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PEREGRINE HOLDINGS LIMITED - Unaudited Results For The Six Months Ended 30 September 2015

Release Date: 11/11/2015 09:45
Code(s): PGR     PDF:  
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Unaudited Results For The Six Months Ended 30 September 2015

Peregrine Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/006026/06)
JSE share code: PGR ISIN: ZAE000078127
("Peregrine" or �the Group�)

UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

   -    Normalised headline earnings up 12% to R246 million
   -    Normalised headline and basic earnings per share up 7%
   -    Normalised cash generated from operating activities R306 million

COMMENTARY

The Group continued to build on its strategy of delivering higher quality, diversified earnings
during the six month period ended 30 September 2015. Significant growth in earnings from
the trading and structuring businesses housed within Peregrine Securities offset slightly
weaker returns within the hedge fund and wealth management sectors on the back of global
and local market weakness. Annuity earnings grew meaningfully across all business segments
and now account for the majority of Group earnings with the contribution from offshore
playing a more meaningful role in diversifying Group income in the context of a weaker
Rand.

Financial results

Basic profit attributable to shareholders increased by 5% to R240 million (2014: R228
million) with basic earnings per share amounting to 112.6 cents per share (2014: 111.8 cents
per share). Headline earnings increased by 5% to R228 million (2014: R217 million) with
headline earnings per share increasing by 1% to 112.5 cents per share (2014: 111.8 cents per
share). The above IFRS earnings contain distortions relating to the accounting treatment of
share based payments which artificially increased IFRS earnings in prior years. Therefore,
consistent with the prior year, normalised earnings (which more accurately reflect the true
economic results) are disclosed as follows:

       -    normalised headline earnings increased by 12% to R246 million (2014: R220
            million);
       -    normalised headline earnings per share increased by 7% to 115.4 cents (2014:
            108.1 cents per share).

Group normalised operating revenue increased by 7% to R1.13 billion (2014: R1.06 billion).
Income from proprietary investing activities decreased by 30% to R45 million (2014: R65
million). Net interest earned increased by 40% to R45 million (2014: R32 million) with
income from equity accounted investees increasing by 8% to R49 million (2014: R46
million).

As a result of the consolidation of various hedge funds managed by the Group, certain
balance sheet items are restated to more accurately reflect the normalised position.
Normalised cash generated from operating activities amounted to R306 million (2014: R276
million), once again highlighting the cash generative nature of the Group.

Aggregate normalised cash in the Group amounted to R767 million at half year-end, of which
R15 million was available at the centre, R353 million held offshore and the balance of R399
million held by local subsidiaries. The tangible net asset value in the Group, excluding the
carrying value of associates, amounted to R2.0 billion.

Segmental results

Substantial non-controlling interests, including Nala's shareholding in Peregrine SA
Holdings, exist in many of the Group`s operations. Management believes that headline
earnings per reportable segment (which is the basis for the commentary below) better reflects
and aids in the understanding of each division`s specific economic benefit to the shareholders
of the Group. In addition, operating results are presented before tax and before non-
controlling interests in the financial table below.

Wealth Management

In a difficult investment environment, Citadel continued to capitalise on its positioning as a
leading private client wealth manager in South Africa. Assets under management as at half-year-end 
were R36.0 billion with gross inflows for the six months amounting to R1.7 billion.
The client retention rate is in excess of 95%.

Headline earnings for the six months decreased by 8% to R82 million (2014: R89 million)
with very pleasing annuity earnings growth and healthy inflows offset by lower performance
fees earned.

Asset Management

The Group's Asset Management division comprises a number of fund management
businesses. The largest contributor to the division is the Group's flagship hedge fund
manager, Peregrine Capital. Headline earnings decreased to R23 million (2014:
R33 million) primarily as a result of reduced, but nevertheless meaningfully positive, fund returns in
the context of negative markets. Peregrine Capital's asset base grew to R5.9 billion by half
year-end (March 2015: R4.8 billion) largely as a result of strong inflows.

Stenham

Post year-end, further share purchase and repurchase transactions took place in the UK and
Guernsey based asset management and trust businesses, of Stenham. As a result, Peregrine's
share in Stenham increased from 80.9% to 84.9%.

Peregrine's share of Stenham's profit increased by 111% to R44 million (2014: R21 million).

Stenham Asset Management performed reasonably against a backdrop of negative global
market returns. Core revenues in Sterling terms have increased primarily due to the increase
in assets under advisory. Reversing the trend of net outflows experienced in the recent past,
net inflows amounted to $314 million during the period under review. Including an advisory
mandate of $1.2 billion which was procured in the final quarter of the previous year, total
assets under management and advice amount to $3.45 billion (March 2015: $3.18 billion).

There was a strong performance from the Stenham property portfolio including significant
dividends received from Stenham's investment in Stenprop Limited. With effect from 1
October 2014, the Stenham Property business was sold to Stenprop in exchange for Stenprop
Limited shares. As part of the transaction, certain properties were retained by Stenham with
the intention being to realise these over time. These realisations are progressing in accordance
with such plan.

Stenham Trustees continue to perform well and the integration of Cannon Trustees (the
Guernsey based trust and fiduciary company, which was acquired in the prior year) is
progressing according to plan. Annuity revenue flows continue to grow strongly.

Stenham remains strongly cash-flow generative, with no long-term debt and cash available to
augment future growth.

Broking and Structuring

The positioning of Peregrine Securities as one of the few substantial, independent structuring
and broking entities in South Africa enabled the business to once again perform exceptionally
well. It has built several of the industry's leading franchises in the areas of prime broking and
derivative broking and structuring, which have benefited from increased financial market
trading volumes. Peregrine Securities increased its headline earnings contribution by 56% to
R51 million (2014: R33 million) for the half year.

Advisory

The acquisition of 50% of Java Capital was concluded with effect from 1 July 2014. Java
Capital is widely regarded as the premier independent corporate advisory house in South
Africa competing directly, and successfully, for mandates against local and international
banks. It is also the industry leader in the provision of corporate finance services in the listed
property sector.

Java Capital's headline earnings contribution for the six months amounted to R12 million
(2014: R6 million) with Java Capital having a significant amount of unbilled work in
progress and pipeline of new business as at the end of the reporting period.

Group

Group investment returns net of costs amounted to R33 million (2014: R38 million) primarily
due to lower returns generated on the Groups' proprietary investments in hedge funds.

Issued share capital

The Group's issued shares amount to 223.505 million and, net of treasury shares of 20.484
million (which includes the 10 million Peregrine shares which were purchased by the Citadel
Share Trust in the 2013 financial year), amount to 203.021 million.

An extension of the executive incentive scheme was implemented in 2013, in terms of which
2.561 million shares will be allotted and issued during November 2015 at a price of R11.02
per share. No further extension to the executive incentive scheme has been implemented.

Directorate

There have been no changes to the board of directors during the year period under review.

Conclusion

In difficult and challenging global market conditions, Peregrine has managed to deliver a set
of results which has once again capitalised on its strong base of profitable, cash generative
operating businesses and which highlight the diversified nature of the earnings streams.
Whilst proprietary returns and performance fees have decreased in an environment
characterised by weak markets, levels of annuity income have, in accordance with the
Group's strategy, increased substantially. Our new acquisitions continue to exceed
expectations and the Group, which is well positioned to capitalise on further growth
opportunities, continues to focus on growing its businesses organically and driving cross
business revenue synergies.

Jonathan Hertz                                           Sean Melnick
Group CEO                                                Non-executive Chairman

Sandton
11 November 2015

Directors: SA Melnick^ (Chairman); J Hertz (CEO); RE Katz (CFO); M Yachad; BC
Beaver*; P Goetsch^; LN Harris#; S Sithole*; SI Stein*

^ Non-executive *Independent non-executive #Lead independent non-executive

Company secretary and registered office: Peregrine Management Services Proprietary
Limited, 6A Sandown Valley Crescent, Sandown, Sandton, 2196 (PO Box 650361, Benmore,
2010), Telephone: +27 11 722 7400 Fax: +27 11 722 7410

Transfer Secretaries:� Computershare Investor Services Proprietary Limited, 70 Marshall
Street, Johannesburg, 2001, (PO Box 61051, Marshalltown, 2107)

Joint Sponsor:��Java Capital��

Joint Independent Sponsor:��Deloitte & Touche Sponsor Services Proprietary Limited�

Further detail and a print-friendly version of these results are available from the company's
website at http://www.peregrine.co.za on Thursday, 12 November 2015.

Condensed consolidated statement of comprehensive income
                                                                                                                               Unaudited for
                                                                                                              Unaudited for   the six months
                                                                                                % change     the six months         ended 30   Audited for the
                                                                                                 2014 to           ended 30        September     year ended 31
                                                                                                    2015     September 2015             2014        March 2015
                                                                                                                      R'000            R'000             R'000

Operating revenue                                                                                      3          1,091,125        1,062,574         2,410,756
Investment and other income                                                                           32            111,791           84,904           227,596
Total revenue                                                                                          5          1,202,916        1,147,478         2,638,352
Fair value (loss)/gain on linked financial investments                                                            (295,374)         (39,085)           521,337
Fair value gain/(loss) on policyholder contract liabilities                                                         295,374           39,085         (521,337)
Operating expenses                                                                                     9          (889,369)        (818,632)       (1,786,412)
Profit from operations                                                                                -5            313,547          328,846           851,940
Net interest received                                                                                 38             47,571           34,507            72,196
  Interest received                                                                                                  49,173           36,608            75,874
  Interest paid                                                                                                     (1,602)         (2,101)            (3,678)
Share of profits from equity accounted investees                                                       9             49,483           45,516            70,568
Profit before taxation and capital items                                                                            410,601          408,869           994,704
Capital items                                                                                                           502             -              148,086
Profit before taxation                                                                                 1            411,103          408,869         1,142,790
Taxation                                                                                                           (86,019)        (101,869)         (221,024)

Profit for the period                                                                                  6            325,084          307,000           921,766

Other comprehensive income for the period net of taxation
 Items that may be reclassified subsequently to profit or loss:
 Currency translation differences                                                                                   215,541           61,598            43,200

Total comprehensive income for the period                                                                           540,625          368,598           964,966

Profit for the period attributable to:
Equity holders of the company                                                                          5            239,854          227,640           676,951
Non-controlling interests                                                                              7             85,230           79,360           244,815

                                                                                                       6            325,084          307,000           921,766

Total comprehensive income for the period attributable to:
Equity holders of the company                                                                                       421,962          276,756           714,265
Non-controlling interests                                                                                           118,663           91,842           250,701

                                                                                                                    540,625          368,598           964,966

Basic earnings per ordinary share (cents)                                                              1              112.6            111.8             327.0
Diluted earnings per ordinary share (cents)                                                            3              111.8            109.0             318.0
Number of ordinary shares in issue ('000)                                                                           223,505          217,147           223,505
Treasury shares held ('000)                                                                                          20,484           20,484            20,484
Weighted average number of ordinary shares in issue ('000)                                                          203,021          193,698           197,284
Diluted weighted average number of ordinary shares in issue ('000)                                                  204,514          198,769           202,898

Reconciliation of headline earnings
                                                                                                              Unaudited for    Unaudited for
                                                                                                           %        the six   the six months
                                                                                                      change   months ended         ended 30   Audited for the
                                                                                                     2014 to   30 September        September     year ended 31
                                                                                                        2015           2015             2014        March 2015
                                                                                                                      R'000            R'000             R'000

Profit for the period attributable to equity holders                                                       5        239,854          227,640           676,951
Adjustment relating to earnings attributable to participating treasury shares                                      (11,260)         (11,015)          (31,779)
Profit attributable to ordinary shareholders                                                               6        228,594          216,625           645,172
Gross effect of net gain on disposal of investment in equity accounted investee                                       (478)                -                 -
Tax effect of net gain on disposal of investment in equity accounted investee                                            90                -                 -
Non-controlling interest effect of net gain on disposal of investment in equity accounted investee                      171                -                 -
Gross effect of net gain on disposal of interest in subsidiaries (1)                                                      -                -         (142,626)
Non-controlling interest effect of net gain on disposal of interest in subsidiaries                                       -                -            31,799
 
Headline earnings                                                                                          5        228,377          216,625           534,345

Headline earnings per ordinary share (cents)                                                               1          112.5            111.8             270.9
Diluted headline earnings per ordinary share (cents)                                                       2          111.7            109.0             263.4
Cash dividend paid per ordinary share in respect of the previous year (cents)                             39          100.0             72.0             100.0
Cash dividend per ordinary share declared subsequent to 31 March (cents)                                  50          150.0            100.0             150.0

(1) No tax effect

Condensed consolidated statement of financial position
                                                                                                                       Unaudited as at 30  Audited as at March
                                                                                                                           September 2015                 2015
                                                                                                                                    R'000                R'000
Assets

Non - current assets                                                                                                            7,875,537            7,647,773

Property, plant and equipment                                                                                                      73,237               63,228
Intangible assets                                                                                                                 622,592              590,262
Investment in equity accounted investees                                                                                          313,560              313,350
Investments linked to policyholder investment contracts                                                                         5,859,329            5,932,805
Financial investments                                                                                                             900,939              648,840
Loans and receivables                                                                                                               6,858                  -
Deferred taxation                                                                                                                  99,022               99,288

Current assets                                                                                                                 21,998,278           22,719,601

Financial investments                                                                                                           2,063,653            1,470,999
Loans and receivables                                                                                                             145,443              146,299
Trade and other receivables                                                                                                     1,118,009              743,919
Amounts receivable in respect of stockbroking activities                                                                       16,828,292           17,892,958
Taxation                                                                                                                           12,745                6,089
Cash and cash equivalents                                                                                                       1,830,136            2,459,337

Total assets                                                                                                                   29,873,815           30,367,374

Equity and liabilities

Equity                                                                                                                          3,303,266            3,230,283

Equity attributable to equity holders of the company                                                                            2,796,683            2,660,901
Non-controlling interests                                                                                                         506,583              569,382

Non - current liabilities                                                                                                       6,116,448            5,971,189

Policyholder investment contract liabilities                                                                                    5,859,329            5,932,805
Interest-bearing borrowings                                                                                                       151,840               10,234
Loans and other payables                                                                                                           80,354                8,390
Deferred taxation                                                                                                                  24,925               19,760

Current liabilities                                                                                                            20,454,101           21,165,902

Loans and other payables                                                                                                          102,922              134,359
Financial instrument liabilities                                                                                                2,078,301            1,505,297
Trade and other payables                                                                                                          888,931            1,173,399
Amounts payable in respect of stockbroking activities                                                                          17,337,385           18,303,172
Taxation                                                                                                                           46,562               49,675

Total equity and liabilities                                                                                                   29,873,815           30,367,374

Net tangible asset value per ordinary share (cents)                                                                               1,036.0                986.8
Net asset value per ordinary share (cents)                                                                                        1,312.9              1,249.1

Condensed consolidated statement of changes in equity
                                                                                                          Total capital and   Non-controlling
                                                                                                                   reserves         interests     Total equity
                                                                                                                      R'000             R'000            R'000
Unaudited - 2015
Balance at 31 March 2015                                                                                          2,660,901           569,382        3,230,283
Profit for the period                                                                                               239,854            85,230          325,084
Other comprehensive income for the period                                                                           182,108            33,433          215,541
Transactions with owners recorded directly in equity:                                                             (286,180)         (181,462)        (467,642)
 Dividends paid                                                                                                   (304,531)         (143,846)        (448,377)
 Share-based payments                                                                                                 8,021                 -            8,021
 Disposal of shares in subsidiary to non-controlling shareholders                                                    10,330             5,371           15,701
 Repurchase and cancellation of shares of subsidiary                                                                      -          (42,987)         (42,987)

Balance at 30 September 2015                                                                                      2,796,683           506,583        3,303,266

Unaudited - 2014
Balance at 31 March 2014                                                                                          2,063,521           629,882        2,693,403
Profit for the period                                                                                               227,640            79,360          307,000
Other comprehensive income for the period                                                                            49,116            12,482           61,598
Transactions with owners recorded directly in equity:                                                              (93,401)          (60,905)        (154,306)
 Dividends paid                                                                                                   (192,828)          (66,442)        (259,270)
 Share-based payments                                                                                                11,918                 -           11,918
 Subscription of shares in subsidiary                                                                                     -             7,377            7,377
 Purchase of shares in subsidiary from the non-controlling shareholders                                                   -           (1,431)          (1,431)
 Repurchase and cancellation of shares of a subsidiary                                                                    -             (409)            (409)
 Issue of additional shares of holding company                                                                       87,509                 -           87,509

Balance at 30 September 2014                                                                                      2,246,876           660,819        2,907,695

Condensed consolidated statement of cash flow
                                                                                                                          Unaudited for the  Unaudited for the
                                                                                                                           six months ended   six months ended
                                                                                                                               30 September       30 September
                                                                                                                                       2015               2014
                                                                                                                                      R'000              R'000

Cash flow from operating activities                                                                                               (948,214)           (70,235)
Cash flow from operating activities excluding stockbroking activities                                                             (145,095)            323,313
Cash dividends paid                                                                                                               (438,045)          (259,270)
Cash flow from stockbroking activities                                                                                            (365,074)          (134,278)
Cash flow from investing activities                                                                                               (158,317)          (166,910)
Cash flow from financing activities                                                                                                425,354             105,262

Net decrease in cash and cash equivalents                                                                                         (681,177)          (131,883)
Cash and cash equivalents at beginning of the year                                                                                2,459,337          1,811,895
Effects of exchange rate changes on cash and cash equivalents                                                                        51,976             21,936

Cash and cash equivalents at end of the period                                                                                    1,830,136          1,701,948

Segmental analysis
                                                                      Interest and share
                                                                         of profits from
                                                                        equity accounted  Profit from ordinary                             % change in headline
                                                       Total revenue           investees         activities(1)         Headline earnings               earnings
                                                               R'000               R'000                 R'000                     R'000           2014 to 2015
Unaudited for the six months ended 30 September 2015

Wealth and Asset Management                                  447,100              22,266               177,427                   105,178                    -14
Wealth Management - local                                    370,266              15,893               114,911                    82,001                     -8
Asset Management                                              76,834               6,373                62,516                    23,177                    -30
Broking and Structuring                                      415,386              25,016               127,438                    51,410                     56
Stenham                                                      276,258                 361                57,632                    43,902                   >100
Advisory                                                          -               13,768             13,768(2)                    11,841                   >100
Total from operating reportable segments                   1,138,744              61,411               376,265                   212,331                     17
Group                                                         38,060              33,458                44,219                    33,414                    -12

                                                           1,176,804              94,869               420,484                   245,745                     12
Unaudited for the six months ended 30 September 2014

Wealth and Asset Management                                  484,996              18,421               203,532                   122,767
Wealth Management - local                                    368,300              11,357               130,656                    89,456
Asset Management                                             116,696               7,064                72,876                    33,311
Broking and Structuring                                      294,704              13,968                81,178                    32,865
Stenham                                                      264,196               5,510                32,621                    20,856
Advisory                                                         -                 6,676              6,676(2)                     5,742
Total from operating reportable segments                   1,043,896              44,575               324,007                   182,230
Group                                                         77,072              33,841                68,951                    38,053

                                                           1,120,968              78,416               392,958                   220,283

Note : Group funding costs are disclosed as part of "group" and have not been allocated to the underlying operating reportable segments

(1)� Profit from ordinary activities is synonymous with profit before taxation and capital items
(2)� Represents 50% of profit after taxation

Reconciliation of segmental analysis to statement of comprehensive income
                                                                                                                                                Total from
                                                                                  Wealth and                                                     operating
                                                                                       Asset     Broking and                                    reportable                Non-reportable
                                                                                  Management     Structuring      Stenham      Advisory           segments        Group     segments (1)        Total
                                                                                       R'000           R'000        R'000         R'000              R'000        R'000            R'000        R'000
For the six months ended 30 September 2015
Total revenue per segmental analysis                                                 447,100         415,386      276,258             -          1,138,744       38,060                -    1,176,804
Reconciling items:                                                                  (28,163)        (15,199)            -             -           (43,362)     (28,543)           98,017       26,112
Operating revenue - internal                                                        (27,748)        (12,709)            -             -           (40,457)            -                -     (40,457)
Investment income - internal                                                           (415)         (2,490)            -             -            (2,905)     (28,543)           31,448            -
Investment income of non-reportable segment - external                                     -               -            -             -                  -            -           66,569       66,569

Total revenue per statement of comprehensive income                                  418,937         400,187      276,258             -          1,095,382        9,517           98,017    1,202,916

Profit before taxation and capital items per segmental analysis                      177,427         127,438       57,632        13,768            376,265       44,219                -      420,484
Reconciling total revenue items per above                                           (28,163)        (15,199)            -             -           (43,362)     (28,543)           98,017       26,112
Operating expenses of non-reportable segment - external                                    -               -            -             -                  -            -         (30,159)     (30,159)
Share based payment charge (2)                                                       (8,021)               -            -             -            (8,021)            -                -      (8,021)
Interest paid - internal                                                                   -           2,185            -             -              2,185            -                -        2,185

Profit before taxation and capital items per statement of comprehensive income       141,243         114,424       57,632        13,768            327,067       15,676           67,858      410,601

For the six months ended 30 September 2014
Total revenue per segmental analysis                                                 484,996         294,704      264,196             -          1,043,896       77,072                -    1,120,968
Reconciling items:                                                                  (35,307)          38,920            -             -              3,613     (83,687)          106,584       26,510
Operating revenue - internal                                                        (33,988)          38,805            -             -              4,817            -                -        4,817
Operating revenue of non-reportable segment - external                                     -               -            -             -                  -            -            1,697        1,697
Investment income - internal                                                         (1,319)             115            -             -            (1,204)     (83,687)           84,891            -
Investment income of non-reportable segment - external                                     -               -            -             -                  -                        19,996       19,996

Total revenue per statement of comprehensive income                                  449,689         333,624      264,196             -          1,047,509      (6,615)          106,584    1,147,478

Profit before taxation and capital items per segmental analysis                      203,532          81,178       32,621         6,676            324,007       68,951                -      392,958
Reconciling total revenue items per above                                           (35,307)          38,920            -             -              3,613     (83,687)          106,584       26,510
Operating expenses of non-reportable segment - external                                    -               -            -             -                  -            -         (23,856)     (23,856)
Deferred profit participation (2)                                                     19,671               -            -             -             19,671            -                -       19,671
Share based payment charge (2)                                                       (8,021)               -            -             -            (8,021)            -                -      (8,021)
Interest paid - internal                                                                   -           1,995            -             -              1,995           56                -        2,051
Interest paid - external                                                                   -               -            -             -                  -            -              (1)          (1)
Share of profits from equity accounted investees - internal                                -               -        (443)             -              (443)            -                -        (443)

Profit before taxation and capital items per statement of comprehensive income       179,875         122,093       32,178         6,676            340,822     (14,680)           82,727      408,869

(1) Refers to the group's consolidated proprietary hedge and property fund investments which do not meet the quantitative thresholds for determining reportable segments

(2) Management treats the deferred profit scheme (which is settled in PGR shares) as an expense as profits are earned, but for IFRS purposes, it is a share-based payment arrangement, in which the 
grant date fair value is recognised over the vesting period.

Notes & Compliance

The condensed consolidated interim financial statements of the Peregrine Group as at and for the six months ended 30 September 2015 comprise the company and its
subsidiaries ("the Group") results and the Group's interests in equity accounted investees.

Basis of preparation
                                                                                                                                                             
The condensed consolidated unaudited interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), 
(IAS) 34 Interim Financial Reporting, except for the fair value measurement disclosures required by IAS34.16A(j), the SAICA Financial Reporting Guides 
as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of 
the Companies Act of South Africa. The accounting policies applied in the preparation of the condensed consolidated financial statements are in terms of 
International Financial Reporting Standards and are consistent with those applied in the consolidated financial statements as at and for the year ended 31 March 2015.

In preparing these condensed consolidated unaudited interim financial statements, management made judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements
made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated
financial statements as at and for the year ended 31 March 2015.

The preparation of the Group's results have been under the supervision of R E Katz CA (SA), the Group Chief Financial Officer.

These financial statements have not been reviewed or reported on by the company's auditors, KPMG Inc.

The prior year audited results are a summary of the consolidated financial statements as at and for the year ended 31 March 2015, which were prepared under the
supervision of R E Katz CA (SA), the Group Chief Financial Officer. A copy of these financial statements can be obtained from the issuer's registered office.

Auditor's report for the year ended 31 March 2015

The consolidated and separate financial statements of Peregrine Holdings Limited ("Peregrine") for the year ended 31 March 2015 have been audited by the company's
auditor, KPMG Inc. In their report dated 14 August 2015, which is available for inspection at the Company's Registered Office, KPMG Inc. state that their audit was
conducted in accordance with the International Standards on Auditing and have expressed an unmodified conclusion on the consolidated and separate financial statements
of Peregrine.

Acquisitions

1. Peregrine's shareholding in Stenham increased from 80.91% to 84.89% in August 2015 following the repurchase and subsequent cancellation of 34 665 Stenham
shares.

Disposals

1. With effect from 1 April 2015, Stenham Trust Limited disposed of a 6% interest for a cash consideration of �1.1 million (R18.9 million), thereby reducing their interest to
94% from 100% and resulting in a profit of �899 304 (R15.9 million), which has been accounted for directly through equity as a transaction with owners.

2. With effect from 1 April 2015, Peregrine Securities Proprietary Limited disposed of a 15% interest in Legae Securities Proprietary Limited for a cash consideration of
R2.5 million, thereby reducing their equity accounted interest from 47.5% to 32.5%, resulting in a capital profit of R501 748.

Events subsequent to reporting date

There have been no material events subsequent to reporting date.

Applicable exchange rates
                                                                            Average rates  Closing rates
USD:ZAR
30 September 2015                                                                   12,55          13,83
31 March 2015                                                                       11,07          12,12
30 September 2014                                                                   10,66          11,30

GBP:ZAR
30 September 2015                                                                   19,33          20,94
31 March 2015                                                                       17,82          17,99
30 September 2014                                                                   17,86          18,32

Date: 11/11/2015 09:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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