Wrap Text
Reviewed results for the year ended 31 December 2013
Brimstone Investment Corporation Limited
ISIN Number: ZAE000015277
Share Code: BRT
ISIN Number: ZAE000015285
Share Code: BRN
Company Registration Number: 1995/010442/06 (Incorporated in the Republic of
South Africa) ("Brimstone" or "the Company")
REVIEWED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013
COMMENTARY
Profit for the year under review is satisfactory, albeit lower than the
previous reporting period as a result of a decrease in fair value
adjustments of underlying investments. There were also challenging
conditions in the insurance underwriting market which were partially offset
by improved profitability at Sea Harvest.
Total Assets increased by R1.1 billion to R6.8 billion at 31 December 2013.
INAV grew by R582 million from the previous year to R4.19 billion. The
company declared a dividend of 30 cents per share and a special dividend of
10 cents per share.
Brimstone Portfolio
SUBSIDIARIES
Sea Harvest
Despite lower catches, sales volumes were 16% up on the prior year, with
revenue up by 20% to R1.2 billion. The US and Europe economies have started
to show signs of recovery. With firm prices and a favourable exchange rate,
export revenue was up 22% on the prior year. Although the local market
experienced a slowdown, Sea Harvest performed well, delivering an 18%
increase in local sales revenue while maintaining the market leader position.
Overall catch rates were reasonable, albeit 10% lower than the prior year's
highs. Lower catch rates led to higher catch costs, which were further
impacted by significant increases in the price of fuel. Land-based
operations performed well, yielding positive processing variances despite
lower throughput volumes. Operating profit before interest increased by 78%
to R72 million.
Lion of Africa Holdings
Gross written premiums increased by 12.4% to R925.3 million from R823.0
million in the prior year. Net written premiums decreased by 30.3%, from
R500.0 million in the previous year to R348.5 million in the year under
review. The deterioration in the net loss ratio from 60.0% in the previous
year to 78.4%, resulted in a 75.7% decrease in underwriting profit before
expenses to R35.8 million. The reduction in operating expenditure by 0.8% to
R157.0 million, tempered by net investment returns of R29.5 million,
resulted in a net loss after tax for the year of R64.6 million compared to a
net profit of R18.3 million in the prior year.
House of Monatic
While House of Monatic's turnover only increased by 3% to R180 million its
net profit increased by 40% to R6.9 million. Employment levels of around 800
staff remained stable throughout the year. Monatic continues to benefit from
the Production Incentive put in place by the Department of Trade and
Industry for the clothing and textile industry. This has enabled Monatic to
upgrade its plant and equipment by approximately R15 million over the last
three years.
ASSOCIATES
Oceana
Oceana reported satisfactory results for the financial year 2013. Turnover
improved by 8%, and operating profit before abnormal items increased by 5%
from the previous year. Revenue growth in the second half of the year was
affected by weaker local consumer demand, resulting in a slowdown in canned
fish sales volumes and a significant decline in industrial fish landings.
Basic earnings per share for the year ended 30 September 2013 increased by
10% and basic headline earnings per share increased by 7% compared to the
previous year. A total dividend of 322 cents per share for the year was
declared, representing a 7% increase on the total dividend of 301 cents per
share in the prior year. Growth opportunities in the rest of Africa are
being explored. Oceana's share price closed at R82.00 per share, up from
R69.82 per share at 31 December 2012. Brimstone received dividends of R64.7
million from Oceana during the period under review and recorded R8.1 million
in equity accounted earnings.
Aon Re Africa
Aon Re Africa (Pty) Ltd, trading as Aon Benfield, is the leading reinsurance
broker licensed and operating in South Africa and the rest of the continent.
Aon Re Africa successfully secured new business across all divisions with
impressive organic growth specifically in Africa. Brimstone received a
dividend of R3.9 million from Aon Re Africa and recorded R2.9 million in
equity accounted earnings during the period under review.
The Scientific Group
The Scientific Group, supplier of instrumentation and consumables for
pathology laboratories, reported strong results for the 2013 trading period
with double digit growth in turnover and profitability. The Scientific Group
was successful in building on its long term relationships by securing the
distribution rights for a cardiology product portfolio. Pressure on margins
continued given the current market conditions and the consistent
depreciation of the Rand. Brimstone recorded R0.2 million in equity
accounted earnings from The Scientific Group.
Afena Capital
Afena Capital is an investment management firm that offers specialist equity
and balanced portfolios serving the South African institutional market.
Brimstone received a dividend of R3.1 million from Afena during the period
under review. Brimstone recorded R0.9 million in equity accounted earnings
from Afena Capital.
INVESTMENTS
Life Healthcare
Life Healthcare's share price closed at R41.86 per share, up from R33.70 per
share at 31 December 2012. The investment was revalued upwards by R428.5
million. Brimstone received dividends amounting to R66.3 million during the
year. Brimstone remains one of the largest shareholders in Life Healthcare.
Taste Holdings
Taste Holdings reported an increase in revenue of 24% and a consequent rise
in headline earnings per share of 27% to 5.7 cents (2012: 4.5 cents). Taste
Holdings' share price closed at R3.75 per share, down from R4.30 per share
at 31 December 2012. The investment was revalued downwards by R13.5 million.
Nedbank
Brimstone's rights to Nedbank shares, accounted for as options, have been
revalued at period end. This independently calculated option valuation was
based on a closing price of R210.00 per share, up from R188.00 per share at
31 December 2012. The investment was revalued upwards by R99.1 million.
Old Mutual
Brimstone's rights to Old Mutual plc shares, accounted for as options, have
been revalued at period end, based on a closing price of R32.79 per share,
up from R24.49 per share at 31 December 2012. The investment was revalued
upwards by R105.1 million.
MTN Zakhele
Brimstone's MTN Zakhele shares, accounted for as options, have been revalued
at period end. The independently calculated option valuation was based on a
closing MTN share price of R217.02 per share, up from R177.60 per share at
31 December 2012. The investment was revalued upwards by R44 million.
Tiger Brands
Brimstone's rights to Tiger Brands shares, accounted for as options, have
been revalued at period end. The independently calculated option valuation
was based on a closing share price of R266.93 per share, down from R325.25
per share at 31 December 2012. The investment was revalued downwards by
R87.5 million.
Rex Trueform and African & Overseas Enterprises (Queenspark)
The market price of all classes of Rex Trueform and African & Overseas
Enterprises shares reduced during the period under review resulting in a
downward revaluation of R35.3 million.
HEADLINE EARNINGS PER SHARE
Reviewed Audited
Year ended Year ended
31 Dec 2013 31 Dec 2012
Headline earnings per share (cents)
Basic 188.4 346.0
Diluted 160.9 295.4
Headline earnings calculation
Net profit attributable to equity
holders of the parent 464 111 849 398
Profit on disposal of property, plant,
equipment and vehicles (4 850) (456)
Realised loss on disposal of available-for-sale asset - 292
Impairment of investment in associate 356 252
Impairment of intangible asset of associate - 2 647
Additional purchase consideration on
acquisition of business - 1 736
Adjustments relating to results of associates (456) (9 584)
Total tax effects of adjustments 1 420 77
Headline earnings 460 581 844 362
Weighted average number of shares on which earnings
and headline earnings per share is based (000's) 244 414 244 039
Weighted average number of shares on which diluted
earnings and diluted headline earnings per share
is based (000's) 286 172 285 813
INTRINSIC NET ASSET VALUE (INAV)
INAV at 31 December 2013 calculated on a line-by-line basis, totalled R4.19
billion, or R17.09 per share (31 December 2012: R3.6 billion or R14.74 per
share), representing an increase of 15.9% from 2012. On a fully diluted
basis INAV per share is R16.16 or an increase of 15.5% on the R13.99
reported at 31 December 2012. As at 31 December 2013, Brimstone ordinary
shares were trading at a discount of 18.1% to intrinsic net asset value
(31 December 2012: 23.7%). Brimstone "N" ordinary shares traded at a
discount of 18.1% to Brimstone's intrinsic net asset value (31 December
2012: 18.9%).
The breakdown of INAV is available on the Company's website at
www.brimstone.co.za.
Subsequent events
There are no significant subsequent events affecting these results.
Dividend and special dividend
Brimstone's board has declared a final dividend of 30 cents per share for
the year ended 31 December 2013 and a special dividend of 10 cents per share
for the year ended 31 December 2013, payable on Tuesday, 29 April 2014. The
final dividend and the special dividend have been declared out of income
reserves.
The special dividend has been declared as Brimstone will receive a special
dividend from Life Healthcare Group Holdings Limited on 17 March 2014.
Therefore, after due consideration, the board of Brimstone has decided to
pay a special dividend to its shareholders. Shareholders should note that
the special dividend is subject to Exchange Control approval and an
announcement will be released on SENS once this has been obtained.
In compliance with the requirements of Strate, the Company has determined
the following salient dates for the payment of the final dividend and
special dividend. The last day to trade cum dividend for both the final
dividend and the special dividend is Wednesday, 16 April 2014. The final
dividend and the special dividend is payable to all shareholders of
Brimstone recorded in the books of the Company at the close of business on
Friday, 25 April 2014. Shares will commence trading ex-dividend from
Thursday, 17 April 2014. Shares may not be rematerialised or dematerialised
from Thursday, 17 April 2014 to Friday, 25 April 2014, both days inclusive.
The final dividend and the special dividend are subject to dividend tax at
15%. In determining the dividend tax, secondary tax on companies ("STC")
credits must be taken into account. Brimstone has sufficient STC credits to
cover the dividend tax and the STC credits utilised as part of the final and
the special dividend declarations amount to R82 433 927.70, being 30 cents
per share for the final dividend, and R27 477 975.90, being 10 cents per
share, for the special dividend, respectively. Consequently, no dividend tax
is payable by shareholders who are normally not exempt from dividend tax.
All shareholders will receive the final dividend of 30 cents per share and
the special dividend of 10 cents per share.
The number of Brimstone ordinary and "N" ordinary shares eligible for both
the final dividend and the special dividend at the date of this declaration
is 46 775 135 and 228 004 624 respectively (this excludes 39 140 000 "N"
ordinary shares held by The Brimstone Black Executives Investment Trust, The
Brimstone General Staff Investment Trust and The Brimstone Broad-Based BEE
Trust which are not eligible to receive dividends) and the Company's tax
reference number is 9397002719.
Prospects
Brimstone remains well capitalised and in addition has substantial approved
facilities to pursue value enhancing transactions based on quality assets.
Management is cognisant of the market's current high earnings multiples and
will continue its prudent consideration of investment opportunities.
Changes to the Board
Shareholders are referred to the announcement released on SENS on 8 November
2013 regarding the appointment of Mrs KR Moloko as an independent non-
executive director to the board of the Company.
On behalf of the board
F. Robertson M.A. Brey
Executive Chairman Chief Executive Officer
4 March 2014
Directorate and administration
Registered office: Boundary Terraces, 1 Mariendahl Lane, Newlands 7700,
Cape Town
Transfer Secretaries: Computershare Investor Services (Pty) Ltd,
70 Marshall Street, Johannesburg 2001
Sponsor: Nedbank Capital, 135 Rivonia Road, Sandton 2196
Directorate: F Robertson (Executive Chairman)*, MA Brey (Chief Executive
Officer)*, LZ Brozin (Financial)*,
PL Campher (Lead Independent), M Hewu, N Khan, KR Moloko, MK Ndebele,
LA Parker, FD Roman *Executive
Website: www.brimstone.co.za
E-mail: info@brimstone.co.za
Condensed Statement of Comprehensive Income
for the year ended 31 December 2013
Reviewed Audited
Year ended Year ended
R'000 Notes 31 Dec 2013 31 Dec 2012
Revenue 2 086 376 1 946 472
Sales and fee income 1 930 997 1 795 026
Dividends received 155 379 151 446
Operating expenses (2 021 990) (1 815 434)
Operating profit 64 386 131 038
Fair value gains 557 402 1 053 311
Exceptional items 7 828 (2 280)
Share of profits of associates and
joint venture 13 204 27 612
Profit before net finance costs 642 820 1 209 681
Income from investments 4 23 037 26 410
Net finance costs 5 (110 553) (131 597)
Outside unit holders' interest (507) (1 357)
Net profit before taxation 554 797 1 103 137
Taxation 6 (81 405) (261 021)
Profit for the year 473 392 842 116
Other comprehensive income, net of tax 7 592 (3 938)
Items that may be reclassified subsequently
to profit and loss
Cash flow hedges
Loss arising during the year (7 711) (11 606)
Net value gain on available-for-sale financial asset 15 303 7 668
Total comprehensive income for the year 480 984 838 178
Profit attributable to:
Equity holders of the parent 464 111 849 398
Non-controlling interests 9 281 (7 282)
473 392 842 116
Total comprehensive income attributable to:
Equity holders of the parent 468 523 847 110
Non-controlling interests 12 461 (8 932)
480 984 838 178
Earnings per share (cents)
Basic 189.9 348.1
Diluted 162.2 297.2
Condensed Statement of Financial Position
as at 31 December 2013
Reviewed Audited
Year ended Year ended
R'000 31 Dec 2013 31 Dec 2012
ASSETS
Non-current assets 5 051 016 4 344 407
Property, plant, equipment and vehicles 278 348 266 663
Goodwill 12 140 12 140
Intangible assets 135 599 152 169
Investments in associate companies and
joint venture 799 029 781 995
Investments 3 633 291 3 080 415
Deferred taxation 21 654 -
Insurance assets 161 774 50 524
Other financial assets 9 181 501
Current assets 1 748 577 1 381 057
Inventories 250 648 230 226
Trade and other receivables 617 731 407 288
Insurance assets 505 785 418 432
Taxation 9 949 9 090
Investments 103 251 -
Cash and cash equivalents 261 213 316 021
TOTAL ASSETS 6 799 593 5 725 464
EQUITY AND LIABILITIES
Capital and reserves 3 372 120 2 929 986
Share capital 45 45
Capital reserves 325 434 310 132
Revaluation reserves 23 223 14 331
Cash flow hedging reserve (4 847) (367)
Changes in ownership (11 839) (11 839)
Retained earnings 2 905 630 2 502 581
Attributable to equity holders of the parent 3 237 646 2 814 883
Non-controlling interests 134 474 115 103
Non-current liabilities 1 764 025 1 470 287
Long-term interest bearing borrowings 936 765 888 134
Long-term provisions 22 211 20 882
Other financial liabilities - 125
Insurance liabilities 168 749 -
Deferred taxation 636 300 561 146
Current liabilities 1 663 448 1 325 191
Short-term interest bearing borrowings 260 770 292 934
Bank overdrafts 49 604 15 434
Trade payables 575 358 293 087
Other payables 92 731 71 130
Insurance liabilities 634 817 616 860
Outside unit holders' interest 18 848 14 495
Other financial liabilities 14 123 2 000
Short-term provisions 16 992 16 305
Taxation 205 2 946
TOTAL EQUITY AND LIABILITIES 6 799 593 5 725 464
NAV per share (cents) 1 324.0 1 153.1
Shares in issue at end of year (000's) 244 531 244 108
Condensed Statement of Changes in Equity
for the year ended 31 December 2013
Share Capital Revaluation
R'000 capital reserves reserves
Balance at 1 January 2012 - Audited 45 316 904 9 876
Attributable profit for the year
ended 31 December 2012 - - -
Other comprehensive income - - 4 455
Total comprehensive income - - 4 455
Recognition of share-based payments - 9 815 -
Dividend paid - - -
Subsidiary's accrual for preference dividends - - -
Issue of share capital - 1 363 -
Repurchase of trust units - (752) -
Disposal of treasury shares - 292 -
Transfer from statutory contingency reserve - (19 683) -
Share of non-distributable reserves of
associates transferred directly to equity - 2 193 -
Balance at 31 December 2012 - Audited 45 310 132 14 331
Attributable profit for the year
ended 31 December 2013 - - -
Other comprehensive income - - 8 892
Total comprehensive income - - 8 892
Recognition of share-based payments - 10 076 -
Dividend paid - - -
Subsidiary's accrual for preference dividends - - -
Issue of share capital - 2 812 -
Repurchase of trust units - (187) -
Disposal of treasury shares - 49 -
Share of non-distributable reserves of
associates transferred directly to equity - 2 552 -
Balance at 31 December 2013 - Reviewed 45 325 434 23 223
Condensed Statement of Changes in Equity
for the year ended 31 December 2013
Cash flow Changes
hedging in Retained
R'000 reserve ownership earnings
Balance at 1 January 2012 - Audited 6 376 (11 839) 1 677 390
Attributable profit for the year
ended 31 December 2012 - - 849 398
Other comprehensive income (6 743) - -
Total comprehensive income (6 743) - 849 398
Recognition of share-based payments - - -
Dividend paid - - (43 890)
Subsidiary's accrual for preference dividends - - -
Issue of share capital - - -
Repurchase of trust units - - -
Disposal of treasury shares - - -
Transfer from statutory contingency reserve - - 19 683
Share of non-distributable reserves of
associates transferred directly to equity - - -
Balance at 31 December 2012 - Audited (367) (11 839) 2 502 581
Attributable profit for the year ended
31 December 2013 - - 464 111
Other comprehensive income (4 480) - -
Total comprehensive income (4 480) - 464 111
Recognition of share-based payments - - -
Dividend paid - - (61 062)
Subsidiary's accrual for preference dividends - - -
Issue of share capital - - -
Repurchase of trust units - - -
Disposal of treasury shares - - -
Share of non-distributable reserves of
associates transferred directly to equity - - -
Balance at 31 December 2013 - Reviewed (4 847) (11 839) 2 905 630
Condensed Statement of Changes in Equity
for the year ended 31 December 2013
Attributable to Non-
equity holders controlling
R'000 of the parent interests Total
Balance at 1 January 2012 - Audited 1 998 752 114 878 2 113 630
Attributable profit for the year
ended 31 December 2012 849 398 (7 282) 842 116
Other comprehensive income (2 288) (1 650) (3 938)
Total comprehensive income 847 110 (8 932) 838 178
Recognition of share-based payments 9 815 - 9 815
Dividend paid (43 890) (840) (44 730)
Subsidiary's accrual for preference
dividends - 9 881 9 881
Issue of share capital 1 363 631 1 994
Repurchase of trust units (752) (1 567) (2 319)
Disposal of treasury shares 292 - 292
Transfer from statutory contingency reserve - - -
Share of non-distributable reserves of
associates transferred directly
to equity 2 193 1 052 3 245
Balance at 31 December 2012 - Audited 2 814 883 115 103 2 929 986
Attributable profit for the year
ended 31 December 2013 464 111 9 281 473 392
Other comprehensive income 4 412 3 180 7 592
Total comprehensive income 468 523 12 461 480 984
Recognition of share-based payments 10 076 - 10 076
Dividend paid (61 062) (1 480) (62 542)
Subsidiary's accrual for preference
dividends - 8 004 8 004
Issue of share capital 2 812 330 3 142
Repurchase of trust units (187) (84) (271)
Disposal of treasury shares 49 - 49
Share of non-distributable reserves of
associates transferred directly to equity 2 552 140 2 692
Balance at 31 December 2013
- Reviewed 3 237 646 134 474 3 372 120
Condensed Statement of Cash Flows
for the year ended 31 December 2013
Reviewed Audited
Year ended Year ended
R'000 31 Dec 2013 31 Dec 2012
Operating activities
Net attributable profit 473 392 842 116
Adjustments for:
Share of profits of associates and joint venture (86 919) (103 455)
Income from investments (104 701) (102 013)
Increase in fair value of investments (557 402) (1 053 311)
Impairment of investment in associate 356 252
Amortisation of intangible assets 22 368 19 079
Finance costs 110 553 131 597
Taxation 81 405 261 021
Depreciation of property, plant,
equipment and vehicles 62 483 71 189
Share-based payment expense 10 076 9 815
Realised loss on disposal of
available-for-sale asset - 292
Additional purchase consideration on
acquisition of business - 1 736
Increase/(decrease) in long and short-term provisions 2 016 (1 165)
Profit on disposal of property, plant,
equipment and vehicles (143) (204)
Operating cash flows before movements in
working capital 13 484 76 949
Increase in inventories (20 422) (3 423)
(Increase)/decrease in trade and other receivables (221 152) 58 706
Increase in outside unit holders' interest 4 353 3 835
Increase in trade and other payables 303 872 60 877
Net (increase)/decrease in insurance assets (198 603) 13 682
Net increase in insurance liabilities 186 706 10 783
Cash generated from operations 68 238 221 409
Interest received 23 037 26 410
Dividends received from associates and joint venture 73 715 75 843
Dividends received from other equity investments 81 664 75 603
Income taxes paid (32 188) (37 235)
Finance costs (68 365) (108 359)
Net cash from operating activities 146 101 253 671
Investing activities
Loan repayments and recoveries from associate
and investments 6 163 -
Proceeds on disposal of investments 44 602 173 977
Proceeds on disposal of property, plant,
equipment and vehicles 2 021 773
Acquisition of property, plant, equipment
and vehicles (76 046) (52 756)
Acquisition of business - (1 736)
Acquisition of intangible assets (5 798) (13 018)
Acquisition of investments (132 000) (131 705)
Net cash used in investing activities (161 058) (24 465)
Financing activities
Dividends paid by company and subsidiaries (62 542) (44 730)
Repayments of borrowings (84 071) (196 555)
Loans raised 69 672 185 014
Shares sold 49 292
Proceeds on issue of shares 3 142 1 994
Units/shares repurchased by subsidiaries (271) (2 319)
Increase in bank overdrafts 34 170 2 071
Net cash used in financing activities (39 851) (54 233)
Net (decrease)/increase in cash and cash equivalents (54 808) 174 973
Cash and cash equivalents at beginning of year 316 021 141 048
Cash and cash equivalents at end of year
Bank balances and cash 261 213 316 021
Further information
1. Auditor's review report
The preliminary condensed consolidated financial statements for the
year ended 31 December 2013 have been reviewed by the Group's auditors,
Deloitte & Touche. The review was conducted in accordance with ISRE 2410
Review of Interim Financial Information performed by the Independent
Auditor of the Entity. The auditor's unmodified review report does not
necessarily cover all the information in this announcement. Shareholders
are therefore advised that in order to obtain a full understanding of
the nature of the auditor's work they should obtain a copy of that
report together with the accompanying financial information from the
registered office of the Company. Any reference to future financial
performance and Intrinsic Net Asset Value included in this announcement
has not been reviewed or reported on by the Company's auditors.
2. Basis of preparation
The preliminary condensed reviewed consolidated financial statements
have been prepared in accordance with the requirements of the JSE
Limited Listings Requirements for preliminary reports and the
requirements of the Companies Act of South Africa. The Listings
Requirements require preliminary reports to be prepared in accordance
with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS) and
the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and the Financial Pronouncements as issued by the
Financial Reporting Standards Council and to also, as a minimum, contain
the information required by IAS 34 Interim Financial Reporting. The
accounting policies applied in the preparation of the preliminary
condensed reviewed consolidated financial statements are in terms of
IFRS and with the exception of the disclosure in note 3 are consistent
with those applied in the previous consolidated annual financial
statements.
The preliminary condensed consolidated financial statements were
prepared under the supervision of the group financial director, Lawrie
Zev Brozin, B.Com B.Acc CA(SA).
3. Significant accounting policies
These preliminary condensed reviewed consolidated financial statements
for the year ended 31 December 2013 have been prepared on the historical
cost basis, except for the revaluation of certain financial instruments.
The accounting policies and methods of computation applied in the
presentation of the financial results are consistent with those applied
for the year ended 31 December 2012, except for the following new or
revised standards, amendments thereto and interpretations as issued by
the International Accounting Standards Board, which are effective for
the current reporting period that were adopted:
- IAS 1 (amendment) Presentation of Financial Statements:
Presentation of Items of Other Comprehensive Income
- IFRS 10 Consolidated Financial Statements
- IFRS 11 Joint Arrangements
- IFRS 13 Fair Value Measurement
- IAS 28 Investments in Associates and Joint Ventures (2011)
- IAS 34 Interim Financial Reporting
The adoption of these new and revised accounting standards did not have
a material impact on the results and as such there is no change to
comparative information resulting from the adoption of these standards
Reviewed Audited
Year ended Year ended
R'000 31 Dec 2013 31 Dec 2012
4. Income from investments
Interest received on bank deposits and loans
to associates and subsidiaries 23 037 26 410
5. Net finance costs
Interest on borrowings 38 411 40 252
Listed bond - 3 156
Interest rate swap (8 269) 1 624
Preference dividends 80 411 86 565
110 553 131 597
6. Taxation
Current normal and deferred tax expense 81 062 260 764
Dividends tax 333 257
Secondary tax on companies 10 -
81 405 261 021
7. Capital commitments
Commitments for the acquisition of property,
plant, equipment and vehicles:
Contracted for but not provided in the
financial statements 32 050 30 205
Authorised by directors but not contracted 7 471 2 787
39 521 32 992
8. Segmental information
Information reported to the Group's
operating decision makers for the
purpose of resource allocation and
assessment of segment performance is
specifically focused on the individual
entity in which Brimstone has invested.
The Group's reportable segments under
IFRS 8 are therefore fishing, insurance,
clothing and investments. Investments
include investments in associates,
available-for-sale investments, investments
at fair value through profit or loss,
the Group's property portfolio and
administrative head office.
Segment revenues and results
Segment revenue
Fishing 1 237 687 1 037 707
Insurance 505 246 581 144
Clothing 179 600 174 394
Investments 163 843 153 227
Total revenue 2 086 376 1 946 472
Segment profit/(loss) from operations
Fishing 69 062 49 511
Insurance (120 662) (10 134)
Clothing 10 460 8 377
Investments 105 526 83 284
Total profit from operations 64 386 131 038
Fair value gains/(losses) 557 402 1 053 311
Exceptional items 7 828 (2 280)
Share of profits of associates and joint venture 13 204 27 612
Income from investments 23 037 26 410
Finance costs (110 553) (131 597)
Outside unit holders' interest (507) (1 357)
Profit before taxation 554 797 1 103 137
Reviewed Year ended Audited Year ended
Segment assets 31 Dec 2013 31 Dec 2012
and liabilities
Segment assets Gross Net Gross Net
Fishing 911 544 911 544 879 564 879 564
Insurance 1 391 025 1 391 025 988 065 988 065
Clothing 165 658 165 658 149 804 149 804
2 468 227 2 468 227 2 017 433 2 017 433
Investments 4 742 653 4 331 366 4 100 747 3 708 031
Intergroup balances 411 287 - 392 716 -
Other 4 331 366 4 331 366 3 708 031 3 708 031
Total segment assets 7 210 880 6 799 593 6 118 180 5 725 464
Segment liabilities
Fishing 781 458 530 553 780 759 547 463
Insurance 1 334 204 1 244 270 864 410 774 476
Clothing 130 479 60 031 122 726 53 240
2 246 141 1 834 854 1 767 895 1 375 179
Investments 1 181 332 1 181 332 1 420 299 1 420 299
Total segment
liabilities 3 427 473 3 016 186 3 188 194 2 795 478
Reviewed Audited
Year ended Year ended
R'000 31 Dec 2013 31 Dec 2012
Other segmental information
Depreciation and amortisation
Fishing 73 015 82 840
Insurance 8 097 4 315
Clothing 3 111 2 520
Investments 628 595
Total segment depreciation and amortisation 84 851 90 270
Additions to non-current assets
Fishing 63 495 46 623
Insurance 8 287 2 239
Clothing 9 916 2 930
Investments 146 964
Total segment additions to non-current assets 81 844 52 756
9. Fair value measurements
This note provides information about how the Group determines fair
values of various financial assets and financial liabilities.
Financial assets and financial liabilities that are measured at fair
value on a recurring basis
Some of the Group's financial assets and financial liabilities are
measured at fair value at the end of each financial reporting period.
The following table gives information about how the fair values of these
financial assets and financial liabilities are determined (in particular,
the valuation technique(s) and inputs used).
The directors consider that the carrying amounts of financial assets and
financial liabilities not measured at fair value on a recurring basis
(but fair value disclosures are required) in the consolidated financial
statements approximate their fair values.
2013 (R'000) (Reviewed) Level 1 Level 2 Level 3 Total
Financial assets at FVTPL***
Derivative financial
assets - 918 535 - 918 535
Listed shares 2 456 503 - - 2 456 503
Unlisted shares
and loan 153 442 6 149 5* 159 596
Other investments 68 884 - - 68 884
Available-for-sale
financial assets
Unlisted shares - - 44 800** 44 800
Unlisted shares - - 2 154* 2 154
Total 2 678 829 924 684 46 959 3 650 472
Financial liabilities
at FVTPL
Derivative financial
liabilities - 2 125 - 2 125
2012 (R'000) (Audited) Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Derivative financial
assets - 741 254 - 741 254
Listed shares 2 062 957 - - 2 062 957
Unlisted shares and
loan - 41 635 5* 41 640
Other investments 77 149 - - 77 149
Available-for-sale
financial assets
Unlisted shares - - 25 816** 25 816
Unlisted shares - - 2 429* 2 429
Total 2 140 106 782 889 28 250 2 951 245
*** FVTPL = Fair Value Through Profit or Loss
The table provided analyses financial instruments that are measured
subsequent to initial recognition at fair value, grouped in Levels 1 to
3 based on the degree to which fair value is observable.
- Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities.
- Level 2 fair value measurements are those derived from inputs other
than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
- Level 3 fair value measurements are those derived from valuation
techniques that include inputs for the asset or liability that are
not based on observable market data (unobservable inputs).
Transfer from Level 2 to Level 1
Unlisted shares held in Phuthuma Nathi were transferred from Level 2 to
Level 1 in the current year as this is deemed to be a more appropriate
classification for the asset.
Notes
* At cost or historical valuation.
** Discounted cash flow method using a discount rate of 15% over 10
years.
Reviewed Audited
Year ended Year ended
31 Dec 2013 31 Dec 2012
Reconciliation of Level 3 fair
value measurements (R'000)
Unlisted shares and loan
Opening balance 28 250 53 842
Total gains or losses
- in profit or loss - (31 944)
- in other comprehensive income 18 984 8 917
Advances 90 5 990
Disposals (365) (2 148)
Transfer to Level 2 - (6 407)
Closing balance 46 959 28 250
10. Share capital
In issue (number)
Ordinary shares 46 775 135 46 775 135
Held as treasury shares (4 015 311) (3 987 231)
42 759 824 42 787 904
"N" ordinary shares 267 144 624 266 728 564
Held as treasury shares (65 373 373) (65 408 393)
201 771 251 201 320 171
Total net of treasury shares 244 531 075 244 108 075
Weighted average number of shares on
which earnings and headline earnings
per share is based is 244 413 514
(2012: 244 038 657)
Weighted average number of shares
on which diluted earnings and diluted
headline earnings per share is based is
286 172 134 (2012: 285 813 384)
Reconciliation of weighted average
number of shares between basic and
diluted earnings per share and headline
earnings and diluted headline earnings
per share.
Basic 244 413 514 244 038 657
Dilutive share options 41 758 620 41 774 727
Diluted 286 172 134 285 813 384
Number of share options treated as
anti-dilutive 703 098 (2012: nil)
Closing share price (cents)
Ordinary shares 1 400 1 125
"N" ordinary shares 1 400 1 195
The following shares were issued during the period under review:
Share option scheme
"N" Ordinary
28 March 2013 313 040
28 May 2013 103 020
Date: 04/03/2014 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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