Brimstone announced excellent interim results for the six months ended 30 June 2014.
Profit for the period under review improved significantly to R309.7m from R165m in the comparative period. Headline earnings per share increased by 96% from 61.7 cents per share to 120.9 cents per share for the six months to 30 June 2014, mainly as a result of positive fair value adjustments in underlying investments.
Total assets increased from R6.8b at 31 December 2013 to R7.2b at 30 June 2014 and Net Asset Value (NAV) increased from R11.95 to R13.70 per share for the period under review. Intrinsic Net Asset Value (INAV) increased steadily from R4.2b at 31 December 2013 to R4.6b at the end of the reporting period. This translates to an increase in INAV per share to R18.59 for the period under review from R17.09 at 31 December 2013.
Brimstone CEO, Mustaq Brey commented, "We are very pleased with this solid set of results, which was driven by positive fair market value adjustments of underlying investments, further acquisitions, and the efficient restructuring of financial arrangements. These corporate and investment activities all contributed positively to our financial results.”
Fred Robertson, Executive Chairman, Brimstone said, “We have a strong balance sheet and are able to react swiftly to opportunities that will unlock long-term value for shareholders. Our recent participation in leading an empowerment consortium that acquired 8.4% in Grindrod Limited adds an important fourth sector of infrastructure development to our diversified and defensive portfolio.”
During the review period, Brimstone acquired a further 1.1 million shares in MTN Zakhele and Phuthuma Nathi. These investments were revalued upwards by R18.9m and R117.2m respectively at the end of the reporting period.
Brimstone’s investments in the food sector performed well, with increased catch rates reported by Sea Harvest and Oceana respectively. Local and international demand was strong and further supported by a favourable exchange rate.
The Company’s financial services investments experienced mixed results. Although gross written premiums increased by 5,8%, Lion of Africa Insurance Company reported a decrease in net written premiums of 37%.
Brimstone’s investments in the healthcare sector was supported by a special dividend of 100 cents per share and a dividend of 63 cents per share declared by Life Healthcare, resulting in total dividend receipts from South Africa’s leading private hospital operator of R85.6m. Brimstone remains one of the largest investors in the hospital group.