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- Investment holding company Brimstone reported a group profit before tax of R920.9 million for the year ended 31 December 2021 compared to a loss of R43.8 million in the prior financial year.
- Its JSE-listed Sea Harvest Group reported profit after tax of R434 million, up from R398 million in the prior year.
- Group headline earnings per share is up 586% to 298.9 cents and a dividend of 30 cents per share was declared.
Investment company Brimstone reduced debt and related costs and showed a profit for the financial year ended 31 December 2021 thanks to a solid performance from subsidiaries and associates like Sea Harvest and Oceana, says CEO Mustaq Brey.
It reported a group profit before tax of R920.9 million for the year on Tuesday, a significant improvement from a loss of R43.8 million in the prior financial year. Group earnings per share were up 500% to 292.3 cents and group headline earnings per share jumped 586% to 298.9 cents.
A dividend of 30 cents per share was declared, compared to no dividend the previous year.
Total debt reduced by R1.2 billion in 2021 - a cumulative reduction in debt of approximately R2 billion since the start of lockdown in 2020.
JSE-listed Sea Harvest Group reported profit after tax of R434 million, up from R398 million in the prior year, and Brimstone will receive a dividend of R89.3 million from Sea Harvest next month.
Meanwhile Brimstone received dividends of R35.9 million from Oceana during the year under review, with a final dividend of R80.9 million due in the first week of April.
Brimstone also owns 70% of healthcare solutions provider Obsidian Health. Obsidian contributed R20.7 million to group profit during the year.
Brimstone's investment in Equites was revalued upwards by R78.4 million to R320.9 million at year end, with the group receiving a dividend of R22.2 million from Equites during the year. Brimstone's stake in MTN Zakhele Futhi, meanwhile, was revalued upwards by R38.8 million to R56.4 million at year end, while its stake in Phuthuma Nathi was also revalued upwards by R30.7 million to R255.8 million, with a dividend of R42.1 million received during the year.
Brimstone’s investment in listed higher education group STADIO was revalued upwards by R78.4 million to R163.4 million at year-end.
"The stars of our underlying subsidiaries and associates - especially Oceana, Sea Harvest and Obsidian - aligned for us, creating a positive result for the 2021 financial year," Brey said on Tuesday.
"This solid set of results is testimony to the resilience of our investments that performed exceptionally well despite still operating during periods of partial lockdown."
During the period Brimstone repurchased 5.7 million of its shares.
"We looked at the massive discount we were trading at and wanted to enhance the value for our shareholders with the buy back," said Brey.
Brey anticipates consumer spending will continue to come under pressure in the year ahead, however, while the war in Ukraine has led to higher crude oil prices - one of the basic commodities used in the group's fishing subsidiaries.
By early afternoon Brimstone's share price was up 15.8% at R7.99 per share.
