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PSG KONSULT LIMITED - Short-Form Announcement: Unaudited Interim Results For The Six Months Ended 31 August 2019 And Dividend Declaration

Release Date: 10/10/2019 11:30
Code(s): KST     PDF:  
 
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Short-Form Announcement: Unaudited Interim Results For The Six Months Ended 31 August 2019 And Dividend Declaration

PSG KONSULT LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 1993/003941/06
JSE Share Code: KST
NSX Share Code: KFS
SEM Share Code: PSGK.N0000
ISIN Code: ZAE000191417
(“PSG Konsult” or “the Company”)


SHORT FORM-ANNOUNCEMENT: UNAUDITED INTERIM RESULTS FOR THE SIX
MONTHS ENDED 31 AUGUST 2019 AND DIVIDEND DECLARATION

1.   SALIENT FEATURES
     • Recurring headline earnings per share increased by 8% to 23.2 cents per share
     • Interim dividend per share increased by 7% to 7.5 cents per share
     • Total assets under management decreased by 1% to R228bn
     • Gross written premium increased by 35% to R2.7bn

     PSG Konsult achieved a solid 8% growth in recurring headline earnings per share and
     generated a return on equity of 20.2%, despite difficult business conditions. No
     performance fees were generated during the current period, compared to the prior period
     where performance fees constituted 4.6% of headline earnings. PSG Konsult and its
     subsidiaries (“the group”) continued its investment in technology and people.

     PSG Konsult’s key financial performance indicators for the six months ended 31 August
     2019 are shown below.

                                                            31 Aug 19     Change   31 Aug 18
                                                              R’000         %         R’000

      Core income                                             2 525 143       11    2 277 976

      Headline and recurring headline earnings                 310 634        10      283 146
      Non-headline items                                           (57)                (1 297)
      Earnings attributable to ordinary shareholders           310 577        10      281 849
      Divisional recurring headline earnings
      PSG Wealth                                               175 476       10       159 787
      PSG Asset Management                                      81 064       (7)       87 212
      PSG Insure                                                54 094       50        36 147
                                                               310 634       10       283 146
      Weighted average number of shares in issue
      (net of treasury shares) (millions)                       1 339.4        2       1 318.0
      Earnings per share (cents)
      – Headline and recurring headline                            23.2        8         21.5
      – Attributable                                               23.2        8         21.4
      – Headline - excluding intangible amortisation cost          25.2        8         23.3
      Dividend per share (cents)                                    7.5        7          7.0
      Return on equity (ROE) (%)                                   20.2                  21.9
    
     Capital management
     PSG Konsult is strongly capitalised and complies with the Prudential Authority’s Financial
     Soundness Standards, with a capital cover ratio of 1.82. PSG Konsult’s strong cash flow
     presents several options to optimise risk-adjusted returns for our shareholders. Aligned
     to this objective, the group negotiated the early redemption of the R100m notes issued
     under the Domestic Medium-Term Note Programme. The notes were redeemed on 12
     July 2019, utilising surplus cash, and the group therefore had no remaining interest-
     bearing debt at 31 August 2019.

     To minimise the impact of share issue dilution, the PSG Konsult Group Share Incentive
     Trust purchased 12 585 068 PSG Konsult shares, at a total cost of R122.1m, during the
     current period to enable it to satisfy certain of its obligations in terms of the Share Incentive
     Scheme.

2.   DIVIDEND DECLARATION

     Given its continued confidence in the group’s prospects, the board decided to approve
     and declare an interim gross dividend of 7.5 cents (2018: 7.0 cents) per share from income
     reserves in respect of the six months ended 31 August 2019. The dividend amount, net
     of South African dividend tax of 20%, is 6.0 cents (2018: 5.6 cents) per share for those
     shareholders who are not exempt from dividend tax. The number of ordinary shares in
     issue at the declaration date is 1 367 263 905 and the income tax number of the Company
     in South Africa is 9550/644/07/5.

     The salient dates of the dividend declaration are:

     Declaration date                                            Thursday, 10 October 2019
     Last day to trade cum dividend                              Tuesday, 29 October 2019
     Trading ex-dividend commences                               Wednesday, 30 October 2019
     Record date*                                                Friday, 1 November 2019
     Date of payment                                             Monday, 4 November 2019

     * Due to Friday, 1 November 2019 being a public holiday in Mauritius, the record date for
     shareholders on the Mauritian register will be Monday, 4 November 2019, with payment
     of the dividend occurring on the same date.

     As the dividend has been declared and denominated in Rand, it will be paid (in Rand) into
     the bank accounts of shareholders appearing on the Mauritian register.

     Shareholders should note that share certificates may not be dematerialised or
     rematerialised     between      Wednesday,       30    October    2019      and     Friday,
     1 November 2019 (both days inclusive), provided that such dematerialisation or
     rematerialisation will not be permitted for shareholders on the Mauritian register between
     Wednesday, 30 October 2019 and Monday, 4 November 2019 (both days inclusive).

     Shares may not be moved between the South African, Mauritian and Namibian share
     registers between Wednesday, 30 October 2019 to Monday, 4 November 2019, both days
     inclusive.

3.   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/2019/JSE/ISSE/KST/PSGKH12020.pdf

     A copy of the Full Announcement is also available for viewing on the Company’s website
     at https://www.psg.co.za/files/investor-relations/financial-information/PSGKH12020.pdf
     or may be requested in person, at the Company’s registered office or the office of the
     sponsor, at no charge, during office hours.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.

Tyger Valley
10 October 2019

JSE Sponsor: PSG Capital Proprietary Limited
NSX Sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the
Namibian Stock Exchange
SEM authorised representative and SEM Sponsor: Perigeum Capital Ltd

This notice is issued pursuant to the JSE Limited Listings Requirements, the SEM Listing
Rules and the Mauritian Securities Act 2005. The board of directors of PSG Konsult accepts
full responsibility for the accuracy of the information contained in this communiqué.

Date: 10/10/2019 11:30:00
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