Wrap Text
Unaudited Results For The Six Months Ended 31 August 2018
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 2018
SALIENT FEATURES
Recurring headline earnings per share up 18% to 21.5 cents
Gross written premium (1) up 25% to R2 012m
Number of advisers up 14% to 862
Total assets under management up 19% to R230bn
Dividend per share up 23% to 7.0 cents
Total assets under administration (2) up 7% to R426bn
(1) Includes gross written premiums on policies administered by the Insure distribution advisers, which are placed with third-party insurers.
The group earns commission and administration fees on this. It excludes the short-term administration platform gross written premium.
(2) Includes assets administered by PSG Asset Management of R119bn.
COMMENTARY
Overview
PSG Konsult delivered a commendable 18% growth in recurring headline earnings per share and a return on equity of 22%.
The continued upward trajectory of our key operating and financial metrics demonstrates the resilience of our business model and ability to
gain market share, even in periods during which we experience economic headwinds. Total assets under management increased to R230 billion,
comprising assets managed by PSG Wealth of R182 billion and PSG Asset Management of R48 billion, while PSG Insure's gross written premium
increased by 25% to R2 billion. Performance fees earned constituted 4.6% of headline earnings in comparison to 4.4% in the comparative period.
PSG Wealth
PSG Wealth achieved recurring headline earnings growth of 7%. We are satisfied with this result in the context of the prevailing investment
market conditions. Management and other fees increased by 10% as the business continues to focus on recurring income and reduce its reliance
on cyclical transactional brokerage fees, which decreased by 15% during the period under review due to lower transactional volumes. We continue
to enhance our information technology (IT) systems and develop both the adviser and client online platforms, and all related costs continue to
be fully expensed. Clients' assets managed by our Wealth advisers increased by 12% to R182.1 billion during the period under review, which
included R7.0 billion of positive net inflows.
We remain confident about the fundamentals and prospects of this division. We believe that our advisers and clients will gain, over the long
term, from our client-centric digital projects. We are particularly proud of the division's formidable financial adviser network, which
consists of 546 advisers as at 31 August 2018. The experience and stature of the advisers that joined the firm during the period under review
continue to add credibility to our growing brand equity. We remain focused on increasing client engagement and growing our market share.
PSG Asset Management
PSG Asset Management’s recurring headline earnings grew by 53%. The strong results achieved by this division is testimony to the team’s
excellent long-term track record of delivering top-quartile risk-adjusted investment returns for our clients. The team’s ability to consistently
generate alpha for clients across all asset classes over the appropriate investment horizon remained intact during difficult market conditions.
Client assets under management increased by 13% to R48.1 billion during the six-month period. This included R4.1 billion of positive net client
inflows, predominately into our higher-margin funds, with the bulk coming from our retail-orientated target market. We continue to add
high-quality annuity earnings from our growing retail client base.
PSG Insure
PSG Insure achieved recurring headline earnings growth of 11%. The group is pleased with this achievement, which has been driven by improved
underwriting results. This division is in an early growth phase and continues to make inroads into the highly competitive short-term insurance
market through organic growth and select acquisitions. It achieved gross written premium growth of 25% as we continue to focus our efforts on
growing the commercial lines side of the business, which requires specialist adviser expertise. No significant catastrophe or other related
events occurred during this period. When combined with our quality underwriting practices, this allowed us to achieve an improved net underwriting
margin of 10.5% compared to the 7.4% we achieved in the prior period. The insurance advisers increased by 29% to 316 during the six-month
period, following the acquisition of the commercial and industrial insurance brokerage business of Absa Insurance and Financial Advisers (AIFA)
and continue to increase our market share on the commercial lines side.
PSG Konsult's key financial performance indicators for the six months ended 31 August 2018 are shown below:
31 Aug 18 Change 31 Aug 17
R000 % R000
Core income 2 277 976 10 2 062 016
Headline and recurring headline earnings 283 146 18 239 275
Non-headline items (1 297) 91
Earnings attributable to ordinary shareholders 281 849 18 239 366
Divisional recurring headline earnings
PSG Wealth 159 787 7 149 923
PSG Asset Management 87 212 53 56 829
PSG Insure 36 147 11 32 523
283 146 18 239 275
Weighted average number of shares in issue (net of treasury shares) (millions) 1 318.0 - 1 314.5
Earnings per share (basic) (cents)
- Headline and recurring headline 21.5 18 18.2
- Attributable 21.4 17 18.2
- Headline (excluding intangible amortisation cost) 23.3 17 19.9
Dividend per share (cents) 7.0 23 5.7
Return on equity (ROE) (%) 21.9 21.4
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 providing us with client feedback in order to enhance our platform and product capabilities.
Management is proud of the experience and stature of the advisers in the business. PSG Wealth continues to invest in enhancing the strength and
depth of our technology capabilities and in-house investment research team. This fully-fledged team has both fund and security investment
research analysis capabilities. The focus continues to be on digital marketing and initiatives to best determine client needs in this regard.
Our Wealth business is therefore well placed to meet all the investment needs of our clients. We nevertheless consistently strive to improve
both our client and service offerings.
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, continues to be a key focus area for the marketing team, which allows 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 entrepreneurial best-of-breed partnership model in place with our advisers 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.
Building a cost-efficient and scalable business is a key priority for the board. As such, management pays careful attention to the group's cost
structure as each division expands. The management team is committed to continuously invest in technology as a key enabler to achieve
efficiency, automation and, ultimately, our growth objectives.
Corporate activity
During the period under review, the company entered into negotiations regarding a potential acquisition. If it had been successfully concluded,
based on the indicative transaction value, it would have qualified as a Category 2 transaction under the JSE Listings Requirements.
Shareholders were advised, on 7 September 2018, that following a detailed due diligence investigation of this opportunity and lengthy
negotiations, the parties were not able to agree on terms which would, in the view of the board, be in the long-term best interests of
PSG Konsult's various stakeholders.
PSG Konsult's focus remains on organic growth, although it will consider acquisitions that meet its investment criteria, which require, inter
alia, acceptable pricing, a compelling strategic rationale, clearly definable synergies and ease of integration.
In line with our organic growth strategy, we concluded a few smaller earnings-accretive adviser acquisition transactions. The transactions were
funded from existing cash resources and are aligned with our aim of identifying opportunities that will either expand our adviser footprint or
enhance our overall client service offering. The transactions were seamlessly integrated into PSG Konsult's existing business operations and
management believes these will contribute positively to the long-term organic growth of the firm.
PSG Insure
The acquisition of AIFA's commercial and industrial insurance brokerage business was completed effective 1 June 2018. The acquired business is
made up of 82 advisers and in excess of 31 000 clients, which was integrated into the group's distribution network of PSG Insure advisers. This
transaction enhances PSG Insure's footprint across South Africa and is already contributing to the group's profitability. All costs incurred in
setting up the required office infrastructure to implement this transaction have been fully expensed.
The effective date of the acquisition of the remainder of the personal lines short-term insurance face-to-face advisory insurance brokerage
business from AIFA is still expected to be concluded during the latter part of the 2019 financial year.
The Western Group's short- and long-term insurance licences in Botswana were approved during July 2018. The business is expected to become
profitable in the medium term.
Capital management
PSG Konsult is strongly capitalised and complies with the more stringent capital requirements of Solvency Assessment and Management (SAM), which
became effective 1 July 2018. On 23 July 2018, our strong financial position was again affirmed in the long- and short-term investment grade
national scale ratings assigned to PSG Konsult by rating agency Global Credit Rating Co. (GCR) of A-(ZA) and A1-(ZA) respectively, with a stable
outlook. Other than the R100 million notes currently issued under the Domestic Medium Term Note (DMTN) programme, the group has no material
interest-bearing debt and always maintains solid capital buffers. Our strong cash flow and low debt position allow us to use several levers to
optimise risk-adjusted returns for our shareholders.
Shareholders
The company's demonstrable track record on executing and delivering on our strategic goals has enabled us to further expand our institutional
shareholder base.
People
PSG Konsult had 239 offices and 2 734 employees as at 31 August 2018, which included 862 wealth and insure advisers. In addition, we also have
418 professional associates (accountants and attorneys). During the six month period under review, the number of PSG advisers increased by 78
through a combination of organic growth and selected acquisitions, including the AIFA acquisition by PSG Insure. We believe strongly in building
our own future talent and are confident that the investment in our people will allow us to continue to prosper.
Regulatory landscape and risk managment
PSG Konsult, which has 24 regulatory licences (15 in South Africa and 9 in foreign jurisdictions), continues to foster good relationships with
the regulators in the markets in which it operates.
Awards and industry accolades
The group is proud of the following milestones, achievements and industry awards:
PSG Wealth
- Ranked third overall in the 2018 Intellidex Wealth Manager of the Year competition. The division was further awarded first place in the
successful entrepreneur archetype, and second place in the international wealthy family archetype.
- Ranked among the top five asset managers in the Morningstar South African Ratings Analysis and was the top-ranked multi-manager in the
June 2018 quarterly survey.
PSG Asset Management
- Runner-up in the 2018 Raging Bull awards for South African Management Company of the Year.
- Top two manager in the Plexcrown Survey and among the top five in the Morningstar South African Ratings Analysis.
PSG Insure
- National Broker of the Year for Agricultural Business and Agricultural Award for Performance Excellence (Asset and Crop Combined) at the
2018 Santam National Broker Awards.
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 embarked on its strategy of cost-efficient brand building through online
advertising and search campaigns. This was supported by increased activity on select social media platforms. The combined result has meant an
increase in lead generation, traffic to the website and our social media following.
Enhancing the quality of our media presence through public relations remains a constant focus. Through times of political and economic
uncertainty we have also continued to focus our efforts on client interaction through tailored events.
PSG has steadily increased both the quality and quantity of communications from world-class industry research for the savvy client to
investor education for young savers. Clients can now choose which communications they wish to receive through the introduction of a
subscription management tool.
Information technology
As a group we are dedicated to providing outstanding outcomes for our clients. By focusing on simple-to-use, stable, client-centric solutions
we are committed to delivering a great digital experience.
We continue to explore new and better ways to improve all our services based on objective data and feedback to make it easy for clients to
access products in a way that best suits them.
Looking forward
We continue to monitor all actions that stem from the current corporate, political and economic climate, and the associated impact on our
clients and other stakeholders.
The group's aim remains to service existing clients in an integrated manner that is seamless and market leading, as well as to gain new
clients. Several initiatives are in place to ensure this continues. The group's focus on products, platforms and client service excellence,
through the quality of its advice process, works. As such, the prospects for continued growth remain compelling.
The cash-generative nature of the business gives PSG Konsult several options for funding business growth initiatives. These are ultimately
aimed at enhancing our overall client experience.
The group will continue to prioritise organic growth in our current selected markets where we have relatively low, but rapidly expanding,
market shares. The group's capital position adequately considers our current growth plans.
Events after reporting date
No event material to the understanding of these results has occurred between 31 August 2018 and the date of approval of the condensed
consolidated interim financial statements.
Dividend
Given our continued confidence in business prospects, the board decided to approve and declare an interim gross dividend of 7.0 cents per
share from income reserves for the six months ended 31 August 2018 (2017: 5.7 cents per share), which represents a 23% increase from the
previous interim period. The group's dividend payout ratio remains at the low end of the dividend payout policy range announced at the time of
listing.
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 5.6 cents per
share. The number of issued ordinary shares is 1 342 242 208 at the date of this declaration. PSG Konsult's income tax reference number is
9550/644/07/5.
The following are the salient dates in relation to the dividend:
Last day to trade (cum dividend) Tuesday, 30 October 2018
Trading ex dividend commences Wednesday, 31 October 2018
Record date Friday, 2 November 2018
Date of payment Monday, 5 November 2018
Share certificates may not be dematerialised or rematerialised between Wednesday, 31 October 2018, and Friday, 2 November 2018, 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
11 October 2018
FINANCIAL RESULTS
Condensed consolidated statement of financial position
as at 31 August and 28 February 2018
Unaudited Unaudited Audited
as at as at as at
31 Aug 18 31 Aug 17 28 Feb 18
Notes R000 R000 R000
ASSETS
Intangible assets 1 125 274 1 006 595 1 027 805
Property and equipment 71 552 48 620 74 286
Investment in joint ventures 1 238 1 133 1 094
Deferred income tax assets 86 305 80 435 102 091
Equity securities 2 520 607 2 104 693 2 321 482
Debt securities 2 878 932 3 943 613 2 582 815
Unit-linked investments 48 718 417 40 849 291 42 196 090
Investment in investment contracts 17 414 16 323 14 798
Loans and advances 111 404 125 099 134 202
Derivative financial instruments 17 105 13 005 8 854
Reinsurance assets 70 241 80 283 80 544
Deferred acquisition costs 5 671 4 393 4 820
Receivables including insurance receivables 1 807 997 1 700 815 1 904 775
Current income tax assets 21 602 19 621 39 089
Cash and cash equivalents (including money market funds) 1 769 571 1 455 880 1 920 626
Assets held for sale 8 16 980 - -
Total assets 59 240 310 51 449 799 52 413 371
EQUITY
Equity attributable to owners of the parent
Stated capital 1 908 804 1 903 517 1 908 804
Treasury shares (177 196) (176 612) (192 247)
Other reserves (361 177) (383 160) (386 722)
Retained earnings 1 294 829 968 177 1 175 226
2 665 260 2 311 922 2 505 061
Non-controlling interest 256 272 212 875 235 654
Total equity 2 921 532 2 524 797 2 740 715
LIABILITIES
Insurance contracts 489 480 524 572 542 709
Deferred income tax liabilities 30 153 21 196 18 894
Borrowings 102 960 109 101 103 695
Derivative financial instruments 20 056 14 854 16 857
Investment contracts 6 26 219 315 24 767 685 24 278 949
Third-party liabilities arising on consolidation of mutual funds 27 311 201 21 603 419 22 585 256
Deferred reinsurance acquisition revenue 4 993 3 663 3 681
Trade and other payables 2 123 249 1 873 675 2 116 527
Current income tax liabilities 10 466 6 837 6 088
Liabilities held for sale 8 6 905 - -
Total liabilities 56 318 778 48 925 002 49 672 656
Total equity and liabilities 59 240 310 51 449 799 52 413 371
Net asset value per share (cents) 202.0 175.3 190.1
Condensed consolidated income statement
for the six months ended 31 August and the year ended 28 February 2018
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 Aug 18 31 Aug 17 28 Feb 18
R000 R000 R000
Gross written premium 604 427 596 679 1 181 333
Less: Reinsurance written premium (163 945) (146 555) (296 740)
Net written premium 440 482 450 124 884 593
Change in unearned premium
- Gross 32 156 23 324 28 477
- Reinsurers' share 2 696 (2 617) (4 033)
Net insurance premium revenue 475 334 470 831 909 037
Commission and other fee income 1 577 267 1 398 828 2 880 635
Interest income on amortised cost financial instruments 92 975 81 760 197 328
Interest income on fair value through profit or loss financial instruments 598 219 507 049 1 006 048
Dividend income 107 451 174 653 423 476
Net fair value gains and losses on financial instruments 3 067 585 1 746 493 2 053 793
Fair value adjustment to investment contract liabilities (1 778 571) (1 185 456) (1 654 563)
Fair value adjustment to third-party liabilities (1 943 853) (1 176 449) (1 722 789)
Other operating income 109 832 89 027 110 675
Total income 2 306 239 2 106 756 4 203 640
Insurance claims and loss adjustment expenses (376 842) (431 306) (816 429)
Insurance claims and loss adjustment expenses recovered from reinsurers 75 056 95 448 187 368
Net insurance benefits and claims (301 786) (335 858) (629 061)
Commission paid (716 188) (631 698) (1 199 447)
Depreciation and amortisation (1) (40 099) (34 591) (69 725)
Employee benefit expenses (461 047) (393 477) (825 668)
Marketing, administration and other expenses (332 499) (307 537) (571 842)
Total expenses (1 851 619) (1 703 161) (3 295 743)
Share of profits/(losses) of joint ventures 144 (45) (84)
Total profit/(loss) from joint ventures 144 (45) (84)
Profit before finance costs and taxation 454 764 403 550 907 813
Finance costs (21 498) (24 151) (38 941)
Profit before taxation 433 266 379 399 868 872
Taxation (127 009) (119 273) (256 221)
Profit for the period 306 257 260 126 612 651
Attributable to:
Owners of the parent 281 849 239 366 566 476
Non-controlling interest 24 408 20 760 46 175
306 257 260 126 612 651
Earnings per share (cents)
Attributable (basic) 21.4 18.2 43.0
Attributable (diluted) 21.2 18.1 42.6
Headline and recurring headline (basic) 21.5 18.2 43.0
Headline and recurring headline (diluted) 21.3 18.1 42.6
(1) Includes amortisation cost of R25.3 million (31 Aug 2017: R22.7 million; 28 Feb 2018: R45.6 million).
Condensed consolidated statement of comprehensive income
for the six months ended 31 August and the year ended 28 February 2018
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 Aug 18 31 Aug 17 28 Feb 18
R000 R000 R000
Profit for the period 306 257 260 126 612 651
Other comprehensive income for the period, net of taxation 5 855 (1 494) (1 851)
To be reclassified to profit or loss:
Currency translation adjustments 5 855 (1 494) (1 851)
Total comprehensive income for the period 312 112 258 632 610 800
Attributable to:
Owners of the parent 287 704 237 872 564 625
Non-controlling interest 24 408 20 760 46 175
312 112 258 632 610 800
Earnings and headline earnings per share
for the six months ended 31 August and the year ended 28 February 2018
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 Aug 18 31 Aug 17 28 Feb 18
R000 R000 R000
Headline earnings 283 146 239 275 566 396
Recurring 283 146 239 275 566 396
Non-recurring - - -
Non-headline items (net of non-controlling interest and related tax effect)
(Loss)/profit on disposal of intangible assets (including goodwill) (1 437) 18 (148)
Other 140 73 228
Profit attributable to ordinary shareholders 281 849 239 366 566 476
Earnings per share (cents)
Attributable (basic) 21.4 18.2 43.0
Attributable (diluted) 21.2 18.1 42.6
Headline and recurring headline (basic) 21.5 18.2 43.0
Headline and recurring headline (diluted) 21.3 18.1 42.6
Number of shares (millions)
In issue (net of treasury shares) 1 319.3 1 318.6 1 317.5
Weighted average (net of treasury shares) 1 318.0 1 314.5 1 317.6
Condensed consolidated statement of changes in equity
for the six months ended 31 August and the year ended 28 February 2018
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 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
Comprehensive income
Profit for the period - - - 327 110 25 415 352 525
Other comprehensive income for the period - - (357) - - (357)
Total comprehensive income for the period - - (357) 327 110 25 415 352 168
Transactions with owners 5 287 (15 635) (3 205) (120 061) (2 636) (136 250)
Issue of ordinary shares 5 287 - - - - 5 287
Share-based payment costs - - 18 045 - - 18 045
Capital contribution by non-controlling interest - - - - 432 432
Net movement in treasury shares - (9 382) - - - (9 382)
Equity-settled share-based payments - - (21 250) (51 108) - (72 358)
Release of profits from treasury shares to retained earnings - (6 253) - 6 253 - -
Dividends paid - - - (75 206) (3 068) (78 274)
Balance at 28 February 2018 (Audited) 1 908 804 (192 247) (386 722) 1 175 226 235 654 2 740 715
Comprehensive income
Profit for the period - - - 281 849 24 408 306 257
Other comprehensive income for the period - - 5 855 - - 5 855
Total comprehensive income for the period - - 5 855 281 849 24 408 312 112
Transactions with owners - 15 051 19 690 (162 246) (3 790) (131 295)
Share-based payment costs - - 19 690 - - 19 690
Net movement in treasury shares (1) - 15 051 - - - 15 051
Dividends paid - - - (162 246) (3 790) (166 036)
Balance at 31 August 2018 (Unaudited) 1 908 804 (177 196) (361 177) 1 294 829 256 272 2 921 532
(1) The net movement in treasury shares relates to the release of shares to staff by the share trust in order to fulfil the deferred bonus
obligations.
Condensed consolidated statement of cash flows
for the six months ended 31 August and the year ended 28 February 2018
Restated
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 Aug 18 31 Aug 17 28 Feb 18
Notes R000 R000 R000
Cash flows from operating activities
Cash utilised in operations (583 350) (489 097) (487 401)
Interest income 691 194 588 809 1 203 376
Dividend income 107 451 174 653 423 476
Finance costs (13 566) (15 370) (23 105)
Taxation paid (87 075) (99 081) (276 860)
Operating cash flows before policyholder cash movement 114 654 159 914 839 486
Policyholder cash movement 5 363 41 231 (13 238)
Net cash flow from operating activities 120 017 201 145 826 248
Cash flows from investing activities
Acquisition of subsidiaries and businesses 9.1 (23 224) - -
Disposal of subsidiaries and businesses 9.2 (17 182) - -
Acquisition of intangible assets (75 381) (33 657) (68 497)
Purchases of property and equipment (13 021) (7 166) (45 321)
Other 2 721 726 860
Net cash flow from investing activities (126 087) (40 097) (112 958)
Cash flows from financing activities
Dividends paid (166 036) (138 975) (217 249)
Advance of borrowings - 100 000 100 000
Shares issued - 66 623 70 339
Holding company's treasury shares sold by subsidiary 15 051 144 976 172 170
Purchase of holding company's treasury shares - (262 382) (298 958)
Other (784) (1 678) (3 180)
Net cash flow from financing activities (151 769) (91 436) (176 878)
Net (decrease)/increase in cash and cash equivalents (157 839) 69 612 536 412
Cash and cash equivalents at beginning of the period 1 920 626 1 385 542 1 385 542
Exchange gains/(losses) on cash and cash equivalents 9 212 726 (1 328)
Cash and cash equivalents at end of the period (1) 9.4 1 771 999 1 455 880 1 920 626
(1) Includes the following:
Clients' cash linked to investment contracts 6 337 55 443 974
Other client-related balances 309 491 242 984 353 759
315 828 298 427 354 733
Notes to the statement of cash flow:
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 when 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 2018
1. Reporting entity
PSG Konsult Limited is a public company domiciled in the Republic of South Africa. The condensed consolidated interim financial statements as
at and for the six months ended 31 August 2018, comprise the company and its subsidiaries (together referred to as 'the group') and the group's
interest in 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 2018 have been prepared in accordance with
the requirements of the JSE Limited (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 2018. 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. The comparative consolidated statement of cash flows and related segment information
was restated, refer to note 14 for further details.
These condensed consolidated interim financial statements were prepared 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 2018.
3. Independent review
The condensed consolidated interim financial statements are 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 2018, except for the mandatory adoption of IFRS 9 - Financial instruments and IFRS 15 - Revenue from contracts with
customers. The group has applied both standards retrospectively without restating comparative figures. Refer to note 15 for further detail.
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 2018 (Unaudited)
Headline earnings (1) 159 787 87 212 36 147 283 146
- recurring 159 787 87 212 36 147 283 146
- non-recurring - - - -
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 year ended 28 February 2018 (Audited)
Headline earnings (1) 339 129 155 825 71 442 566 396
- recurring 339 129 155 825 71 442 566 396
- non-recurring - - - -
(1) Headline earnings, calculated in terms of the requirements stipulated in Circular 4/2018 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 2018 (Unaudited) R000 R000 R000 R000
Total IFRS reported income 1 149 492 290 090 866 657 2 306 239
Linked investment business and other income (28 263) - - (28 263)
Total core income 1 121 229 290 090 866 657 2 277 976
Total segment income 1 406 531 438 929 881 587 2 727 047
Intersegment income (285 302) (148 839) (14 930) (449 071)
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 Management Insure Total
For the year ended 28 February 2018 (Audited) R000 R000 R000 R000
Total IFRS reported income 2 133 530 527 188 1 542 922 4 203 640
Linked investment business and other income (3 332) - - (3 332)
Total core income 2 130 198 527 188 1 542 922 4 200 308
Total segment income 2 931 355 825 512 1 593 439 5 350 306
Intersegment income (801 157) (298 324) (50 517) (1 149 998)
Other information provided to the CODM is measured in a manner consistent with that of the financial statements.
5.4 Divisional income statements
The profit or loss information follows a similar format to the consolidated income statement. The divisional income statements reflect the core
business operations of the group.
Asset
Wealth Management Insure Total
For the six months ended 31 August 2018 (Unaudited) R000 R000 R000 R000
Total income 1 121 229 290 090 866 657 2 277 976
Total expenses (877 102) (174 710) (787 487) (1 839 299)
244 127 115 380 79 170 438 677
Total profit from joint ventures - - 144 144
Profit before finance costs and taxation 244 127 115 380 79 314 438 821
Finance costs (1) (13 364) (167) (35) (13 566)
Profit before taxation 230 763 115 213 79 279 425 255
Taxation (67 778) (28 001) (23 219) (118 998)
Profit for the period 162 985 87 212 56 060 306 257
Attributable to:
Owners of the parent 159 841 87 212 34 796 281 849
Non-controlling interest 3 144 - 21 264 24 408
162 985 87 212 56 060 306 257
Headline and recurring headline earnings 159 787 87 212 36 147 283 146
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 and recurring headline earnings 149 923 56 829 32 523 239 275
(1) Finance costs in the PSG Wealth division include the finance charge on the funding utilised to provide loan facilities 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) for which PSG Wealth receives a margin. The finance costs of R13.4 million (31 Aug 2017: R15.0 million) consist of
R4.6 million (31 Aug 2017: R5.5 million) on the loan funding, 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 2018 (Audited) R000 R000 R000 R000
Total income 2 130 198 527 188 1 542 922 4 200 308
Total expenses (1 618 621) (314 333) (1 391 731) (3 324 685)
511 577 212 855 151 191 875 623
Total loss from joint ventures - - (84) (84)
Profit before finance costs and taxation 511 577 212 855 151 107 875 539
Finance costs (1) (22 504) (540) (61) (23 105)
Profit before taxation 489 073 212 315 151 046 852 434
Taxation (142 496) (56 460) (40 827) (239 783)
Profit for the year 346 577 155 855 110 219 612 651
Attributable to:
Owners of the parent 339 031 155 855 71 590 566 476
Non-controlling interest 7 546 - 38 629 46 175
346 577 155 855 110 219 612 651
Headline and recurring headline earnings 339 129 155 825 71 442 566 396
(1) Finance costs in the PSG Wealth division include the finance charge on the funding utilised to provide loan facilities 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 R22.5 million consist of R8.0 million on the loan funding,
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 2018 (Unaudited) R000 R000 R000
ASSETS
Equity securities 2 520 607 17 689 2 502 918
Debt securities 2 878 932 38 828 2 840 104
Unit-linked investments 48 718 417 780 448 47 937 969
Investment in investment contracts 17 414 - 17 414
Receivables including insurance receivables 1 807 997 347 765 1 460 232
Derivative financial instruments 17 105 - 17 105
Cash and cash equivalents (including money market funds) 1 769 571 1 453 743 315 828
Other assets (1) 1 510 267 1 510 267 -
Total assets 59 240 310 4 148 740 55 091 570
EQUITY
Equity attributable to owners of the parent 2 665 260 2 665 260 -
Non-controlling interest 256 272 256 272 -
Total equity 2 921 532 2 921 532 -
LIABILITIES
Borrowings (2) 102 960 1 683 101 277
Investment contracts 26 219 315 - 26 219 315
Third-party liabilities arising on consolidation of mutual funds 27 311 201 - 27 311 201
Derivative financial instruments 20 056 - 20 056
Trade and other payables 2 123 249 683 528 1 439 721
Other liabilities (3) 541 997 541 997 -
Total liabilities 56 318 778 1 227 208 55 091 570
Total equity and liabilities 59 240 310 4 148 740 55 091 570
(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, deferred acquisition costs and assets held for sale.
(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, insurance contracts and
liabilities held for sale.
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 funds) 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 28 February 2018 (Audited) R000 R000 R000
ASSETS
Equity securities 2 321 482 17 279 2 304 203
Debt securities 2 582 815 50 974 2 531 841
Unit-linked investments 42 196 090 629 630 41 566 460
Investment in investment contracts 14 798 - 14 798
Receivables including insurance receivables 1 904 775 310 491 1 594 284
Derivative financial instruments 8 854 - 8 854
Cash and cash equivalents (including money market funds) 1 920 626 1 565 893 354 733
Other assets (1) 1 463 931 1 463 931 -
Total assets 52 413 371 4 038 198 48 375 173
EQUITY
Equity attributable to owners of the parent 2 505 061 2 505 061 -
Non-controlling interest 235 654 235 654 -
Total equity 2 740 715 2 740 715 -
LIABILITIES
Borrowings (2) 103 695 2 467 101 228
Investment contracts 24 278 949 - 24 278 949
Third-party liabilities arising on consolidation of mutual funds 22 585 256 - 22 585 256
Derivative financial instruments 16 857 - 16 857
Trade and other payables 2 116 527 723 644 1 392 883
Other liabilities (3) 571 372 571 372 -
Total liabilities 49 672 656 1 297 483 48 375 173
Total equity and liabilities 52 413 371 4 038 198 48 375 173
(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.
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 2018 (Unaudited) R000 R000 R000
Commission and other fee income (3) 1 577 267 1 674 797 (97 530)
Investment income (4) 798 645 99 467 699 178
Net fair value gains and losses on financial instruments 3 067 585 9 133 3 058 452
Fair value adjustment to investment contract liabilities (1 778 571) - (1 778 571)
Fair value adjustment to third-party liabilities (1 943 853) - (1 943 853)
Other (1),(3) 585 166 494 579 90 587
Total income 2 306 239 2 277 976 28 263
Insurance claims and loss adjustment expenses (376 842) (376 842) -
Other (2),(3) (1 474 777) (1 462 457) (12 320)
Total expenses (1 851 619) (1 839 299) (12 320)
Total profit from joint ventures 144 144 -
Profit before finance costs and taxation 454 764 438 821 15 943
Finance costs (21 498) (13 566) (7 932)
Profit before taxation 433 266 425 255 8 011
Taxation (127 009) (118 998) (8 011)
Profit for the period 306 257 306 257 -
Attributable to:
Owners of the parent 281 849 281 849 -
Non-controlling interest 24 408 24 408 -
306 257 306 257 -
(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) Investment income consists of interest income on amortised cost financial instruments, interest income on fair value through profit or loss
financial instruments and dividend income.
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 (4) 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.
(4) Investment income consists of interest income on amortised cost financial instruments, interest income on fair value through profit or loss
financial instruments and dividend income.
Linked
Total investment
IFRS Core business
reported business and other
For the year ended 28 February 2018 (Audited) R000 R000 R000
Commission and other fee income (3) 2 880 635 3 064 790 (184 155)
Investment income (4) 1 626 852 191 200 1 435 652
Net fair value gains and losses on financial instruments 2 053 793 16 972 2 036 821
Fair value adjustment to investment contract liabilities (1 654 563) - (1 654 563)
Fair value adjustment to third-party liabilities (1 722 789) - (1 722 789)
Other (1) 1 019 712 927 346 92 366
Total income 4 203 640 4 200 308 3 332
Insurance claims and loss adjustment expenses (816 429) (816 429) -
Other (2),(3) (2 479 314) (2 508 256) 28 942
Total expenses (3 295 743) (3 324 685) 28 942
Total loss from joint ventures (84) (84) -
Profit before finance costs and taxation 907 813 875 539 32 274
Finance costs (38 941) (23 105) (15 836)
Profit before taxation 868 872 852 434 16 438
Taxation (256 221) (239 783) (16 438)
Profit for the year 612 651 612 651 -
Attributable to:
Owners of the parent 566 476 566 476 -
Non-controlling interest 46 175 46 175 -
612 651 612 651 -
(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) Investment income consists of interest income on amortised cost financial instruments, interest income on fair value through profit or loss
financial instruments and dividend income.
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 2018 (Unaudited) Notes R000 R000 R000
Cash flows from operating activities 120 017 151 282 (31 265)
Cash (utilised in)/generated by operations (583 350) 171 615 (754 965)
Interest income 691 194 97 868 593 326
Dividend income 107 451 1 599 105 852
Finance costs (13 566) (13 566) -
Taxation paid (87 075) (106 234) 19 159
Policyholder cash movement 5 363 - 5 363
Cash flows from investing activities (126 087) (118 447) (7 640)
Acquisition of subsidiaries and businesses 9.1 (23 224) (32 766) 9 542
Disposal of subsidiaries and businesses 9.2 (17 182) - (17 182)
Acquisition of intangible assets (75 381) (75 381) -
Other (10 300) (10 300) -
Cash flows from financing activities (151 769) (151 769) -
Net decrease in cash and cash equivalents (157 839) (118 934) (38 905)
Cash and cash equivalents at beginning of the period 1 920 626 1 565 893 354 733
Exchange gains on cash and cash equivalents 9 212 9 212 -
Cash and cash equivalents at end of the period 9.4 1 771 999 1 456 171 315 828
Total Client-
IFRS Own related
reported balances balances
For the six months ended 31 August 2017 (Unaudited) (Restated) R000 R000 R000
Cash flows from operating activities (2) 201 145 106 141 95 004
Cash (utilised in)/generated by operations (2) (489 097) 121 189 (610 286)
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 (1),(2) (91 436) (191 436) 100 000
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 year ended 28 February 2018 (Audited) R000 R000 R000
Cash flows from operating activities 826 248 674 938 151 310
Cash (utilised in)/generated by operations (487 401) 754 527 (1 241 928)
Interest income 1 203 376 188 355 1 015 021
Dividend income 423 476 2 846 420 630
Finance costs (23 105) (23 105) -
Taxation paid (276 860) (247 685) (29 175)
Policyholder cash movement (13 238) - (13 238)
Cash flows from investing activities (112 958) (112 958) -
Cash flows from financing activities (1) (176 878) (276 878) 100 000
Net increase in cash and cash equivalents 536 412 285 102 251 310
Cash and cash equivalents at beginning of the year 1 385 542 1 282 119 103 423
Exchange losses on cash and cash equivalents (1 328) (1 328) -
Cash and cash equivalents at end of the year 1 920 626 1 565 893 354 733
(1) The DMTN programme funding raised in order to internally fund the clients' Scriptfin loans has been reflected under client-related balances.
(2) The funding raised by the DMTN programme, which was previously disclosed as a cash flow from operating activities, has now been shown as a
cash flow from financing activities. Refer to note 14 for the details 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 18 31 Aug 17 28 Feb 18
R000 R000 R000
Equity securities 2 346 478 1 983 801 2 192 586
Debt securities 457 343 1 659 508 483 551
Unit-linked investments 23 391 743 21 052 610 21 587 040
Investments in investment contracts 17 414 16 323 14 798
Cash and cash equivalents 6 337 55 443 974
26 219 315 24 767 685 24 278 949
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 419.3 million (31 Aug 2017: R1 317.3 million;
28 Feb 2018: R1 372.6 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. Assets and liabilities held for sale
For the six months ended 31 August 2018
The assets and liabilities classified as held for sale relate to the PSG Wealth Limited (Mauritius) and PSG Securities Limited (Mauritius)
businesses, which have been presented as held for sale following the approval by the group's management to sell these businesses.
PSG
PSG Wealth Securities
Limited Limited
(Mauritius) (Mauritius) Total
R000 R000 R000
Assets classified as held for sale
Intangible assets - Goodwill 3 053 1 381 4 434
Intangible assets - Customer relationships 2 561 561 3 122
Receivables including insurance receivables 2 438 3 774 6 212
Property and equipment 606 - 606
Other assets 152 26 178
Cash and cash equivalents (including money market funds) 505 1 923 2 428
9 315 7 665 16 980
Liabilities classified as held for sale
Trade and other payables 1 819 4 056 5 875
Other liabilities 773 257 1 030
2 592 4 313 6 905
The group expects to complete the sale of these businesses within 12 months of 31 August 2018.
9. Notes to the statement of cash flows
9.1 Acquisition of subsidiaries and businesses
For the six months ended 31 August 2018
Collective investment schemes
The group obtained control of the PSG Wealth Global Preserver Feeder Fund during the six months ended 31 August 2018. This fund was consolidated
in accordance with IFRS 10 - Consolidated financial statements and is a collective investment scheme managed by an entity within the group.
PSG Wealth
Global Preserver
Feeder
Fund consolidated Fund
% interest in fund on effective date 31
Date of acquisition 31 August 2018
Details of the net assets acquired are as follows: R000
Unit-linked investments 992 065
Receivables including insurance receivables 553
Cash and cash equivalents (including money market funds) 9 542
Third-party liabilities arising on consolidation of mutual funds (689 002)
Trade and other payables (382)
Net asset value 312 776
Fair value of interest held before the business combination (312 776)
Cash consideration paid -
Cash and cash equivalents acquired 9 542
Net cash inflow in the six months ended 31 August 2018 9 542
Had the PSG Wealth Global Preserver Feeder Fund been consolidated from 1 March 2018, total income of R11.4 million and profit of Rnil would have
been recognised in the consolidated income statement.
Other business combinations
PSG Konsult Limited, through its subsidiary PSG Wealth Financial Planning Proprietary Limited, acquired the commercial and industrial short-term
insurance brokerage business of Absa Insurance and Financial Advisers Proprietary Limited (AIFA). The effective date of the transaction was
1 June 2018 following the fulfilment of suspensive conditions.
Details of the net assets acquired and goodwill are as follows: R000
Cash paid 32 766
Cash due 32 765
Total purchase consideration 65 531
Less: Fair value of net assets acquired (42 597)
Goodwill recognised on acquisition 22 934
The remaining purchase consideration will be paid in two 25% tranches over the next two years.
Cash consideration paid (32 766)
Cash and cash equivalents acquired -
Net cash outflow in the six months ended 31 August 2018 (32 766)
The goodwill is mainly attributable to the workforce of the acquired business.
Acquiree's
carrying
Fair value amount
The assets and liabilities arising from the acquisition are as follows: R000 R000
Intangible assets - Customer relationships 59 162 -
Deferred income tax (16 565) -
Total identifiable net assets 42 597 -
The income, included in the consolidated income statement, contributed by the AIFA commercial and industrial short-term insurance brokerage
business since the acquisition date was R36.3 million. The book of business also contributed a profit after taxation of R2.4 million over the
same period.
Had the AIFA commercial and industrial short-term insurance brokerage business been consolidated from 1 March 2018, the consolidated income
statement would have shown income of R72.6 million and profit after taxation of R4.8 million for the six months ended 31 August 2018.
9.2 Disposal of subsidiaries and businesses
For the six months ended 31 August 2018
Collective investment schemes
The group deconsolidated the PSG Multi-Management Foreign Flexible Fund of Funds during the six months ended 31 August 2018 as the group lost
control of this fund, when it merged with the PSG Wealth Global Flexible Feeder Fund, due to a decrease in the effective interest in the fund.
Details of the net assets disposed of are as follows: R000
Unit-linked investments 133 049
Receivables including insurance receivables 186 008
Cash and cash equivalents (including money market funds) 17 182
Third-party liabilities arising on consolidation of mutual funds (228 106)
Trade and other payables (2 511)
Net asset value 105 622
Transfer to unit-linked investments (105 622)
Cash consideration received -
Cash and cash equivalents given up (17 182)
Net cash outflow in the six months ended 31 August 2018 (17 182)
9.3 Other acquisitions - standardising of revenue sharing model
For the six months ended 31 August 2018
The group (through its subsidiary PSG Wealth Financial Planning Proprietary Limited) concluded further revenue-sharing arrangements with a large
number of its advisers. The purpose of these transactions were to standardise the revenue sharing arrangements between the advisers and PSG Konsult.
A cash consideration of R24.4 million was paid 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 R1.2 million to our headline earnings during the six months ended 31 August 2018, net of amortisation cost of
R0.6 million.
For the year ended 28 February 2018
The group (through its subsidiary PSG Wealth Financial Planning 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 (0.6 million shares at an average of R8.97 per share) and a cash consideration
of R17.3 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 R1.1 million to our headline earnings during the 2018 financial year, net of amortisation cost of R0.5 million.
9.4 Cash and cash equivalents at end of the period
For the six months ended 31 August 2018
31 Aug 18
R000
Cash and cash equivalents (including money market funds) 1 769 571
Cash and cash equivalents classified as assets held for sale 2 428
1 771 999
10. 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 2018.
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 price and interest rate risk. As a result, the management fees fluctuate, but cannot be less than nil.
Included in the equity securities of R 2 520.6 million (31 Aug 2017: R2 104.7 million; 28 Feb 2018: R2 321.5 million) are quoted equity
securities of R 2 520.4 million (31 Aug 2017: R2 104.3 million; 28 Feb 2018: R2 321.2 million), of which R 2 346.5 million (31 Aug 2017:
R1 983.8 million; 28 Feb 2018: R2 192.6 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 R 23 391.7 million (31 Aug 2017: R21 052.6 million; 28 Feb 2018: R21 587.0 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 R 457.3 million (31 Aug 2017: R1 659.5 million; 28 Feb 2018: R483.6 million) and
do not expose the group to interest rate risk. Cash and cash equivalents linked to policyholder investments amounted to R 6.3 million
(31 Aug 2017: R55.4 million; 28 Feb 2018: R1.0 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 2018.
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
particular investment contract provided by 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
on consolidation of mutual funds prices are 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 2018 (Unaudited) R000 R000 R000 R000
Financial assets
Derivative financial instruments - 17 105 - 17 105
Equity securities 2 520 367 - 240 2 520 607
Debt securities 869 161 1 889 646 - 2 758 807
Unit-linked investments - 48 195 372 523 045 48 718 417
Investment in investment contracts - 17 414 - 17 414
3 389 528 50 119 537 523 285 54 032 350
Financial liabilities
Derivative financial instruments - 20 056 - 20 056
Investment contracts - 25 595 168 504 022 26 099 190
Trade and other payables - - 70 264 70 264
Third-party liabilities arising on consolidation of mutual funds - 27 311 201 - 27 311 201
- 52 926 425 574 286 53 500 711
Level 1 Level 2 Level 3 Total
As at 31 August 2017 (Unaudited) R000 R000 R000 R000
Financial assets
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
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 28 February 2018 (Audited) R000 R000 R000 R000
Financial assets
Derivative financial instruments - 8 854 - 8 854
Equity securities 2 321 235 7 240 2 321 482
Debt securities 922 377 1 500 509 - 2 422 886
Unit-linked investments - 41 478 953 717 137 42 196 090
Investment in investment contracts - 14 798 - 14 798
3 243 612 43 003 121 717 377 46 964 110
Financial liabilities
Derivative financial instruments - 16 857 - 16 857
Investment contracts - 23 420 874 698 146 24 119 020
Trade and other payables - - 45 344 45 344
Third-party liabilities arising on consolidation of mutual funds - 22 585 256 - 22 585 256
- 46 022 987 743 490 46 766 477
The following table presents the changes in level 3 financial instruments during the reporting periods under review:
Unaudited Unaudited Audited
31 Aug 18 31 Aug 17 28 Feb 18
R000 R000 R000
Assets
Opening carrying value 717 377 1 109 600 1 109 600
Additions 124 895 254 646 487 832
Disposals (348 349) (441 401) (903 023)
Gains recognised in profit or loss (1) 29 362 22 593 22 968
Closing carrying value 523 285 945 438 717 377
Liabilities
Opening carrying value 743 490 1 137 380 1 137 380
Additions 248 719 277 129 541 839
Disposals (446 862) (458 681) (962 005)
Losses recognised in profit or loss (2) 29 324 22 593 26 276
Reclassified to held for sale (385) - -
Closing carrying value 574 286 978 421 743 490
(1) Gains on these items were recognised in profit or loss under 'net fair value gains and losses on financial instruments'.
(2) Losses on these items were recognised in profit or 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 18 31 Aug 17 28 Feb 18
R000 R000 R000
Assets
Debt securities
- Carrying value 120 125 152 873 159 929
- Fair value 118 204 150 103 159 038
Liabilities
Investment contracts
- Carrying value 120 125 152 873 159 929
- Fair value 118 204 150 103 159 038
The fair value of the financial assets and liabilities in the table above is categorised in terms of level 3.
11. Related-party transactions
Related-party transactions similar to those disclosed in the group's annual financial statements for the year ended 28 February 2018 took place
during the period under review.
12. Capital commitments and contingencies
Unaudited Unaudited Audited
31 Aug 18 31 Aug 17 28 Feb 18
R000 R000 R000
Operating lease commitments 147 042 135 162 142 975
13. 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.
14. Restatement of prior year figures
The following restatement was applied to the 31 August 2017 consolidated statement of cash flows and related segment information:
PSG Konsult Limited, through its subsidiary PSG Konsult Treasury Limited, established a DMTN programme during the 2018 financial year and issued
a R100 million senior unsecured floating rate note on 12 July 2017. The DMTN funding was raised to internally fund clients' Scriptfin loans, and
was consequently classified under cash flows from operating activities in the interim financial statements for the six months ended 31 August 2017.
The group has subsequently decided to restate the classification of this cash inflow to cash flows from financing activities to more correctly
reflect the nature of this cash flow in terms of IAS 7 - Statement of cash flows.
This restatement had no impact on the current or prior year reported earnings, diluted earnings or headline earnings per share, or on the net
asset value or net cash flow. This cash flow was shown under client-related balances therefore there was no impact on the cash flows relating
to own balances.
As previously Restatement
stated - DMTN Restated
R000 R000 R000
Consolidated statement of cash flows
Cash flows from operating activities
Cash utilised in operations (389 097) (100 000) (489 097)
Cash flows from financing activities
Advance of borrowings - 100 000 100 000
15. Adoption of new accounting standards
The group has adopted the following new accounting standards as issued by the IASB, which were effective for the group from 1 March 2018:
- IFRS 15 - Revenue from contracts with customers
- IFRS 9 - Financial instruments
The changes in accounting policies were applied retrospectively without restating comparative figures. If any differences were identified they
would have been taken to opening retained earnings, however the impact of the adoption of IFRS 9 and IFRS 15 was immaterial and no adjustment
is therefore presented.
Adoption of IFRS 15
This new standard provides a single, principles-based five-step model to be applied to all contracts with customers. Guidance is provided on
topics such as the point at which revenue is recognised, accounting for variable consideration, costs of fulfilling and obtaining a contract and
various related matters. New disclosures about revenue are also introduced.
A significant portion of the group's revenue is accounted for in terms of IFRS 4 - Insurance contracts and IFRS 9 - Financial instruments, which
are all scoped out of IFRS 15.
There are no material changes to the revenue recognition for commission and other fee income which are recognised under IFRS 15. Consequently,
there was no financial impact to the consolidated group on 1 March 2018 upon adoption of IFRS 15.
Adoption of IFRS 9
This new standard represents a package of reform to financial instrument accounting to replace IAS 39 - Financial instruments: Recognition and
measurement.
Financial assets
In assessing how financial assets should be classified and measured, IFRS 9 requires the assessment of:
- the business model applied to manage the financial assets; and
- the nature of contractual cash flows relating to the specific instrument, whether they solely represent payments of principal and interest.
The impact on the classification and measurement of financial assets will be as follows for the group:
- Financial instruments and derivative assets, which are held to back client assets or for risk management purposes, currently measured at fair
value through profit or loss, will also be measured at fair value through profit or loss under IFRS 9.
- Loans and receivables that are classified as loans and receivables and measured at amortised cost under IAS 39 will be measured at amortised
cost under IFRS 9.
IFRS 9 replaces the 'incurred loss' model in IAS 39 with a forward-looking 'expected credit loss' (ECL) model to calculate impairments of
financial assets. The new impairment model did not have a significant impact on the group as:
- The majority of financial assets in the group are measured at fair value through profit or loss.
- All insurance and reinsurance receivables are recognised in terms of IFRS 4 and will be included in the IFRS 17 assessment.
Only debt instruments classified as financial assets at amortised cost or fair value through other comprehensive income are subject to the new
ECL model. In assessing the impairment that should be raised under the ECL model on these financial assets, credit enhancements such as security
held against loans and receivables are taken into account in the ECL model. It was noted that the impact of the ECL provision was substantially
impacted by the credit enhancements, and the increase in the impairment provision from the incurred loss model to the ECL model was found to be
immaterial.
Financial liabilities
The requirement for the classification and measurement under IFRS 9 has not changed significantly from IAS 39. The group under IAS 39 classified
the majority of the investment contract liabilities and third-party liabilities arising on consolidation of mutual funds at fair value through
profit or loss, so as to eliminate an accounting mismatch as the linked policyholder assets and the assets relating to the consolidated mutual
funds are carried at fair value through profit or loss. The group has as part of its IFRS 9 implementation process considered the classification
of its linked policyholder assets and consolidated mutual fund assets, and the direct impact these financial assets would have on the measurement
on the related financial liabilities. It was found that the measurement of financial assets at fair value through profit or loss was appropriate
and therefore to avoid an accounting mismatch, the corresponding financial liabilities were retained at fair value through profit or loss.
Therefore, no impact upon adoption of IFRS 9 was identified.
Impact on adoption of IFRS 9
The net financial impact of the changes in classification and measurement after tax had a Rnil impact on opening retained earnings on 1 March 2018.
Upon adoption of IFRS 9, the group has no financial instruments that will be measured at fair value through other comprehensive income.
IFRS 9 introduced a consequential amendment to IAS 1, requiring interest income calculated using the effective interest rate method to be
separately presented on the face of the income statement. Refer to the condensed consolidated income statement where this amendment has been made.
CORPORATE INFORMATION
Non-executive directors
W Theron (Chairman)
PJ Mouton
J de V du Toit^
PE Burton*
ZL Combi*
R Stassen*
ZRP Matsau*
(^ Lead independent; * Independent)
Executive directors
FJ Gouws (Chief executive officer)
MIF Smith (Chief financial officer)
Company secretary
PSG Management Services Proprietary Limited
PSG Konsult 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 secretary
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
www.psg.co.za
Date: 11/10/2018 10:56:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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