Wrap Text
Consolidated Financial Results for the year ended 31 December 2023 and Cash Dividend Declaration
Brimstone Investment Corporation Limited
ISIN Number: ZAE000015277
Share Code: BRT
ISIN Number: ZAE000015285
Share Code: BRN
Company Registration Number: 1995/010442/06
(Incorporated in the Republic of South Africa)
("Brimstone" or the "Company" or the "Group")
CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023
AND CASH DIVIDEND DECLARATION
Highlights
- Revenue up 5.1% to R6.5 billion (2022: R6.2 billion)
- Earnings per share up 54% to 117.9 cents (2022: 76.6 cents)
- Headline earnings per share up 4% to 71.6 cents (2022: 69.0 cents)
- Dividend declared of 40 cents per share (2022: 33 cents)
Commentary
The year under review was characterised by high inflation, a weaker Rand
and high interest rates. Continued load shedding and pressure in the
domestic transport network, in particular the ports, have weighed heavily
on the economy. The high unemployment rate continued to impact consumer
spending in an environment where the consumer was already under pressure.
Operating conditions remained challenging and we expect that the current
headwinds of slow economic growth, high inflation and Rand weakness will
persist over the medium term.
Despite the operating environment, the Group reported a profit for the year
under review of R421.9 million (2022: R324.5 million), mainly due to a
strong performance by major associate, Oceana Group Limited, which
contributed R366.4 million, an increase of R171 million compared to the
prior year.
Subsequent to year end, the Group implemented its debt reduction strategy,
by disposing or partially disposing of certain investments. Net proceeds
of R307.5 million, was utilised to pay-down debt. This process is ongoing
and is aimed at significantly reducing Brimstone's gearing.
Enhancing shareholder returns remains a focus for the Board and management,
hence the Group repurchased 4.1 million Ordinary and "N" Ordinary shares
for R21.6 million during the year. In addition, a further 1.5 million
"N" Ordinary shares were repurchased for R7.2 million, subsequent to
year end.
Intrinsic net asset value (INAV)
INAV at 31 December 2023 calculated on a line-by-line basis, totalled
R2.98 billion, or R12.13 per share (31 December 2022: R3.29 billion or
R13.25 per share), representing a decrease of 9.4% from 2022 (a decrease
of 8.4% on a per share basis). As at 31 December 2023, Brimstone Ordinary
shares were trading at a discount of 57.9% to INAV (31 December 2022: 60.3%)
and "N" Ordinary shares traded at a discount of 60.0% to INAV
(31 December 2022: 57.5%). The analysis of INAV is available on the
Company's website at www.brimstone.co.za.
The INAV information presented in this report has been prepared on a basis
consistent with that used in the Integrated Report for the year ended
31 December 2022.
Declaration of cash dividend
Brimstone's board has declared a final gross dividend of 40 cents per share
for the year ended 31 December 2023 (2022: 33 cents) payable on Monday,
15 April 2024. The final dividend has been declared out of income reserves.
In compliance with the requirements of Strate, the Company has determined
the following salient dates for the payment of the final dividend:
Dividend declaration date Wednesday, 6 March 2024
Last day to trade cum dividend Tuesday, 9 April 2024
Shares commence trading ex dividend Wednesday, 10 April 2024
Record date Friday, 12 April 2024
Payment date Monday, 15 April 2024
Shares may not be rematerialised or dematerialised from Wednesday,
10 April 2024 to Friday, 12 April 2024, both days inclusive.
The final dividend is subject to a local Dividends Tax at 20%. The final
net local dividend amount is 32 cents per share for shareholders liable
to pay Dividends Tax and 40 cents per share for shareholders exempt from
paying Dividends Tax. The number of Brimstone Ordinary and "N" Ordinary
shares eligible for the final dividend at the date of this declaration is
39 874 146 and 224 975 962 respectively and the Company's tax reference
number is 9397002719.
F Robertson MA Brey
Executive Chairman Chief Executive Officer
6 March 2024
About this announcement
This short-form announcement is the responsibility of the directors of
Brimstone Investment Corporation Limited. It is only a summary of the
information in the reviewed condensed consolidated financial results and
does not contain full or complete details. Any investment decisions by
investors and/or shareholders should be based on consideration of the
reviewed condensed consolidated financial results for the year ended
31 December 2023 published on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2024/jse/isse/BRT/ye2023.pdf.
It is also available for viewing at
www.brimstone.co.za/investor-relations/results-reports/.
Copies of the consolidated financial results may be requested from the
Company Secretary (tmoodley@brimstone.co.za or tel +27 (0) 21 683 1444).
This announcement has not been audited or reviewed by the Group's external
auditors. The Group's external auditors, Ernst & Young Inc., have reviewed
the condensed consolidated financial statements and issued an unmodified
conclusion, thereon.
Directorate and administration
Registered office: Boundary Terraces, 1 Mariendahl Lane, Newlands,
7700, Cape Town
Transfer Secretaries: Computershare Investor Services (Pty) Ltd,
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited, 135 Rivonia Road, Sandton, 2196
Directorate: F Robertson (Executive Chairman)*, MA Brey (Chief Executive
Officer)*, GG Fortuin (Financial Director)*, MI Khan (Chief Operating
Officer)*, T Moodley*, PL Campher (Lead Independent), M Hewu, N Khan,
M Ndlovu, LA Parker, FD Roman, L Wort *Executive
Company Secretary: T Moodley
Website: www.brimstone.co.za
E-mail: info@brimstone.co.za
Date: 06-03-2024 11:12:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
