LONDON (ShareCast) - Shipping, marine and energy services provider Braemar Shipping has chosen to exit its US-based technical services subsidiary, Casbarian, after revealing earlier in the year that the unit had experienced slower-than-expected contract awards.

The sale, to the management of Casbarian, followed a review of its operations which found that its strategic fit with the Braemar Technical Services division “was not sufficiently strong to justify future investment”.

Chief Executive James Kidwell said: "The board has acted quickly and decisively to dispose of the Casbarian operations in the US, which were responsible for the expected underperformance highlighted in our interim management statement of January 17th 2014."

Braemar did not disclose a sale price in its statement on Thursday, but revealed that it had made a loss on disposal of £0.9m.

Casbarian generated revenue of £4.1m in the last financial year ended February 2013 but made a loss before interest and tax of £0.4m. The business accounted for just 3% of Braemar’s total revenues that year.

The stock was up 0.25% at 508.75p on Wednesday.

BC

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