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PSG KONSULT LIMITED - Unaudited Results For The Six Months Ended 31 August 2017

Release Date: 05/10/2017 11:45
Code(s): KST     PDF:  
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Unaudited Results For The Six Months Ended 31 August 2017

PSG Konsult Limited
(Incorporated in the Republic of South Africa)
Registration number: 1993/003941/06
JSE share code: KST
NSX share code: KFS
ISIN code: ZAE000191417
('PSG Konsult' or 'the company' or 'the group')

UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2017

SALIENT FEATURES

- Recurring headline earnings per share up 10% to 18.2 cents
- Gross written premium up 19% to R1 607m
- Number of advisers up 2% to 753
- Total assets under management up 16% to R193bn
- Dividend per share up 12% to 5.7 cents
- Total assets under administration up 12% to R398bn

COMMENTARY

PSG Konsult delivered a satisfactory 10% rate of growth in recurring headline earnings per share and return on equity of 21%.

The board of directors is satisfied with this set of results. The business environment during this period was tough and occurred during a period in which the country 
continues to be plagued by low economic growth, rating downgrades and a loss of business and consumer confidence. The continued upward trajectory of our key operating
and financial metrics demonstrates the resilience of our business model despite the challenging market conditions we have experienced. Performance fees earned constituted
only 4.4% of headline earnings in comparison to 6.6% in the comparative period. Total assets under management increased to R193 billion, comprising managed assets of 
PSG Wealth and PSG Asset Management of R157 billion and R36 billion respectively.

PSG Wealth

PSG Wealth achieved recurring headline earnings growth of 7%. We are satisfied with this result in the context of the current investment market conditions. Management
and other fees increased by 8% as the business continues to focus on recurring income and reduce its reliance on cyclical transactional brokerage fees, which increased
by 1% during the current period under review. The cost base of the division increased by 18% as we strengthened both our information technology (IT) and investment research
teams. We continue to accelerate our investment in order to enhance our digital platforms and systems. These costs have all been fully expensed. Clients' assets managed by
our Wealth advisers increased by 10% to R157 billion during the period under review, which included R5.1 billion of positive net inflows.

We remain confident about the fundamentals and future prospects of this division, and believe that our advisers and clients will gain, over the long term, from the 
client-centric digital projects we have embarked upon. We are particularly pleased with the division's formidable financial adviser network that grew by 4%, through both 
organic and selected acquisitions, to 527 advisers. The experience and stature of the advisers joining the firm continues to add credibility to the growing brand 
equity. We continue to gain market share with Wealth's platform assets increasing by 12% to R42 billion.

PSG Asset Management

PSG Asset Management's recurring headline earnings grew by 20%. The commendable results generated by this division are testimony to the team's excellent long-term track
record of delivering top-quartile risk-adjusted investment returns for clients. The team's consistent ability to generate alpha across all asset classes for clients over
the appropriate investment horizon remains compelling. Client assets under management increased by 10% to R36 billion during the six-month period under review. This 
included R2.8 billion of positive net inflows predominantly into our higher margin multi-asset funds and mainly from our selected retail target market. The strong 
increase in annuity earnings on our large asset base more than offset the 29% decline in variable performance fees that were earned during the period under review.
We remain confident and optimistic about the long-term growth prospects of this business.

PSG Insure

PSG Insure achieved recurring headline earnings growth of 23%. The group is especially pleased with this achievement. This is against the backdrop of a particularly
difficult industry environment. This division, which is in an early growth phase, continues to make inroads into the highly competitive short-term insurance market and
gain further benefits from economies of scale. It achieved gross written premium growth of 19% compared to the prior period as we continue to focus our efforts on the
commercial lines' side of the business which requires specialised adviser expertise. The comprehensive reinsurance programme we have in place reduced the adverse impact of
catastrophe events that occurred during the period under review, such as the Knysna fires. This, when combined with our quality underwriting practices, allowed us to 
achieve a commendable net underwriting margin of 7.4%. The insurance advisers, who now total 226, continue to gain market share on the commercial lines' side which is our
primary area of focus.

PSG Konsult's key financial performance indicators for the six months ended 31 August 2017 are shown below:

                                                                                                                31 Aug 17       Change    31 Aug 16
                                                                                                                     R000            %         R000

Core income                                                                                                     2 062 016           11    1 854 877

Headline and recurring headline earnings                                                                          239 275           12      214 430
Non-headline items                                                                                                     91                       (52)
Earnings attributable to ordinary shareholders                                                                    239 366           12      214 378

Divisional recurring headline earnings
PSG Wealth                                                                                                        149 923            7      140 553
PSG Asset Management                                                                                               56 829           20       47 405
PSG Insure                                                                                                         32 523           23       26 472
                                                                                                                  239 275           12      214 430

Weighted average number of shares in issue (net of treasury shares) (millions)                                    1 314.5            2      1 290.2

Earnings per share (cents)
- Headline and recurring headline                                                                                    18.2           10         16.6
- Attributable                                                                                                       18.2           10         16.6
- Recurring headline (excluding intangible amortisation cost)                                                        19.9            9         18.2

Dividend per share (cents)                                                                                            5.7           12          5.1

Return on equity (ROE) (%)                                                                                           21.4                      22.9

Strategy

PSG Wealth's overall strategy offers an innovative and holistic end-to-end client proposition. We continue to invest in people (including the recruitment of experienced 
specialists) and in technology with the aim of enhancing user functionality to improve our client experience and product offering. Advisers play a key role in client 
feedback on the enhancement of our platform and product capabilities. Management is proud of both the accelerated growth and calibre of new advisers that have joined the 
business. PSG Wealth has recently invested heavily in enhancing the strength and depth of our in-house investment research team. This fully-fledged team has both fund and 
security investment research analysis capabilities. Our Wealth business is therefore well-placed to meet all the investment needs of our clients. We nevertheless 
relentlessly strive to improve both our client and service offering.

PSG Asset Management's strategy consists of three parts, namely investment excellence, operational efficiency, and effective sales and marketing initiatives. Generating 
the best long-term, risk-adjusted returns for investors is the division's primary focus. To this end, the division will continue to prioritise the investment team's 
performance while managing operational risks and processes. Increasing brand awareness, particularly in the retail investor market, is a key focus area for the marketing
team, allowing the division to benefit from a growing investor base.

PSG Insure provides simple and cost-effective short-term insurance solutions to clients, protecting them from unforeseen events. Building critical expertise across
underwriting, administration and adviser teams underpins the focus on providing value-added products that meet and exceed clients' expectations. The division continues to
invest in its claims and administration departments. This is to build scale and unlock operational efficiencies while freeing up valuable time for our top-calibre advisers 
to focus on client relationships, especially on the commercial lines' side of the business. The salary-based adviser distribution force is mostly converted onto the 
entrepreneurial best-of-breed partnership model. This allows our advisers to operate their own businesses independently under the PSG brand and benefit from the central
services provided. Key central services include compliance, finance, human resources (HR), IT, marketing and risk management.

Careful attention is paid to the group's cost structure, as each division grows, in particular to the cost-to-income ratio. Building a cost-efficient and scalable business
is a key priority for the board. The management team is committed to continuously investing in technology as a key enabler to achieve efficiency, automation and ultimately 
our growth objectives.

Recognition, awards and achievements 

The group is proud of the following notable milestones, achievements and industry awards:

PSG Wealth
- Ranked fourth in the 2017 Intellidex Wealth Manager of the Year competition.

PSG Asset Management (excluding individual fund awards)
- Runner-up in the 2016 Raging Bull awards for South African Collective Investment Schemes Management Company and secured second place in the 2017 Morningstar South Africa 
  Fund Awards in the best fund house - large fund range category.

PSG Insure
- Broker of the Year for both commercial lines, and assets and crop insurance in the 2016 Santam National Broker Awards.

Acquisition

PSG Konsult has concluded an agreement to acquire the commercial and industrial insurance brokerage business of Absa Insurance and Financial Advisers Proprietary Limited 
(AIFA), as announced on the Stock Exchange News Service (SENS) of the JSE Limited (JSE) on Tuesday, 26 September 2017. This business is made up of 102 advisers and in 
excess of 32 000 clients that will integrate into the PSG Konsult distribution network of PSG Insure advisers. This transaction, which is subject to conditions typical 
for a transaction of this nature including regulatory approvals, will be funded from existing cash resources. The implementation of this transaction will enhance 
PSG Insure's footprint across South Africa. PSG Konsult's core focus remains organic growth.

Credit rating and DMTN programme

Rating agency Global Credit Rating Co. (GCR) affirmed the long-term and short-term investment grade national scale ratings assigned to PSG Konsult of A-(za) and A1-(za)
respectively, with the outlook for both ratings remaining stable. 

Shareholders were advised in our year-end results announcement that we were considering the establishment of a Domestic Medium Term Note (DMTN) programme. PSG Konsult's 
aim in establishing a DMTN programme was to provide business with a flexible cost-effective structure to internally fund our Scriptfin loan book and to build a credible 
track record with debt instrument holders and the debt market. PSG Konsult secured the requisite JSE approval via its wholly owned subsidiary, PSG Konsult Treasury Limited,
to establish such a DMTN programme. On 12 July 2017, we concluded our maiden listing on the JSE's Interest Rate Market of a R100 million senior unsecured floating rate note 
with a maturity date of 12 July 2020 at competitive rates.

Shareholders

The company's demonstrable track record on executing and delivering on our strategic goals has enabled us to increase our institutional shareholder base and improve the 
liquidity of the PSG Konsult shares.

People

PSG Konsult had 211 offices and 2 389 employees as at 31 August 2017. Financial planners, portfolio managers, stockbrokers and asset managers totalled 753. A further 434
were professional associates (accountants and attorneys). During the six months under review, 9 new advisers were appointed through a combination of organic growth and
selective adviser book acquisitions. We believe strongly in building our own future talent and have confidence in the investment in our graduate programme. We have made 
several key appointments within our PSG Wealth management team that will allow us to build on our success and take the business to the next level.

Changes to the board of directors

The board is pleased with the appointment of Zodwa Matsau as an independent non-executive director and a member of PSG Konsult's audit committee and risk committee, with 
effect from 20 July 2017. 

Regulatory landscape and risk management 

PSG Konsult, which has 19 regulatory licences (13 in South Africa and 6 in foreign jurisdictions), continues to foster good relationships with our regulators.

Marketing

Marketing initiatives are important to the group's goal of becoming a leader in the financial services industry. 

During the period under review, the specialist marketing team focused its efforts on embedding the 'Bigger Picture Thinking' advertising campaign, increasing its public
relations, digital exposure and adviser-hosted client events, and maintaining quality client communication. This is all with the objective of building the PSG brand 
within our chosen target markets. Responsible spend is critical and tightly controlled in line with the growth of the firm.

Information technology

The integral role that technology plays in the daily operations of PSG Konsult cannot be underestimated. The scalability and efficiency of business functions are dependent
on the state of its IT systems. It is for this reason that the group continues to invest in new and innovative technology as it seeks to incorporate further business 
process automation, reduce operational risk and provide real-time reporting for enhanced management decision-making. The group is confident that the IT strategy, which 
also includes robust disaster recovery and business continuity plans, will create a solid foundation for future growth.

Looking forward

The group's aim remains to service existing clients expertly, and gain new clients. A number of initiatives are in place to ensure that this happens. The group remains 
confident that we are well positioned to continue building our adviser network and client base despite the current uncertain and challenging economic circumstances in which 
we operate. The group's focus on products, platforms and client service excellence through the quality of its advice is proving to be a resilient strategy.

The cash-generative nature of the business enabled PSG Konsult to continue to invest in IT infrastructure and systems. The primary objective of this investment is to 
enhance the overall client experience and improve the scalability and efficiency of the group's core IT-dependent business processes. The group will continue to prioritise
organic growth in the domestic market, where it has relatively low, but rapidly expanding market share. Cash flow generation remains strong, and the group will use this 
to fund growth initiatives which include expanding our adviser base and to pay dividends consistent with its dividend policy.

Events after reporting date

No event material to the understanding of these results has occurred between the end of the reporting period and the date of approval of the condensed consolidated interim 
financial statements, other than the acquisition of AIFA's commercial and industrial insurance brokerage business.

Dividend

The board approved and declared a gross interim dividend of 5.7 cents per share (2016: 5.1 cents per share) from income reserves for the six months ended 31 August 2017.
This is in line with the group's dividend payout policy as approved by the board of directors at the time of listing of distributing between 40% and 50% of recurring 
headline earnings as dividends (one third as an interim dividend and two thirds as a final dividend).

The dividend is subject to a South African dividend withholding tax (DWT) rate of 20% unless the shareholder is exempt from paying dividends tax or is entitled to a reduced
rate in terms of the applicable double-tax agreement. Including DWT results in a net dividend of 4.56 cents per share. The number of issued ordinary shares is 1 341 652 782 
at the date of this declaration. PSG Konsult's income tax reference number is 9550/644/07/5.

The following are the salient dates for payment of the dividend:

Last day to trade (cum dividend)                                                                                           Tuesday, 24 October 2017
Trading ex dividend commences                                                                                            Wednesday, 25 October 2017
Record date                                                                                                                 Friday, 27 October 2017
Date of payment                                                                                                             Monday, 30 October 2017

Share certificates may not be dematerialised or rematerialised between Wednesday, 25 October 2017, and Friday, 27 October 2017, both days included.

The board would like to extend its gratitude to stakeholders, including shareholders, advisers, clients, business partners, management and employees, for their efforts and 
contributions during the past six months.

On behalf of the board

Willem Theron                 Francois Gouws
Chairman                      Chief executive officer

Tyger Valley
5 October 2017


FINANCIAL RESULTS 

Condensed consolidated statement of financial position
as at 31 August and 28 February 2017
 
                                                                                                                Unaudited    Unaudited      Audited
                                                                                                                    as at        as at        as at
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000

ASSETS
Intangible assets                                                                                               1 006 595      997 887      987 042
Property and equipment                                                                                             48 620       54 019       53 469
Investment property                                                                                                     -        7 349            -
Investment in associated companies                                                                                      -          129            -
Investment in joint ventures                                                                                        1 133       16 696        1 178
Deferred income tax assets                                                                                         80 435       77 105       96 651
Equity securities (note 6)                                                                                      2 104 693    2 194 463    2 256 923
Debt securities (note 6)                                                                                        3 943 613    2 688 626    2 835 244
Unit-linked investments (note 6)                                                                               40 849 291   34 063 018   37 653 998
Investment in investment contracts (note 6)                                                                        16 323       29 230       15 521
Loans and advances                                                                                                125 099      127 587      134 308
Derivative financial instruments                                                                                   13 005       14 430       14 593
Reinsurance assets                                                                                                 80 283       66 238       71 966
Deferred acquisition costs                                                                                          4 393        4 052        4 073
Receivables including insurance receivables                                                                     1 700 815    1 628 033    1 529 894
Current income tax assets                                                                                          19 621       25 116       22 608
Cash and cash equivalents (including money market investments) (note 6)                                         1 455 880    1 241 533    1 385 542
Non-current assets held for sale                                                                                        -       39 931            -
Total assets                                                                                                   51 449 799   43 275 442   47 063 010

EQUITY
Equity attributable to owners of the parent
Stated capital                                                                                                  1 903 517    1 745 191    1 749 505
Treasury shares                                                                                                  (176 612)     (56 802)     (59 206)
Other reserves                                                                                                   (383 160)    (381 949)    (399 700)
Retained earnings                                                                                                 968 177      750 476      862 689
                                                                                                                2 311 922    2 056 916    2 153 288
Non-controlling interest                                                                                          212 875      173 886      197 212
Total equity                                                                                                    2 524 797    2 230 802    2 350 500

LIABILITIES
Insurance contracts                                                                                               524 572      564 425      544 235
Deferred income tax liabilities                                                                                    21 196       50 991       24 089
Borrowings                                                                                                        109 101      148 764       37 791
Derivative financial instruments                                                                                   14 854       14 408       17 379
Investment contracts (note 6)                                                                                  24 767 685   22 032 848   22 560 598
Third-party liabilities arising on consolidation of mutual funds                                               21 603 419   16 507 660   19 690 982
Deferred reinsurance acquisition revenue                                                                            3 663        4 330        3 731
Trade and other payables                                                                                        1 873 675    1 682 919    1 821 500
Current income tax liabilities                                                                                      6 837       38 295       12 205
Total liabilities                                                                                              48 925 002   41 044 640   44 712 510

Total equity and liabilities                                                                                   51 449 799   43 275 442   47 063 010

Net asset value per share (cents)                                                                                   175.3        156.7        164.0


Condensed consolidated income statement
for the six months ended 31 August and the year ended 28 February 2017

                                                                                                                              Restated   
                                                                                                                Unaudited    Unaudited     Restated
                                                                                                               Six months   Six months    Unaudited
                                                                                                                    ended        ended   Year ended
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17 
                                                                                                                     R000         R000         R000

Gross written premium                                                                                             596 679      481 556    1 010 058
Less: Reinsurance written premium                                                                                (146 555)    (116 379)    (247 116)
Net written premium                                                                                               450 124      365 177      762 942
Change in unearned premium
- Gross                                                                                                            23 324       30 828       54 462
- Reinsurers' share                                                                                                (2 617)        (587)        (630)
Net insurance premium revenue                                                                                     470 831      395 418      816 774
Commission and other fee income                                                                                 1 398 828    1 368 564    2 606 092
Investment income                                                                                                 763 482      704 311    1 343 786
Net fair value gains and losses on financial instruments                                                        1 746 493    1 497 632      972 866
Fair value adjustment to investment contract liabilities                                                       (1 185 456)  (1 059 376)    (932 672)
Fair value adjustment to third-party liabilities                                                               (1 176 449)    (993 652)  (1 065 313)
Other operating income                                                                                             89 027       60 832      101 539
Total income                                                                                                    2 106 756    1 973 729    3 843 072

Insurance claims and loss adjustment expenses                                                                    (431 306)    (348 955)    (701 803)
Insurance claims and loss adjustment expenses recovered from reinsurers                                            95 448       56 582      120 620
Net insurance benefits and claims                                                                                (335 858)    (292 373)    (581 183)
Commission paid                                                                                                  (631 698)    (609 989)  (1 111 506)
Depreciation and amortisation (1)                                                                                 (34 591)     (34 051)     (78 995)
Employee benefit expenses                                                                                        (393 477)    (365 831)    (729 157)
Marketing, administration and other expenses                                                                     (307 537)    (309 769)    (536 936)
Total expenses                                                                                                 (1 703 161)  (1 612 013)  (3 037 777)

Share of profits of associated companies                                                                                -           32           32
Loss on impairment of associated companies                                                                              -            -          (35)
Profit on sale of interests in associated companies                                                                     -           68            -
Share of (losses)/profits of joint ventures                                                                           (45)         473        2 268
Total (loss)/profit from associated companies and joint ventures                                                      (45)         573        2 265

Profit before finance costs and taxation                                                                          403 550      362 289      807 560
Finance costs                                                                                                     (24 151)     (23 975)     (72 274)
Profit before taxation                                                                                            379 399      338 314      735 286
Taxation                                                                                                         (119 273)    (104 569)    (203 416)
Profit for the period                                                                                             260 126      233 745      531 870

Attributable to:
Owners of the parent                                                                                              239 366      214 378      486 862
Non-controlling interest                                                                                           20 760       19 367       45 008
                                                                                                                  260 126      233 745      531 870

Earnings per share (cents)
Attributable (basic)                                                                                                 18.2         16.6         37.3
Attributable (diluted)                                                                                               18.1         16.4         36.8
Headline (basic)                                                                                                     18.2         16.6         37.2
Headline (diluted)                                                                                                   18.1         16.4         36.8
Recurring headline (basic)                                                                                           18.2         16.6         37.2
Recurring headline (diluted)                                                                                         18.1         16.4         36.8

(1)  Includes amortisation cost of R22.7 million (31 Aug 2016: R23.0 million; 28 Feb 2017: R55.5 million).


Condensed consolidated statement of comprehensive income
for the six months ended 31 August and the year ended 28 February 2017

                                                                                                                Unaudited    Unaudited   
                                                                                                               Six months   Six months      Audited
                                                                                                                    ended        ended   Year ended
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000

Profit for the period                                                                                             260 126      233 745      531 870

Other comprehensive income for the period, net of taxation                                                         (1 494)      (1 361)     (14 900)
To be reclassified to profit and loss:
Currency translation adjustments                                                                                   (1 494)      (1 361)     (14 900)

Total comprehensive income for the period                                                                         258 632      232 384      516 970

Attributable to:
Owners of the parent                                                                                              237 872      213 017      471 962
Non-controlling interest                                                                                           20 760       19 367       45 008
                                                                                                                  258 632      232 384      516 970


Earnings and headline earnings per share
for the six months ended 31 August and the year ended 28 February 2017
 
                                                                                                                Unaudited    Unaudited   
                                                                                                               Six months   Six months      Audited 
                                                                                                                    ended        ended   Year ended  
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000

Headline earnings                                                                                                 239 275      214 430      486 439
Recurring                                                                                                         239 275      214 430      486 439
Non-recurring                                                                                                           -            -            -

Non-headline items (net of non-controlling interest and related tax effect)
Profit/(loss) on disposal of intangible assets (including goodwill)                                                    18         (187)          83
Other                                                                                                                  73          135          340
Profit attributable to ordinary shareholders                                                                      239 366      214 378      486 862

Earnings per share (cents)
Attributable (basic)                                                                                                 18.2         16.6         37.3
Attributable (diluted)                                                                                               18.1         16.4         36.8
Headline (basic)                                                                                                     18.2         16.6         37.2
Headline (diluted)                                                                                                   18.1         16.4         36.8
Recurring headline (basic)                                                                                           18.2         16.6         37.2
Recurring headline (diluted)                                                                                         18.1         16.4         36.8

Number of shares (millions)
In issue (net of treasury shares)                                                                                 1 318.6      1 312.9      1 313.1
Weighted average (net of treasury shares)                                                                         1 314.5      1 290.2      1 307.1


Condensed consolidated statement of changes in equity
for the six months ended 31 August and the year ended 28 February 2017

                                                                              Attributable to equity holders of the group
                                                                                                                                  Non- 
                                                                                 Stated   Treasury      Other    Retained  controlling       
                                                                                capital     shares   reserves    earnings     interest        Total   
                                                                                   R000       R000       R000        R000         R000         R000
                                                                                                                                                               
Balance at 1 March 2016 (Audited)                                             1 446 604    (13 462)  (394 755)    650 059      157 212    1 845 658

Comprehensive income
Profit for the period                                                                 -          -          -     214 378       19 367      233 745
Other comprehensive income for the period                                             -          -     (1 361)          -            -       (1 361)
Total comprehensive income for the period                                             -          -     (1 361)    214 378       19 367      232 384
Transactions with owners                                                        298 587    (43 340)    14 167    (113 961)      (2 693)     152 760
Issue of ordinary shares                                                        298 587          -          -           -            -      298 587
Share-based payment costs                                                             -          -     14 167           -            -       14 167
Capital contribution by non-controlling interest                                      -          -          -           -          750          750
Net movement in treasury shares                                                       -    (43 340)         -           -            -      (43 340)
Dividends paid                                                                        -          -          -    (113 961)      (3 443)    (117 404)

Balance at 31 August 2016 (Unaudited)                                         1 745 191    (56 802)  (381 949)    750 476      173 886    2 230 802

Comprehensive income
Profit for the period                                                                 -          -          -     272 484       25 641      298 125
Other comprehensive income for the period                                             -          -    (13 539)          -            -      (13 539)
Total comprehensive income for the period                                             -          -    (13 539)    272 484       25 641      284 586
Transactions with owners                                                          4 314     (2 404)    (4 212)   (160 271)      (2 315)    (164 888)
Issue of ordinary shares                                                          4 314          -          -           -            -        4 314
Share-based payment costs                                                             -          -     14 057           -            -       14 057
Net movement in treasury shares                                                       -     (4 738)         -           -            -       (4 738)
Release of loss from treasury shares to retained earnings                             -      2 334          -      (2 334)           -            -
Equity-settled share-based payments                                                   -          -    (29 015)    (80 794)           -     (109 809)
Release of revaluation reserve to retained earnings on disposal of property           -          -       (702)      1 346         (467)         177
Release of common control reserve to retained earnings                                -          -     11 448     (11 448)           -            -
Dividends paid                                                                        -          -          -     (67 041)      (1 848)     (68 889)

Balance at 28 February 2017 (Audited)                                         1 749 505    (59 206)  (399 700)    862 689      197 212    2 350 500

Comprehensive income
Profit for the period                                                                 -          -          -     239 366       20 760      260 126
Other comprehensive income for the period                                             -          -     (1 494)          -            -       (1 494)
Total comprehensive income for the period                                             -          -     (1 494)    239 366       20 760      258 632
Transactions with owners                                                        154 012   (117 406)    18 034    (133 878)      (5 097)     (84 335)
Issue of ordinary shares                                                        154 012          -          -           -            -      154 012
Share-based payment costs                                                             -          -     18 034           -            -       18 034
Net movement in treasury shares                                                       -   (117 406)         -           -            -     (117 406)
Dividends paid                                                                        -          -          -    (133 878)      (5 097)    (138 975)

Balance at 31 August 2017 (Unaudited)                                         1 903 517   (176 612)  (383 160)    968 177      212 875    2 524 797


Condensed consolidated statement of cash flows
for the six months ended 31 August and the year ended 28 February 2017

                                                                                                                Unaudited    Unaudited     Restated
                                                                                                               Six months   Six months    Unaudited
                                                                                                                    ended        ended   Year ended
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000

Cash flows from operating activities
Cash utilised in operations                                                                                      (389 097)    (470 985)    (727 577)
Interest income                                                                                                   588 809      509 644      961 504
Dividend income                                                                                                   174 653      194 441      381 849
Finance costs                                                                                                     (15 370)     (17 554)     (28 521)
Taxation paid                                                                                                     (99 081)    (197 968)    (364 747)
Operating cash flows before policyholder cash movement                                                            259 914       17 578      222 508
Policyholder cash movement                                                                                         41 231      (73 396)    (100 652)
Net cash flow from operating activities                                                                           301 145      (55 818)     121 856

Cash flows from investing activities
Acquisition of subsidiaries (including collective investment schemes)                                                   -        9 707       30 916
Acquisition of intangible assets                                                                                  (33 657)     (19 767)     (28 069)
Purchases of property and equipment                                                                                (7 166)     (11 429)     (23 428)
Proceeds from disposal of non-current assets held for sale                                                              -            -       38 948
Proceeds from disposal of investment property                                                                           -            -        7 445
Proceeds from disposal of intangible assets                                                                           668        8 448        5 841
Other                                                                                                                  58          792          922
Net cash flow from investing activities                                                                           (40 097)     (12 249)      32 575

Cash flows from financing activities
Dividends paid                                                                                                   (138 975)    (117 404)    (186 293)
Capital contributions by non-controlling interest (ordinary shares)                                                     -          750          750
Repayment of borrowings                                                                                            (1 678)      (2 639)      (4 822)
Shares issued                                                                                                      66 623       81 959       81 959
Net movement in treasury shares                                                                                  (117 406)     (43 340)     (48 078)
Net cash flow from financing activities                                                                          (191 436)     (80 674)    (156 484)

Net increase/(decrease) in cash and cash equivalents                                                               69 612     (148 741)      (2 053)
Cash and cash equivalents at beginning of the period                                                            1 385 542    1 395 952    1 395 952
Exchange gains/(losses) on cash and cash equivalents                                                                  726       (5 678)      (8 357)
Cash and cash equivalents at end of the period (1)                                                              1 455 880    1 241 533    1 385 542

(1)  Includes the following:
     Clients' cash linked to investment contracts                                                                  55 443       41 468       14 212
     Other client-related balances                                                                                242 984      101 484       89 211 
                                                                                                                  298 427      142 952      103 423

Notes to the statement of cash flows:
The movement in cash utilised in operations can vary significantly as a result of daily fluctuations in cash linked to investment contracts, cash held by the stockbroking 
business and cash utilised for the loan facility obtained by the group on the loan facilities provided to clients on their share portfolios at PSG Securities Limited. 
PSG Life Limited, the group's linked insurance company, issues linked policies to policyholders (where the value of policy benefits is directly linked to the fair value 
of the supporting assets). When these policies mature, the company raises a debtor for the money receivable from the third-party investment provider, and raises a creditor
for the amount owing to the client. Timing difference occurs at month-end where the money was received from the third-party investment provider, but only paid out by the
company after month-end, resulting in significant fluctuations in the working capital of the company. Similar working capital fluctuations occur at PSG Securities Limited,
the group's stockbroking business, mainly due to the timing of the close of the JSE in terms of client settlements. Refer to note 5.7 for the impact of the client-related
balances on the cash flows from operating activities.


Notes to the condensed consolidated interim financial statements
for the six months ended 31 August 2017

1. Reporting entity

PSG Konsult Limited is a public company domiciled in the Republic of South Africa. The condensed consolidated interim financial statements of the company as at and for
the six months ended 31 August 2017 comprise the company and its subsidiaries (together referred to as 'the group') and the group's interests in associated companies and
joint ventures.

2. Basis of preparation

Statement of compliance
The condensed consolidated interim financial statements as at and for the six months ended 31 August 2017 have been prepared in accordance with the Listings Requirements
of the JSE and the requirements of the Companies Act, No. 71 of 2008, as amended, applicable to condensed financial statements. The JSE requires condensed financial
statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS),
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council 
and to also, as a minimum, contain the information required by IAS 34 - Interim financial reporting. The condensed consolidated interim financial statements do not 
include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the group as 
at and for the year ended 28 February 2017. Any forecast financial information is the responsibility of the board of PSG Konsult Limited and has not been reviewed or
reported on by the auditors.

These condensed consolidated interim financial statements were prepared by Stephan van der Merwe, CA(SA), under the supervision of the chief financial officer,
Mike Smith, CA(SA).

Estimates and judgements
In preparing these condensed consolidated interim financial statements, 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 that applied to the consolidated annual financial statements for the year ended 28 February 2017.

3. Independent review

The condensed consolidated interim financial statements is the responsibility of the board of directors of the company.

Neither these condensed consolidated interim financial statements, nor any reference to future financial performance included in this results announcement, have been 
reviewed or reported on by the company's external auditor, PricewaterhouseCoopers Inc.

4. Accounting policies

The accounting policies applied in the preparation of these condensed consolidated interim financial statements are in terms of IFRS and are consistent with those 
accounting policies applied in the preparation of the previous consolidated annual financial statements as at and for the year ended 28 February 2017.

The following new accounting standards and amendments to IFRS, as issued by the International Accounting Standards Board (IASB), which were relevant to the group's
operations, were effective for the first time from 1 March 2017 or early adopted:

- Amendment to IAS 7 - Statement of cash flows - Disclosure initiative
- Amendments to IAS 12 - Income taxes - Recognition of deferred tax assets for unrealised losses
- Amendment to IFRS 2 - Share-based payment

These revisions have not resulted in material changes to the group's reported results and disclosures in these condensed consolidated interim financial statements.

The following new or revised IFRSs and interpretations that are applicable to the group have effective dates applicable to future financial years and have not been 
early adopted:

- Amendments to IFRS 4 - Insurance contracts (effective 1 January 2018)
- IFRS 9 - Financial instruments (effective 1 January 2018)
- IFRS 15 - Revenue from contracts with customers (effective 1 January 2018)
- IFRS 16 - Leases (effective 1 January 2019)
- IFRS 17 - Insurance contracts (effective 1 January 2021)
- IFRIC 23 - Uncertainty over income tax treatment (effective 1 January 2019)

The impact of the application of these revised standards and interpretations in future financial reporting periods on the group's reported results, financial position 
and cash flows are still being assessed.

5. Segment information

The composition of the reportable segments represents the internal reporting structure and the monthly reporting to the chief operating decision-maker (CODM). The CODM 
for the purpose of IFRS 8 - Operating segments has been identified as the chief executive officer, supported by the group management committee (Manco). The group's 
internal reporting structure is reviewed in order to assess performance and allocate resources. The group is organised into three reportable segments, namely:

- PSG Wealth - deriving income mainly from total managed assets and total platform assets
- PSG Asset Management - deriving income mainly from total assets under management and administration
- PSG Insure - deriving income mainly from written premiums and underwriting

Corporate support costs refer to a variety of services and functions that are performed centrally for the individual business units within each business segment, as well
as housing the group's executive office. Besides the traditional accounting and secretarial services provided to group divisions and subsidiaries, the corporate office
also provides legal, risk, IT, marketing, HR, payroll, internal audit and corporate finance services. The strategic elements of IT, in terms of both services and 
infrastructure, are also centralised in the corporate office. The corporate costs are allocated to the three reportable segments.

5.1  Description of business segments

PSG Wealth, which consists of five business units - Distribution, Securities, LISP and Life Platform, Multi Management and Employee Benefits - is designed to meet the
needs of individuals, families and businesses. Through its highly skilled wealth managers, PSG Wealth offers a wide range of personalised services (including portfolio
management, stockbroking, local and offshore investments, estate planning, financial planning, local and offshore fiduciary services, multi-managed solutions and 
retirement products). The Wealth offices are fully equipped to deliver a high-quality personal service to customers.

PSG Asset Management is an established investment management company with a proven investment track record. It offers investors a simple, but comprehensive range of 
local and global investment products. The division's products include both local and international unit trust funds.

PSG Insure, through its registered insurance brokers and PSG's short-term insurance company, Western National Insurance Company Limited, offers a full range of tailor-made 
short-term insurance products and services from personal (home, car and household insurance) to commercial (business and agri-insurance) requirements. To harness the 
insurance solutions available to customers effectively, the division's expert insurance specialists, through a strict due diligence process, will simplify the selection
process for the most appropriate solution for its clients. In addition to the intermediary services which PSG Insure offers, PSG Short-Term Administration supports clients
through the claim process, administrative issues and general policy maintenance, including an annual reappraisal of their portfolio.

The CODM considers the performance of reportable segments based on total core income as a measure of growth and headline earnings as a measure of profitability. In order
to evaluate the core results of the group, the CODM segregates the income statement by eliminating the impact of the linked investment policies issued and the 
consolidation of the collective investment schemes from the core operations in the group.

A subsidiary of the group, PSG Life Limited, is a linked insurance company and issues linked policies to policyholders (where the value of policy benefits is directly
linked to the fair value of the supporting assets), and as such does not expose the group to the market risk of fair value adjustments on the financial asset as this risk
is assumed by the policyholder.

The group consolidates collective investment schemes, in terms of IFRS 10 - Consolidated financial statements, over which the group has control. The consolidation of 
these funds does not impact total earnings, comprehensive income, shareholders' funds or the net asset value of the group; however, it requires the group to recognise 
the income statement impact as part of that of the group.

5.2  Headline earnings per reportable segment

                                                                                                                    Asset       
                                                                                                       Wealth  Management       Insure        Total    
Headline earnings                                                                                        R000        R000         R000         R000

For the six months ended 31 August 2017 (Unaudited)
Headline earnings (1)                                                                                 149 923      56 829       32 523      239 275
- recurring                                                                                           149 923      56 829       32 523      239 275
- non-recurring                                                                                             -           -            -            -
         
For the six months ended 31 August 2016 (Unaudited)
Headline earnings (1)                                                                                 140 553      47 405       26 472      214 430
- recurring                                                                                           140 553      47 405       26 472      214 430
- non-recurring                                                                                             -           -            -            -

For the year ended 28 February 2017 (Audited)
Headline earnings (1)                                                                                 287 345     130 245       68 849      486 439
- recurring                                                                                           287 345     130 245       68 849      486 439
- non-recurring                                                                                             -           -            -            -

(1)  Headline earnings, calculated in terms of the requirements stipulated in Circular 2/2015 as issued by SAICA, comprise recurring and non-recurring headline earnings.
     Recurring headline earnings are calculated by excluding non-recurring headline earnings to increase comparability of the performance of the group from one year to
     another. Non-recurring headline earnings include one-off gains and losses and the resulting tax charge on these items.

5.3  Income per reportable segment

                                                                                                                    Asset       
                                                                                                       Wealth  Management       Insure        Total 
For the six months ended 31 August 2017 (Unaudited)                                                      R000        R000         R000         R000

Total IFRS reported income                                                                          1 100 874     219 452      786 430    2 106 756
Linked investment business and other income                                                           (44 740)          -            -      (44 740)
Total core income                                                                                   1 056 134     219 452      786 430    2 062 016

Total segment income                                                                                1 358 226     371 025      800 513    2 529 764
Intersegment income                                                                                  (302 092)   (151 573)     (14 083)    (467 748)

                                                                                                                    Asset       
                                                                                                     Wealth(1) Management       Insure      Total(1) 
For the six months ended 31 August 2016 (Unaudited) (Restated)                                           R000        R000         R000         R000

Total IFRS reported income                                                                          1 101 291     200 528      671 910    1 973 729
Linked investment business and other income                                                          (118 852)          -            -     (118 852)
Total core income                                                                                     982 439     200 528      671 910    1 854 877

Total segment income                                                                                1 271 723     345 489      686 685    2 303 897
Intersegment income                                                                                  (289 284)   (144 961)     (14 775)    (449 020)

                                                                                                                    Asset       
                                                                                                     Wealth(1) Management       Insure      Total(1)
For the year ended 28 February 2017 (Unaudited) (Restated)                                               R000        R000         R000         R000

Total IFRS reported income                                                                          2 014 817     445 598    1 382 657    3 843 072
Linked investment business and other income                                                           (53 701)          -            -      (53 701)
Total core income                                                                                   1 961 116     445 598    1 382 657    3 789 371

Total segment income                                                                                2 669 900     721 631    1 429 318    4 820 849
Intersegment income                                                                                  (708 784)   (276 033)     (46 661)  (1 031 478)

(1)  Comparative figures have been restated to include the fair value adjustment to third-party liabilities, which arises as a result of the consolidation of the
     collective investments schemes, as part of both the total IFRS reported income and the linked investment business and other income. The restatement has no impact on 
     total core income. Refer to note 15 for the detail of the restatement.

Other information provided to the CODM is measured in a manner consistent with that of the financial statements.

5.4  Divisional income statement

The profit or loss information follows a similar format to the consolidated income statement. The divisional income statement reflects the core business operations of 
the group.
                                                                   
                                                                                                                    Asset       
                                                                                                       Wealth  Management       Insure        Total 
For the six months ended 31 August 2017 (Unaudited)                                                      R000        R000         R000         R000

Total income                                                                                        1 056 134     219 452      786 430    2 062 016
Total expenses                                                                                       (826 917)   (143 538)    (719 135)  (1 689 590)
                                                                                                      229 217      75 914       67 295      372 426
Total loss from joint ventures                                                                              -           -          (45)         (45)
Profit before finance costs and taxation                                                              229 217      75 914       67 250      372 381
Finance costs (1)                                                                                     (14 967)       (368)         (35)     (15 370)
Profit before taxation                                                                                214 250      75 546       67 215      357 011
Taxation                                                                                              (61 188)    (18 717)     (16 980)     (96 885)
Profit for the period                                                                                 153 062      56 829       50 235      260 126

Attributable to:
Owners of the parent                                                                                  149 981      56 829       32 556      239 366
Non-controlling interest                                                                                3 081           -       17 679       20 760
                                                                                                      153 062      56 829       50 235      260 126

Headline earnings                                                                                     149 923      56 829       32 523      239 275

Recurring headline earnings                                                                           149 923      56 829       32 523      239 275

                                                                                                                    Asset      
                                                                                                       Wealth  Management       Insure        Total
For the six months ended 31 August 2016 (Unaudited)                                                      R000        R000         R000         R000

Total income                                                                                          982 439     200 528      671 910    1 854 877
Total expenses                                                                                       (766 053)   (139 489)    (616 986)  (1 522 528)
                                                                                                      216 386      61 039       54 924      332 349
Total profit from associated companies and joint ventures                                                   -           -          573          573
Profit before finance costs and taxation                                                              216 386      61 039       55 497      332 922
Finance costs (1)                                                                                     (16 769)       (155)        (630)     (17 554)
Profit before taxation                                                                                199 617      60 884       54 867      315 368
Taxation                                                                                              (56 322)    (13 479)     (11 822)     (81 623)
Profit for the period                                                                                 143 295      47 405       43 045      233 745

Attributable to:
Owners of the parent                                                                                  139 165      47 405       27 808      214 378
Non-controlling interest                                                                                4 130           -       15 237       19 367
                                                                                                      143 295      47 405       43 045      233 745

Headline earnings                                                                                     140 553      47 405       26 472      214 430

Recurring headline earnings                                                                           140 553      47 405       26 472      214 430

(1)  Finance costs in the PSG Wealth division consist mainly of the finance charge on the loan facilities provided to clients on their share portfolios at PSG Securities 
     (secured by the underlying JSE Top 100 equity securities held in excess of four times the value of the loan facilities) on which PSG Wealth receives a margin. The 
     finance costs of R15.0 million (31 Aug 2016: R16.8 million) consist of R5.5 million (31 Aug 2016: R11.9 million) on the loan facilities, with the remaining portion
     of the finance charge on the CFD margin and the bank overdrafts.
        
                                                                                                                    Asset       
                                                                                                       Wealth  Management       Insure        Total 
For the year ended 28 February 2017 (Audited)                                                            R000        R000         R000         R000

Total income                                                                                        1 961 116     445 598    1 382 657    3 789 371
Total expenses                                                                                     (1 525 929)   (274 537)  (1 243 664)  (3 044 130)
                                                                                                      435 187     171 061      138 993      745 241
Total profit from associated companies and joint ventures                                                   -           -        2 265        2 265
Profit before finance costs and taxation                                                              435 187     171 061      141 258      747 506
Finance costs (1)                                                                                     (26 856)       (336)      (1 329)     (28 521)
Profit before taxation                                                                                408 331     170 725      139 929      718 985
Taxation                                                                                             (114 800)    (40 487)     (31 828)    (187 115)
Profit for the year                                                                                   293 531     130 238      108 101      531 870

Attributable to:
Owners of the parent                                                                                  286 244     130 238       70 380      486 862
Non-controlling interest                                                                                7 287           -       37 721       45 008
                                                                                                      293 531     130 238      108 101      531 870

Headline earnings                                                                                     287 345     130 245       68 849      486 439

Recurring headline earnings                                                                           287 345     130 245       68 849      486 439

(1)  Finance costs in the PSG Wealth division consist mainly of the finance charge on the loan facilities provided to clients on their share portfolios at PSG Securities 
     (secured by the underlying JSE Top 100 equity securities held in excess of four times the value of the loan facilities) on which PSG Wealth receives a margin. The 
     finance costs of R26.9 million consist of R15.3 million on the loan facilities, with the remaining portion of the finance charge on the CFD margin and the bank 
     overdrafts.

5.5 Statement of financial position (client vs own)

In order to evaluate the consolidated financial position of the group, the CODM segregates the statement of financial position of the group between own balances and
client-related balances.

Client-related balances represent the investment contract liabilities and related linked client assets of PSG Life Limited, the broker and clearing accounts, and the 
settlement control accounts of the stockbroking business, the collective investment schemes consolidated under IFRS 10 - Consolidated financial statements and corresponding 
third-party liabilities, the short-term claim control accounts and related bank accounts, as well as the contracts for difference assets and related liabilities.

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
As at 31 August 2017 (Unaudited)                                                                                     R000         R000         R000

ASSETS
Equity securities                                                                                               2 104 693       16 631    2 088 062
Debt securities                                                                                                 3 943 613       90 943    3 852 670
Unit-linked investments                                                                                        40 849 291      642 133   40 207 158
Investment in investment contracts                                                                                 16 323            -       16 323
Receivables including insurance receivables                                                                     1 700 815      334 464    1 366 351
Derivative financial instruments                                                                                   13 005            -       13 005
Cash and cash equivalents (including money market investments)                                                  1 455 880    1 157 453      298 427
Other assets (1)                                                                                                1 366 179    1 366 179            -
Total assets                                                                                                   51 449 799    3 607 803   47 841 996

EQUITY
Equity attributable to owners of the parent                                                                     2 311 922    2 311 922            -
Non-controlling interest                                                                                          212 875      212 875            -
Total equity                                                                                                    2 524 797    2 524 797            -

LIABILITIES
Borrowings (2)                                                                                                    109 101        4 239      104 862
Investment contracts                                                                                           24 767 685            -   24 767 685
Third-party liabilities arising on consolidation of mutual funds                                               21 603 419            -   21 603 419
Derivative financial instruments                                                                                   14 854            -       14 854
Trade and other payables                                                                                        1 873 675      522 499    1 351 176
Other liabilities (3)                                                                                             556 268      556 268            -
Total liabilities                                                                                              48 925 002    1 083 006   47 841 996

Total equity and liabilities                                                                                   51 449 799    3 607 803   47 841 996

(1)  Other assets consist of property and equipment, intangible assets, investment in joint ventures, current and deferred income tax assets, loans and advances, 
     reinsurance assets and deferred acquisition costs.
(2)  The DMTN programme funding raised in order to internally fund the clients' Scriptfin loans has been reflected under client-related balances.
(3)  Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities and insurance contracts.

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
As at 31 August 2016 (Unaudited)                                                                                     R000         R000         R000

ASSETS
Equity securities                                                                                               2 194 463        9 886    2 184 577
Debt securities                                                                                                 2 688 626       89 150    2 599 476
Unit-linked investments                                                                                        34 063 018      488 145   33 574 873
Investment in investment contracts                                                                                 29 230            -       29 230
Receivables including insurance receivables                                                                     1 628 033      241 585    1 386 448
Derivative financial instruments                                                                                   14 430            -       14 430
Cash and cash equivalents (including money market investments)                                                  1 241 533    1 098 581      142 952
Other assets (1)                                                                                                1 416 109    1 416 109            -
Total assets                                                                                                   43 275 442    3 343 456   39 931 986

EQUITY
Equity attributable to owners of the parent                                                                     2 056 916    2 056 916            -
Non-controlling interest                                                                                          173 886      173 886            -
Total equity                                                                                                    2 230 802    2 230 802            -

LIABILITIES
Borrowings                                                                                                        148 764        7 956      140 808
Investment contracts                                                                                           22 032 848            -   22 032 848
Third-party liabilities arising on consolidation of mutual funds                                               16 507 660            -   16 507 660
Derivative financial instruments                                                                                   14 408            -       14 408
Trade and other payables                                                                                        1 682 919      446 657    1 236 262
Other liabilities (2)                                                                                             658 041      658 041            -
Total liabilities                                                                                              41 044 640    1 112 654   39 931 986

Total equity and liabilities                                                                                   43 275 442    3 343 456   39 931 986

(1)  Other assets consist of property and equipment, investment property, intangible assets, investment in associated companies, investment in joint ventures, current 
     and deferred income tax assets, loans and advances, reinsurance assets, deferred acquisition costs and non-current assets held for sale.
(2)  Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities and insurance contracts.

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
As at 28 February 2017 (Audited)                                                                                     R000         R000         R000

ASSETS
Equity securities                                                                                               2 256 923       10 952    2 245 971
Debt securities                                                                                                 2 835 244       86 581    2 748 663
Unit-linked investments                                                                                        37 653 998      561 171   37 092 827
Investment in investment contracts                                                                                 15 521            -       15 521
Receivables including insurance receivables                                                                     1 529 894      251 861    1 278 033
Derivative financial instruments                                                                                   14 593            -       14 593
Cash and cash equivalents (including money market investments)                                                  1 385 542    1 282 119      103 423
Other assets (1)                                                                                                1 371 295    1 371 295            -
Total assets                                                                                                   47 063 010    3 563 979   43 499 031

EQUITY
Equity attributable to owners of the parent                                                                     2 153 288    2 153 288            -
Non-controlling interest                                                                                          197 212      197 212            -
Total equity                                                                                                    2 350 500    2 350 500            -

LIABILITIES
Borrowings                                                                                                         37 791        5 989       31 802
Investment contracts                                                                                           22 560 598            -   22 560 598
Third-party liabilities arising on consolidation of mutual funds                                               19 690 982            -   19 690 982
Derivative financial instruments                                                                                   17 379            -       17 379
Trade and other payables                                                                                        1 821 500      623 230    1 198 270
Other liabilities (2)                                                                                             584 260      584 260            -
Total liabilities                                                                                              44 712 510    1 213 479   43 499 031

Total equity and liabilities                                                                                   47 063 010    3 563 979   43 499 031

(1)  Other assets consist of property and equipment, intangible assets, investment in joint ventures, current and deferred income tax assets, loans and advances, 
     reinsurance assets and deferred acquisition costs.
(2)  Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities and insurance contracts.

5.6  Income statement (client vs own)

In order to evaluate the consolidated income statement of the group, the CODM segregates the income statement by eliminating the impact of the linked investment policies 
issued and the consolidation of the collective investment schemes from the core operations in the group.
                                                                                                                                            
                                                                                                                                             Linked
                                                                                                                    Total                investment 
                                                                                                                     IFRS         Core     business     
                                                                                                                 reported     business    and other
For the six months ended 31 August 2017 (Unaudited)                                                                  R000         R000         R000

Commission and other fee income (3)                                                                             1 398 828    1 472 949      (74 121)
Investment income                                                                                                 763 482       93 450      670 032
Net fair value gains and losses on financial instruments                                                        1 746 493        8 075    1 738 418
Fair value adjustment to investment contract liabilities                                                       (1 185 456)           -   (1 185 456)
Fair value adjustment to third-party liabilities                                                               (1 176 449)           -   (1 176 449)
Other (1)(3)                                                                                                      559 858      487 542       72 316
Total income                                                                                                    2 106 756    2 062 016       44 740
 
Insurance claims and loss adjustment expenses                                                                    (431 306)    (430 080)      (1 226)
Other (2)(3)                                                                                                   (1 271 855)  (1 259 510)     (12 345)
Total expenses                                                                                                 (1 703 161)  (1 689 590)     (13 571)

Total loss from joint ventures                                                                                        (45)         (45)           -
Profit before finance costs and taxation                                                                          403 550      372 381       31 169
Finance costs                                                                                                     (24 151)     (15 370)      (8 781)
Profit before taxation                                                                                            379 399      357 011       22 388
Taxation                                                                                                         (119 273)     (96 885)     (22 388)
Profit for the period                                                                                             260 126      260 126            -

Attributable to:
Owners of the parent                                                                                              239 366      239 366            -
Non-controlling interest                                                                                           20 760       20 760            -
                                                                                                                  260 126      260 126            -

(1)  Other consists of net insurance premium revenue and other operating income.
(2)  Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid, depreciation and amortisation, employee benefit expenses,
     marketing, administration and other expenses.
(3)  The linked investment business and other income statement includes the impact of the fees eliminated between the collective investment schemes (consolidated under 
     IFRS 10 - Consolidated financial statements) and the collective investment scheme management company, PSG Collective Investments (RF) Limited.

                                                                                                                                             Linked
                                                                                                                    Total                investment
                                                                                                                     IFRS         Core     business
                                                                                                                 reported     business    and other
For the six months ended 31 August 2016 (Unaudited) (Restated)                                                       R000         R000         R000

Commission and other fee income (3)                                                                             1 368 564    1 345 312       23 252
Investment income                                                                                                 704 311       83 464      620 847
Net fair value gains and losses on financial instruments                                                        1 497 632        9 013    1 488 619
Fair value adjustment to investment contract liabilities                                                       (1 059 376)           -   (1 059 376)
Fair value adjustment to third-party liabilities (4)                                                             (993 652)           -     (993 652)
Other (1)(3)                                                                                                      456 250      417 088       39 162
Total income                                                                                                    1 973 729    1 854 877      118 852

Insurance claims and loss adjustment expenses                                                                    (348 955)    (348 469)        (486)
Other (2)(3)                                                                                                   (1 263 058)  (1 174 059)     (88 999)
Total expenses                                                                                                 (1 612 013)  (1 522 528)     (89 485)

Total profit from associated companies and joint ventures                                                             573          573            -
Profit before finance costs and taxation                                                                          362 289      332 922       29 367
Finance costs                                                                                                     (23 975)     (17 554)      (6 421)
Profit before taxation                                                                                            338 314      315 368       22 946
Taxation                                                                                                         (104 569)     (81 623)     (22 946)
Profit for the period                                                                                             233 745      233 745            -

Attributable to:
Owners of the parent                                                                                              214 378      214 378            -
Non-controlling interest                                                                                           19 367       19 367            -
                                                                                                                  233 745      233 745            -

(1)  Other consists of net insurance premium revenue and other operating income.
(2)  Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid, depreciation and amortisation, employee benefit expenses,
     marketing, administration and other expenses.
(3)  The linked investment business and other income statement includes the impact of the fees eliminated between the collective investment schemes (consolidated under 
     IFRS 10 - Consolidated financial statements) and the collective investment scheme management company, PSG Collective Investments (RF) Limited.
(4)  Comparative figures have been restated to include the fair value adjustment to third-party liabilities, which arises as a result of the consolidation of the collective
     investments schemes, as part of both the total IFRS reported income and the linked investment business and other income. The restatement has no impact on the core 
     income statement. Refer to note 15 for the detail of the restatement.

                                                                                                                                             Linked
                                                                                                                    Total                investment
                                                                                                                     IFRS         Core     business
                                                                                                                 reported     business    and other
For the year ended 28 February 2017 (Unaudited) (Restated)                                                           R000         R000         R000

Commission and other fee income (3)(5)                                                                          2 606 092    2 759 560     (153 468)
Investment income (5)                                                                                           1 343 786      164 069    1 179 717
Net fair value gains and losses on financial instruments                                                          972 866       16 359      956 507
Fair value adjustment to investment contract liabilities                                                         (932 672)           -     (932 672)
Fair value adjustment to third-party liabilities (4)                                                           (1 065 313)           -   (1 065 313)
Other (1)(3)                                                                                                      918 313      849 383       68 930
Total income                                                                                                    3 843 072    3 789 371       53 701

Insurance claim and loss adjustment expenses                                                                     (701 803)    (700 589)      (1 214)
Other (2)(3)                                                                                                   (2 335 974)  (2 343 541)       7 567
Total expenses                                                                                                 (3 037 777)  (3 044 130)       6 353

Total profit from associated companies and joint ventures                                                           2 265        2 265            -
Profit before finance costs and taxation                                                                          807 560      747 506       60 054
Finance costs                                                                                                     (72 274)     (28 521)     (43 753)
Profit before taxation                                                                                            735 286      718 985       16 301
Taxation                                                                                                         (203 416)    (187 115)     (16 301)
Profit for the year                                                                                               531 870      531 870            -

Attributable to:
Owners of the parent                                                                                              486 862      486 862            -
Non-controlling interest                                                                                           45 008       45 008            -
                                                                                                                  531 870      531 870            -

(1)  Other consists of net insurance premium revenue and other operating income.
(2)  Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid, depreciation and amortisation, employee benefit expenses,
     marketing, administration and other expenses.
(3)  The linked investment business and other income statement includes the impact of the fees eliminated between the collective investment schemes (consolidated under 
     IFRS 10 - Consolidated financial statements) and the collective investment scheme management company, PSG Collective Investments (RF) Limited.
(4)  Comparative figures have been restated to include the fair value adjustment to third-party liabilities, which arises as a result of the consolidation of the collective
     investments schemes, as part of both the total IFRS reported income and the linked investment business and other income. The restatement has no impact on the core 
     income statement. Refer to note 15 for the detail of the restatement.
(5)  Fees received by PSG Securities Limited from the JSE were reclassified from investment income to commission and other fee income on the core income statement. Refer 
     to note 15 for the detail of the restatement.

5.7  Statement of cash flows (client vs own)

In order to assist the CODM to evaluate the consolidated statement of cash flows of the group, the statement of cash flows is segregated between cash flows relating to
own balances and client-related balances.

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
For the six months ended 31 August 2017 (Unaudited)                                                                  R000         R000         R000

Cash flows from operating activities                                                                              301 145      106 141      195 004
Cash (utilised in)/generated by operations                                                                       (389 097)     121 189     (510 286)
Interest income                                                                                                   588 809       92 446      496 363
Dividend income                                                                                                   174 653          983      173 670
Finance costs                                                                                                     (15 370)     (15 370)           -
Taxation paid                                                                                                     (99 081)     (93 107)      (5 974)
Policyholder cash movement                                                                                         41 231            -       41 231

Cash flows from investing activities                                                                              (40 097)     (40 097)           -

Cash flows from financing activities                                                                             (191 436)    (191 436)           -
 
Net increase/(decrease) in cash and cash equivalents                                                               69 612     (125 392)     195 004
Cash and cash equivalents at beginning of the period                                                            1 385 542    1 282 119      103 423
Exchange gains on cash and cash equivalents                                                                           726          726            -
Cash and cash equivalents at end of the period                                                                  1 455 880    1 157 453      298 427

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
For the six months ended 31 August 2016 (Unaudited)                                                                  R000         R000         R000

Cash flows from operating activities                                                                              (55 818)      93 139     (148 957)
Cash (utilised in)/generated by operations                                                                       (470 985)     213 106     (684 091)
Interest income                                                                                                   509 644       82 556      427 088
Dividend income                                                                                                   194 441          681      193 760
Finance costs                                                                                                     (17 554)     (17 554)           -
Taxation paid (1)                                                                                                (197 968)    (185 650)     (12 318)
Policyholder cash movement                                                                                        (73 396)           -      (73 396)

Cash flows from investing activities                                                                              (12 249)     (23 325)      11 076
Acquisition of subsidiaries (including collective investment schemes)                                               9 707       (1 369)      11 076
Other (2)                                                                                                         (21 956)     (21 956)           -

Cash flows from financing activities                                                                              (80 674)     (80 674)           -

Net decrease in cash and cash equivalents                                                                        (148 741)     (10 860)    (137 881)
Cash and cash equivalents at beginning of the period                                                            1 395 952    1 115 119      280 833
Exchange losses on cash and cash equivalents                                                                       (5 678)      (5 678)           -
Cash and cash equivalents at end of the period                                                                  1 241 533    1 098 581      142 952

                                                                                                                    Total                   Client-
                                                                                                                     IFRS          Own      related
                                                                                                                 reported     balances     balances
For the year ended 28 February 2017 (Unaudited) (Restated)                                                           R000         R000         R000

Cash flows from operating activities                                                                              121 856      331 652     (209 796)
Cash (utilised in)/generated by operations (3)                                                                   (727 577)     511 487   (1 239 064)
Interest income (3)                                                                                               961 504      156 404      805 100
Dividend income                                                                                                   381 849        7 316      374 533
Finance costs                                                                                                     (28 521)     (28 521)           -
Taxation paid (1)                                                                                                (364 747)    (315 034)     (49 713)
Policyholder cash movement                                                                                       (100 652)           -     (100 652)

Cash flows from investing activities                                                                               32 575          190       32 385
Acquisition of subsidiaries (including collective investment schemes)                                              30 916       (1 469)      32 385
Other (2)                                                                                                           1 659        1 659            -

Cash flows from financing activities                                                                             (156 484)    (156 484)           -

Net (decrease)/increase in cash and cash equivalents                                                               (2 053)     175 358     (177 411)
Cash and cash equivalents at beginning of the year                                                              1 395 952    1 115 118      280 834
Exchange losses on cash and cash equivalents                                                                       (8 357)      (8 357)           -
Cash and cash equivalents at end of the year                                                                    1 385 542    1 282 119      103 423

(1)  The taxation paid relating to own balances includes R114.3 million which was paid to settle the PSG Life tax matter in March 2016.
(2)  Other consists of cash flows relating to the acquisition of intangible assets, purchases of property and equipment, proceeds from disposal of non-current assets
     held for sale, proceeds from disposal of investment property, proceeds from disposal of intangible assets and other.
(3)  The fees received by PSG Securities Limited from the JSE were reclassified from interest income to commission and other fee income, which impacts the cash 
     (utilised in)/ generated by operations. This reclassification related to own balances however, had no impact on the total cash flows from operating activities. Refer
     to note 15 for the detail of the restatement.

6. Investment contracts 

Investment contracts are represented by the following financial assets:

                                                                                                                Unaudited    Unaudited      Audited
                                                                                                                    as at        as at        as at
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000

Equity securities                                                                                               1 983 801    2 099 569    2 154 854
Debt securities                                                                                                 1 659 508      637 474      443 311
Unit-linked investments                                                                                        21 052 610   19 225 107   19 932 700
Investments in investment contracts                                                                                16 323       29 230       15 521
Cash and cash equivalents                                                                                          55 443       41 468       14 212
                                                                                                               24 767 685   22 032 848   22 560 598

7. Receivables including insurance receivables and trade and other payables

Included under receivables are broker and clearing accounts at our stockbroking business of which R1 317.3 million (31 Aug 2016: R1 349.7 million; 28 Feb 2017: 
R1 230.5 million) represents amounts owing by the JSE for trades conducted during the last few days before the end of the period. These balances fluctuate on a daily basis
depending on the activity in the market.

The control account for the settlement of these transactions is included under trade and other payables, with the settlement to the clients taking place within three
days after the transaction date.

8. Non-current assets held for sale

For the year ended 28 February 2017

PSG Konsult Limited (through its subsidiary Western Group Holdings Limited) entered into an agreement to sell its 23% interest held in Xinergistix Limited on 
1 November 2015. The transaction was subject to suspensive conditions and was treated as a non-current asset held for sale on 29 February 2016.

Xinergistix Limited was sold for R41.5 million effective 1 December 2016, after the fulfilment of the suspensive conditions which included the approval from the 
Competition Commission.

9. Acquisition of subsidiaries

For the year ended 28 February 2017

i) PSG Securities Limited (Mauritius) (previously Ramet & Associes Ltee)
PSG Konsult Limited, through its subsidiary PSG Wealth Limited (Mauritius) (previously DMH Associates Limited (Mauritius)), acquired a 100% interest in PSG Securities
Limited (Mauritius), a registered stockbroker in Mauritius. The effective date of the transaction was 1 July 2016 following the fulfilment of suspensive conditions, and 
the consideration paid was immaterial.

ii) Acquisition of collective investment schemes
The group obtained control of the PSG Wealth Income Fund of Funds and the PSG Wealth Global Creator Feeder Fund during the 2017 financial year. These funds were
consolidated in accordance with IFRS 10 - Consolidated financial statements and are collective investment schemes managed by entities within the group.

                                                                                                                                         PSG Wealth
                                                                                                                            PSG Wealth       Global
                                                                                                                           Income Fund      Creator
Fund consolidated                                                                                                             of Funds  Feeder Fund

% interest in fund on effective date                                                                                                30           30
Date of acquisition                                                                                                          31 August  28 February 
                                                                                                                                  2016         2017

                                                                                                                                  2017         2017
Details of the net assets acquired are as follows:                                                                                R000         R000

Unit-linked investments                                                                                                      1 969 562    3 657 943
Receivables including insurance receivables                                                                                         34        1 848
Cash and cash equivalents (including money market investments)                                                                  11 076       21 309
Third-party liabilities arising on consolidation of mutual funds                                                            (1 392 596)  (2 598 124)
Trade and other payables                                                                                                          (699)      (1 762)
Net asset value                                                                                                                587 377    1 081 214
Fair value of interest held before the business combination                                                                   (587 377)  (1 081 214)
Total consideration paid                                                                                                             -            -
                             
10. Other acquisitions

For the year ended 28 February 2017

Standardising of revenue sharing model
The group (through its subsidiaries PSG Wealth Financial Planning Proprietary Limited and PSG Multi Management Proprietary Limited) concluded various asset-for-share 
transactions (utilising section 42 of the Income Tax Act, No.58 of 1962) as well as further revenue sharing arrangements with a number of its advisers during the financial
year. The purpose of these transactions was to standardise the revenue sharing arrangements between the advisers and PSG Konsult.

The consideration was paid with the issue of PSG Konsult shares (14.9 million shares at an average of R6.86 per share) and a cash consideration of R2.8 million on the
effective dates. These transactions did not qualify for accounting in terms of IFRS 3 - Business Combinations as the assets acquired (the right to an increased share in
the income stream of the adviser) did not constitute a business acquired.

These transactions contributed R11.3 million to our headline earnings during the 2017 financial year, net of amortisation cost of R6.6 million.

11. Financial risk management

The group's activities expose it to a variety of financial risks: market risk (including price risk, foreign currency risk, cash flow and fair value interest rate risks),
credit risk and liquidity risk. Insurance activities expose the group to insurance risk (including pricing risk, reserving risk, underwriting risk and reinsurance risk). 
The group is also exposed to operational risk and legal risk.

The capital risk management philosophy is to maximise the return on shareholders' capital within an appropriate risk framework.

The condensed consolidated interim financial statements do not include all risk management information and disclosure required in the annual financial statements and 
should be read in conjunction with the group's annual financial statements as at 28 February 2017.

There have been no changes in the group's financial risk management objectives and policies since the previous financial year-end.

Market risk (price risk, foreign currency risk and interest rate risk)
Market risk is the risk of adverse financial impact due to changes in fair values or future cash flows of financial instruments from fluctuations in interest rates, 
equity prices and foreign currency exchange rates.

A portion of the policyholders' and shareholders' investments are valued at fair value and are therefore susceptible to market fluctuations.

With regard to the subsidiary, PSG Life Limited, this company only invests assets into portfolios that are exposed to market price risk that matches linked policies to
policyholders (where the value of policy benefits is directly linked to the fair value of the supporting assets), and as such does not expose the business to the market 
risk of fair value adjustments on the financial asset as this risk is assumed by the policyholder. Fees charged on this business are determined as a percentage of the fair
value of the underlying assets held in the linked funds, which are subject to equity and interest rate risk. As a result, the management fees fluctuate, but cannot be
less than nil.

Included in the equity securities of R2 104.7 million (31 Aug 2016: R2 194.5 million; 28 Feb 2017: R2 256.9 million) are quoted equity securities of R2 104.3 million 
(31 Aug 2016: R2 194.1 million; 28 Feb 2017: R2 256.6 million), of which R1 983.8 million (31 Aug 2016: R2 099.6 million; 28 Feb 2017: R2 154.9 million) relates to
investments in linked investment contracts. The price risk of these instruments is carried by the policyholders of the linked investment contracts.

Unit-linked investments of R21 052.6 million (31 Aug 2016: R19 225.1 million; 28 Feb 2017: R19 932.7 million) are linked to investment contracts and do not expose the 
group to price or interest rate risk.

Debt securities linked to policyholder investments amounted to R1 659.5 million (31 Aug 2016: R637.5 million; 28 Feb 2017: R443.3 million) and do not expose the group to 
interest rate risk. Cash and cash equivalents linked to policyholder investments amounted to R55.4 million (31 Aug 2016: R41.5 million; 28 Feb 2017: R14.2 million) and do 
not expose the group to interest rate risk.

Fair value estimation
The information below analyses financial instruments, carried at fair value, by level of hierarchy as required by IFRS 7 - Financial instruments and IFRS 13 - Fair value
measurement. The different levels have been defined as follows:

- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2 - input other than quoted prices included within level 1 that is observable for the asset or liability, either directly (that is, as prices) or indirectly (that
  is, derived from prices); and
- Level 3 - input for the asset or liability that is not based on observable market data (that is, unobservable input).

There have been no significant transfers between level 1, 2 or 3 during the period under review.

The table below analyses financial assets and liabilities, which are carried at fair value, by valuation method. There were no significant changes in the valuation 
techniques and assumptions applied since 28 February 2017.

Valuation techniques and main assumptions used in determining the fair value of financial assets and liabilities classified within level 2 can be summarised as follows:

Instruments                                   Valuation techniques                                           Main assumptions

Derivative financial instruments              Exit price on recognised over-the-counter (OTC)                Not applicable
                                              platforms                                                                 

Debt securities                               Valuation model that uses the market input (yield              Bond interest rate curves
                                              of benchmark bonds)                                            Issuer credit ratings
                                                                                                             Liquidity spreads
                                                         
Unit-linked investments                       Quoted put (exit) price provided by the fund manager           Not applicable - daily prices are
                                                                                                             publicly available

Investment in investment contracts            Prices are obtained from the insurer of the                    Not applicable - prices provided by
                                              particular investment contract                                 registered long-term insurers
                                                                                
Investment contract liabilities -             Current unit price of underlying unitised financial            Not applicable
unit-linked                                   asset that is linked to the liability, multiplied by 
                                              the number of units held 
                                              
Third-party financial liabilities arising     Quoted put (exit) price provided by the fund manager           Not applicable - daily prices are
on the consolidation of mutual funds                                                                         publicly available

The fair value of financial assets and liabilities measured at fair value in the statement of financial position can be summarised as follows:

                                                                                                      Level 1     Level 2      Level 3        Total
As at 31 August 2017 (Unaudited)                                                                         R000        R000         R000         R000

Financial assets
Financial assets at fair value through profit or loss
  Derivative financial instruments                                                                          -      13 005            -       13 005
  Equity securities                                                                                 2 104 311           7          375    2 104 693
  Debt securities                                                                                     805 203   2 985 537            -    3 790 740
  Unit-linked investments                                                                                   -  39 904 228      945 063   40 849 291
  Investment in investment contracts                                                                        -      16 323            -       16 323
                                                                                                    2 909 514  42 919 100      945 438   46 774 052

Financial liabilities
Financial liabilities at fair value through profit or loss
  Derivative financial instruments                                                                          -      14 854            -       14 854
  Investment contracts                                                                                      -  23 679 749      935 063   24 614 812
  Trade and other payables                                                                                  -           -       43 358       43 358
  Third-party liabilities arising on consolidation of mutual funds                                          -  21 603 419            -   21 603 419
                                                                                                            -  45 298 022      978 421   46 276 443

                                                                                                      Level 1     Level 2      Level 3        Total
As at 31 August 2016 (Unaudited)                                                                         R000        R000         R000         R000

Financial assets
Financial assets at fair value through profit or loss
  Derivative financial instruments                                                                          -      14 430            -       14 430
  Equity securities                                                                                 2 194 045          41            -    2 194 086
  Debt securities                                                                                     888 812   1 587 430            -    2 476 242
  Unit-linked investments                                                                                   -  32 963 548    1 099 470   34 063 018
  Investment in investment contracts                                                                        -      29 230            -       29 230
Available-for-sale
  Equity securities                                                                                         -           -          377          377
                                                                                                    3 082 857  34 594 679    1 099 847   38 777 383

Financial liabilities
Financial liabilities at fair value through profit or loss
  Derivative financial instruments                                                                          -      14 408            -       14 408
  Investment contracts                                                                                      -  20 730 994    1 089 470   21 820 464
  Trade and other payables                                                                                  -           -       27 888       27 888
  Third-party liabilities arising on consolidation of mutual funds                                          -  16 507 660            -   16 507 660
                                                                                                            -  37 253 062    1 117 358   38 370 420

                                                                                                      Level 1     Level 2      Level 3        Total
As at 28 February 2017 (Audited)                                                                         R000        R000         R000         R000
     
Financial assets
Financial assets at fair value through profit or loss
  Derivative financial instruments                                                                          -      14 593            -       14 593
  Equity securities                                                                                 2 256 555           7          361    2 256 923
  Debt securities                                                                                   1 004 941   1 686 211            -    2 691 152
  Unit-linked investments                                                                                   -  36 544 759    1 109 239   37 653 998
  Investment in investment contracts                                                                        -      15 521            -       15 521
                                                                                                    3 261 496  38 261 091    1 109 600   42 632 187

Financial liabilities
Financial liabilities at fair value through profit or loss
  Derivative financial instruments                                                                          -      17 379            -       17 379
  Investment contracts                                                                                      -  21 317 267    1 099 239   22 416 506
  Trade and other payables                                                                                  -           -       38 141       38 141
  Third-party liabilities arising on consolidation of mutual funds                                          -  19 690 982            -   19 690 982
                                                                                                            -  41 025 628    1 137 380   42 163 008

The following table presents the changes in level 3 financial instruments during the reporting periods under review:

                                                                                                                Unaudited    Unaudited      Audited
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000
ASSETS
Opening carrying value                                                                                          1 109 600    1 309 224    1 309 224
Additions                                                                                                         254 646       84 825      192 189
Disposals                                                                                                        (441 401)    (319 826)    (423 345)
Gains recognised in profit and loss (1)                                                                            22 593       25 624       31 532
Closing carrying value                                                                                            945 438    1 099 847    1 109 600

LIABILITIES
Opening carrying value                                                                                          1 137 380    1 304 281    1 304 281
Additions                                                                                                         277 129      111 040      250 598
Disposals                                                                                                        (458 681)    (323 313)    (449 047)
Losses recognised in profit and loss (2)                                                                           22 593       25 624       31 548
Interest and other                                                                                                      -         (274)           -
Closing carrying value                                                                                            978 421    1 117 358    1 137 380

(1)  Gains on these items were recognised in profit and loss under net fair value gains and losses on financial instruments.
(2)  Losses on these items were recognised in profit and loss under fair value adjustment to investment contract liabilities.

Unit-linked investments represent the largest portion of the level 3 financial assets and relate to units held in hedge funds and are priced monthly. The prices are 
obtained from the asset managers of the particular hedge funds. These are held to match investment contract liabilities, and as such any change in measurement would result
in a similar adjustment to investment contract liabilities. Therefore, the group's overall profit or loss is not materially sensitive to the input of the models applied
to derive fair value.

Trade and other payables classified within level 3 have significant unobservable inputs, as the valuation technique used to determine the fair values takes into account the
probability (at each reporting period) that the contracted party will achieve the profit guarantee as stipulated in the business agreement.

The table below summarises the carrying values and fair values of financial instruments not presented on the statement of financial position at fair value, for which their
carrying values do not approximate their fair values:

                                                                                                                Unaudited    Unaudited      Audited
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000
ASSETS
Debt securities - held-to-maturity
- Carrying value                                                                                                  152 873      212 384      144 092
- Fair value                                                                                                      150 103      234 490      141 481

LIABILITIES
Investment contracts
- Carrying value                                                                                                  152 873      212 384      144 092
- Fair value                                                                                                      150 103      234 490      141 481

The fair value of the financial assets and liabilities in the table above is categorised in terms of level 2 (31 Aug 2017: Rnil; 31 Aug 2016: R100.5 million; 
28 Feb 2017: Rnil) and level 3 (31 Aug 2017: R150.1 million; 31 Aug 2016: R134.0 million; 28 Feb 2017: R141.5 million).

12. Related-party transactions

Related-party transactions similar to those disclosed in the group's annual financial statements for the year ended 28 February 2017 took place during the period under
review.

13. Capital commitments and contingencies

                                                                                                                Unaudited    Unaudited      Audited
                                                                                                                31 Aug 17    31 Aug 16    28 Feb 17
                                                                                                                     R000         R000         R000
 
Operating lease commitments                                                                                       135 162      155 378      156 379
Capital commitments                                                                                                     -            -        1 943

14. Events after the reporting date

No event material to the understanding of these results has occurred between the end of the reporting period and the date of approval of the condensed consolidated interim
financial statements, other than the acquisition of AIFA's commercial and industrial insurance brokerage business. Refer to the commentary for more detail on this 
transaction.

15. Reclassification of prior year figures

The following reclassifications were applied to the 31 August 2016 and 28 February 2017 results:

Fair value adjustment to third-party liabilities
The group consolidates collective investment schemes, in terms of IFRS 10 - Consolidated financial statements, over which the group has control. The consolidation of these
funds does not impact total earnings, comprehensive income, shareholders' funds or the net asset value of the group; however, it requires the group to recognise the fund's 
income and expenses on the consolidated income statement. The group previously disclosed the fair value adjustment to third-party liabilities, which arises as a result of 
the consolidation of mutual funds, as part of expenses on the face of the income statement. In order to align where on the income statement the group discloses the fair 
value adjustments and investment income of the underlying assets of the consolidated collective investment schemes, a decision was taken to reflect the fair value 
adjustment to third-party liabilities as part of total income.

Fee income
A detailed analysis of the fees received by PSG Securities Limited from the JSE was performed by management. As part of this assessment, management investigated certain 
fees which were previously disclosed under investment income in the year-end financial statements. Based on the findings, management reclassified these fees to commission 
and other fee income in order to better reflect the nature of these fees received from the JSE.

These reclassifications had no impact on the current or prior period reported earnings, diluted earnings or headline earnings per share, or on the net asset value or net 
cash flow.
                                                  
                                                                                                              Reclassific
                                                                                                                  ation -    
                                                                                                               Fair value  
                                                                                                               adjustment                    
                                                                                                           As          to  Reclassific      
                                                                                                   previously third-party      ation -
                                                                                                       stated liabilities   Fee income     Restated
                                                                                                         R000        R000         R000         R000

31 August 2016

Consolidated income statement

Total income
Fair value adjustment to third-party liabilities                                                            -    (993 652)           -     (993 652)

Total expenses
Fair value adjustment to third-party liabilities                                                     (993 652)    993 652            -            -

28 February 2017

Consolidated income statement

Total income
Commission and other fee income                                                                     2 560 814           -       45 278    2 606 092
Investment income                                                                                   1 389 064           -      (45 278)   1 343 786
Fair value adjustment to third-party liabilities                                                            -  (1 065 313)           -   (1 065 313)

Total expenses
Fair value adjustment to third-party liabilities                                                   (1 065 313)  1 065 313            -            -

Consolidated statement of cash flows

Cash flows from operating activities
Cash utilised in operations                                                                          (772 855)          -       45 278     (727 577)
Interest income                                                                                     1 006 782           -      (45 278)     961 504


CORPORATE INFORMATION

Non-executive directors
W Theron (Chairman)
PJ Mouton
J de V du Toit^
PE Burton*
ZL Combi*
R Stassen*
ZRP Matsau* (Appointed 20 July 2017)
(^ Lead independent; * Independent)

Executive directors
FJ Gouws (Chief executive officer)
MIF Smith (Chief financial officer)

Company secretary
PSG Management Services Proprietary Limited

Head office and registered office
4th Floor, The Edge, 3 Howick Close
Tyger Waterfront
Tyger Valley
Bellville
7530

Postal address
PO Box 3335
Tyger Valley
Bellville
7536

Listings
Johannesburg Stock Exchange (JSE)
Namibian Stock Exchange (NSX)

Transfer secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank
2196

PO Box 61051
Marshalltown
2107

Sponsors
JSE sponsor: PSG Capital Proprietary Limited
NSX sponsor: PSG Wealth Management (Namibia) Proprietary Limited

Auditor
PricewaterhouseCoopers Inc.
Cape Town

Website address
www.psg.co.za

Date: 05/10/2017 11:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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