PSG is an investment holding company consisting of a diverse portfolio of underlying investments that operate across a wide range of industries including banking, education, financial services, food and related business, and private equity.
February 2018 Final estimated to be released on Thursday , 19 April 2018
WHO WE ARE
PSG is an investment holding company consisting of a diverse portfolio of underlying investments that operate across a wide range of industries including banking, education, financial services, food and related business, and private equity. Our market capitalisation (net of treasury shares) is approximately R40bn, while we have influence over companies with a combined market capitalisation of approximately R140bn.
There are seven main business units on which we report, namely:
Capitec (retail banking);
Curro (private school education);
PSG Konsult (wealth management, asset management and insurance);
Zeder (investment in food and related business);
PSG Private Equity (early-stage investing in high growth sectors);
Dipeo (our BEE investment holding company); and
PSG Corporate (investment management and treasury services), including PSG Capital (corporate finance) and Grayston Elliot (tax advice).
Since PSG's establishment in November 1995, our aim has been to create value for our shareholders and for the people of South Africa. We believe in conducting sustainable businesses that make a positive contribution to society. Our investments continue to provide solutions to some of the challenges experienced in our country such as education, energy and low cost banking in order to improve people's lives and our country as a whole.
OUR OBJECTIVE AND STRATEGY
Our long-term economic goal has always been to continuously create wealth for our shareholders through a combination of share price appreciation and the payment of dividends. In order to achieve this, we have invested in a diversified portfolio of businesses with high growth potential that consistently yield above-average returns, while contributing positively to society.
PSG has always been good at early-stage investing - building businesses (such as Capitec, Curro and PSG Konsult) alongside entrepreneurs from the development stage:
We acquire large influential stakes in businesses we believe in and offer investees our strategic input, helping them establish and drive ambitious plans.
We provide access to capital that helps expedite future growth, both organically and through acquisitions.
We participate actively at board, and often also at an executive committee level.
We either serve on or attend audit and risk committee meetings as a measure of ensuring good corporate governance.
We are continuously investigating new investment opportunities in an attempt to find "the next big thing".
South Africa's forecast GDP growth for 2016 is below 1% compared to an average historical annual growth rate of 3% since 1994. Given rising inflation, we can expect further interest rate hikes, which will put additional pressure on the consumer, and ultimately the economy.
However, PSG's companies are well positioned to weather the more challenging environment and to continue growing given their relatively small market share within their respective sectors. This, coupled with a strong balance sheet, should see PSG continue delivering above-market returns.