Our opinion on the current state of BRT

Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings. It owns: 1. 54,2% of Sea Harvest, which is a listed fishing company and has a market capitalisation of just over R4,5bn. 2. 100% of Lion of Africa, a loss-making insurance company, which decided in November 2018 to cease operations and close its doors. 3. 100% of House of Monatic, a loss-making clothing manufacturer, 4. 24% of Oceana, the largest fishing company in South Africa with a market capitalisation of R8,6bn. Brimstone is increasing its shareholding by buying 8m shares from Tiger Brands, which will take its holding to 22,9%. 5. 6,1% of Grinrod, 6. 18% of Aon Re Africa 7. 25% of South African Enterprise Development, 8. 49,8% of Vuna Fishing company, 9. 12,8% of Milpark Education, 10. 25% of Obsidian (a black-owned investment holding firm positioned to benefit from the roll-out of the NHI) which, in January 2020, it increased to 80% for R35,7m. and a variety of other smaller shareholdings in property, healthcare, 3,9% of Long4Life and 5,3% of Stadio. The company has been selling down its stakes in Life Healthcare, Lion of Africa, House of Monatic, Equites, Multichoice and Phuthuma Nathi. It has used the proceeds to pay down R1bn of its debt. In its results for the six months to 30th June 2023 the company reported revenue up 17% and headline earnings per share (HEPS) up 239%. The company said, "INAV at 30 June 2023 calculated on a line-by-line basis, totalled R3.07 billion, or R12.36 per share (31 December 2022: R3.29 billion or R13.25 per share), representing a decrease of 6.7% from 2022. As at 30 June 2023, Brimstone Ordinary shares were trading at a discount of 55.9% to INAV". Both ordinary and "N" shares are thinly traded, but the ordinary shares are worse. We regard the ordinary share as too thinly traded for private investors and, unless they begin to unbundle the portfolio, the extra value is likely to remain locked in.