Brimstone reports drop in operating profit in the half year

by admin 0

The South Africa-based company, which released unaudited results for the six months ended 30 June 2013, reported that revenue for the six months ended 30 June was up to a billion rand from 952.3 million rand for the same period in 2012.

Profit for the period was recorded at 165 million rand from 482.2 million rand for the comparative period last year.

 Operating profit was down to 43.6 million rand from the previous year’s 74.5 million rand.

“Profit for the period under review is satisfactory, albeit lower than the previous reporting period as a result of a decrease in fair value adjustments of underlying investments,” the company said in a statement.

“There were also challenging conditions in the insurance underwriting market which were partially offset by improved profitability at Sea Harvest.”

Basic headline earnings per share were reported at 61.7 cents for the six months ended 30 June, down from 194.6 cents for the same period in 2012.

Headline earnings were down to 150.6 million rand from the previous year’s 474.8 million rand.

Brimstone’s subsidiaries include Sea Harvest, Lion of Africa Holding and House of Monatic.

 It’s Sea Harvest subsidiary’s total allowable catch for hake increased by 7.8 per cent in 2013, supported by the weaker rand and an increase in local seafood business volumes.

“A challenging South African underwriting cycle in terms of both the frequency and severity of claims has resulted in a decrease of the underwriting result from a profit,” the company said of its Lion of Africa Holding.  

House of Montiac’s half-year turnover increased by a marginal 2 per cent to 88.9 million rand despite poor retail trading conditions.

Its associates Oceana, Aon Re Africa, The Scientific Group and Afena Capital all showed substantial growth during the period despite tough economic conditions locally and globally.

Net profit before tax was recorded at 210.1 million rand, which is significantly lower than the previous comparative year’s figure of 697.2 million rand.  

Brimstone is a black controlled and managed investment company with an excess of 16 000 in its associates and employs over 3000 employees in its subsidiaries.