Mixed performance from Brimstone’s investments


Mixed performance from Brimstone’s investments

Published Date: 2019-03-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mixed performance from Brimstone’s investments

The investment holding company has reported lower profit due to the downward revaluation of some listed investments and losses at Lion of Africa.

Brimstone's assets have topped R10 billion for the first time but its portfolio of investments have delivered a very mixed performance for the past year.

The investment holding company has reported a halving of profit to R71.3 million for the year to end-December. It blames the fall on the downward revaluation of listed investments and an increased loss from its Lion of Africa Insurance subsidiary. This was partially offset by an increase in equity accounted earnings.

While Sea Harvest, in which it owns a 50.6% stake, grew headline earnings by 18%, 100%-owned Lion of Africa and House of Monatic both reported losses for the year. Dividends from associate companies Oceana and Aon Re Africa both grew for the period, while SA Enterprise Development contributed a smaller dividend.

During the year, Brimstone disposed of 15.3 million of its Life Healthcare shares and revalued the investment down by R82.9 million to R1.3 billion at year-end. Its dividend from the private hospitals group reduced by 18%. Its investment in private universities group Stadio was revalued downwards by R170.8 million to R152 million after the group's share price more than halved.

It reported a 9.3% decline in its intrinsic net asset value (INAV) to R3.9 billion, leaving its INAV per share 10.3% down at R16.15 per share. It has, however, increased its dividend by 7.1% to 45c per share. At the end of December, its ordinary shares traded at a 35% discount to INAV.

Its shares fell 15.4% to R9.05 in a single trade yesterday. Its results were released after the market close.

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