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Short-Form Announcement: Reviewed Results For The Year Ended 28 February 2023 And Dividend Declaration
PSG KONSULT LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1993/003941/06
JSE Share Code: KST
NSX Share Code: KFS
SEM Share Code: PSGK.N0000
ISIN Code: ZAE000191417
LEI Code: 378900ECF3D86FD28194
(“PSG Konsult” or “the Company” or “the group”)
SHORT-FORM ANNOUNCEMENT: REVIEWED RESULTS FOR THE YEAR ENDED
28 FEBRUARY 2023 AND DIVIDEND DECLARATION
1. FINANCIAL RESULTS
- Recurring headline earnings per share increased by 5% to 72.9 cents per share
- Total dividend per share increased by 13% to 36.0 cents per share
- Total assets under management increased by 13% to R354bn
- Gross written premium increased by 9% to R6.2bn
Note: All amounts contained in this short-form announcement are presented in ZAR.
PSG Konsult delivered a 5% increase in recurring headline earnings per share and a
return on equity of 22.7% for the current year.
These results were achieved against a challenging operational backdrop. The
performance of our key financial metrics under these conditions highlights the competitive
advantage of our advice-led business model. Total assets under management increased
by 13% to R354.1 billion, comprising assets managed by PSG Wealth of R305.5 billion
(12% increase) and PSG Asset Management of R48.6 billion (16% increase), while PSG
Insure’s gross written premium amounted to R6.2 billion (9% increase). Over the period,
the JSE/FTSE All Share Index only increased by 2%, compared to 15% in the previous
financial year. This impacted performance fees, which constituted 6.5% of headline
earnings in comparison to 10.6% for the previous financial year.
From a cost perspective, our Insure division was adversely impacted by the KZN floods
during April 2022, but Western National’s comprehensive reinsurance programme
cushioned the effect on underwriting results. The firm remains confident about its long-
term growth prospects, and we therefore continued to invest in both technology and
people. Compared to the prior year, our technology and infrastructure spend increased
by 13% (these costs continue to be fully expensed), while our fixed remuneration cost
grew by 10%. We are proud of the progress made in growing our own talent, with 141
newly qualified graduates (96% of whom are ACI candidates) having joined during the
financial year. These factors had a muted impact on our operating margins.
PSG Konsult’s key financial performance indicators for the year ended 28 February 2023
are shown below.
28 Feb 2023 Change 28 Feb 2022
R’000 % R’000
Core income 6 494 252 8 6 038 617
Recurring headline and headline earnings 948 785 3 920 663
Non-headline items 1 987 246
Earnings attributable to ordinary shareholders 950 772 3 920 909
Divisional recurring headline earnings
PSG Wealth 568 492 11 510 484
PSG Asset Management 220 323 (10) 244 265
PSG Insure 159 970 (4) 165 914
948 785 3 920 663
Weighted average number of shares in issue
(net of treasury shares) (millions) 1 301.2 (1) 1 320.5
Earnings per share (basic) (cents)
– Recurring headline and headline 72.9 5 69.7
– Attributable 73.1 5 69.7
– Recurring headline (excluding intangible asset 78.2 5 74.8
amortisation cost)
– Recurring headline (excluding performance fees) 68.2 9 62.4
Dividend per share (cents) 36.0 13 32.0
– Interim dividend per share 11.0 10.0
– Final dividend per share 25.0 22.0
Return on equity (ROE) (%) 22.7 23.8
Capital management
PSG Konsult’s capital cover ratio remains strong and increased to 263% (2022: 240%)
based on the latest insurance group return. This comfortably exceeds the minimum
regulatory requirement of 100%. During July 2022, Global Credit Rating Company
affirmed the group’s long-term and short-term credit ratings at A+(ZA) and A1(ZA)
respectively, with a Stable Outlook. The increase in the group’s capital cover ratio and the
credit rating affirmation is testament to the group’s strong financial position and excellent
liquidity.
PSG Konsult also continues to generate strong cash flows, which gives us various options
to optimise our capital structure and risk-adjusted returns to the benefit of shareholders:
• The group repurchased and cancelled 35.7 million shares at a cost of R415.9
million during the period, as part of shareholder capital optimisation.
• The board decided to increase the upper limit of the group’s dividend policy pay-
out ratio to 60% (50% previously) of recurring headline earnings, excluding
intangible asset amortisation.
• The value at risk of our shareholder investable assets marginally increased to 6%
equity exposure (previously below 5%). We continue to monitor investment
markets and will gradually increase our value at risk exposure to align with our
long-term target.
Our primary objective remains to grow organically, and to fund that growth prudently.
2. FINAL DIVIDEND DECLARATION
Considering both the strong cash position and the change in dividend policy pay-out ratio,
the board declared a final gross dividend of 25.0 ZAR cents per share from income
reserves for the year ended 28 February 2023 (2022: 22.0 ZAR cents per share). This
brings the total dividend distribution to shareholders to 36.0 ZAR cents per share (2022:
32.0 ZAR cents per share) for the full year, reflecting the group’s sound financial position
and confidence in its prospects.
The dividend is subject to a South African dividend withholding tax (“DWT”) rate of 20%,
unless the shareholder is exempt from paying dividend tax or is entitled to a reduced rate
in terms of the applicable double-tax agreement. Including DWT at 20% results in a net
dividend of 20.0 ZAR cents (2022: 17.6 ZAR cents) per share. The number of issued
ordinary shares is 1 294 818 074 at the date of this declaration. PSG Konsult’s income
tax reference number is 9550/644/07/5.
The salient dates of the dividend declaration are:
Declaration date Thursday, 13 April 2023
Last day to trade cum dividend Tuesday, 2 May 2023
Trading ex-dividend commences Wednesday, 3 May 2023
Record date Friday, 5 May 2023
Date of payment Monday, 8 May 2023
As the dividend has been declared and denominated in ZAR, it will be paid (in ZAR) into
the bank accounts of shareholders appearing on the Mauritian register.
Share certificates may not be dematerialised or rematerialised between Wednesday,
3 May 2023 and Friday, 5 May 2023, both days inclusive.
3. LOOKING FORWARD
We have always been confident that resourceful South Africans will build a better future
for themselves and their children. Nevertheless, current economic activity remains
depressed, and expectations have plummeted to new lows.
Despite this, we believe that conditions are ripe for change. Ordinary hardworking and
honest South Africans have clearly had enough and significant job losses have further
created an alignment of interests for labour and the private sector to work together. At the
same time, the private sector still has a significant pool of skilled resources and capital at
its disposal. We are therefore mindful that a credible package of measures aimed at
remediating South Africa’s networked industries, while meaningfully involving the private
sector and labour, can quickly serve to uplift the public mood as action translates into
much needed forward momentum.
Irrespective of the short-term challenges, we remain confident in our long-term strategy
and will continue to invest in our businesses, thereby securing prospects for growth. We
will, however, continue to monitor local and global events and the associated impact on
the group’s clients and other stakeholders.
4. SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors of the Company. It
contains only a summary of the information in the full announcement
(“Full Announcement”) and does not contain full or complete details. The Full
Announcement can be found at:
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/KST/PSGKFY2023.pdf
A copy of the Full Announcement is also available for viewing on the Company’s website
at https://www.psg.co.za/files/investor-relations/financial-information/PSGKFY2023.pdf
In addition, electronic copies of the Full Announcement may be requested and obtained,
at no charge, from the Company at company.secretary@psg.co.za and from its sponsor,
PSG Capital, while hard copies may be obtained from their registered offices, during
normal business hours.
Any investment decisions by investors and/or shareholders should be based on
consideration of the Full Announcement, as a whole.
The content of this announcement is derived from reviewed information, but is not itself
reviewed. The Company has based this short-form announcement on the financial results
for the year ended 28 February 2023, which have been reviewed by the Company’s
auditor, Deloitte & Touche, who expressed an unmodified review conclusion thereon.
Tyger Valley
13 April 2023
JSE Sponsor: PSG Capital Proprietary Limited (“PSG Capital”)
NSX Sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the
Namibian Stock Exchange
SEM Authorised Representative and SEM Sponsor: Perigeum Capital Ltd
This notice is issued pursuant to the JSE Limited Listings Requirements, the SEM Listing
Rules and the Mauritian Securities Act 2005. The board of directors of PSG Konsult accepts
full responsibility for the accuracy of the information contained in this communiqué.
Date: 13-04-2023 10:45:00
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