Johannesburg - Brimstone Investment Corporation [JSE:BRT] posted a 96% increase in headline earnings from R430m to R844m for the financial year ended December 31 2012.
Basic headline earnings per share increased to 346 cents per share from 176.3c per share in the prior financial year.
Net profit before taxation increased significantly from the R598m reported for 2011 financial year to R1.1bn in the current year‚ mainly as a result of an increase in the value of marked-to-market assets and increased profitability from underlying operating businesses. Return on average equity increased to 35.2% from 25.7% in the previous year.
Brimstone’s CEO‚ Mustaq Brey commented: "These are an excellent set of results notwithstanding the current economic climate. Our strategy is to continue to invest in companies with proven management that will continue to deliver sustainable returns for all our shareholders.”
During the year under review‚ the group continued with its strategy of investing in cash generative‚ quality assets mainly in defensive sectors such as food‚ financial services and healthcare.
Total assets increased from R4.6bn at 31 December 2012 to R5.7bn at the end of the current year. Net asset value of R2.8bn compares well with the R2.0bn reported at 31 December 2011 and translates to a net asset value per share of R11.53 at year end (31 December 2012: R8.20)
Brimstone declared a dividend of 25c per share‚ payable to shareholders on 22 April 2013 up by 39% from the previous year. This is the 11th consecutive dividend paid by Brimstone.
Looking ahead‚ Brimstone said it remained well capitalised to pursue value enhancing transactions based on cash generative quality assets.
“Management is cognisant of the market’s current high earnings multiples and will continue its prudent consideration of investment opportunities‚” it added.