Our opinion on the current state of BRIMSTON(BRT)

Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings.

It owns:
1. 54,2% of Sea Harvest, which is a listed fishing company and has a market capitalisation of just over R4,5bn.
2. 100% of Lion of Africa, a loss-making insurance company, which decided in November 2018 to cease operations and close its doors.
3. 100% of House of Monatic, a loss-making clothing manufacturer.
4. 24% of Oceana, the largest fishing company in South Africa, with a market capitalisation of R8,6bn. Brimstone is increasing its shareholding by buying 8m shares from Tiger Brands, which will take its holding to 22,9%.
5. 6,1% of Grindrod.
6. 18% of Aon Re Africa.
7. 25% of South African Enterprise Development.
8. 49,8% of Vuna Fishing company.
9. 12,8% of Milpark Education.
10. 25% of Obsidian (a black-owned investment holding firm positioned to benefit from the roll-out of the NHI), which, in January 2020, it increased to 80% for R35,7m.

Additionally, it holds a variety of other smaller shareholdings in property, healthcare, 3,9% of Long4Life, and 5,3% of Stadio. The company has been selling down its stakes in Life Healthcare, Lion of Africa, House of Monatic, Equites, Multichoice, and Phuthuma Nathi. It has used the proceeds to pay down R1bn of its debt. The company disposed of its entire stake in Milpark and part-stakes in Phuthuma Nathi, MTN Zakhele Futhi, and Equites.

In its results for the year to 31st December 2024, the company reported revenue down 66% due to the deconsolidation of Sea Harvest and headline earnings per share (HEPS) up 51%. The company undertook a share buy-back of 4,5m shares for R21,7m and, in the current financial year, has bought a further 861 325 shares for R4,3m.

We regard the share as too thinly traded for private investors; however, they have been unbundling and releasing value, so volumes are improving.