Brimstone reports a R480.1 million loss

Brimstone Investment Corporation Ltd, a South African black-controlled and managed investment company, has reported an H1 loss of R480.1 million. During the same period last year, the company declared a profit of R309.7 million. Intrinsic net asset value also decreased, dropping from R4.9 billion at 31 December 2014 to R4.1 billion, as did gross assets, dropping from R7.9 billion at 31 December 2014 to R7.6 billion.

(Caption: Brimstone executive management, from left to right: Mustaq Ahmed Brey, Lawrie Broznin, Fred Robertson; Mustaq Ahmed Brey, Brimstone CEO)

Mustaq Brey, Brimstone CEO, said:

"Our results were primarily impacted by the downward revaluation of investments such as Life Healthcare, Tiger Brands, and Grindrod. However, operating profit at subsidiary Sea Harvest increased by 35% to R89.3 million, boosted by price increases, efficient cost control and lower fuel prices. This was despite challenging fishing conditions in the period. Sea Harvest saw the successful integration of its new vessel Atlantic Peace into its fleet during the period. Sales volumes increased by 6% with strong growth in export markets. During the period, Sea Harvest also announced its staff share scheme whereby approximately 5% of its shares were issued to the Sea Harvest Staff Share Trust."

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