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Brimstone: Fishing For Growth With Sea Harvest Listing

24 April 2017 | Jeremy Woods: Out of the Woods
 


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Brimstone, the black-controlled investment company, who’s fishing subsidiary, Sea Harvest, has just raised R1.3 billion with a JSE listing. 

Brimstone has delivered a set of strong results and is well positioned to unlock further value for its investors.

"The cash raised by the listing of Sea Harvest will allow it to fund its own growth path, while Brimstone also benefits by some R600-million through the repayment of loans," said Fred Robertson, the Brimstone director responsible for Brimstone’s stake in Sea Harvest.

"This will allow both companies to continue their growth programmes." 

In the last year, Brimstone’s share price has produced a capital appreciation of 34%.

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Brimstone’s board has declared a final dividend of 42 cents per share for the year ended 31 December 2016, says Brimstone’s financial report. The company has delivered steady growth and managed to pay continuous dividends to its shareholders for the last fifteen years.

One of Brimstone’s subsidiaries that performed exceptionally well was Sea Harvest, 85% owned by Brimstone before the listing.

Brimstone intends to continue to control Sea Harvest and, at a minimum, retain a 54.9% shareholding in Sea Harvest post the proposed listing, Brimstone says in its SENS announcement.

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Sea Harvest, Brimstone’s biggest contributor to revenue, is a South African seafood company with a strong footprint in Australia. It has ambitions to become a diversified global seafood business; listing on the JSE was the natural next step in the growth of the company. 

"Due to strong levels of demand for Sea Harvest shares, the company has successfully raised an amount of R1.329 billion through the placement of 106 333 334 shares at a price of R12.50 per share", says a SENS announcement. 

The recent listing will allow the business ongoing access to national and international equity capital. 

This will enable the company to continue investing in its vessels, factories, markets and people, in order to enhance margins in an attractive international seafood market. 

"We are confident that the listing will add further value to all shareholders. The Group has a long- term record of enhancing NAV and paying dividends."

"Brimstone will continue to maintain its positive long-term view on its investments and pursue value accreting opportunities," says Mustaq Brey, chief executive of Brimstone.


Jeremy Woods

Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called "Special Payments", which was a best-seller on publication, and optioned three times for a film.


Disclaimer:
The information contained in this article is for informational purposes only and must not be regarded as a prospectus for any security, financial product or transaction. It is neither to be construed as financial advice nor to be regarded as a definitive analysis of any financial issue. Investors should consider this research/article as only a single factor in making their investment decision. We recommend you consult a financial planner/advisor to take into account your particular investment objectives, financial situation and individual needs. The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Sharenet.

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