Interim results issued this week by Brimstone hardly shook up the market. The income statement reflected decent hikes in sales and dividends, while the share of income flows from associates and joint ventures came in markedly higher at R77m. But hefty fair-value losses of R404m — stemming mainly from weaker share prices in private education group Stadio, Life Healthcare and property group Equites — knobbled bottom line and the all-important intrinsic net asset value (NAV). NAV at the end of June sat at R16.54/share, meaning Brimstone’s more tradeable N shares are offering a gaping discount of 40%. At this point, the combined value of Brimstone’s stakes in fishing groups Sea Harvest and Oceana is more than the group’s market capitalisation. Possibly the market is not that enamoured with Brimstone’s debt of more than R3bn. Though this is well covered by assets, interest paid on the borrowings did shave almost R160m off the profit line. Brimstone does not appear perturbed about the lev...
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