Brimstone CEO: We are still good at what we do | Fin24

Brimstone CEO: We are still good at what we do

Mar 13 2019 07:48
Carin Smith

Brimstone had a tough year, but it can still deliver, CEO Mustaq Brey told Fin24 on Tuesday.

The investment corporation's profit for the year ended December 31, 2018 dropped just shy of 50%, from R141m to R71.3m, according to its annual results.

"We have no control over the market. I always say the most important thing is the sustainable part of the business - like our investment in Sea Harvest. I am satisfied with where our real operations are at," Brey said.

It is important to unpack what led to the profit drop, he said.

'We are good at what we do'

Brey said Brimstone's listed investments performed in line with market trends, which moved sideways or downwards.

"We still believe we are good at what we do. We believe we have quality assets. It is a long-term thing. The market will come right and then we will be OK," he said.

Regarding the increased loss from its subsidiary Lion of Africa Insurance Company, he said it was a tough year.

"We tried to get another partner and then decided to put it in 'run-off' - this means it is closed for any new business, but we will honour existing contracts," said Brey.

He told Fin24 that the state of the economy, and its impact on the main market the insurance company operates in, played a key role in the lack of performance.

Still paying dividends

At the same time, he is proud of the fact that Brimstone has managed to pay dividends for 17 years in a row, especially since the company values its small shareholders.

The food sector remains one of Brimstone's key focus areas, and Brey says the company remains confident in its investments in the fishing industry, while at the same time ensuring that it is not over-exposed in just one sector.

He added that Brimstone's investment in Viking Aquaculture makes use of opportunities in the global growth in this sector, especially due to its potential to address food security challenges.

"We are happy that we are on the right track. We are looking at the food, healthcare and property industries, while at the same time not neglecting our social responsibility," said Brey.

"We have been around for 23 years and have strong empowerment credentials."



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