Challenging year for Taylor Maritime Investments as shares slip

Taylor Maritime Investments (TMI) has announced its full year results for the financial year ended 31 March 2024. The company saw a NAV total return of -9.0% while the share price total return was -11.2%. The company declared dividends of 8.00 US cents per share (31 March 2023: 10.97 US cents). In addition, it declared an interim dividend on 26 April 2024 of 2.00 US cents per share in respect of the quarter ended 31 March 2024, which was paid on 31 May 2024. The trusts discount was 30% with a yield of 7.6% at the time of publishing.

The advisor noted that despite the weakness over the financial year, it remains optimistic about the long-term prospects for the geared shipping segment to fulfill an important role in the global economy. Positively, the company has also made solid progress towards its goals of integrating its investments and deleveraging. The company also achieved 100% ownership of Grindrod which will simplify the structure and management of the group, enabling a further reduction in costs and more streamlined operations

Commenting on the performance in the full year period, and the outlook for the company, Henry Strutt, independent chair, said:

“Persistent macro-economic headwinds, with interest rates remaining high, made for a challenging period with slower economic growth impacting freight markets.  Despite this, the Group delivered four quarterly dividends for shareholders, maintaining our dividend policy; a core commitment of the board.  I was pleased to see our leverage reduce significantly as we continued to pay down debt.  We have also made further progress with the integration of Grindrod, an ongoing priority.  Indeed, following shareholder approval of the selective capital reduction and approval from the High Court of Singapore, we anticipate that the Group will own 100% of the issued share capital of Grindrod which will subsequently be delisted from each of the Nasdaq Global Select Market and the Johannesburg Stock Exchange.”

Edward Buttery, CEO, added:

“I was pleased that we considerably outperformed our benchmark indices during the period.  We executed an ambitious and successful vessel sales plan disposing of older, less efficient tonnage at close to carrying value which allowed us to deleverage our balance sheet significantly.  Our other area of focus has been Grindrod.  Having realised further efficiencies, including the integration of fleet management, TMI ownership of Grindrod is now anticipated to increase to 100% which will result in additional cost reductions.  Overall, I’m enthusiastic about our next chapter given our “renewed” fleet of larger, younger, high-quality Japanese-built vessels – thanks to the acquisition of Grindrod – and our positive view of the medium-term prospects for geared dry bulk.”  

TMI : Challenging year for Taylor Maritime Investments as shares slip