Investment holding company Brimstone has returned to profitability following a boost from its associate company Sea Harvest.
Brimstone's headline earnings per share (HEPS) for the six months ended June rose 35% to 96.9c, driven by stronger profitability at Sea Harvest and improved internal cost control measures. Attributable profit for the period swung from a prior loss of R295.7m to a profit of R252.1m.
Brimstone holds a 44.5% stake in Sea Harvest and 25.2% in Oceana. It also has shares in Aon Re Africa, FPG Property Fund, FPG investments, Obsidian Health, and the MTN Zakhele Futhi and Multichoice Phuthuma Nathi BBBEE schemes.
The group said Sea Harvest — which was previously its subsidiary and is now considered an associate following the issuance of shares to the Terrasan group that diluted shareholders — contributed R174.2m in profit with more than R35m in payouts. The fishing and aquaculture company nearly doubled its earnings at the halfway stage of the financial year as its hake division emerged as a standout performer.
Sea Harvest itself reported a 91% surge in HEPS for the six months to end-June to 95c driven by a stronger performance in its hake business. Operating profit doubled to R633.4m from R311m the previous year.
Oceana contributed R115.2m in profits and R36m in payouts. Other profits were realised from the company's other holdings including the SA enterprise development which contributed modestly, with just under R2m in earnings and R1.6m in dividends.
Brimstone said it was optimistic that it would benefit as economic pressures started to ease in the second half.
“We remain firmly committed to restoring shareholder value through disciplined cost management, debt reduction and share repurchases. These initiatives are ongoing and continue to positively impact our financial performance.”
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