Sharenet Sites 
Sharenet Sites
PSG GROUP LIMITED
("PSG GROUP")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 1999
- INCOME AFTER TAX INCREASED BY 132% TO R110,5 MILLION
- HEADLINE EARNINGS PER SHARE INCREASED BY 35% TO 57,1 CENTS
- NET ASSET VALUE INCREASED BY 24% TO 799 CENTS PER SHARE
GROUP INCOME STATEMENT
UNAUDITED FOR THE AUDITED FOR THE
6 MONTHS ENDED 12 MONTHS ENDED
31 AUGUST 31 AUGUST 28 FEBRUARY
1999 CHANGE 1998 1999
R'000 % R'000 R'000
INCOME BEFORE TAXATION 138 148 83 75 445 136 200
TAXATION 27 650 27 795 32 874
INCOME AFTER TAXATION 110 498 132 47 650 103 326
INCOME FROM
ASSOCIATED COMPANIES 7 454 340 9 330
OUTSIDE SHAREHOLDERS (41 549) (7 617) (30 625)
HEADLINE EARNINGS ATTRIBUTABLE
TO SHAREHOLDERS 76 403 89 40 373 82 031
EXCEPTIONAL ITEMS - - 14 683
TOTAL EARNINGS ATTRIBUTABLE
TO SHAREHOLDERS 76 403 89 40 373 96 714
NUMBER OF SHARES ('000)
- IN ISSUE 133 727 95 445 95 445
- WEIGHTED AVERAGE 133 727 95 445 95 445
EARNINGS PER SHARE (CENTS)
- HEADLINE EARNINGS 57,1 35 42,3 85,9
- TOTAL EARNINGS 57,1 35 42,3 101,3
DISTRIBUTION PER SHARE (CENTS)
- DIVIDEND - - 10,0
- CAPITAL 12,0 - 15,0
TOTAL 12,0 - 25,0
GROUP BALANCE SHEET
UNAUDITED AUDITED
AS AT AS AT
31 AUGUST 31 AUGUST 28 FEBRUARY
1999 1998 1999
R'000 R'000 R'000
ASSETS
FIXED ASSETS 33 006 14 912 23 944
INVESTMENT IN
ASSOCIATED COMPANIES 228 272 265 040 297 412
INVESTMENTS OF THE LIFE
ASSURANCE SUBSIDIARY 1 857 785 201 450 456 457
TERM ASSETS AND INVESTMENTS 247 013 97 657 122 667
CASH AND SHORT-TERM FUNDS 842 454 468 228 951 215
OTHER CURRENT ASSETS 1 310 782 463 186 699 543
TOTAL ASSETS 4 519 312 1 510 473 2 551 238
LIABILITIES
LIFE ASSURANCE FUNDS 1 881 544 295 512 495 166
DEFERRED TAXATION 51 3 856 -
OTHER LIABILITIES
AND PROVISIONS 329 705 484 468 197 352
LOANS AND DEPOSITS 600 842 - 894 797
TOTAL LIABILITIES 2 812 142 783 836 1 587 315
SHAREHOLDERS' FUNDS
ORDINARY SHAREHOLDERS' FUNDS 1 069 020 614 948 638 359
OUTSIDE SHAREHOLDERS' FUNDS 638 150 111 689 325 564
TOTAL LIABILITIES AND
SHAREHOLDERS' FUNDS 4 519 312 1 510 473 2 551 238
NET ASSET VALUE PER
SHARE (CENTS) 799 644 669
NOTES
- PURSUANT TO A SUCCESSFUL SCHEME OF ARRANGEMENT BETWEEN PSG FINANCIAL SERVICES
LIMITED ("PSL"), ITS SHAREHOLDERS AND PSG GROUP, PSL WAS CONSTITUTED AS A
WHOLLY OWNED SUBSIDIARY OF PSG GROUP WITH EFFECT FROM 1 MARCH 1999. THE LISTING
OF PSL HAS BEEN TERMINATED.
- THE SIGNIFICANT INCREASE IN LIFE ASSURANCE FUNDS REFLECT SINGLE PREMIUM
INCOME EMANATING FROM PSG CHANNEL GROUP'S FUNDS UNDER ADMINISTRATION.
- THE GROUP BALANCE SHEET INCLUDES INVESTMENTS IN LISTED SHARES WITH A BOOK
VALUE OF R483 MILLION AND A MARKET VALUE OF R520 MILLION AT 31 AUGUST 1999.
REVIEW
FINANCIAL
- INCOME AFTER TAX INCREASED BY 132% TO R110,5 MILLION AND HEADLINE EARNINGS
PER SHARE BY 35% TO 57,1 CENTS. THESE RESULTS WERE ACHIEVED DESPITE VOLATILE
FINANCIAL MARKETS.
- THE TOTAL ASSETS OF PSGGROUP INCREASED THREEFOLD FROM R1,5 BILLION TO R4,5
BILLION. THE NET TANGIBLE ASSET VALUE PER SHARE INCREASED BY 24% TO 799 CENTS.
DIVISIONAL
- PSG INVESTMENT BANK HOLDINGS LIMITED ("PSG INVESTMENT BANK") ACQUIRED THE
BUSINESS OF PSG NOBLE CAPITAL LIMITED ("PSG NOBLE") WITH EFFECT FROM 1 MARCH
1999 WITH PSG INVESTMENT BANK BEING LISTED ON 2 AUGUST 1999. PSGNOBLE IS NOW A
CASH SHELL LISTED ON THE JSE. PSG INVESTMENT BANK IS NOW WELL CAPITALISED WITH
PRIMARY CAPITAL OF R1,4 BILLION AND IT IS PLEASING TO NOTE THAT ALL DIVISIONS
OF PSG INVESTMENT BANK CONTRIBUTED TO ITS DECLARED PROFITS FOR THE PERIOD. WE
ARE POSITIVE OF PSG INVESTMENT BANK'S FUTURE PERFORMANCE HAVING REGARD TO ITS
CAPITAL POSITION AND QUALITY OF MANAGEMENT.
- PSG INVESTMENTS SERVICES (PTY) LIMITED, WHICH FOCUSES ON THE MANAGEMENT OF
PRIVATE WEALTH CONTINUES WITH THE ESTABLISHMENT OF ITS STRUCTURES AND
INFRASTRUCTURE, INCLUDING ITS OFFSHORE INVESTMENTS. THIS GROUP IS NOW ABLE TO
SERVICE THE TOTAL INVESTMENT NEEDS OF THE PRIVATE CLIENT. THE AFOREMENTIONED
FORMS THE BASIS FOR ITS GROWTH, BOTH LOCALLY AND INTERNATIONALLY.
PSGONLINE, THE INTERNET STOCKBROKER, IS NOW FULLY OPERATIONAL AND HAS BEEN WELL
RECEIVED IN THE MARKET.
- PSG CHANNEL GROUP LIMITED EXCEEDED ALL EXPECTATIONS IN TERMS OF GROWTH FOR
THE FIRST SIX MONTHS. ASSETS UNDER ADMINISTRATION BY OR COMMITTED TO ITS
SUBSIDIARY, PSG ESCHER INVESTMENTS INCREASED TO R11,2 BILLION. THE GROUP
INCORPORATED PSG LIFE LIMITED, A SPECIALIST LIFE ASSURER, ON 19 AUGUST 1999.
- KEYNES RATIONAL WAS FORMED DURING THE PERIOD UNDER REVIEW. THIS COMPANY NOW
HOLDS PSG GROUP'S INTERESTS IN BOTH PSG ANCHOR LIFE LIMITED AND PSG SPECIALISED
LENDING (PTY) LTD, THE MICRO-BANKING ARM OF THE GROUP. ALL THESE ACTIVITIES ARE
PERFORMING TO BUDGET AND THROUGH CONSERVATIVE MANAGEMENT, REAL GROWTH IS
EXPECTED.
PROSPECTS
- THE BOARD IS CONFIDENT THAT THE RESULTS FOR THE NEXT SIX MONTHS OF THIS
FINANCIAL YEAR SHOULD BE COMMENSURATE WITH THOSE CURRENTLY BEING REPORTED. THE
FOUR DIVISIONS WILL ALL MAKE A CONTRIBUTION TO PROFITS FOR THIS FINANCIAL YEAR.
YEAR 2000 COMPLIANCE
- THE Y2K COMMITTEE HAS OVERSEEN THE IMPLEMENTATION OF ALL DETAILED PLANS AT
DIVISIONAL LEVELS IN ORDER TO DEAL WITH YEAR 2000 COMPLIANCE. CURRENTLY THE
GROUP'S SYSTEMS AND THOSE OF THE SUBSIDIARIES, HAVE BEEN TESTED AND ARE
COMPLIANT. MINOR MODIFICATIONS MIGHT OCCUR AS A RESULT OF FURTHER TESTING
DURING THE REST OF THE YEAR. COSTS RELATING TO THIS ISSUE ARE CHARGED AGAINST
INCOME AND ARE NOT MATERIAL.
DIVIDENDS
- PSG GROUP COMMENCED WITH THE PAYMENT OF DIVIDENDS TO SHAREHOLDERS AT THE END
OF ITS PREVIOUS FINANCIAL YEAR. THE BOARD'S STATED POLICY IS TO DISTRIBUTE
APPROXIMATELY 30% OF ANNUAL PROFITS TO SHAREHOLDERS. IT HAS FURTHERMORE BEEN
RESOLVED TO COMMENCE WITH INTERIM DISTRIBUTIONS AND A CAPITAL DISTRIBUTION OF
12 CENTS CASH PER ORDINARY SHARE WILL BE MADE TO SHAREHOLDERS REGISTERED AS
SUCH IN THE BOOKS OF THE COMPANY AT 5 NOVEMBER 1999, PAYABLE ON 15 NOVEMBER
1999.
BY ORDER
JANNIE MOUTON CHRIS OTTO
CHAIRMAN DIRECTOR
STELLENBOSCH
4 OCTOBER 1999
