Wrap Text
PSG Group Limited - Audited results for the year ended 28 February 2003
PSG Group Limited
(Registration number 1970/008484/06)
JSE share code: PSG
ISIN code: ZAE000013017
Audited results for the year ended 28 February 2003
* Disposal of investment in PSG Investment Bank for R620 million
* Special distribution of 200 cents paid on 31 March 2003
* Headline earnings per share decreased by 50%
* All subsidiaries trading profitably despite difficult market conditions
Group income statements
28 Feb 28 Feb
2003 2002
Rm Rm
Income
Net interest income 389,0 364,1
Investment income 20,8 159,7
Income - discontinued trading operations 69,0 74,0
Sales 495,4 394,2
Cost of sales 426,4 320,2
Other operating income 279,2 182,6
Total income 758,0 780,4
- Continuing operations 614,7 533,8
- Discontinued operations 143,3 246,6
Expenses
Operating expenses 556,5 551,0
Goodwill amortisation 27,6 25,7
Total expenses 584,1 576,7
- Continuing operations 503,3 398,1
- Discontinued operations 80,8 178,6
Net income from operations 173,9 203,7
Financing costs (38,5) (20,1)
Income from associated companies 5,6 38,0
Exceptional items (236,8) 25,8
Net income before taxation (95,8) 247,4
- Continuing operations 45,7 190,7
- Discontinued operations (141,5) 56,7
Taxation 42,5 (83,6)
- Continuing operations 25,9 23,1
- Discontinued operations 16,6 (106,7)
Net income of the group (138,3) 331,0
Attributable to outside shareholders 47,6 158,0
Attributable to ordinary shareholders (185,9) 173,0
Attributable to ordinary shareholders (185,9) 173,0
Non-headline items (note 3) 270,7 2,2
Headline earnings 84,8 175,2
Earnings per share (cents)
- attributable (154,9) 139,3
- headline 70,7 141,1
Distribution per share (cents) 220,0 50,0
Normal dividend
- interim 17,0
- final * 20,0 33,0
Total 20,0 50,0
Special distribution
- dividend 100,0
- capital 100,0
Total 200,0 -
* In terms of this announcement
Number of shares (million)
- in issue 120,0 120,0
- weighted average 120,0 124,1
Group balance sheets
28 Feb 28 Feb
2003 2002
Rm Rm
Assets
Fixed assets 165,4 293,0
Net intangible assets 65,6 100,2
Investment in associated companies 80,1 276,1
Investments of long-term insurance subsidiary 557,6 371,6
Linked product investments 271,9
Other investments and non-current assets 56,5 130,9
Deferred tax asset 105,0 271,1
Accounts receivable 799,7 248,4
Loans and advances 191,2 1 073,2
Investment and trading securities 72,7 557,2
Short-term money market assets 656,4
Cash and short-term funds 228,4 499,0
Total assets 2 594,1 4 477,1
Shareholders" funds
Ordinary shareholders" funds 993,1 1 218,0
Outside shareholders" funds 190,4 910,3
Total shareholders" funds 1 183,5 2 128,3
Liabilities
Deposits and current accounts 25,8 1 339,3
Policyholders" funds 556,9 372,1
Linked product liabilities 271,9
Long-term liabilities 3,7 119,0
Deferred tax liability 0,4 16,0
Accounts payable and other liabilities 455,8 421,2
Short-term borrowings 96,1 81,2
Total liabilities 1 410,6 2 348,8
Total shareholders" funds and liabilities 2 594,1 4 477,1
Net asset value per share (cents) 828 1 015
Net tangible asset value per share (cents) 712 807
Group cash flow statements
28 Feb 28 Feb
2003 2002
Rm Rm
Cash retained from operating activities 120,0 72,8
Cash used in investment activities (275,4) (410,5)
Cash flow attributable to investment in short-term
income-earning assets 176,2 435,4
Cash flow used in financing activities (240,5) (162,1)
Net decrease in cash and cash equivalents (219,7) (64,4)
Cash and cash equivalents at beginning of period 443,0 507,4
Cash and cash equivalents at end of period 223,3 443,0
Segmental analysis
PSG Group is an investment holding company operating in the financial services
industry. Its aim is to create wealth for its shareholders through a strategy of
ultimate empowerment of its companies and management.
PSG"s principal investments are:
* Capitec Bank Holdings Limited ("Capitec Bank")
(Direct interest 55%)
Retail banking for the lower income groups in South Africa
* Channel Group Limited ("Channel Group")
(Direct interest 88%)
Life insurance and employee benefits in southern Africa
* PSG Investment Services (Pty) Ltd ("PSG Investment Services")
(Direct interest 95%)
Financial advice, funds management, stockbroking as well as a 20%-held associate
m Cubed Holdings Limited ("m Cubed")
* PSG Capital Limited ("PSG Capital")
(Direct interest 100%)
Investment banking and corporate finance
Commentary
Review of annual results
The twelve months ended 28 February 2003 proved to be a difficult period for the
financial services industry. During this period PSG Group focused on realigning
its businesses, making it a stronger company than it was a year before:
* NAV per share dropped by 18% from 1 015c to 828c mainly as result of turning
NAV to cash through the sale of PSGIB.
* Headline earnings per share decreased by 50% from 141c to 71c.
* Non-headline losses amounted to R270,7 million mainly comprising goodwill
amortisation of R27,6 million, a R183,3 million loss on the sale of PSGIB and
provisions against investments.
* Despite the decrease in headline earnings PSG succeeded in increasing the
cash flow to its shareholders by paying a special distribution of 200c on 31
March 2003.
* As PSG Group maintains a dividend payout ratio of 30%, a normal dividend of
20c is declared for the year ended 28 February 2003.
As a result of the poor performance during the current year we have taken action
to redirect the PSG Group and unlock value for shareholders, mainly by disposing
of PSG Group"s investment in PSGIB for R620 million.
Review of operations
PSG Investment Bank Holdings Limited ("PSGIB")
* PSGIB as an A2 bank did not escape the severe impact of the secondary banking
crises during 2002. Although it weathered the liquidity crises, it experienced a
substantial reduction in its deposit base, which necessitated a realisation of
assets and the curtailment of banking businesses.
* PSGIB produced 81% of PSG"s headline earnings during the previous financial
year. It relied on large once-off transactions to produce income while it built
its deposit book. A bank needs to gear its balance sheet through deposits to
earn a stream of annuity income. In banking, trust is one of the most important
elements, as deposit holders need to trust that a bank will always repay their
money. The secondary banking crises damaged this trust for all the smaller banks
causing a major setback to our business model.
* As PSGIB was continuously trading at a substantial discount to net asset
value we decided it was best to unlock value for our shareholders and sold our
56,5% interest in PSGIB at approximately its tangible net asset value.
PSG Capital
* PSG Capital has been profitable since its launch seven months ago - achieving
headline earnings of R10 million.
* PSG Capital was incorporated during the year with the following main
operating activities:
- Corporate finance and investments
- Alternative asset management
- Treasury outsourcing
- Trade finance
* PSG Capital was launched on the acquisition of certain strategic assets from
PSGIB, namely PSG Trade Finance, PSG Treasury Outsourcing, the PSGIB corporate
finance team and the TBB claims.
* To facilitate the disposal of PSGIB, PSG Capital also acquired certain
banking assets from PSGIB. These banking assets are either managed or being
disposed of.
Capitec Bank
* Capitec"s headline earnings, published on 27 March 2003, of R30 million or 46
cents per share were in line with their pre-listing statement forecast - a
commendable achievement considering the market conditions.
* During the year Capitec granted 2,4 million loans of an average size of R618.
The value of loans granted during the year increased by 45% to R1,5 billion.
* Although the loan book grew rapidly the bad debts reduced from 3,5% a year
ago to 2,6% of loans granted.
* Capitec has continued its transformation to a mass-market retail bank.
* The number of branches declined from 316 to 266, mainly as a result of the
merging of branches and disposal of operations in Botswana and Namibia.
Channel Group
* Channel Group contributed R17,6 million to PSG Group"s headline earnings; up
44% on the previous year.
* The goal of Channel Group is "to become the smartest, little life office in
southern Africa".
* Channel Group was further streamlined with the disposal of part of Channel
Management Services for R7,6 million and Channel Africa for R1,6 million.
PSG Investment Services
* The contribution from PSG Investment Services decreased from R22,9 million to
R6,6 million, mainly as a result of the adverse performance of stock markets
worldwide, a poorer contribution from m Cubed, Appleton and the strengthening of
the rand.
* PSG Investment Services, excluding Appleton and m Cubed, achieved a profit on
an operating level of R17,2 million (2002: R9,0 million).
* In line with the industry consolidation the asset manager and stockbroker,
Appleton, was acquired by PSG Investment Services during the year. As Appleton
was one of PSG Investment Services" largest competitors, this presents an
opportunity for cost savings and an increase in market share. While the
integration of Appleton is proving to be challenging, we are confident that the
synergies will be realised in the years ahead.
* Financial advice: 190 financial advisors operating from 83 (2002: 79)
distribution outlets, one of the widest geographical networks in the industry.
* Fund management: Funds under management and administration have, after the
acquisition of Appleton, increased to R13 billion (2002: R7,2 billion).
* Stockbroking: A superior electronic offering with PSG Online as an
established brand. Stockbroking is a volume business and PSG Online intends
maintaining its lead regarding volumes in the private client business.
Dividend
The directors have declared a dividend of 20 cents per share (2002: 50 cents).
To comply with the requirements of STRATE, the following dates are applicable:
Last day to trade cum-dividend Friday, 20 June 2003
Trading ex-dividend commences Monday, 23 June 2003
Record date Friday, 27 June 2003
Day of payment Monday, 30 June 2003
Share certificates may not be dematerialised between Monday, 23 June 2003, and
Friday, 27 June 2003, both days inclusive.
Prospects
After the sale of PSGIB our sources of income have become more balanced, with
our four main businesses delivering a well diversified income stream.
As PSG Group"s shares are currently trading at a discount to net asset value we
are continuing our consideration of various options to unlock this discount.
Annual general meeting
This meeting will be held at 09:00 on Friday, 13 June 2003.
Contribution to headline earnings
28 Feb 28 Feb
2003 2002
Rm Rm
Capitec Bank 16,2 24,9
Channel Group 17,6 12,2
PSG Investment Services 1 6,6 22,9
PSG Capital 10,0
PSG Investment Bank 31,1 141,3
Corporate 2 3,3 (26,1)
84,8 175,2
1 Includes PSG"s interest in Appleton and m Cubed
2 Includes financing costs of R15,0 million (2002: R23,3 million)
Statements of changes in equity
28 Feb 28 Feb
2003 2002
Rm Rm
Ordinary shareholders" funds at beginning of period 1 218,0 1 140,8
Share buyback (44,6)
Movement in non-distributable reserves 0,6 8,6
Net income for the period (185,9) 173,0
Distribution to shareholders (39,6) (59,8)
Ordinary shareholders" funds at end of period 993,1 1 218,0
Notes
1. Accounting policies
The accounting policies adopted for the purpose of this report comply with South
African Statements of General Accepted Accounting Practice as well as with
applicable legislation. These accounting policies are also consistent with those
of the previous year, except that owner-occupied properties are now depreciated.
2. Audit of results
The results have been audited by PricewaterhouseCoopers Inc. A copy of their
unqualified audit opinion is available for inspection at the registered office
of the company.
3. Non-headline items
28 Feb 28 Feb
2003 2002
Rm Rm
Exceptional items 236,8 (25,8)
Loss on sale of PSGIB 183,3
Restructuring costs 20,6
Goodwill impairment 21,3 52,3
Impairment charges 16,6 23,0
Investment activities (5,0) 1,4
Negative goodwill (102,5)
Goodwill amortisation 27,6 25,7
Non-headline items of associated companies 6,2
270,6 (0,1)
Taxation (1,4)
269,2 (0,1)
Attributable to outside shareholders 1,5 2,3
270,7 2,2
4. Investment in associated companies
Carrying value
- listed 78,5 243,6
- unlisted 1,6 32,5
80,1 276,1
Market and directors" valuation
- listed 53,5 198,5
- unlisted 2,7 39,2
56,2 237,7
5. Discontinued operations
PSG Group disposed of its investment in PSGIB with effect from 1 November 2002.
The purchase consideration, which is included in accounts receivable, was
settled on 31 March 2003. Prior to the disposal PSG Group acquired certain
assets from PSGIB. The purchase price for these assets was also paid on 31 March
2003.
The following information pertains to the sale of PSGIB:
31 Aug 28 Feb
2002 2002
Rm Rm
Assets and liabilities
Total assets 2 375,6 3 341,5
Total liabilities (1 029,1) (1 679,3)
Net assets retained within PSG Group (172,1) (172,1)
Net assets distributed and disposed of 1 174,4 1 490,1
By order of the board
Jannie Mouton Chris Otto
Chairman Director
Stellenbosch
22 April 2003
Secretaries and registered office
PSG Corporate Services (Pty) Limited
1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch 7600
Registrars
Ultra Registrars (Pty) Limited
11 Diagonal Street, Johannesburg 2001
Directors
JF Mouton (chairman)*, CA Otto*, L van A Bellingan, PE Burton, J de V du Toit,
MJ Jooste, LM Rouillard
(*Executive)
PSG
PSG Group Limited - Audited results for the year ended 28 February 2003
PSG Group Limited
(Registration number 1970/008484/06)
JSE share code: PSG
ISIN code: ZAE000013017
Audited results for the year ended 28 February 2003
* Disposal of investment in PSG Investment Bank for R620 million
* Special distribution of 200 cents paid on 31 March 2003
* Headline earnings per share decreased by 50%
* All subsidiaries trading profitably despite difficult market conditions
Group income statements
28 Feb 28 Feb
2003 2002
Rm Rm
Income
Net interest income 389,0 364,1
Investment income 20,8 159,7
Income - discontinued trading operations 69,0 74,0
Sales 495,4 394,2
Cost of sales 426,4 320,2
Other operating income 279,2 182,6
Total income 758,0 780,4
- Continuing operations 614,7 533,8
- Discontinued operations 143,3 246,6
Expenses
Operating expenses 556,5 551,0
Goodwill amortisation 27,6 25,7
Total expenses 584,1 576,7
- Continuing operations 503,3 398,1
- Discontinued operations 80,8 178,6
Net income from operations 173,9 203,7
Financing costs (38,5) (20,1)
Income from associated companies 5,6 38,0
Exceptional items (236,8) 25,8
Net income before taxation (95,8) 247,4
- Continuing operations 45,7 190,7
- Discontinued operations (141,5) 56,7
Taxation 42,5 (83,6)
- Continuing operations 25,9 23,1
- Discontinued operations 16,6 (106,7)
Net income of the group (138,3) 331,0
Attributable to outside shareholders 47,6 158,0
Attributable to ordinary shareholders (185,9) 173,0
Attributable to ordinary shareholders (185,9) 173,0
Non-headline items (note 3) 270,7 2,2
Headline earnings 84,8 175,2
Earnings per share (cents)
- attributable (154,9) 139,3
- headline 70,7 141,1
Distribution per share (cents) 220,0 50,0
Normal dividend
- interim 17,0
- final * 20,0 33,0
Total 20,0 50,0
Special distribution
- dividend 100,0
- capital 100,0
Total 200,0 -
* In terms of this announcement
Number of shares (million)
- in issue 120,0 120,0
- weighted average 120,0 124,1
Group balance sheets
28 Feb 28 Feb
2003 2002
Rm Rm
Assets
Fixed assets 165,4 293,0
Net intangible assets 65,6 100,2
Investment in associated companies 80,1 276,1
Investments of long-term insurance subsidiary 557,6 371,6
Linked product investments 271,9
Other investments and non-current assets 56,5 130,9
Deferred tax asset 105,0 271,1
Accounts receivable 799,7 248,4
Loans and advances 191,2 1 073,2
Investment and trading securities 72,7 557,2
Short-term money market assets 656,4
Cash and short-term funds 228,4 499,0
Total assets 2 594,1 4 477,1
Shareholders" funds
Ordinary shareholders" funds 993,1 1 218,0
Outside shareholders" funds 190,4 910,3
Total shareholders" funds 1 183,5 2 128,3
Liabilities
Deposits and current accounts 25,8 1 339,3
Policyholders" funds 556,9 372,1
Linked product liabilities 271,9
Long-term liabilities 3,7 119,0
Deferred tax liability 0,4 16,0
Accounts payable and other liabilities 455,8 421,2
Short-term borrowings 96,1 81,2
Total liabilities 1 410,6 2 348,8
Total shareholders" funds and liabilities 2 594,1 4 477,1
Net asset value per share (cents) 828 1 015
Net tangible asset value per share (cents) 712 807
Group cash flow statements
28 Feb 28 Feb
2003 2002
Rm Rm
Cash retained from operating activities 120,0 72,8
Cash used in investment activities (275,4) (410,5)
Cash flow attributable to investment in short-term
income-earning assets 176,2 435,4
Cash flow used in financing activities (240,5) (162,1)
Net decrease in cash and cash equivalents (219,7) (64,4)
Cash and cash equivalents at beginning of period 443,0 507,4
Cash and cash equivalents at end of period 223,3 443,0
Segmental analysis
PSG Group is an investment holding company operating in the financial services
industry. Its aim is to create wealth for its shareholders through a strategy of
ultimate empowerment of its companies and management.
PSG"s principal investments are:
* Capitec Bank Holdings Limited ("Capitec Bank")
(Direct interest 55%)
Retail banking for the lower income groups in South Africa
* Channel Group Limited ("Channel Group")
(Direct interest 88%)
Life insurance and employee benefits in southern Africa
* PSG Investment Services (Pty) Ltd ("PSG Investment Services")
(Direct interest 95%)
Financial advice, funds management, stockbroking as well as a 20%-held associate
m Cubed Holdings Limited ("m Cubed")
* PSG Capital Limited ("PSG Capital")
(Direct interest 100%)
Investment banking and corporate finance
Commentary
Review of annual results
The twelve months ended 28 February 2003 proved to be a difficult period for the
financial services industry. During this period PSG Group focused on realigning
its businesses, making it a stronger company than it was a year before:
* NAV per share dropped by 18% from 1 015c to 828c mainly as result of turning
NAV to cash through the sale of PSGIB.
* Headline earnings per share decreased by 50% from 141c to 71c.
* Non-headline losses amounted to R270,7 million mainly comprising goodwill
amortisation of R27,6 million, a R183,3 million loss on the sale of PSGIB and
provisions against investments.
* Despite the decrease in headline earnings PSG succeeded in increasing the
cash flow to its shareholders by paying a special distribution of 200c on 31
March 2003.
* As PSG Group maintains a dividend payout ratio of 30%, a normal dividend of
20c is declared for the year ended 28 February 2003.
As a result of the poor performance during the current year we have taken action
to redirect the PSG Group and unlock value for shareholders, mainly by disposing
of PSG Group"s investment in PSGIB for R620 million.
Review of operations
PSG Investment Bank Holdings Limited ("PSGIB")
* PSGIB as an A2 bank did not escape the severe impact of the secondary banking
crises during 2002. Although it weathered the liquidity crises, it experienced a
substantial reduction in its deposit base, which necessitated a realisation of
assets and the curtailment of banking businesses.
* PSGIB produced 81% of PSG"s headline earnings during the previous financial
year. It relied on large once-off transactions to produce income while it built
its deposit book. A bank needs to gear its balance sheet through deposits to
earn a stream of annuity income. In banking, trust is one of the most important
elements, as deposit holders need to trust that a bank will always repay their
money. The secondary banking crises damaged this trust for all the smaller banks
causing a major setback to our business model.
* As PSGIB was continuously trading at a substantial discount to net asset
value we decided it was best to unlock value for our shareholders and sold our
56,5% interest in PSGIB at approximately its tangible net asset value.
PSG Capital
* PSG Capital has been profitable since its launch seven months ago - achieving
headline earnings of R10 million.
* PSG Capital was incorporated during the year with the following main
operating activities:
- Corporate finance and investments
- Alternative asset management
- Treasury outsourcing
- Trade finance
* PSG Capital was launched on the acquisition of certain strategic assets from
PSGIB, namely PSG Trade Finance, PSG Treasury Outsourcing, the PSGIB corporate
finance team and the TBB claims.
* To facilitate the disposal of PSGIB, PSG Capital also acquired certain
banking assets from PSGIB. These banking assets are either managed or being
disposed of.
Capitec Bank
* Capitec"s headline earnings, published on 27 March 2003, of R30 million or 46
cents per share were in line with their pre-listing statement forecast - a
commendable achievement considering the market conditions.
* During the year Capitec granted 2,4 million loans of an average size of R618.
The value of loans granted during the year increased by 45% to R1,5 billion.
* Although the loan book grew rapidly the bad debts reduced from 3,5% a year
ago to 2,6% of loans granted.
* Capitec has continued its transformation to a mass-market retail bank.
* The number of branches declined from 316 to 266, mainly as a result of the
merging of branches and disposal of operations in Botswana and Namibia.
Channel Group
* Channel Group contributed R17,6 million to PSG Group"s headline earnings; up
44% on the previous year.
* The goal of Channel Group is "to become the smartest, little life office in
southern Africa".
* Channel Group was further streamlined with the disposal of part of Channel
Management Services for R7,6 million and Channel Africa for R1,6 million.
PSG Investment Services
* The contribution from PSG Investment Services decreased from R22,9 million to
R6,6 million, mainly as a result of the adverse performance of stock markets
worldwide, a poorer contribution from m Cubed, Appleton and the strengthening of
the rand.
* PSG Investment Services, excluding Appleton and m Cubed, achieved a profit on
an operating level of R17,2 million (2002: R9,0 million).
* In line with the industry consolidation the asset manager and stockbroker,
Appleton, was acquired by PSG Investment Services during the year. As Appleton
was one of PSG Investment Services" largest competitors, this presents an
opportunity for cost savings and an increase in market share. While the
integration of Appleton is proving to be challenging, we are confident that the
synergies will be realised in the years ahead.
* Financial advice: 190 financial advisors operating from 83 (2002: 79)
distribution outlets, one of the widest geographical networks in the industry.
* Fund management: Funds under management and administration have, after the
acquisition of Appleton, increased to R13 billion (2002: R7,2 billion).
* Stockbroking: A superior electronic offering with PSG Online as an
established brand. Stockbroking is a volume business and PSG Online intends
maintaining its lead regarding volumes in the private client business.
Dividend
The directors have declared a dividend of 20 cents per share (2002: 50 cents).
To comply with the requirements of STRATE, the following dates are applicable:
Last day to trade cum-dividend Friday, 20 June 2003
Trading ex-dividend commences Monday, 23 June 2003
Record date Friday, 27 June 2003
Day of payment Monday, 30 June 2003
Share certificates may not be dematerialised between Monday, 23 June 2003, and
Friday, 27 June 2003, both days inclusive.
Prospects
After the sale of PSGIB our sources of income have become more balanced, with
our four main businesses delivering a well diversified income stream.
As PSG Group"s shares are currently trading at a discount to net asset value we
are continuing our consideration of various options to unlock this discount.
Annual general meeting
This meeting will be held at 09:00 on Friday, 13 June 2003.
Contribution to headline earnings
28 Feb 28 Feb
2003 2002
Rm Rm
Capitec Bank 16,2 24,9
Channel Group 17,6 12,2
PSG Investment Services 1 6,6 22,9
PSG Capital 10,0
PSG Investment Bank 31,1 141,3
Corporate 2 3,3 (26,1)
84,8 175,2
1 Includes PSG"s interest in Appleton and m Cubed
2 Includes financing costs of R15,0 million (2002: R23,3 million)
Statements of changes in equity
28 Feb 28 Feb
2003 2002
Rm Rm
Ordinary shareholders" funds at beginning of period 1 218,0 1 140,8
Share buyback (44,6)
Movement in non-distributable reserves 0,6 8,6
Net income for the period (185,9) 173,0
Distribution to shareholders (39,6) (59,8)
Ordinary shareholders" funds at end of period 993,1 1 218,0
Notes
1. Accounting policies
The accounting policies adopted for the purpose of this report comply with South
African Statements of General Accepted Accounting Practice as well as with
applicable legislation. These accounting policies are also consistent with those
of the previous year, except that owner-occupied properties are now depreciated.
2. Audit of results
The results have been audited by PricewaterhouseCoopers Inc. A copy of their
unqualified audit opinion is available for inspection at the registered office
of the company.
3. Non-headline items
28 Feb 28 Feb
2003 2002
Rm Rm
Exceptional items 236,8 (25,8)
Loss on sale of PSGIB 183,3
Restructuring costs 20,6
Goodwill impairment 21,3 52,3
Impairment charges 16,6 23,0
Investment activities (5,0) 1,4
Negative goodwill (102,5)
Goodwill amortisation 27,6 25,7
Non-headline items of associated companies 6,2
270,6 (0,1)
Taxation (1,4)
269,2 (0,1)
Attributable to outside shareholders 1,5 2,3
270,7 2,2
4. Investment in associated companies
Carrying value
- listed 78,5 243,6
- unlisted 1,6 32,5
80,1 276,1
Market and directors" valuation
- listed 53,5 198,5
- unlisted 2,7 39,2
56,2 237,7
5. Discontinued operations
PSG Group disposed of its investment in PSGIB with effect from 1 November 2002.
The purchase consideration, which is included in accounts receivable, was
settled on 31 March 2003. Prior to the disposal PSG Group acquired certain
assets from PSGIB. The purchase price for these assets was also paid on 31 March
2003.
The following information pertains to the sale of PSGIB:
31 Aug 28 Feb
2002 2002
Rm Rm
Assets and liabilities
Total assets 2 375,6 3 341,5
Total liabilities (1 029,1) (1 679,3)
Net assets retained within PSG Group (172,1) (172,1)
Net assets distributed and disposed of 1 174,4 1 490,1
By order of the board
Jannie Mouton Chris Otto
Chairman Director
Stellenbosch
22 April 2003
Secretaries and registered office
PSG Corporate Services (Pty) Limited
1st Floor, Ou Kollege, 35 Kerk Street, Stellenbosch 7600
Registrars
Ultra Registrars (Pty) Limited
11 Diagonal Street, Johannesburg 2001
Directors
JF Mouton (chairman)*, CA Otto*, L van A Bellingan, PE Burton, J de V du Toit,
MJ Jooste, LM Rouillard
(*Executive)
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