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PEREGRINE HOLDINGS LIMITED - Unaudited results for the six months ended 30 September 2016

Release Date: 17/11/2016 07:05
Code(s): PGR     PDF:  
Wrap Text
Unaudited results for the six months ended 30 September 2016

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 2016

   -      Normalised basic earnings up 10% to R270 million
   -      Normalised headline earnings up 4% to R255 million
   -      Normalised cash generated from operating activities of R302 million


COMMENTARY

The Group continued to build on its strategy of delivering higher quality, diversified earnings
during the six month period ended 30 September 2016. There was growth in earnings from all
the operating businesses namely Citadel, Peregrine Capital, Peregrine Securities, Stenham
and Java Capital, resulting in a significantly improved Group operating performance. Higher
returns from proprietary investments within the hedge funds were however offset by a
decrease in the value of proprietary listed investments.

Annuity earnings grew across all business segments and account for an increasing majority of
Group earnings with the contribution from offshore continuing to play a meaningful role in
diversifying Group income.

Financial results

Basic profit attributable to shareholders increased by 12% to R268 million 
(2015: R240 million) with basic earnings per share amounting to 125.3 cents per share 
(2015: 112.6 cents per share). Headline earnings increased by 6% to R242 million (2015: R228 million) with
headline earnings per share increasing by 5% to 118.5 cents per share (2015: 112.5 cents per share).

Consistent with the prior year, the board of directors feels that, in addition to providing the
above disclosed IFRS earnings (which do not accurately reflect the true economic results due
to the accounting treatment relating to share based payments and employee benefits which
resulted in enhanced IFRS earnings), normalised earnings (which more accurately reflect the
true economic results), are disclosed as follows:

       -    normalised headline earnings increased by 4% to R255 million 
            (2015: R246 million);
       -    normalised headline earnings per share increased by 3% to 118.5 cents 
            (2015: 115.4 cents per share).

Group normalised operating revenue increased by 3% to R1.16 billion (2015: R1.13 billion).
Income from proprietary investing activities increased to R93 million (2015: R45 million)
with income from equity accounted investees decreasing slightly to R48 million 
(2015: R49 million). An annexure disclosing IFRS and normalised earnings is available on the 
Group's website.

A good indication of the cash generating capacity of the underlying operating businesses is
that normalised total profit before tax, capital items and non-cash amortisations, adjusted for
total minorities, amounted to R332 million (2015: R317 million). Normalised cash generated
from operating activities amounted to R302 million (2015: R306 million), once again
highlighting the cash generative nature of the Group.

Aggregate normalised cash in the Group amounted to R826 million at half year-end 
(March 2016: R786 million), of which R11 million (March 2016: R21 million) was available at the
centre, R499 million (March 2016: R451 million) held offshore and the balance of 
R316 million (March 2016: R314 million) held by local subsidiaries.

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. Management believes this further aids in the
understanding of each division's profitability.

Wealth Management

In a continuingly difficult investment environment, Citadel continued to capitalise on its
position as a leading private client wealth manager in South Africa. Assets under
management as at half year-end were R44.95 billion (March 2016: R44.93 billion) with gross
inflows for the six months amounting to R2.4 billion (September 2015: R1.7 billion). The
client retention rate in the traditional business amounts to 98%.

Notwithstanding significantly lower performance fees earned, headline earnings for the six
months increased by 1% to R83 million (2015: R82 million) with very pleasing annuity
earnings growth, costs controls and healthy inflows.

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 increased to R32 million (2015: R23 million)
as a result of Peregrine Capital's increased management and performance fees earned by
higher returns on a larger asset base. Peregrine Capital's asset base grew to R8.1 billion by
half year-end (March 2016: R7.3 billion) largely as a result of strong inflows.

Peregrine disposed of its minority shareholding in Caveo Fund Solutions Proprietary Limited
and realised a net capital gain of R12.7 million on disposal.

Stenham

Post year-end, further share purchase and repurchase transactions took place in Stenham, the
group's UK and Guernsey based asset management and trust business, subsidiary. As a
result, Peregrine's share in Stenham increased from 85.08% to 88.19%.

Peregrine's share of Stenham's profit increased by 28% to R56 million (2015: R44 million).

Excluding the once off costs of settling a claim which arose in prior periods, Stenham Asset
Management performed reasonably against a backdrop of muted global market returns. Core
revenues in Sterling terms have decreased primarily due to the decrease in assets under
advisory with total assets under management and advice amounting to $3.2 billion 
(March 2016: $3.4 billion), with net outflows amounting to $151 million during the period under
review. Operating costs have decreased significantly due to cost savings initiatives.

There was a strong performance from the Stenham property portfolio including significant
dividends received from Stenham's investment in Stenprop Limited, which acquired the
Stenham Property business in exchange for Stenprop Limited shares with effect from 
1 October 2014. Despite the effect of the material drop in the market value of Stenprop Limited
in the period under review, earnings were enhanced by the significant gain made on the sale
of certain properties that were retained by Stenham with the intention being to realise the
remaining properties over time.

Stenham Trustees performed satisfactorily in an ever increasing regulatory cost environment
and now incorporates the results of the newly established Bellerive 50% joint venture to
which a portion of the trust business was transferred with effect from 1 April 2016.

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. Earnings for the brokering and structuring segment which now includes an
offshore element grew by 22% to R63 million (2015: R51 million).

Advisory

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 almost 
R18 million (2015: R12 million) with Java Capital still having a significant amount of unbilled
work in progress and pipeline of new business as at the end of the reporting period.

Group

Despite higher returns generated on the Groups' proprietary investments in hedge funds,
Group investment returns, net of Group costs, decreased to R4 million (2015: R33 million)
primarily as a result of the earnings effect of the material drop in the market value of
Stenprop Limited post year end coupled with the Group's share of associated losses, after tax,
in Nala.

Issued share capital

The Group's shares in issue amounts to 226.066 million and, net of 19.772 million treasury
shares (which includes the 9.288 million Peregrine shares purchased by the Citadel Share
Trust), amounts to 206.294 million.

Directorate

During the period under review, while there have been no changes to the board of directors, 
shareholders were notified, in terms of a SENS announcement published on 22 September 2016, that
Jonathan Hertz, the Group CEO, had advised the board of his intention to step down with effect from
30 June 2017.

Conclusion

In continuing difficult and challenging global market conditions, Peregrine has again
managed to deliver a set of results which has capitalised on its strong base of profitable, cash
generative operating businesses and which highlight the diversified nature of the earnings
streams. Whilst certain proprietary returns and performance fees have decreased in an
environment characterised by weak markets, annuity income continues to grow. The Group
continues to focus on growing its businesses organically and driving cross business revenue
synergies and remains well positioned to capitalise on further growth opportunities.


Jonathan Hertz                                           Sean Melnick
Group CEO                                                Non-executive Chairman

Sandton
17 November 2016

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 www.peregrine.co.za on Thursday, 17 November 2016.

Condensed consolidated statement of comprehensive income

                                                                                                Unaudited for
                                                                           Unaudited for the   the six months
                                                                  % change  six months ended         ended 30   Audited for the
                                                                   2015 to      30 September        September     year ended 31
                                                                      2016              2016             2015        March 2016
                                                                                       R'000            R'000             R'000

Operating revenue                                                        5         1,150,898        1,091,125         2,421,874
Investment and other income                                             35           150,610          111,791           310,107
Total revenue                                                            8         1,301,508        1,202,916         2,731,981
Fair value (loss)/gains on linked financial investments                             (88,664)        (295,374)           268,827
Fair value gains/(loss) on policyholder contract liabilities                          88,664          295,374         (268,827)
Operating expenses                                                       2         (909,282)        (889,369)       (1,877,114)
Profit from operations                                                  25           392,226          313,547           854,867
Net interest received                                                  -57            20,632           47,571            86,855
  Interest received                                                                   50,307           49,173            98,658
  Interest paid                                                                     (29,675)          (1,602)          (11,803)
Share of profits from equity accounted investees                        -3            48,104           49,483            70,196
Profit before taxation and capital items                                             460,962          410,601         1,011,918
Capital items                                                                         21,066              502               502
Profit before taxation                                                  17           482,028          411,103         1,012,420
Taxation                                                                           (102,965)         (86,019)         (194,324)

Profit for the period                                                   17           379,063          325,084           818,096

Other comprehensive income for the period net of taxation
 Items that may be reclassified subsequently to profit or loss:
 Currency translation differences                                                  (253,583)          215,541           246,790

Total comprehensive income for the period                                            125,480          540,625         1,064,886

Profit for the period attributable to :
Equity holders of the company                                           12           267,631          239,854           592,668
Non-controlling interests                                               31           111,432           85,230           225,428

                                                                        17           379,063          325,084           818,096

Total comprehensive income for the period attributable to :
Equity holders of the company                                                         44,994          421,962           801,069
Non-controlling interests                                                             80,486          118,663           263,817

                                                                                     125,480          540,625         1,064,886

Basic earnings per ordinary share (cents)                               11             125.3            112.6             275.9
Diluted earnings per ordinary share (cents)(1)                          12             125.3            111.8             275.9

Reconciliation of headline earnings

                                                                                                                 Unaudited for            Unaudited for
                                                                                                        %              the six           the six months
                                                                                                   change         months ended                 ended 30       Audited for the
                                                                                                  2015 to         30 September                September         year ended 31
                                                                                                     2016                 2016                     2015            March 2016
                                                                                                                         R'000                    R'000                 R'000

Profit for the period attributable to equity holders                                                   12              267,631                  239,854               592,668
Adjustment relating to earnings attributable to participating treasury shares                                         (11,531)                 (11,260)              (31,242)
Profit attributable to ordinary shareholders                                                           12              256,100                  228,594               561,426
Gross effect of gain on disposal of investment in equity accounted investee                                           (18,206)                    (478)                 (475)
Tax effect of gain on disposal of investment in equity accounted investee                                                4,078                       90                    89
Non-controlling interest effect of gain on disposal of investment in equity accounted investee                           1,978                      171                   170
Gross effect of gain on disposal of intangible assets(2)                                                               (1,954)                        -                     -
Non-controlling interest effect of gain on disposal of intangible assets                                                   391                        -                     -

Headline earnings                                                                                       6              242,387                  228,377               561,210

Headline earnings per ordinary share (cents)                                                            5                118.5                    112.5                 275.8
Diluted headline earnings per ordinary share (cents)(1)                                                 6                118.5                    111.7                 275.8
Cash dividend paid per ordinary share in respect of the previous year (cents)                          50                150.0                    100.0                 150.0
Cash dividend per ordinary share declared subsequent to 31 March (cents)                                3                155.0                    150.0                 155.0
Number of ordinary shares in issue ('000)                                                                              226,066                  223,505               226,066
Treasury shares held ('000)                                                                                             19,772                   20,484                21,848
Weighted average number of ordinary shares in issue ('000)                                                             204,462                  203,021               203,465
Diluted weighted average number of ordinary shares in issue ('000)(1)                                                  204,462                  204,514               203,465

(1) Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding assuming conversion of all dilutive potential ordinary shares.
    At reporting date there were no potentially dilutive ordinary shares still to be issued (2015: 1 520 442).

As at 30 September 2016 7 088 279 (2015: 8 521 281) participating treasury shares were excluded from the diluted weighted-average number of ordinary shares calculation because their 
effect would have been anti-dilutive.


(2) No tax effect.

Condensed consolidated statement of financial position


                                                          Unaudited as at 30  Audited as at March
                                                              September 2016                 2016
                                                                       R'000                R'000

Assets

Non-current assets                                                 7,705,080            8,003,468

Property, plant and equipment                                        131,112               91,085
Intangible assets                                                    688,783              767,370
Investment in equity accounted investees                             324,788              318,969
Investments linked to policyholder investment contracts            5,879,911            5,862,496
Financial investments                                                556,667              841,305
Loans and receivables                                                 24,610               16,095
Deferred taxation                                                     99,209              106,148

Current assets                                                    23,620,301           20,750,978

Financial investments                                                689,379            2,499,193
Loans and receivables                                                 83,628               28,871
Trade and other receivables                                          430,284              910,936
Amounts receivable in respect of stockbroking activities          20,554,920           14,625,911
Taxation                                                              12,276               18,484
Cash and cash equivalents                                          1,849,814            2,667,583

Total assets                                                      31,325,381           28,754,446

Equity and liabilities

Equity                                                             3,447,407            3,775,534

Equity attributable to equity holders of the company               2,958,473            3,227,760
Non-controlling interests                                            488,934              547,774

Non-current liabilities                                            6,232,289            6,422,799

Policyholder investment contract liabilities                       5,879,911            5,862,496
Interest-bearing borrowings                                          202,298              277,288
Loans and other payables                                             117,100              265,411
Deferred taxation                                                     32,980               17,604

Current liabilities                                              21,645,685            18,556,113

Interest-bearing borrowings                                          272,008               49,751
Loans and other payables                                             161,200              108,506
Financial instrument liabilities                                     210,993            2,195,876
Trade and other payables                                           1,309,844            1,442,573
Amounts payable in respect of stockbroking activities             19,653,675           14,721,859
Taxation                                                              37,965               37,548

Total equity and liabilities                                      31,325,381           28,754,446

Net tangible asset value per ordinary share (cents)                  1,061.5              1,156.0
Net asset value per ordinary share (cents)                           1,372.3              1,497.2

Condensed consolidated statement of changes in equity



                                                                                Total capital and   Non-controlling
                                                                                         reserves         interests      Total equity
                                                                                            R'000             R'000             R'000

Unaudited - 2016
Balance at 31 March 2016                                                                3,227,760           547,774         3,775,534
Profit for the period                                                                     267,631           111,432           379,063
Other comprehensive income for the period                                               (222,637)          (30,946)         (253,583)
Transactions with owners recorded directly in equity:                                   (314,281)         (139,326)         (453,607)
 Dividends paid(1)                                                                      (316,538)         (108,553)         (425,091)
 Share-based payments                                                                    (19,971)                 -          (19,971)
 Disposal of participating treasury shares(2)                                              22,228                 -            22,228
 Repurchase and cancellation of shares of subsidiary                                            -          (30,773)          (30,773)

Balance at 30 September 2016                                                            2,958,473           488,934         3,447,407

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

(1) Dividends paid to equity holders of the company relate to the 155 cents per share paid on the 8 August 2016.


(2) During the course of September 2016 2 076 000 shares were disposed of on behalf of the participants in the Citadel 2013 deferred remuneration scheme.


Condensed consolidated statement of cash flow


                                                                        Unaudited for the   Unaudited for the
                                                                         six months ended    six months ended
                                                                             30 September        30 September
                                                                                     2016                2015
                                                                                    R'000               R'000

Cash flow from operating activities                                             (774,308)           (948,214)
 Cash flow from operating activities excluding stockbroking activities            323,593           (145,095)
 Cash dividends paid                                                            (425,091)           (438,045)
 Cash flow from stockbroking activities                                         (672,810)           (365,074)
Cash flow from investing activities                                             (496,166)           (158,317)
Cash flow from financing activities                                               533,320             425,354

Net decrease in cash and cash equivalents                                       (737,154)           (681,177)
Cash and cash equivalents at beginning of the period                            2,667,583           2,459,337
Effects of exchange rate changes on cash and cash equivalents                    (80,615)              51,976

Cash and cash equivalents at end of the period                                  1,849,814           1,830,136


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           2015 to 2016
Unaudited for the six months ended 30 September 2016

Wealth and Asset Management                                  524,881              14,411               208,561                   114,747                      9
Wealth Management                                            417,591               6,878               120,246                    82,870                      1
Asset Management                                             107,290               7,533                88,315                    31,877                     38
Broking and Structuring                                      422,004              24,960               130,874                    62,791                     22
Stenham                                                      262,706               8,306                79,041                    56,259                     28
Advisory                                                          -               20,338                20,338(2)                 17,491                     48
Total from operating reportable segments                   1,209,591              68,015               438,814                   251,288                     18
Group                                                         50,509               4,063                25,923                     4,164                    -88

                                                           1,260,100              72,078               464,737                   255,452                      4

Unaudited for the six months ended 30 September 2015

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

                                                           1,176,804              94,869               420,484                   245,745

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 per reconciliation of segmental analysis to statement of comprehensive income.

(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     IFRS reported
                                                                                   Management(1)   Structuring       Stenham(1)   Advisory        segments         Group         segments(2)    information
                                                                                        R'000            R'000         R'000         R'000           R'000         R'000            R'000             R'000
For the six months ended 30 September 2016
Total revenue per segmental analysis                                                   524,881         422,004       262,706             -       1,209,591        50,509                -         1,260,100
Reconciling items:                                                                    (37,932)          21,445             -             -        (16,487)      (68,541)          126,436            41,408
Operating revenue - internal                                                          (39,794)          23,568             -             -        (16,226)             -                -          (16,226)
Investment income - internal                                                             1,862         (2,123)             -             -           (261)      (68,541)           68,802                 -
Investment income of non-reportable segment - external                                       -               -             -             -               -             -           57,634            57,634

Total revenue per statement of comprehensive income                                    486,949         443,449       262,706             -       1,193,104      (18,032)          126,436         1,301,508

Profit before taxation and capital items per segmental analysis                        208,561         130,874        79,041        20,338         438,814        25,923                -           464,737
Reconciling total revenue items per above                                             (37,932)          21,445             -             -        (16,487)      (68,541)          126,436            41,408
Operating expenses of non-reportable segment - external                                (1,862)               -             -             -         (1,862)             -         (28,123)          (29,985)
Deferred profit participation(3)                                                       (6,154)               -             -             -         (6,154)             -                -           (6,154)
Share based payment charge(3)                                                          (5,702)               -             -             -         (5,702)             -                -           (5,702)
Interest paid - internal                                                                     -             379             -             -             379             -                -               379
Interest paid - external                                                               (3,721)               -             -             -         (3,721)             -                -           (3,721)

Profit before taxation and capital items per statement of comprehensive income         153,190         152,698        79,041        20,338         405,267      (42,618)           98,313           460,962

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(3)                                                          (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

(1) The capital item of R21 million disclosed on the statement of comprehensive income pertains partly to the Wealth and Asset Management operating reportable segment (R19 million) and 
    partly to the Stenham  operating reportable segment (R2 million).

(2) Refers to the group's consolidated proprietary hedge investments which do not meet the quantitative thresholds for determining reportable segments.

(3) Management treats the 2013 deferred profit scheme 1 (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. In addition, management treats the 2015 deferred profit scheme 2 (which is partially settled in PGR shares) as 
    an expense as profits are earned, but for IFRS purposes it is recognised as an employee benefit in terms of IAS 19 and partially as a share-based payment arrangement under IFRS 2, 
    in which the liability has been measured using the projected unit method. Service conditions attached to the arrangement were taken into account in measuring the fair value of the liability.
    The expense is recognised over the service period.

Notes & Compliance

The condensed consolidated unaudited interim financial statements of the Peregrine Group as at and for the six months ended 30 September 2016 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 and containing the information required by IAS 34: Interim Financial
Reporting, as well as the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial
Reporting Standards Council, the JSE Limited Listings Requirements 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 previous consolidated 
financial statements as at and for the year ended 31 March 2016.

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 2016.

The Group's results are prepared 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, Deloitte & Touche.

The prior year audited results are a summary of the consolidated financial statements as at and for the year ended 31 March 2016, 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 2016

The consolidated and separate financial statements of Peregrine Holdings Limited ("Peregrine") for the year ended 31 March 2016 have been audited by the company's
previous auditor, KPMG Inc. In their report dated 12 August 2016, 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 85.08% to 88.19% in August 2016 following the repurchase and subsequent cancellation of 24 815 Stenham shares.

Disposals

1. Stenham Trust Limited ("Stenham") entered into a final agreement whereby an independent Trust and Fiduciary company and Stenham have formed a 50/50 joint venture
("JV"), with effect from 1 April 2016. Stenham has transferred to the JV, that part of its fiduciary trust business that includes the relationships and engagements with the trusts
and trust structures managed by Stenham that relate to the gaming business and its entire fiduciary trust business relating to certain Family Office clients for a total
aggregate cash consideration of GBP1 million, payable in four equal bi-annual instalments of GBP250 000 over the two years ending 31 March 2018. A non-taxable capital profit of
R2 million (GBP101 471) has been recognised in the Statement of Comprehensive Income.

2. With effect from 1 April 2016, Peregrine SA Holdings Proprietary Limited disposed of its 49.99% shareholding in Caveo Fund Solutions Proprietary Limited for a cash
consideration of R20 million, resulting in a gross capital profit of R19 million which has been recognised in the Statement of Comprehensive Income, of which R18 million is
attributable to ordinary shareholders.

Consolidation of Hedge Funds in terms of IFRS 10

In terms of current International Financial Reporting Standards certain of the group's proprietary hedge fund investments are required to be consolidated due to the fact that
the group has effective control both in terms of kick-out rights and with direct and indirect holdings being greater than 50%. In cases which fall within or along the IFRS 10
marginal zone a reasoned judgement as to whether the fund manager is a principal or an agent is required to be made by management, one such case being the Peregrine
High Growth En Commandite Partnership ("High Growth Fund"), in which the group held an interest as at 31 March 2016 which required consolidation. Following
management's assessment for the six month period ended 30 September 2016, management concluded that control no longer existed as the group currently owns a smaller
percentage of the whole fund and as a result now falls outside the IFRS 10 marginal zone. Thus the High Growth Fund was de-consolidated with effect from 31 August 2016,
the net asset value of which amounted to R2.4 billion (March 2016: R1.9 billion).

Events subsequent to reporting date

The directors are not aware of any matters or circumstances arising since the end of the reporting period which significantly affect the financial position of the Peregrine
Group or the results of its operations.


Applicable exchange rates
                                                                             Average rates Closing rates
USD:ZAR
30 September 2016                                                                     14,53          13,75
31 March 2016                                                                         13,78          14,71
30 September 2015                                                                     12,55          13,83


GBP:ZAR
30 September 2016                                                                     19,98          17,86
31 March 2016                                                                         20,72          21,14
30 September 2015                                                                     19,33          20,94


This announcement does not include the information required pursuant to paragraph 16A(j) of IAS34. The full interim report is available on the issuer's website, at the
issuer's registered offices and upon request.



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