Brimstone reports profit increase

Johannesburg - Investment company Brimstone Investment Corporation [JSE:BRT] has reported a doubling in revenue for the year ended December 2010.

The group on Tuesday reported diluted headline earnings per share of 148.3 cents for the year ended December 3010 from 129.6c a year ago. The group's headline earnings per share increased to 172.7c from 130.7c in the prior year.

Revenue grew to R1.797bn from R855.7m a year ago, while operating profit rose to R314.2m from R165.6m. A final dividend of 15c per share has been declared, payable to shareholders on May 16 2011.

"This was a landmark year in our history as a listed company," said CEO Mustaq Brey.

"We unlocked R1.4bn in shareholder value when we unbundled a portion of Brimstone's investment in Life Healthcare. Our investments in various other businesses also paid strong dividends on the back of good results."

The performance of Lion of Africa Insurance Company, a wholly owned subsidiary was particularly encouraging, he said.

The series of Life Healthcare transactions completed during the year enabled Brimstone to reduce its non-current liabilities by R686m, substantially de-gearing the group.

"This positions us well for growth, as we plan on adding to our existing asset base which stands at R3.6bn post the Life Healthcare unbundling," Brey said.

"We did retain a significant minority interest of 5.5% in Life Healthcare, and remain confident of future prospects and dividend flow," he added.

Brimstone's strategy is to invest in growth stocks in its preferred sectors of healthcare, financial services, property and food producers.