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PSG GROUP LIMITED ("PSG")
PSG FINANCIAL SERVICES LIMITED ("PSL")
- HEADLINE EARNINGS PER SHARE INCREASED BY 82% TO 85,9 CENTS
- GROUP INCOME AFTER TAX UP BY 206% TO R103,3 MILLION
- TOTAL ASSETS INCREASED BY 103% TO R2,55 BILLION
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 1999
GROUP INCOME STATEMENT
PSG PSL
1999 CHANGE 1998 1999 1998
R'000 % R'000 R'000 R'000
INCOME BEFORE TAXATION 136 200 169 50 620 103 472 26 788
TAXATION 32 874 - 16 903 21 419 3 426
INCOME AFTER TAXATION 103 326 206 33 717 82 053 23 362
INCOME FROM ASSOCIATED
COMPANIES 9 330 - 762 9 330 -
OUTSIDE SHAREHOLDERS (30 625) - (12) (6 288) -
HEADLINE EARNINGS ATTRIBUTABLE
TO SHAREHOLDERS 82 031 138 34 467 85 095 23 362
EXCEPTIONAL ITEMS
- INVESTMENTS SOLD 14 683 - 277 407 20 982 (180 678)
TOTAL EARNINGS ATTRIBUTABLE
TO SHAREHOLDERS 96 714 - 311 874 106 077 (157 316)
NUMBER OF SHARES ('000)
- IN ISSUE 95 445 - 86 611 573 401 324 387
- WEIGHTED AVERAGE 95 445 - 72 869 375 366 123 690
EARNINGS PER SHARE (CENTS)
- HEADLINE EARNINGS 85,9 82 47,3 22,7 18,9
- TOTAL EARNINGS 101,3 - 428,0 28,3 (127,2)
DISTRIBUTION PER SHARE (CENTS)
- DIVIDEND 10,0 - - 3,0 34,0
- CAPITAL 15,0 - - 4,0 -
TOTAL 25,0 - - 7,0 34,0
GROUP BALANCE SHEET
PSG PSL
1999 1998 1999 1998
R'000 R'000 R'000 R'000
ASSETS
FIXED ASSETS 23 944 8 611 23 944 8 611
INVESTMENT IN ASSOCIATED COMPANIES 297 412 4 322 297 412 4 322
INVESTMENTS OF THE LIFE ASSURANCE
SUBSIDIARY 456 457 152 909 456 457 152 909
OTHER ASSETS AND INVESTMENTS 122 667 113 332 122 667 113 361
CASH AND SHORT-TERM FUNDS 951 215 399 170 951 215 81 106
OTHER CURRENT ASSETS 699 543 580 149 699 534 580 149
TOTAL ASSETS 2 551 238 1 258 493 2 551 229 940 458
LIABILITIES DEPOSITS AND
CURRENT ACCOUNTS 894 797 - 894 797 -
LIFE ASSURANCE FUND 495 166 113 241 495 166 113 241
DEFERRED TAXATION - 3 856 - 3 856
OTHER LIABILITIES AND PROVISIONS 197 352 476 040 199 148 484 926
TOTAL LIABILITIES 1 587 315 593 137 1 589 111 602 023
SHAREHOLDERS' FUNDS
ORDINARY SHAREHOLDERS' FUNDS 638 359 534 754 891 528 335 738
OUTSIDE SHAREHOLDERS' FUNDS 325 564 130 602 70 590 2 697
TOTAL LIABILITIES AND
SHAREHOLDERS' FUNDS 2 551 238 1 258 493 2 551 229 940 458
NET ASSET VALUE PER SHARE (CENTS) 669 617 155 103
NOTES
- PSG IS THE HOLDING COMPANY OF PSL, HOLDING 71,4% OF ITS EQUITY.
- PSL OWNS THE OPERATING COMPANIES IN THE PSG GROUP AND ITS RESULTS ARE
THEREFORE PUBLISHED AS PART OF THIS ANNOUNCEMENT.
- PSL, AS IT IS PRESENTLY CONSTITUTED, HAS ONLY BEEN IN EXISTENCE SINCE 27
FEBRUARY 1998. THE USE OF ITS RESULTS FOR THE PERIOD ENDING 28 FEBRUARY 1998
FOR COMPARATIVE PURPOSES IS NOT MEANINGFUL.
- INCLUDED IN THE ABOVE ARE INVESTMENTS IN LISTED SHARES WITH A BOOK VALUE OF
R317 MILLION AND A MARKET VALUE OF R347 MILLION AT YEAR-END. ALL UNLISTED
EQUITY INVESTMENTS ARE VALUED AT BOOK VALUE.
REVIEW
- THE BOARD IS PLEASED TO REPORT ON A SUCCESSFUL YEAR FOR PSG AND ITS
SUBSIDIARIES WITH INCOME AFTER TAXATION INCREASING BY 206% TO R103,3 MILLION
AND HEADLINE EARNINGS PER SHARE BY 82% TO 85,9 CENTS.
- THE GROUP'S BALANCE SHEET IS STRONG, WELL CAPITALISED AND PRESENTS
OPPORTUNITIES FOR FURTHER GROWTH AND EXPANSION.
- TOTAL ASSETS HAVE INCREASED TO R2,55 BILLION WITH NET TANGIBLE ASSET VALUE AT
669 CENTS PER SHARE.
- PSG INVESTMENT BANK HOLDINGS LIMITED COMMENCED OPERATIONS ON 2 SEPTEMBER 1998
AND HAS POSTED EXCELLENT PROFITS DURING ITS FIRST SIX MONTHS OF OPERATIONS. THE
TRADING ARM PERFORMED EXCEPTIONALLY WELL DURING THE VOLATILE MARKETS
EXPERIENCED LAST YEAR WITH ITS RISK MANAGEMENT MODELS PROVING THEMSELVES IN
SUCH MARKETS.
PSG INVESTMENT BANK HAS ACQUIRED PSG CAPITAL FINANCE AND PSG TREASURY
OUTSOURCING WHILST PSG CORPORATE FINANCE AND PSG STRUCTURED FINANCE HAVE
COMMENCED OPERATIONS WITH BOTH ALREADY TRADING PROFITABLY.
- PSG NOBLE CAPITAL LIMITED IN WHICH PSL OWNS A STRATEGIC STAKE OF 31%, WAS
LISTED ON THE JSE ON 26 JUNE 1998. DESPITE THE TURBULENCE IN THE WORLD MARKETS
DURING AUGUST/ SEPTEMBER 1998, NOBLE HAS MANAGED TO MAINTAIN ITS NET ASSET
VALUE AT APPROXIMATELY R10 PER SHARE AT THE FINANCIAL YEAR-END.
MANAGEMENT HAS ALSO BEEN STRENGTHENED SIGNIFICANTLY WITH THE APPOINTMENT OF
SENIOR INVESTMENT BANKERS.
THE 92% HELD INVESTMENT TRUST, HARVEST SECURITIES LIMITED (TO BE RENAMED
VELOCITY HOLDINGS LIMITED), WAS FORTUNATE TO OBTAIN THE SERVICES OF A TALENTED
AND EXPERIENCED MANAGEMENT TEAM WHICH SHOULD ESTABLISH VELOCITY AS A LEADING
PLAYER IN ITS MARKETS. (FOR FURTHER DETAILS PLEASE REFER TO THESE COMPANIES'
AUDITED RESULTS ALSO PUBLISHED TODAY.)
- PSG INVESTMENT SERVICES (PTY) LIMITED ENJOYED ANOTHER RECORD YEAR. BOTH PSG
INDEPENDENT CONSULTING (PTY) LIMITED AND PSG KONSULT (PTY) LIMITED COMMENCED
TRADING IN THE FIELD OF FINANCIAL ADVICE TO WEALTHY INDIVIDUALS AND SMALL TO
MEDIUM ENTERPRISES, AND IS EXPECTED TO CONTRIBUTE SIGNIFICANTLY TO THIS
COMPANY'S PROFITS IN FUTURE. THE INTERNET STOCKBROKER, PSG ONLINE, A DIVISION
OF PSG SECURITIES LIMITED, WAS LAUNCHED TOWARDS THE END OF THIS REVIEW PERIOD
AND HAS MADE AN IMMEDIATE AND SIGNIFICANT IMPACT IN THE MARKET. ITS UNIQUE
BLEND OF INTERNET SERVICE, COUPLED WITH INDEPTH RESEARCH AVAILABLE TO
SUBSCRIBERS, IS SURE TO MAKE THIS DIVISION A SUBSTANTIAL CONTRIBUTOR TO FUTURE
PROFITS.
- PSG UNIT TRUSTS HAVE BEEN SUCCESSFULLY ESTABLISHED WITH FIVE LOCAL AND TWO
INTERNATIONAL FUNDS WITH TOTAL FUNDS OF R450 MILLION UNDER MANAGEMENT AT
YEAR-END.
- PSG ANCHOR LIFE LIMITED HAS, AFTER A PERIOD OF CONSOLIDATION AND
RE-ENGINEERING, ENTERED ITS EXPANSION PHASE AND LIFE ASSURANCE FUNDS HAVE
INCREASED MORE THAN THREE-FOLD MAINLY DUE TO THE ADVENT OF SINGLE-PREMIUM
INCOME. IT HAS FURTHERMORE STARTED WITH A PROGRAMME TO REDUCE ITS RELIANCE ON
REASSURANCE. IT IS EXPECTED THAT ITS CONTRIBUTION TO GROUP PROFITS WILL GROW
SUBSTANTIALLY OVER THE NEXT THREE TO FOUR YEARS.
- BOTH THE GROUP'S GREENFIELDS OPERATIONS, PSG CHANNEL GROUP LIMITED AND PSG
SPECIALISED LENDING (PTY) LIMITED, HAVE BEEN SUCCESSFULLY ESTABLISHED AND BOTH
ARE POISED FOR SIGNIFICANT GROWTH IN THE FUTURE. IT IS EXPECTED THAT SUCH
GROWTH SHOULD EXCEED 100% PER ANNUM OVER THE NEXT THREE YEARS.
- PSG CHANNEL HAS ESTABLISHED ITSELF AS A SIGNIFICANT PLAYER IN THE EMPLOYEE
BENEFITS FIELD, AND THROUGH ITS SUBSIDIARY, PSG ESCHER INVESTMENTS, HAS
OBTAINED FUNDS UNDER MANAGEMENT PLUS FIRM COMMITMENTS OF ALMOST R1,5 BILLION.
- THROUGH THE ESTABLISHMENT OF PSG INTERNATIONAL (MAURITIUS) LIMITED, OFF-SHORE
OPERATIONS HAVE COMMENCED AND BOTH PSG INVESTMENT BANK AND PSG INVESTMENT
SERVICES EXPECT HEALTHY CONTRIBUTIONS TO PROFITS FROM THEIR INTERNATIONAL
OPERATIONS IN FUND MANAGEMENT, TRUST FORMATION AND MANAGEMENT, BANKING AND
INSURANCE.
YEAR 2000
- A YEAR 2000 COMMITTEE IS WELL ESTABLISHED AND DETAILED PLANS AT DIVISIONAL
LEVELS HAVE BEEN COMPILED TO DEAL WITH YEAR 2000 COMPLIANCE. CURRENTLY THE
MAJORITY OF THE GROUP'S SYSTEMS HAVE BEEN TESTED AND ARE COMPLIANT. FINAL
TESTING AND MODIFICATIONS WILL OCCUR DURING THE REST OF THE YEAR BUT WE ARE
CONFIDENT THAT THE GROUP IS FULLY COMPLIANT. COSTS RELATING TO THIS ISSUE ARE
CHARGED AGAINST INCOME AND ARE NOT MATERIAL.
PROSPECTS
- THE BOARD OF PSG IS POSITIVE ABOUT THE FUTURE OF BOTH SOUTH AFRICA AND OUR
GROUP OF COMPANIES. WE ARE BUDGETING FOR GROWTH IN BOTH PROFITS AND ASSETS AND
EXPECT ALL DIVISIONS TO PERFORM PROFITABLY FOR THE YEAR TO 28 FEBRUARY 2000.
DIVIDENDS
- AS ANTICIPATED AT THE INTERIM STAGE, THE BOARDS OF PSG AND PSL HAVE RESOLVED
TO COMMENCE WITH DISTRIBUTIONS TO SHAREHOLDERS AND, AS PER THE NOTICES, THE
DISTRIBUTIONS WILL BE 25 CENTS PER SHARE AND 7 CENTS PER SHARE RESPECTIVELY BY
PSG AND PSL.
CAUTIONARY ANNOUNCEMENT
- SHAREHOLDERS ARE REFERRED TO THE CAUTIONARY ANNOUNCEMENTS PUBLISHED BY PSG,
PSL AND PSG NOBLE ON 18 MARCH 1999 AND SHOULD NOTE THAT THESE NEGOTIATIONS ARE
PROGRESSING AND A FURTHER ANNOUNCEMENT SHOULD BE MADE IN DUE COURSE.
J F MOUTON C A OTTO
STELLENBOSCH
6 APRIL 1999
DISTRIBUTION TO SHAREHOLDERS
PSG GROUP LIMITED
THE DIRECTORS HAVE PROPOSED A DIVIDEND OF 10 CENTS PER ORDINARY SHARE AND A
DISTRIBUTION OF 15 CENTS PER ORDINARY SHARE (A TOTAL OF 25 CENTS PER SHARE),
PAYABLE TO SHAREHOLDERS REGISTERED AS SUCH IN THE BOOKS OF THE COMPANY ON 28
MAY 1999, PAYABLE ON 4 JUNE 1999. FULL DETAILS OF THE DISTRIBUTION ARE
INCORPORATED IN A CIRCULAR TO SHAREHOLDERS WHICH IS TO BE POSTED ON 26 APRIL
1999.
PSG FINANCIAL SERVICES LIMITED
THE DIRECTORS HAVE PROPOSED A DIVIDEND OF 3 CENTS PER ORDINARY SHARE AND A
DISTRIBUTION OF 4 CENTS PER ORDINARY SHARE (A TOTAL OF 7 CENTS PER SHARE),
PAYABLE TO SHAREHOLDERS REGISTERED AS SUCH IN THE BOOKS OF THE COMPANY ON 28
MAY 1999, PAYABLE ON 4 JUNE 1999. FULL DETAILS OF THE DISTRIBUTION ARE
INCORPORATED IN A CIRCULAR TO SHAREHOLDERS WHICH IS TO BE POSTED ON 26 APRIL
1999.
BY ORDER
PSG CORPORATE SERVICES (PTY) LIMITED
STELLENBOSCH
6 APRIL 1999
PSG GROUP LIMITED REGISTRATION NUMBER 70/08484/06
PSG FINANCIAL SERVICES LIMITED
REGISTRATION NUMBER 03/00478/06
REGISTERED OFFICE 1ST FLOOR OU KOLLEGE, 35 KERK STREET, STELLENBOSCH, 7600
TRANSFER SECRETARIES OPTIMUM REGISTRARS (PTY) LIMITED,
4TH FLOOR, EDURA BUILDING, 41 FOX STREET, JOHANNESBURG, 2001
DIRECTORS J F MOUTON (CHAIRMAN), L A DE WAAL, L DE WIT, J DE V DU TOIT, C F
MYBURGH, H H OOSTHUIZEN, C A OTTO, L M ROUILLARD, P B SCHABORT, C F TURNER, C C
VAN DER MEULEN, R J WILLIAMS
THESE RESULTS ARE ALSO AVAILABLE ON OUR WEBSITE: WWW.PSG.CO.ZA
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