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Brimstone swings to R480m H1 loss

20th August 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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A downward revaluation of its investments, paired with poor results from operating subsidiary Lion of Africa Insurance Company, has pushed investment holding company Brimstone Investment Corporation to a R480.1-million loss for the six months ended June 30.

The loss was a turnaround from the R309.7-million profit recorded in the first half of the prior year.

Brimstone further reported a basic loss a share of 204.7c, compared with basic earnings a share of 120.9c in the prior year.

Brimstone chairperson Fred Robertson said the Lion of Africa impairments from the prior year, when the subsidiary had incurred a R177-million loss, paired with a R102.5-million loss in the period under review, was owing to mismanagement that was “hidden from Brimstone”.

“We’ve got a serious bloody nose there; the company is sick,” he said, adding that the operation was still under review, with a number of fraud elements having been uncovered.

“The five executives that were in there [are now] all gone and we have a turnaround team in place. Discipline was absolutely shoddy and people were doing their own things; underwriting guidelines were not followed and company resources were abused,” he highlighted.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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