Brimstone FY HEPS up 51%

Brimstone Investments has released its final results for the 2024 financial year, showcasing a 51 per cent surge in headline earnings per share to 108 cents. The company, headed by CEO Mustaq Brey, also saw a 66 per cent decrease in revenue and a loss per share of 82.5 cents largely attributed to the deconsolidation of Sea Harvest. This move resulted in a R562 million loss on deemed disposal. Despite the challenges, Brimstone has stayed committed to its debt reduction strategy, having repaid R516.8 million and executing share buybacks. Mustaq Brey shed light on the company's performance and strategies during a recent interview on CNBC Africa's show Power Lunch Southern Africa. Brey explained that the drop in revenue was due to the consolidation of Sea Harvest for only four months before losing control of the company. This change led to equity-guided earnings accounting and impacted turnover comparison for the full year. Despite the loss per share, Brimstone maintained its dividend at 40 cents per share. Brey clarified that the loss was a result of a deemed disposal accounting entry and not actual cash loss, highlighting the sustainability of the payout driven by headline earnings per share exceeding one rand per share. The company's debt reduction strategy has seen significant progress, with R516.8 million already repaid against the targeted R600 million reduction by December 2025. Brey emphasized that they are well on track to meet this goal through planned asset sales. Brimstone aims to strike a balance between debt reduction and retaining liquidity for future investments. The company's share buyback program, aimed at leveraging the substantial discount to intrinsic net asset value, further adds value for shareholders. Despite economic challenges, Brimstone remains optimistic about revenue and earnings growth. The company operates in diverse markets catering to various consumer needs, staying attuned to market demands and potential government interventions like interest rate reductions that could benefit consumer spending. Brey expressed confidence in the country's democracy and unity, noting the positive impact on investor sentiment. Brimstone's portfolio includes key investments in Oceana, FPG Property Investments, and Obsidian Revivals. Plans for expansion or reentry into new markets are always under consideration. With a solid asset base and strategic approach, Brimstone Investments is poised for future growth and success.