Brimstone Investment : Sea Harvest offsets challenging period for Brimstone

Sea Harvest offsets challenging period for Brimstone

• Operating profit up by 27% to R155.9 million

• Gross assets up from R7.7 billion to R8.2 billion

• Successful listing of Sea Harvest on JSE raising R1.24 billion after listing costs

• Poor performances from Lion of Africa, House of Monatic, together with downward revaluation of investments results in loss of R201 million for the six months

[Cape Town 23 August 2017] Brimstone today released its interim results for the six months ending June 30 2017, recording a 27% increase in operating profit to R155.9 million. The Groups' gross assets increased from R7.7 billion to R8.2 billion, while intrinsic net asset value dropped from R5.1 billion to R4.5 billion.

Brimstone's results were impacted primarily by the downward valuation of investments which is evidenced by both the share value adjustments, and the share of profits of associates and joint ventures, and the relatively poor performance of the Group's subsidiaries Lion of Africa Insurance Company and House of Monatic.

Brimstone Chief Executive, Mustaq Brey said; "This has been a tough six months with many of our investments under strain in an economically challenging period. The downward valuation of some of our investments were not entirely unexpected in this climate. I am optimistic that the cyclical nature of our investments will soon see the poor performers over this period move back into profitability and deliver increased value for our shareholders."

"Brimstone's Sea Harvest subsidiary has performed remarkably well after having successfully listed on the JSE earlier this year. Sea Harvest increased headline earnings by 217% over the six month period, from R34.9 million to R110.6 million," says Fred Robertson, Executive Chairman of Brimstone.

Brimstone received R20.7 million in dividends from Oceana during the period and recorded R18.9 million in equity accounted earnings. However, Oceana, in which Brimstone holds 17%, recorded a drop in non-distributable reserves largely attributable to the decrease in its foreign currency translation and cash flow hedging reserves. Oceana's share price closed at R90.90, down from R120 per share at 31 December.

"Although Lion of Africa and House of Monatic delivered disappointing results, we have clearly identified the reasons behind the result. Lion of Africa has been eliminating unprofitable business which has put a strain on acquisition ratios, while House of Monatic

has been affected by a muted clothing retail climate compounded by the liquidation of a large customer, Stuttafords," says Brey.

Brimstone's investments in Equities, Long4Life, and Phuthuma Nathi performed well over the six months. Equities was revalued upwards by R46.1 million to R597.4 million; Long4Life's investment was revalued upwards by R44 million to R244 million, while Phuthuma Nathi was revalued upwards by R43.5 million to R663.4 million and has recommended a dividend payable in September- if approved by shareholders - amounting to R91.3 million in dividends for Brimstone.

"We are confident that our long term investment vision and the Group's focused management, which allows us to make positive interventions when required, will continue to deliver tangible value and profit for our shareholder," says Robertson.

/ENDS

Issued by Corporate Image on behalf of Brimstone on 23 August 2017 For media enquiries contact:

Nisaar Pangarker [e-mail]

T: 021 6831444

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For more information contact;

Dayne Stern on 081 450 4380 or [e-mail]