Our business model

BRIMSTONE IS WELL POSITIONED TO PURSUE ACCRETIVE DEALS IN THE QUALIFYING SECTOR.

Key Inputs

  1. Human Capital
    • Market sensing investment team
    • Strong and committed leadership and back office
    • Professional service providers
  2. Social and Relationship Capital
    • Business networks
    • Unique and broad local shareholder profile
    • Long-term investment focus
    • Proven track record of successful partnering
    • Strong BEE credentials
  1. Intellectual Capital
    • Track record of adding value
    • Reputation for fair and ethical business practices
    • Balance sheet management expertise
    • Optimisation of financial capital
  2. Financial Capital
    • Debt and equity funding
    • Vendor funding
    • Reinvestment of retained earnings
    • Available borrowing facilities

Our Activities

  1. Identify Investment Opportunities
    • Leveraging networks
    • Researching publicly available information
    • Approaches from investment banks and corporate finance houses
    • Approaches from businesses seeking BEE partner
    • Restricted BEE equity ownership schemes
  2. Finance houses
    • Business networks
    • Unique and broad local shareholder profile
    • Long-term investment focus
    • Proven track record of successful partnering
    • Strong BEE credentials
  1. Rigorous evaluation of opportunities
    • Preferred sectors
    • Good growth potential
    • Strong cash flows and record of profitability
    • Min hurdle rates met, including Positive Social Impact
    • Minimise discount to INAV
    • Listed vs unlisted and control vs non-control
    • Ethical, competent and like-minded management team
    • Board representation required where possible
  2. Robust negotiation and consider sources of funds
    • Robust negotiation for the best terms
    • Optimal funding and investment holding structure
    • Involving necessary specialists in process
    • Approvals framework adhered to
  3. Monitoring investment performance
    • Board representation and committee involvement
    • Contribution of management expertise to investee
    • Providing strategic insight to investees
    • Dedicated executives assigned to subsidiaries
    • Regular review of performance
    • Robust discussions with investee

Our Business Context

  1. External Factors
    • Government’s revision of the B-BBEE Codes of Good Practice
    • Government’s Black Industrialist’s Programme
    • Macro-economic factors on South African economy
    • Increased volatility of equity market
  2. Our Material Risks
    • Lion of Africa profitability
    • Commodity price volatility
    • Racial and gender profile of the professional team
    • Investment concentration in highly regulated industries
    • Increase in tax rate and tax burden
    • Sustained market shocks’ impact on market variables
      • Brimstone is a shareholder of reference in some businesses
      • Quality and succession plan of management
      • Potential loss of the entrepreneurial culture/risk appetite Brimstone
      • Compliance with ever-changing legislation

OUTPUT

Financial returns

Key Outcomes for financial year-end 31 Dec 2019

  • R122 million

    Taxes paid to SARS

  • 4 932

    Total workforce in Group

  • R3.9 billion

    Paid to employees and suppliers

  • R7 million

    CSI spend

  • R271 million

    Interest paid to financiers

  • R1.5 billion

    Reinvested

  • R3.3 billion

    Intrinsic Net Asset Value

VALUE
DELIVERED