Wrap Text
PSG/PGFP - PSG Group / PSG Financial Services - Reviewed results for the year
ended 28 February 2010
PSG Group Limited
Incorporated in the Republic of South Africa
Registration number: 1970/008484/06
JSE share code: PSG
ISIN code: ZAE000013017
("PSG" or "the company" or "the Group")
PSG Financial Services Limited
Incorporated in the Republic of South Africa
Registration number: 1919/000478/06
JSE share code: PGFP
ISIN code: ZAE000096079
Reviewed results for the year ended 28 February 2010
- Headline earnings increased by 281,6% to 249,2 cents per share
- Recurring headline earnings increased by 19,0% to 207,4 cents per share
Condensed income statement 28 Feb Change 28 Feb
2010 % 2009
Rm Rm
Income
Investment income (note 4) 460,7 452,5
Insurance income 2,0 54,0
Net fair value gains and losses on financial 688,0 (965,1)
instruments (note 4)
Fair value adjustment to investment contract (924,0) 590,9
liabilities (note 4)
Commission and other fee income 1 060,8 979,7
Other operating income 44,6 62,5
Total income 1 332,1 1 174,5
Expenses
Insurance claims 1,2 43,2
Operating expenses 981,9 2,4 958,8
Total expenses 983,1 1 002,0
Net income from operating activities 349,0 102,3 172,5
Finance costs (93,8) (93,2)
Share of profits of associated companies 411,8 76,7 233,0
Net income before taxation 667,0 113,6 312,3
Taxation (103,3) (48,0)
Net income of the Group 563,7 113,3 264,3
Attributable to:
Minority interests 172,7 213,2
Equity holders of the company 391,0 665,1 51,1
563,7 264,3
Attributable to equity holders of the company 391,0 51,1
Non-headline items (note 2) 40,4 58,8
Headline earnings 431,4 292,5 109,9
Earnings per share (cents)
- attributable 225,8 645,2 30,3
- headline("HEPS") 249,2 281,6 65,3
- diluted attributable 224,5 643,4 30,2
- diluted headline 247,8 281,8 64,9
Dividend per share (cents)
- interim 13,0 19,0
- final 29,0 38,0
- special 200,0
42,0 257,0
Number of shares (million)
- in issue (net of treasury shares) 167,0 168,0
- weighted average 173,1 168,4
- diluted weighted average 174,1 169,3
Condensed statement of comprehensive income 28 Feb 28 Feb
2010 2009
Rm Rm
Net income of the Group 563,7 264,3
Share of other comprehensive income of 3,3 (12,2)
associated companies
Currency translation adjustments and fair value (3,0) 5,4
(losses)/gains
Step acquisition of associated company
Reversal of previous fair value gains on equity (162,8)
securities
Revaluation of assets and liabilities of associated 125,3
company
Total comprehensive income for the period 564,0 220,0
Attributable to:
Minority interests 165,8 220,1
Equity holders of the company 398,2 (0,1)
564,0 220,0
Condensed statement of financial position 28 Feb 28 Feb
2010 2009
Rm Rm
Assets
Property, plant and equipment 38,0 32,9
Intangible assets 780,9 736,4
Investments in associated companies (note 3) 4 452,7 3 568,8
Financial assets linked to investment contracts 8 215,8 7 717,0
(note 4)
Other financial assets 696,5 898,9
Deferred income tax 4,1 28,6
Receivables 137,6 665,0
Cash and cash equivalents 360,7 479,1
Total assets 14 686,3 14 126,7
Equity
Ordinary shareholders` equity 2 947,0 2 755,4
Minority interests 2 263,5 1 863,6
Total equity 5 210,5 4 619,0
Liabilities
Insurance liabilities 30,3 30,8
Financial liabilities under investment contracts 8 215,8 7 717,0
(note 4)
Other financial liabilities 795,5 1 317,9
Deferred income tax 74,5 67,7
Payables and provisions 358,1 342,7
Current income tax liabilities 1,6 31,6
Total liabilities 9 475,8 9 507,7
Total equity and liabilities 14 686,3 14 126,7
Net asset value per share (cents) 1 765 1 640
Net tangible asset value per share (cents) 1 297 1 202
Condensed statement of changes in owners` equity 28 Feb 28 Feb
2010 2009
Rm Rm
Ordinary shareholders` equity at beginning of 2 755,4 3 295,4
period
Shares issued 119,8
Share buy-back (140,9)
Net movement in treasury shares (102,1) (38,1)
Share-based payment costs 5,3 8,6
Total comprehensive income 398,2 (0,1)
Dividends paid (88,7) (510,4)
Ordinary shareholders` equity at end of period 2 947,0 2 755,4
Minority interests 2 263,5 1 863,6
Beginning of period 1 863,6 1 773,6
Total comprehensive income 165,8 220,1
Dividends and capital distributions paid (58,0) (112,9)
Interest acquired from minority shareholders (4,8) (16,0)
Additional interest obtained by minority 357,8
shareholders
Acquisition of subsidiaries 65,6
Preference dividend paid (60,9) (66,8)
Total equity at end of period 5 210,5 4 619,0
Condensed statement of cash flows 28 Feb 28 Feb
2010 2009
Rm Rm
Net cash flow from operating activities# 779,2 190,0
Net cash flow from investment activities (349,9) 31,7
Net cash flow from financing activities 258,2 (559,6)
Net increase/(decrease) in cash and cash 687,5 (337,9)
equivalents
Cash and cash equivalents at beginning of period (211,3) 126,6
Cash and cash equivalents at end of period *# 476,2 (211,3)
*Include bank overdrafts and CFD financing of (61,1) (915,5)
*Include clients` cash linked to investment 176,6 225,1
contracts of
# During 2010 the CFD facilities were restructured which resulted in the
CFD financial assets and related funding now being accounted for by the
relevant funding institution. The effect of same is reflected by the
decrease in CFD funding and the related financial assets.
Notes to the condensed financial statements
1. Basis of presentation and accounting policies
The condensed financial statements have been prepared in terms of IAS 34 -
Interim Financial Reporting and should be read in conjunction with the annual
financial statements for the year ended 28 February 2009, which have been
prepared in accordance with IFRS.
The accounting policies used in the preparation of the condensed financial
statements are consistent with those used in the previous financial year. The
following new standards and amendments to standards are mandatory for the
first time for the financial year beginning
1 March 2009:
- IAS 1 (revised), `Presentation of Financial Statements`. The revised
standard prohibits the presentation of items of income and expenses (that is
`non-owner changes in equity`) in the statement of changes in equity,
requiring `non-owner changes in equity` to be presented separately from owner
changes in equity. All `non-owner changes in equity` are required to be shown
in a performance statement.
Entities can choose whether to present one performance statement (the
statement of comprehensive income) or two statements (the income statement and
statement of comprehensive income).
The Group has elected to present two statements: an income statement and a
statement of comprehensive income.
- IFRS 8, `Operating segments`. IFRS 8 replaces IAS 14, `Segment reporting`.
It requires a `management approach` under which segment information is
presented on the same basis as that used for internal reporting purposes.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker has been identified as the PSG Group Executive Committee ("PSG
Exco"), who is responsible for the management of the PSG Group`s investment
portfolio and for making strategic decisions.
The adoption of these standards has now material effect on the results, nor
has it required any restatement.
2. Non-headline items 28 Feb 28 Feb
2010 2009
Rm Rm
After taxation and minority interests
Impairment of investments in associated companies (49,1) (28,7)
Net loss on sale/dilution of investments in (7,6) (9,1)
subsidiaries
Net loss on sale/dilution of investments in (0,5) (9,3)
associated companies
Negative goodwill on acquisition of subsidiaries 18,1 19,3
Profit on sale/(impairment) of available-for-sale 5,4 (20,0)
assets
Impairment of intangible assets (incl. goodwill) (0,7) (12,7)
Impairment of shareholders` loans (4,8) (4,2)
Non-headline items of associated companies (2,0) 6,8
Other investment activities 0,8 (0,9)
(40,4) (58,8)
3. Investments in associated companies
Carrying value
- listed 1 696,8 1 503,3
- unlisted 2 755,9 2 065,5
4 452,7 3 568,8
Market and directors` valuation
- listed 2 870,6 1 163,5
- unlisted 2 920,2 2 123,0
5 790,8 3 286,5
4. Linked investment contracts
PSG Group is not exposed to market movements in PSG FutureWealth`s clients`
assets held under investment contracts, as any movement in the market price of
the investment is linked to a corresponding adjustment to the liability.
The income statement impact of the returns on investment contract policy
holder assets and liabilities was as follows:
Investment Equity Total
contract holders Rm
policy Rm
holders
Rm
28 February 2010
Investment income 300,1 160,6 460,7
Net fair value gains and losses on 634,3 53,7 688,0
financial instruments
Fair value adjustment to investment (924,0) (924,0)
contract liabilities
Net investment return before 10,4 214,3 224,7
taxation
28 February 2009
Investment income 164,1 288,4 452,5
Net fair value gains and losses on (771,1) (194,0) (965,1)
financial instruments
Fair value adjustment to investment 590,9 590,9
contract liabilities
Net investment return before (16,1) 94,4 78,3
taxation
5. Segmental reporting
The Group is organised into six reportable segments, namely: Capitec, Zeder,
Paladin, PSG Konsult, PSG Fund Management and PSG Corporate. These segments
represent the major investments of the Group. The services offered by PSG
Konsult and PSG Fund Management consist of financial advice and fund
management, while the other segments offer financing, banking, private equity
and corporate finance services. All segments operate in the Republic of South
Africa.
Recurring headline earnings are calculated on a see-through basis, and
includes the proportional headline earnings of underlying investments,
excluding marked-to-market adjustments and one-off items.
For the year Non-
Income Inter- Recurring recurring
segment headline headline Headline Net asset
income earnings earnings earnings value
ended
28 February
2010
Rm Rm Rm Rm Rm Rm
Capitec * 151,7 151,7 1 383,9
Zeder 57,8 (0,3) 83,6 (23,0) 60,6 925,9
Paladin 34,3 77,2 89,8 167,0 859,6
PSG Konsult 876,3 (43,0) 65,5 65,5 296,1
PSG Fund
Management 309,6 (6,1) 26,4 26,4 149,2
PSG Corporate 37,6 52,2 350,3
137,1 (41,9) 14,6
Net fee 15,3 15,3 26,9
income **
Unit trust, 1,7 14,6 16,3 138,6
hedge fund and
share
investments
BEE 20,6 20,6 184,8
investments
Funding 24,2 (15,9) (80,7) (80,7) (1 065,2)
Other (2,0) (9,1) (11,1) (6,6)
taxation and
STC
Other*** (0,3) 0,1 (0,2) 53,8
Total 1 439,3 (107,2) 359,0 72,4 431,4 2 947,0
Non-headline
(40,4)
Attributable 391,0
earnings
* Equity accounted
** Net fee income is after the deduction of salaries, operating expenses
and taxation
*** Consists mainly of the investments in m Cubed Holdings and Adato
Capital
Inter Recurring Non- Headline Net asset
segment headline recurring
headline
Income income earnings earnings earnings Value
For the year Rm Rm Rm Rm Rm Rm
ended 28
February 2009
Capitec * 104,3 104,3 1 260,1
Zeder 57,9 (5,2) 70,9 (15,6) 55,3 661,8
Paladin 63,1 65,3 (77,9) (12,6) 559,9
PSG Konsult 774,5 (34,8) 70,9 70,9 276,3
PSG Fund
Management 314,8 (9,4) 31,2 21,8 53,0 148,4
PSG Corporate 43,6
44,0 (52,1) (87,0) (43,4) 420,3
Net fee 5,6 12,6 18,2 10,9
income **
Unit trust, 13,2 (99,6) (86,4) 245,2
hedge fund and
share
investments
BEE 24,8 24,8 164,2
investments
Funding 26,4 (4,7) (103,0) (103,0) (969,9)
Other (4,2) (35,4) (39,6) 0,2
taxation and
STC
Other*** 14,4 10,6 25,0 398,3
Total 1 280,7 (106,2) 293,4 (183,5) 109,9 2 755,4
Non-headline
(58,8)
Attributable
earnings 51,1
*Equity accounted
** Net fee income is after the deduction of salaries, operating expenses
and taxation
*** Consists mainly of the investments in m Cubed Holdings, Adato Capital,
Petmin (sold to Paladin effective 1 March 2009) and Channel Life (sold).
6. Commitments and contingent liabilities 28 Feb 28 Feb
2010 2009
Rm Rm
Operating lease commitments 82,9 61,0
7. PSG Financial Services Limited
The company is a wholly owned subsidiary of PSG Group Limited, except for the
6 079 738 preference shares which are listed on the JSE Limited. No separate
financial statements are presented for the company as it is the only asset of
PSG Group Limited.
8. Review by auditors
The company`s external auditors, PricewaterhouseCoopers Inc., have reviewed
the condensed financial statements. A copy of their unmodified review opinion
is available on request at the company`s registered office.
Recurring headline Headline earnings Number Net asset value
earnings of
shares
28 Feb 28 Feb 28 Feb 28 Feb 28 Feb
2010 2009 2010 2010 2009
Rm Rm m Rm Rm
Recurring headline 359,0 293,4 2 2 460,1
earnings 766,7
Capitec Bank 151,7 104,3 28,9 1 1 260,1
383,9
PSG Konsult 65,5 70,9 536,6 296,1 276,3
PSG Fund Management 26,4 31,2 149,2 148,4
(incl. PSG FutureWealth)
Paladin Capital 77,2 65,3 463,3 859,6 559,9
Zeder Investments 83,6 70,9 396,9 925,9 661,8
PSG Corporate (incl. PSG 26,9 10,9
Capital)
Management and other fee 60,7 36,2
income
Operating costs (38,0) (21,9)
Taxation (7,4) (8,7)
BEE pref share 20,6 24,8 184,8 164,2
investments
Other investments 1,4 27,6 12,1 348,2
Funding
Perpetual pref share (51,1) (69,0) (551,3 (561,0)
funding )
Net interest (29,6) (34,1) (513,9 (408,9)
((29,6)( ((29,1) )
20,7)
Other taxation and STC (2,0) (4,1) (6,6) 0,2
Non-recurring headline 72,4 (183,5) 180,3 295,3
earnings
PSG FutureWealth 21,8
Paladin Capital 89,8 (77,9)
Zeder Investments (23,0) (15,6)
PSG Corporate (net of
tax)
Marked-to-market 26,2 (99,6) 138,6 245,2
profit/(loss)
Zeder performance fee 12,6
STC (special dividend) (35,4)
Deferred tax assets (20,7)
written off
Other 0,1 10,6
m Cubed Holdings 219,7 41,7 50,1
Total headline earnings 431,4 109,9 2 2 755,4
947,0
Statistics Change
Weighted average number 173,1 168,4
of share in issue
(million)
Recurring HEPS (cents) 207,4 174,3 19,0%
HEPS (cents) 249,2 65,3 281,6%
Commentary
Financials
In the spirit of consistent, clear and unambiguous communication to
stakeholders, PSG introduced the recurring headline earnings concept as the
predominant measure of the Group`s financial performance a few years ago. At
the time, recurring headline earnings was defined as reportable headline
earnings in terms of accounting standards, excluding any marked-to-market
movements and one-off items.
During the past year we revisited and fine-tuned this methodology by now
measuring recurring headline earnings on a see-through basis throughout the
Group. PSG`s recurring headline earnings is the sum of its effective interest
in that of each of its underlying investees, regardless of its percentage
shareholding. The result is that investments in which PSG or an investee holds
less than 20% and is not allowed to equity account in terms of accounting
standards, are now included in the calculation of our consolidated recurring
headline earnings. This provides management and investors with a more
realistic and simple way of evaluating PSG`s financial performance.
Recurring headline earnings increased by 19,0% to 207,4 cents per share for
the year ended 28 February 2010. Capitec`s stellar performance was the main
reason for the positive growth as some of our investments did not escape the
negative impact of the economic recession. Having said that, we have seen
positive signs lately, pointing to an upturn which should benefit the
businesses throughout our group.
Reportable headline earnings increased by 281,6% to 249,2 cents per share, and
attributable earnings by 645,2% to 225,8 cents per share. This was mainly as a
result of marked-to-market profits following the recovery in global stock
markets.
Corporate action
- Issue of 3 million PSG Group shares at R14,40 per share and 4,7 million PSG
Group shares at R16,23 per share to strategic shareholders for a cash
consideration of R43,2 million and R76,7 million respectively during the first
half of the financial year when risks in financial markets were significantly
higher.
- JSE listing of, and R150 million renounceable rights issue by Paladin
Capital. PSG invested R52,2 million.
- Zeder rights issue, underwritten by PSG, in terms of which R495 million was
raised. PSG invested R211,6 million.
- Split of KWV`s own operational business from the Distell investment, driven
by Zeder as major shareholder.
- PSG Konsult`s acquisition of T-Sec`s private client stockbroking division
for a consideration of R54,7 million. The T-Sec acquisition was accounted for
as follows in terms of the Purchased Price Allocation: Goodwill (R37,1
million), Intangibles (R24,0 million), Deferred tax (R6,7 million), Property
and equipment (R0,3 million), totaling an allocation of R54,7 million.
- Merger of PSG Fund Management with PSG FutureWealth.
- Sale of 18% interest in MiWay Finance for R25 million.
- Raised R200 million by means of a 4-year redeemable preference share.
- Repurchase of 6,4 million PSG Group shares at an average price of R22,06 per
share for a consideration of R140,9 million when PSG`s share price was trading
at an attractive discount to its intrinsic value during January and February
2010.
Capitec bank (34,8%)
Capitec`s client-centric niche focus in a growth market continued to render
excellent results. Headline earnings increased by 45% to R437 million, while
return on equity increased from 27% to 32%.
Capitec`s conservative approach to conducting business has, however, not been
compromised. Borrowers were subjected to even stricter lending criteria which,
inter alia, decreased the bad debt ratio from 14,5% to 9,8%.
Despite the financial crisis, Capitec managed to more than double its funding
from R3 billion to R7 billion. As in the past, Capitec had been able to repay
all call deposits on demand.
Operationally, Capitec opened its 401st branch and has more than 4 000
employees serving its 2,1 million clients. For the year, Capitec advanced more
than 3,8 million loans, an average of 12 000 per working day. The total value
of loans granted increased by 38% to R8,6 billion. Capitec`s total loans
outstanding at year-end increased by 73% to R5,6 billion as more clients moved
to longer-term loans. The longest term for a loan has been increased to 48
months, with the maximum size of a loan now at
R100 000.
Capitec`s comprehensive results are available at www.capitec.co.za.
PSG Konsult (73,5%)
PSG Konsult`s turnover increased by 10,3% to R834 million as a result of both
organic and acquisitive growth. Operational profit before tax was R133,7
million, 2% higher than the previous year. Both headline earnings and headline
earnings per share, however, decreased by 7,7% to R89,4 million and 12,2 cents
respectively, mainly as a result of a higher effective tax rate in the current
year.
Improved market conditions saw headline earnings increasing from R39,5 million
for the first half of the financial year to R49,9 million in the second half.
Funds under administration increased to R72,3 billion (2009: R43,6 billion),
mainly as a result of the acquisition of the T-Sec client base and the market
recovery in the latter part of the financial year. Short-term premiums
administered on an annualised basis remained in line with the prior year at R1
450 million.
Effective 1 March 2010, PSG Online Securities acquired 100% of PSG Prime,
resulting in all the Group`s stock broking activities now being housed under
PSG Konsult.
At year-end, PSG Konsult had 197 offices (2009: 197) and our financial
planners, stockbrokers and short-term insurance brokers increased to 572
(2009: 506).
PSG Konsult`s comprehensive results are available at www.psgkonsult.co.za.
PSG Fund Management (95,1%)
On a comparable basis PSG Fund Management`s recurring headline earnings
decreased by 4,5% to R27,8 million. The challenging investment environment,
particularly during the first half of the financial year, impacted negatively
on the traditional PSG Fund Management business.
Notwithstanding the challenging investment environment, assets under
administration increased by 14% to R23,4 billion. Local collective investments
had net inflows of R2,1 billion, up from R558 million in the previous
financial year. Managed assets increased by 22% to R11,9 billion, which
included a net inflow of R747 million, with the balance attributed to stronger
equity markets.
Effective 1 March 2010, PSG Fund Management acquired the remaining 20%
minority interests in PSG FutureWealth and in the process formed a combined
product licencing platform called PSG Wealth.
Also effective 1 March 2010, PSG Fund Management`s asset management
capabilities were combined. Research and analyst functions are now pooled
together creating a single PSG branded asset management business with a
simplified holistic product range covering the full investment risk spectrum.
Mention should be made of the PSG Tanzanite Flexible Fund, managed by Jan
Mouton. It has been a consistent top decile performing fund over various
periods during the past 5 years, and is an ideal building block in any
client`s investment portfolio. In addition, the PSG Alphen Growth Fund,
managed by Shaun le Roux, was ranked the best performing general equity fund
in 2009.
Paladin Capital (80,6%)
Paladin, PSG`s private equity investment company in sectors other than
agriculture, food and beverages, listed on the JSE in September 2009 and
raised R150 million by means of a renounceable rights issue to PSG
shareholders shortly thereafter. Paladin currently has 13 investments across a
number of industries.
Paladin`s recurring headline earnings increased by 22,1% to R95,5 million.
This is predominantly due to an increase in earnings from investee companies
and the first time inclusion of Petmin`s results. Paladin`s reportable
headline earnings increased to R217,3 million as opposed to an R18 million
loss in the prior year. This increase is mainly as a result of marked-to-
market profits incurred in Thembeka`s investment portfolio of listed shares in
the JSE Limited, PSG Group and Capitec.
Significant investments made by Paladin during the past year included 50% in
Curro, a private school group for R50 million, 9,4% in Petmin (previously
owned by PSG) by means of a share swap for a consideration of R92 million,
20,4% in Spirit Capital, a leveraged buy-out specialist, and the acquisition
of an additional 17,5% stake in Topfix increasing its interest to 28,2%.
Paladin also disposed of its interests in Mainfin for R17,4 million and Axon
for R4 million.
Paladin has initiated the following since year-end:
- Raised R100 million by means of a 5-year, fixed-rate preference share with
dividend and capital payable on maturity.
- Purchased an additional 26% interest for a controlling stake in Curro
(subject to regulatory approval) for a total consideration of R52 million.
Paladin`s comprehensive results are available at www.paladincapital.co.za.
Zeder investments (40,6%)
Zeder successfully concluded a rights issue in terms of which R495 million was
raised at R1,35 per share in June 2009. Its current portfolio of some R2,2
billion comprises agri, food and beverage related investments in 13 companies,
of which Kaap Agri, Capevin and KWV represent more than 80%.
Recurring headline earnings increased by 6,2% to R208,1 million, while
recurring headline earnings per share decreased by 26,7% to 23,6 cents.
Reportable headline earnings per share decreased by 31,3% to 17,3 cents. The
main reasons for the decrease are:
- The majority of the cash raised in terms of the aforementioned rights issue
was only invested in the latter part of the financial year;
- A reduced effective interest in Distell coupled with a significantly lower
return on the investment in KWV`s own operational business; and
- A R350 million non-recurring provision by Pioneer Foods for its potential
fine to the Competition Commission, of which Zeder`s effective share amounted
to R43,9 million.
The newly constituted Pioneer Foods board has committed to amicably resolve
the pending Competition Commission matter at hand.
Zeder`s current cash of R120 million, together with an existing R300 million
funding facility, will provide it with sufficient capital to pursue attractive
identified investment opportunities.
Zeder`s comprehensive results are available at www.zeder.co.za.
PSG Capital (100%)
PSG Capital is the corporate finance arm of PSG Group. It is a JSE-registered
sponsor and designated advisor. PSG Capital advises on mergers and
acquisitions, listings, restructurings, capital raisings, and BEE
transactions, and performs valuations and fair and reasonable opinions. It
currently has 32 JSE-listed and numerous unlisted clients.
PSG Corporate (100%)
PSG Corporate acts as PSG Group treasurer, allocates capital and determines
and monitors the Group`s gearing. It is also the appointed manager to both
Zeder and Paladin.
The net increase in the listed share prices of our strategic and non-strategic
investments accounted for the non-recurring marked-to-market profits achieved
during the year under review.
Prospects
We will continue to invest in assets and sectors that offer attractive growth
prospects and returns.
Dividends
Ordinary shares
Based on its stated dividend policy to pay 75% of free cash flow within the
PSG Group Limited as a dividend, the directors of PSG Group Limited have
resolved to declare a final dividend of 29 cents (2009: 38 cents) per share,
which brings the total dividend for the financial year to 42 cents (2009: 257
cents, incl. 200 cents special dividend) per share.
The following are the salient dates for the payment of the final dividend:
Last day to trade cum dividend Friday, 7 May 2010
Trading ex dividend commences Monday, 10 May 2010
Record date Friday, 14 May 2010
Date of payment Monday, 17 May 2010
Share certificates may not be dematerialised or rematerialised between Monday,
10 May 2010, and Friday, 14 May 2010, both days inclusive.
Preference shares
The directors of PSG Financial Services Limited have declared a dividend of
390,5 cents per share in respect of the cumulative, non-redeemable, non-
participating preference shares for the six months ended 28 February 2010,
which was paid on 29 March 2010.
Conversion of Secondary Tax on Companies (STC) to Dividends Tax
During his 2010 budget speech, the South African Minister of Finance indicated
that, although all the relevant taxation treaties had been renegotiated, a
number of issues required further refinement. It appears as if the completion
of the Dividends Tax system may be postponed until 2011.
Accordingly, preference shareholders are advised that, until such time as all
the legislative amendments have been refined, finalised and promulgated and
legal opinion obtained, it remains impossible to determine what exactly the
impact will be on the company, and consequently on the cumulative, non-
redeemable, non-participating preference shares issued by PSG Financial
Services. However, should the company benefit from the aforementioned changes
to tax legislation in respect of dividends, such benefit will be passed onto
shareholders.
Annual General Meeting
The PSG Group Annual General Meeting will be held at 12h00 on Friday, 18 June
2010 at Webersburg, Annandale Road, Stellenbosch.
On behalf of the board
Jannie Mouton Wynand Greeff
Chairman Financial Director
19 April 2010
Stellenbosch
Directors: JF Mouton (chairman)*, L van A Bellingan, PE Burton, ZL Combi, J de
V du Toit, MM du Toit, WL Greeff*, MJ Jooste, JJ Mouton, PJ Mouton*, CA Otto,
W Theron, CH Wiese
*Executive Independent
Secretaries and registered office: PSG Corporate Services (Pty) Limited, 1st
Floor, Ou Kollege, 35 Kerk Street, Stellenbosch, 7600 PO Box 7403,
Stellenbosch, 7599
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107
Sponsor: PSG Capital
Date: 19/04/2010 15:26:01 Supplied by www.sharenet.co.za
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