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Consolidated financial results for the year ended 31 December 2021

Published: 2022-03-29 06:00:00 ET

Brimstone Investment Corporation - N Shares (JSE:BRN) News - Consolidated financial results for the year ended 31 December 2021

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 2021

Highlights

-  Group profit of R920.9 million compared to a loss of R43.8 million 
   in the comparative period

-  Group earnings per share up 500% to 292.3 cents (2020: loss per share 
   of 73.0 cents)

-  Group headline earnings per share up 586% to 298.9 cents 
   (2020: loss per share of 61.5 cents)

-  Dividend declared of 30 cents (2020: nil cents) per share

-  Finance costs down by 45% to R219.0 million

-  Reduction of debt of R1.2 billion

-  Repurchase of 5.8 million "N" Ordinary shares for R34.9 million

-  Improved debt and liquidity ratios

Financial overview

                                                                   Reviewed
R'000                                          Reviewed            Restated*
                                             Year ended          Year ended
                                            31 December         31 December
                                                   2021                2020

Revenue                                       5 054 739           4 714 720 
- Continuing operations                       5 054 726           4 725 807 
- Discontinued operation                             13             (11 087)

Profit/(loss) for the year                      920 861             (43 834)
- Continuing operations                         763 153              13 992 
- Discontinued operation                        157 708             (57 826)

Basic earnings/(loss) per share                   292.3               (73.0)
- Continuing operations                           229.3               (50.1)
- Discontinued operation                           63.0               (22.9)

Basic headline earnings/(loss) per share          298.9               (61.5)
- Continuing operations                           236.0               (38.7)
- Discontinued operation                           62.9               (22.8)

*  Restatement due to disposal of subsidiary, Lion of Africa Insurance
   Company Limited, being classified as a discontinued operation.

INTRINSIC NET ASSET VALUE (INAV)

INAV at 31 December 2021 calculated on a line-by-line basis, totalled 
R3.26 billion, or R13.14 per share (31 December 2020: R3.28 billion or 
R12.99 per share). As at 31 December 2021, Brimstone Ordinary shares were 
trading at a discount of 52.0% to INAV (31 December 2020: 55.3%) and 
"N" Ordinary shares traded at a discount of 50.6% to INAV 
(31 December 2020: 50.0%). 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 2020. Where the presentation of investments changed compared to 
31 December 2020, these changes have been identified and the INAV 
information at 31 December 2020 has been re-presented to achieve 
comparability.

DECLARATION OF CASH DIVIDEND

Brimstone's board has declared a final gross dividend of 30 cents per share 
for the year ended 31 December 2021 (2020: Nil cents) payable on Monday, 
25 April 2022. 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                            Tuesday, 29 March 2022
Last day to trade cum dividend                       Tuesday, 19 April 2022
Shares commence trading ex dividend                Wednesday, 20 April 2022
Record date                                           Friday, 22 April 2022
Payment date                                          Monday, 25 April 2022

Shares may not be rematerialised or dematerialised from Wednesday, 
20 April 2022 to Friday, 22 April 2022, both days inclusive.

The final dividend is subject to a local Dividends Tax at 20%. The final 
net local dividend amount is 24 cents per share for shareholders liable 
to pay Dividends Tax and 30 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

29 March 2022

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 provisional condensed 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 provisional condensed financial results for the year ended 
31 December 2021 published on the JSE 
at https://senspdf.jse.co.za/documents/2022/jse/isse/BRT/ye2021.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 auditors, Ernst & Young Inc., have reviewed the full 
announcement and issued an unmodified conclusion, which is available at 
www.brimstone.co.za.

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)*, MI Khan (Chief Operating Officer)*, 
T Moodley*, PL Campher (Lead Independent), M Hewu, N Khan, KR Moloko, 
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: 29-03-2022 08:00:00
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Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.