PSG GROUP LIMITED - Trading statement

Trading statement

PSG GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number: 1970/008484/06
Share code: PSG
ISIN number: ZAE000013017
(“PSG”)

PSG FINANCIAL SERVICES LIMITED
Incorporated in the Republic of South Africa
Registration number: 1919/000478/06
Share code: PGFP
ISIN number: ZAE000096079

SUM-OF-THE-PARTS (“SOTP”) VALUE AND RECURRING HEADLINE
EARNINGS

PSG, an investment holding company, continues to use the
SOTP value and recurring headline earnings per share
benchmarks to provide management and investors with a
realistic and transparent way of evaluating PSG’s
performance.

PSG’s SOTP value is calculated using the quoted market
prices for all JSE-listed investments, and market-related
valuations for unlisted investments.

PSG’s recurring headline earnings is the sum of its
effective interest in that of each of its underlying
investments. The result is that investments in which PSG
holds less than 20% and are generally not equity
accountable in terms of accounting standards, are
included in the calculation of consolidated recurring
headline earnings. One-off items are excluded from
recurring headline earnings.

RESTATEMENT OF COMPARATIVES

The comparative results for the six-month period ended 31
August 2014 have been restated following Capespan’s, a
subsidiary of Zeder Investments, change in the accounting
treatment of an existing lease arrangement, as well as
the early adoption of amendments to its accounting for
bearer plant biological assets.

The aforementioned restatements had the following impact
on PSG’s results for the previous financial period ended
31 August 2014:

    -   Recurring headline earnings per share amounts to
        249.4 cents instead of 252.7 cents;

    -     Headline earnings per share amounts to 309.7
          cents instead of 312.9 cents; and

    -     Attributable earnings per share amounts to 302.7
          cents instead of 305.8 cents.

It should be noted that the aforementioned restatements
were already accounted for in PSG’s audited financial
results for the year ended 28 February 2015. The full
particulars of the aforementioned restatements will be
included in the announcement containing PSG’s unaudited
financial results for the six months ended 31 August
2015.

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited,
a listed company is required to publish a trading
statement as soon as it becomes reasonably certain that
the financial results for the next period to be reported
on will show a 20% or more difference from those of the
previous corresponding period.

PSG hereby advises that a reasonable degree of certainty
exists that:

1.       Its SOTP value per share as at 31 August 2015 was
         R196.85, being 20.6% higher than the R163.28
         reported as at 28 February 2015;

2.       Its SOTP value per share as at 7 October 2015 was
         R209.35;

3.       For the six-month period ended 31 August 2015:

     -     Recurring headline earnings per share will be
           between 352 cents and 357 cents, being between
           41.1% and 43.1% higher than that of the six-
           month period ended 31 August 2014;

     -     Headline earnings per share will be between 419
           cents and 425 cents, being between 35.3% and
           37.2% higher than that of the six-month period
           ended 31 August 2014; and

     -     Attributable earnings per share will be between
           420 cents and 426 cents, being between 38.8% and
           40.7% higher than that of the six-month period
           ended 31 August 2014.

The increase in recurring headline earnings per share was
mainly as a result of strong earnings growth from Capitec
and PSG Konsult.

Headline earnings per share increased by a smaller margin
than recurring headline earnings per share mainly due to
lower   marked-to-market   gains   achieved   on   equity
securities held by Zeder Investments and Dipeo Capital, a
BEE investment holding company emanating from the
PSG/Thembeka scheme of arrangement, in which PSG holds a
49% interest.

Attributable earnings per share increased by a higher
margin than headline earnings per share mainly due to
non-headline gains made on the disposal of investments in
associated companies.

This financial information has not been reviewed or
reported on by the auditor of PSG. The unaudited results
for the six-month period ended 31 August 2015 will be
published on or about 12 October 2015.

Stellenbosch
8 October 2015

Sponsor
PSG Capital

Date: 08/10/2015 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.