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Short-Form Announcement: Reviewed Results For The Year Ended 28 February 2025 And Dividend Declaration
PSG FINANCIAL SERVICES 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 "PSG" or "the company" or "the group")
SHORT-FORM ANNOUNCEMENT: REVIEWED RESULTS FOR THE YEAR ENDED
28 FEBRUARY 2025 AND DIVIDEND DECLARATION
1. FINANCIAL RESULTS
• Recurring headline earnings per share increased by 25% to 101.1 cents per share
• Total dividend per share increased by 24% to 52.0 cents per share
• Assets under management increased by 16% to R470.7bn
• Gross written premium increased by 9% to R7.6bn
Note: All amounts contained in this short-form announcement are presented in ZAR.
PSG delivered a 24.7% increase in recurring headline earnings per share and a return on
equity of 26.6%.
While operating conditions remained challenging, more favourable equity market
conditions impacted positively on the group's results during the year. Our key financial
metrics under these conditions highlight the competitive advantage of our advice-led
business model. Total assets under management increased by 15.7% to R470.7 billion,
comprising assets managed by PSG Wealth of R410.0 billion (15.5% increase) and PSG
Asset Management of R60.7 billion (17.2% increase), while PSG Insure's gross written
premium amounted to R7.6 billion (9.2% increase). Performance fees constituted 3.7%
(2024: 2.8%) 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 18.6% (these costs continue to be fully
expensed), while our fixed remuneration cost grew by 6.1%. We are proud of the progress
made in growing our own talent, with 150 newly qualified graduates having joined during
the financial year.
PSG's key financial performance indicators for the year ended 28 February 2025 are
shown below:
28 Feb 2025 Change 29 Feb 2024
R'000 % R'000
Core income 6 797 835 15.6 5 879 358
Headline and recurring headline earnings 1 272 236 23.1 1 033 276
Non-headline items 1 565 915
Earnings attributable to ordinary shareholders 1 273 801 23.2 1 034 191
Divisional recurring headline earnings
PSG Wealth 763 212 14.5 666 278
PSG Asset Management 297 246 36.9 217 196
PSG Insure 211 778 41.4 149 802
1 272 236 23.1 1 033 276
Weighted average number of shares in issue
(net of treasury shares) (millions) 1 258.7 (1) 1 274.7
Earnings per share (basic) (cents)
– Headline and recurring headline 101.1 24.7 81.1
– Recurring headline (excluding intangible asset 107.1 23.3 86.9
amortisation cost)
– Recurring headline (excluding performance fees) 97.3 23.6 78.8
– Attributable 101.2 24.7 81.1
Dividend per share (cents) 52.0 23.8 42.0
– Interim dividend per share 17.0 13.5
– Final dividend per share 35.0 28.5
Return on equity (ROE) (%) 26.6 23.4
Capital management
PSG's capital cover ratio remains strong at 257% based on the latest insurance group
return (29 February 2024: 286%). This comfortably exceeds the minimum regulatory
requirement of 100%. During August 2024, Global Credit Rating Company affirmed the
group's long-term and short-term credit ratings at A+(ZA) and A1(ZA) respectively, with a
Positive 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 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 19.1 million shares at a cost of R330.3
million during the year as part of shareholder capital optimisation.
• Our shareholder investable asset's exposure to equity remains at 9%. 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
35.0 ZAR cents per share from income reserves for the year ended 28 February 2025
(2024: 28.5 ZAR cents per share). This brings the total dividend distribution to
shareholders to 52.0 ZAR cents per share (2024: 42.0 ZAR cents per share) for the full
year, reflecting the group's sound financial position and confidence in its prospects. The
group's dividend pay-out ratio remains between 40% to 60% of full year recurring headline
earnings excluding intangible asset amortisation.
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 28.0 ZAR cents (2024: 22.8 ZAR cents) per share. The number of issued
ordinary shares is 1 260 782 880 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 Wednesday, 16 April 2025
Last day to trade cum dividend Tuesday, 6 May 2025
Trading ex-dividend commences Wednesday, 7 May 2025
Record date Friday, 9 May 2025
Date of payment Monday, 12 May 2025
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,
7 May 2025 and Friday, 9 May 2025, both days inclusive.
3. LOOKING FORWARD
PSG is a proudly South African firm that believes in harnessing the power of South
Africans' knowledge base to drive economic progress, and in their ability to ignite its
untapped potential. Nevertheless, continued low levels of economic growth, South
Africa's debt and fiscal situation and heightened geopolitical tensions remain a seemingly
intractable problem. 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 however understand that our economic and societal challenges
will not be resolved quickly. Therefore, we will continue to monitor local and global events
and the associated impact on the group's clients and other stakeholders, and will adjust
our approach if required.
Our inaugural Think Big SA competition, run in collaboration with Economic Research
South Africa, demonstrated the eagerness of South Africans to engage with complex
economic issues facing the country. The competition showcased the level of insight and
innovation of participants, and based on its success, we have launched the second annual
Think Big SA competition with the aim of expanding the debate to encompass the role of
capital markets in enhancing economic growth and job creation in South Africa.
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/2025/JSE/ISSE/KST/PSGFY2025.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/PSGFY2025.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 28 February 2025, which have been reviewed by the company's
auditor, Deloitte & Touche, who expressed an unmodified review conclusion thereon.
Tyger Valley
16 April 2025
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: 16-04-2025 11:00:00
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