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Short-Form Announcement: Reviewed Results for the Year Ended 29 February 2024 and Dividend Declaration
PSG FINANCIAL SERVICES LIMITED
(Previously 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 Financial Services" or "the Company" or "the group")
SHORT-FORM ANNOUNCEMENT: REVIEWED RESULTS FOR THE YEAR ENDED
29 FEBRUARY 2024 AND DIVIDEND DECLARATION
1. FINANCIAL RESULTS
- Recurring headline earnings per share increased by 11% to 81.1 cents per share
- Total dividend per share increased by 17% to 42.0 cents per share
- Assets under management increased by 15% to R407bn
- Gross written premium increased by 13% to R7.0bn
Note: All amounts contained in this short-form announcement are presented in ZAR.
PSG Financial Services delivered an 11% increase in recurring headline earnings per
share and a return on equity of 23.4% for the current year.
These results were achieved against a backdrop of mostly known challenging operating
conditions. Our key financial metrics under these conditions highlight the competitive
advantage of our advice-led business model. Total assets under management increased
by 15% to R406.9 billion, comprising assets managed by PSG Wealth of R355.1 billion
(16% increase) and PSG Asset Management of R51.8 billion (7% increase), while PSG
Insure's gross written premium amounted to R7.0 billion (13% increase). Performance
fees constituted 2.8% (2023: 6.5%) of headline earnings.
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 12%. These factors had a muted
impact on our operating margins. We are proud of the progress made in growing our own
talent, with 152 newly qualified graduates having joined during the financial year.
PSG Financial Services' key financial performance indicators for the year ended 29
February 2024 are shown below.
29 Feb 2024 Change 28 Feb 20231
R'000 % R'000
Core income 5 879 358 11 5 319 579
Recurring headline and headline earnings 1 033 276 9 948 281
Non-headline items 915 1 987
Earnings attributable to ordinary shareholders 1 034 191 9 950 268
Divisional recurring headline earnings
PSG Wealth 666 278 17 568 492
PSG Asset Management 217 196 (1) 220 323
PSG Insure 149 802 (6) 159 466
1 033 276 9 948 281
Weighted average number of shares in issue
(net of treasury shares) (millions) 1 274.7 (2) 1 301.2
Basic earnings per share (cents)
– Recurring headline and headline 81.1 11 72.9
– Attributable 81.1 11 73.0
– Recurring headline (excluding intangible asset 86.9 11 78.2
amortisation cost)
– Recurring headline (excluding performance fees) 78.8 16 68.1
Dividend per share (cents) 42.0 17 36.0
– Interim dividend per share 13.5 11.0
– Final dividend per share 28.5 25.0
Return on equity (ROE) (%) 23.4 22.7
Note 1: The comparative figures have been restated for the application of IFRS 17.
Capital management
PSG Financial Services' capital cover ratio remains strong at 240% based on the latest
insurance group return (28 February 2023: 240%). This comfortably exceeds the
minimum regulatory requirement of 100%. During August 2023, 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 group's capital cover ratio and the credit
rating affirmation are testament to the group's strong financial position and excellent
liquidity.
PSG Financial Services 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 15.8 million shares at a cost of R207.2
million during the year, as part of shareholder capital optimisation.
• Our shareholder investable asset's exposure to equity marginally increased to 8%
(previously 6%). We continue to monitor investment markets and will gradually
increase our value at risk exposure to align with our long-term target.
2. FINAL DIVIDEND DECLARATION
Considering the strong cash position, the board declared a final gross dividend of
28.5 ZAR cents per share from income reserves for the year ended 29 February 2024
(2023: 25.0 ZAR cents per share). This brings the total dividend distribution to
shareholders to 42.0 ZAR cents per share (2023: 36.0 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
final dividend of 22.8 ZAR cents (2023: 20.0 ZAR cents) per share. The number of issued
ordinary shares is 1 276 380 968 at the date of this declaration. PSG Financial Services'
income tax reference number is 9550/644/07/5.
The salient dates of the dividend declaration are:
Declaration date Thursday, 18 April 2024
Last day to trade cum dividend Tuesday, 7 May 2024
Trading ex-dividend commences Wednesday, 8 May 2024
Record date Friday, 10 May 2024
Date of payment Monday, 13 May 2024
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,
8 May 2024 and Friday, 10 May 2024, 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 continued to plummet to new lows.
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.
Moreover, the firm has aimed to actively stimulate debate around improving South Africa's
economic prospects by launching the Think Big SA competition in collaboration with
Economic Research South Africa. We look forward to sharing the insights generated from
the winning discussion paper more broadly in the interest of helping to create a more
supportive local growth environment. Nonetheless, we will continue to monitor local and
global events and the associated impact on the group's clients and other stakeholders,
and adjust our approach if required.
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/2024/JSE/ISSE/KST/PSGFY2024.pdf
Copies of the Full Announcement are also available for viewing on the Company's website
at https://www.psg.co.za/files/investor-relations/financial-information/PSGFY2024.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.
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 29 February 2024, which have been reviewed by the Company's
auditor, Deloitte & Touche, who expressed an unmodified review conclusion thereon.
Tyger Valley
18 April 2024
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 and the SEM Listing
Rules. The board of directors of PSG Financial Services accepts full responsibility for the
accuracy of the information contained in this communiqué.
Date: 18-04-2024 11:15:00
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