162 3100
Corporate stockbroker
Charles Stanley Securities
25 Luke Street
London
EC2A 4AR
Legal advisor
Nabarro 
Lacon House 
84 Theobald’s Road 
London 
WC1X 8RW
Bankers
The Royal Bank of Scotland
Shipping Business Centre
5-10 Great Tower Street
London
EC3P 3HX
Independent auditors
PricewaterhouseCoopers LLP
The Atrium
1 Harefield Road
Uxbridge
UB8 1EX
Timetable
AGM:  20 June 2007
Ex dividend date for 2006/7 final dividend:  4 July 2007
2006/7 Final Dividend record date:  6 July 2007
2006/7 Final Dividend payment date:  31 July 2007
2007/8 Interim Results announcement:  October 2007 Braemar Seascope is a leading integrated provider of broking and 
consultancy services to the shipping industry. Headquartered in London, 
it also has offices in Australia, China, India, Brazil and Singapore.
Cory Brothers is a leading UK shipping agent with a fast growing freight 
forwarding and logistics business.
Wavespec is a worldwide market leader in the marine technical 
supervision of LNG and other vessel construction.
DV Howells is a leading UK pollution response and environmental 
services provider.
www.braemarseascope.com
Shipping services on a global scale
1 Financial highlights
2 Overview of the business
3 Chairman’s statement
4 Chief Executive’s review of the business
10 Board of directors
12 Report of the directors
15 Corporate governance
18 Remuneration report
22 Independent auditors’ report
23 Consolidated income statement
23 Statement of recognised income and expenses
24 Balance sheet
25 Cash flow statement
26 Notes to the accounts
50 Five year financial summary
52 Shareholder information
53 Offices and contacts
Contents
Braemar Seascope Group plc – offices and contacts
Designed and produced by Loewy Group +44 (0)20 7798 2000
Braemar Seascope Limited
35 Cosway Street, London NW1 5BT
Tel: +44 (0)20 7535 2650
www.braemarseascope.com
Braemar Seascope Group plc company number: 2286034
Sale and Purchase
Tel: +44 (0)20 7535 2600
Fax: +44 (0)20 7535 2601
Email: snp@braemarseascope.com
Offshore – Aberdeen
Tel: +44 (0)1224 628 470 
Fax: +44 (0)1224 621 444 
Email: offshore@seascope-abz.
co.uk
Gas Chartering
Tel: +44 (0)20 7535 2616
Fax: +44 (0)20 7535 2646
Email: gas@braemarseascope.com
Dry Cargo Chartering
Tel: +44 (0)20 7535 2666
Fax: +44 (0)20 7535 2667
Email: drycargo@braemarsea-
scope.com
Crude Tanker Chartering
Tel: +44 (0)20 7535 2626
Fax: +44 (0)20 7535 2627
Email: tankers@braemarseascope.
com
Chemical Chartering
Tel: +44 (0)20 7535 2656
Fax: +44 (0)20 7535 2646
Email: chemicals@braemarsea-
scope.com
Container Chartering
Tel: +44 (0)20 7535 2867
Fax: +44 (0)20 7535 2601
Email: teu@braemarseascope.com
Large Product Chartering
Tel: +44 (0)20 7535 2630
Fax: +44 (0)20 7535 2663
Email:tankers@braemarseascope.
com
Research  
Tel: +44 (0)20 7535 2699  
Fax: +44 (0)20 7535 2601 
E-mail: research@braemarsea-
scope.com
Offshore – London
Tel: +44 (0)20 7903 2700
Fax: +44 (0)20 7903 2701
Email: offshore@seascope.co.uk
Small Product Chartering
Tel: +44 (0)20 7535 2662
Fax: +44 (0)20 7535 2646
Email: maritime@braemarseacope.
com
Overseas
Beijing
Room 1909-1902, Building B
Winterless Center
No. 1 Xidawang Road
Chaoyang District
Beijing
China
Tel: +86 10 6538 8989
Fax: +86 10 6538 8986
E-mail: beijing@braemarseascope.
com
Singapore
50 Raffles Place #21-04
Singapore Land Tower
Singapore 048623
Tel: +65 6533 0198
Fax: +65 6536 9381
Email: singapore@braemarsea-
scope.com.au
Shanghai
Shanghai Representative Office
317, The Bund 12
Zhong Shan Dong Yi Road
Shanghai 200002
China
Tel: +86 21 6321 2233
Fax: +86 21 6321 2244
E-mail: shanghai@braemarsea-
scope.com
Melbourne
424 St. Kilda Road
Melbourne
Victoria 3004
Australia
Tel: +61 3 9867 2177
Fax: +61 3 9867 5962
Email: bunker@braemarseascope.
com.au
Perth
Unit 4, Churchill Court
353 Hay Street
Subiaco, Perth
WA 6008
Australia
Tel: +61 8 9388 0536
Fax: +61 8 9388 0536
Email: perth@braemarseascope.
com.au
Braemar Seascope India 
PVT Limited
A-13 Defence Colony
New Delhi 110 024
India
Tel: +91 11 4155 2501
Fax: +91 11 4155 2505
Email: delhi@braemarseascope.
co.in
Braemar Quincannon 
Shanghai
Tel: +86 21 6329 0939
Fax: +86 21 6321 2244
Email: chartering@bqshai.com
Braemar Quincannon 
Singapore
Tel: +65 6533 0069
Fax: +65 6536 3459
Email: ship@braemarquincannon.
com.sg
Agency, forwarding and logistics
Cory Brothers Shipping 
Agency Limited
Cory House, 21 Berth
Tilbury Dock 
Essex RM18 5JT
Tel: +44 (0)1375 843 461 
Fax: +44 (0)1375 840 743 
Cory Logistics
PD House, Parker Avenue
Felixstowe 
Suffolk IP11 4RP
Tel: +44 (0)1394 674 822 
Fax: +44 (0)1394 673 740
www.cory.co.uk
DV Howells Limited
The MPSC 
Milford Haven 
Pembrokeshire 
SA73 3QA
Tel: +44 (0)1646 366 340 
Fax: +44 (0)1646 696 343 
Wavespec Limited
Fullbridge Mill
Fullbridge
Maldon
Essex CM9 4LE
Tel: +44 (0)1621 840 447
Fax +44 (0)1621 840 457
E-mail: inbox@wavespec.com
Website: www.wavespec.com
Cory also has offices at Grangemouth, Leith, Invergordon, Newcastle, 
Middlesborough, Hull, Immingham, Ipswich, Isle of Grain, Sheerness, 
Southampton, Bristol, Newport, Milford Haven, Liverpool and Rugby.
Environmental services Technical support services
DV Howells also has offices at 
Falmouth, Bristol, Gatwick, Harlow, 
Didcot, Huddersfield, Rotherham 
and Perth
Braemar Seascope Group plc  Annual Report 2007     5 Braemar Seascope Group plc 
Annual Repor t 2007
Braemar Seascope Group plc
Braemar Seascope Group plc   Annual Repor t and Accounts 2007