Brimstone reports Covid-induced loss


Brimstone reports Covid-induced loss


Published Date: 2021-03-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Brimstone reports Covid-induced loss

The black-empowered investment group has reduced its debt after disposing of a portion of some of its holdings.

Brimstone says it's fortunate that all of its operating subsidiaries, as well as major associate Oceana Group, were classified as essential service providers during last year's hard lockdown. However, it says they had varying degrees of financial success over the period. Together with additional Covid-19 expenditure of R40 million, it reported a loss for its 2020 financial year.

The black-empowered investment group has holdings that span a number of industries such as insurance, fisheries, education and healthcare. Companies in its portfolio include Life Healthcare, Sea Harvest, Equites and STADIO Holdings, amongst many others.

It attributed its loss for the year to the downward revaluation of its listed investments, in particular Equites and MultiChoice Group, increased trading losses and asset impairments incurred by House of Monatic and the recognition of additional provisions, reserves and asset impairments, and underwriting losses incurred by Lion of Africa.

Revenue increased by 6.2% to R4.71 billion for the year to end-December but operating profit declined by 16% to R550 million. It reported a R43.8 million loss for the year, down from profit of R75 million in 2019, and its headline loss per share widened by 13.5% to 61.5c. At the end of December, its intrinsic net asset value per share amounted to R12.99, down from R14.19 a year earlier. It hasn't declared a dividend.

Due to the impact of Covid-19 and the further weakening economy, the company said it deemed it prudent to implement its de-gearing strategy and utilised more than R1 billion from the disposal of a portion of its investments in Equites, Phuthuma Nathi and Life Healthcare and its entire stake in MultiChoice Group to reduce debt.

Brimstone's 'N' ordinary shares rose 5.4% to R6.43 in thin trade yesterday. Its 'T' shares added 0.1% to R7.91.


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