Wrap Text
Unaudited Interim Results for the six months ended 30 June 2024
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" or the "Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024
Salient features
- Share of profits of associate, Oceana, up 97% to R187 million
(2023: R94.9 million)
- Headline earnings per share up 110% to 71.9 cents (2023: 34.2 cents)
- Repaid funders R357.6 million
- Repurchase of 3 513 000 shares for R16.2 million
- Subsequent to period end, repurchase of 1 000 000 shares for R5.5 million
- Deconsolidation of Sea Harvest, resulting in net loss on deemed disposal
of R562.1 million
Commentary
The economic environment characterised by a volatile Rand and high interest
rates in South Africa remained challenging during the period under review.
While a persistently high unemployment rate continued to impact consumer
spending, easing inflation contribute to the prospect of a possible interest
rate cut in the short-term. Electricity grid stability and reduced
loadshedding over the period are early signs of a favourable long-term
solution to our energy crisis. South Africa also had free, fair and peaceful
elections during the period and the sentiment about the new government of
national unity have had a positive impact on domestic investment markets.
Despite the operating environment, the Group reported headline earnings per
share of 71.9 cents (2023: 34.2 cents), up 110% over the comparative period.
This was mainly due to fair value gains of R76.2 million compared to fair
value losses of R40.3 million in the prior period, and the increase in
Brimstone's share of profits of associate, Oceana, from R94.9 million in
the prior period to R187 million in the period under review.
During the period under review, Sea Harvest completed its acquisition
of certain subsidiaries of Terrasan Group Limited ("Terrasan"). Sea Harvest
issued 60 million shares to Terrasan as part of the purchase consideration,
diluting Brimstone's shareholding in Sea Harvest. As a result, Sea Harvest
ceased to be a subsidiary of Brimstone and was reclassified as an associate,
representing a fundamental change in the accounting for this investment.
Brimstone disposed of its entire stake in Milpark, and part-stakes in
Phuthuma Nathi, MTN Zakhele Futhi and Equites. These disposals have
contributed to further implementation of our debt reduction strategy
aimed at significantly reducing Brimstone's gearing. The Group repaid
R357.6 million to its funders during the period under review.
As part of a dual strategy to enhance shareholder returns, the Group
repurchased 3 500 000 shares during the period under review and a further
1 000 000 shares after period end.
Financial overview
- Revenue decreased by 39% to R2.0 billion (2023: R3.3 billion)
- Loss per share of 121.2 cents (2023: earnings per share 35.6 cents)
Intrinsic net asset value ("INAV")
The INAV information presented in this report has been prepared on a basis
consistent with that used in the Integrated Report for the year ended
31 December 2023. The analysis of INAV is available on the Company's
website at www.brimstone.co.za.
Description 30 June 31 December Percentage
2024 2023 change
Intrinsic NAV of Brimstone (R'm) 2 773.9 2 978.9 (6.9%)
Intrinsic NAV per share (cents) 1 143.6 1 213.3 (5.7%)
Discount to Intrinsic NAV
Ordinary shares 52.0% 57.9%
"N" Ordinary shares 56.5% 60.0%
Declaration of cash dividend
In line with the prior period, no interim dividend has been declared.
F Robertson MA Brey
Executive Chairman Chief Executive Officer
27 August 2024
About this announcement
This short-form announcement is the responsibility of the directors of
Brimstone Investment Corporation Limited. It is only a summary of the
information in the unaudited interim results and does not contain full or
complete details. Any investment decisions by investors and/or shareholders
should be based on consideration of the unaudited interim results for the
six months ended 30 June 2024 published on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2024/jse/isse/BRT/ie2024.pdf.
It is also available for viewing at
www.brimstone.co.za/investor-relations/results-reports/. This announcement
has not been audited or reviewed by the Group's external auditors.
Directorate and administration
Registered office: Boundary Terraces, 1 Mariendahl Lane, Newlands, 7700,
Cape Town | Transfer Secretaries: Computershare Investor Services (Pty) Ltd,
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited, 135 Rivonia Road, Sandton, 2196
Directorate: F Robertson (Executive Chairman)*, MA Brey (Chief Executive
Officer)*, GG Fortuin (Financial Director)*, MI Khan (Chief Operating
Officer)*, T Moodley*, PL Campher (Lead Independent), M Hewu, N Khan,
M Ndlovu, LA Parker, FD Roman, L Wort *Executive
Company Secretary: T Moodley
Website: www.brimstone.co.za
E-mail: info@brimstone.co.za
Date: 27-08-2024 08:00:00
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