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Short-form announcement: Interim financial results for the six months ended 30 September 2019
PEREGRINE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1994/006026/06)
Share code: PGR
ISIN: ZAE000078127
(“Peregrine” or “the Company” or “the Group”)
SHORT-FORM ANNOUNCEMENT: INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019
KEY INDICATORS
- Interim cash dividend of 65.00 cents per share (September 2018: 85.00 cents per share)
(March 2019: Final cash dividend of 100.00 cents per share)
- Assets under management R133 billion (March 2019: R124 billion)
- Basic and Headline earnings R158 million (September 2018: R272 million)
- Basic and Headline earnings per ordinary share (“HEPS”) 77.8 cents per share (September 2018: 128.7
cents per share)
- Ongoing(1) Segmental(2) Headline earnings R166 million (September 2018: R148 million)
- Ongoing Segmental HEPS 79.3 cents per share (September 2018: 68.8 cents per share)
- Total revenue from continuing operations R799 million (September 2018: R797 million)
- Profit from ordinary activities from continuing operations (before tax and capital items) R229 million
(September 2018: R267 million)
- Loss from discontinued operation (net of income tax) R286 894 (30 September 2018: profit
R112 million)
- Net asset value per share 857.2 cents (31 March 2019: 871.5 cents)
The six months ended 30 September 2019 have been highlighted by the continued uncertainty imposed on the
global economy by the United States/China trade talks and the effect thereof on growth expectations. The
world economy had been cyclically cooling down even before these talks and global central banks have
responded by stimulating economies via lower interest rates and quantitative easing. With dovish central banks
as the backstop, risk appetite returned and equity markets approached previous record highs with global
equities and bonds rallying strongly.
The South African landscape, however, continues to be dominated by the deteriorating fiscal and growth
picture with high unemployment and wealth inequality constraining the country’s growth potential and
business confidence levels hitting 20-year lows.
The Group’s ongoing(1) Segmental(2) headline earnings increased by 12% to R166 million with ongoing
Segmental HEPS increasing by 15% to 79.3 cents. The increase in ongoing Segmental earnings is due, in the
main, to the increase in earnings from Citadel. Annuity earnings, comprising 96% of total ongoing Segmental
earnings, increased by 18% in Rand terms year on year. Due to the fact that the comparative results included
a material once off fee earned by Stenham that was not repeated as well as profits from the Broking &
Structuring business which was disposed of effective 1 October 2018, the first half results for this year on a
total all-inclusive Segmental HEPS were down by 40%. For information on the Divisional Segmental Results
please refer to the full commentary relating to the interim financial results, which is included in the
Unaudited Condensed Consolidated Interim Financial Statements which are available for viewing on the Company’s
website at www.peregrine.co.za.
The Group disposed of its investment in the Broking & Structuring business effective 1 October 2018.
Included in the “Profit from discontinued operation” in the prior period was the Segmental(2) profit after tax
before non-controlling interests from the Broking & Structuring business of R112 million which, after tax and
non-controlling interests, amounted to R77 million. As disclosed in the 2019 year end results SENS
announcement, the net residual proceeds (after retiring debt, settling tax liabilities, distributing the
proportionate share to the non-controlling interest and utilising a portion of the proceeds to buy back Peregrine
shares) from the disposal of the above division amounted to R343 million and at 30 September 2019 a balance
of R353 million (inclusive of interest earned) remains available, providing the Group with the necessary
flexibility in terms of future acquisitions and/or further share buy backs.
These results have been achieved against a backdrop of very challenging local operating conditions persisting
over an extended period of time, including a weakening economy, increasingly negative market sentiment and
muted returns. On a global macro basis, the outlook also remains challenging, both from a trade tension relief
perspective as well as for global economic growth.
Businesses in the Peregrine Group are affected differently by the current economic landscape whereby it is
difficult to envisage the South African economy improving in the near term. Java Capital is impacted most
adversely and this will continue until such time as there is a turnaround in the economy. Peregrine Capital
funds are well positioned for a positive upturn in markets and Citadel is benefiting from the uncertainty in the
country as clients seek safety in advice and investments.
Dividend
In line with the stated intention to return 80%-90% of Segmental headline earnings per share to shareholders,
the directors have resolved to declare an interim cash dividend of 65.00 cents per share for the six months
ended 30 September 2019. This dividend amounts to 82% of ongoing Segmental headline earnings per share
for the year.
The salient dates applicable to the interim cash dividend are set out below:
Last date to trade cum dividend Tuesday, 28 January 2020
Trading ex dividend commences Wednesday, 29 January 2020
Record date Friday, 31 January 2020
Payment date Monday, 3 February 2020
In terms of the JSE Listings Requirements the following additional information is disclosed:
1. The interim ordinary cash dividend has been declared out of income reserves;
2. The local dividend tax rate is 20%;
3. The gross local dividend amount for the interim ordinary cash dividend is 65.00 cents per share for
shareholders exempt from paying dividends tax;
4. The net local dividend amount for the interim ordinary cash dividend is 52.00 cents per share for
shareholders liable to pay dividends tax;
5. The issued share capital of Peregrine is 220 467 242 shares of 0.1 cent each as at the date of this
announcement; and
6. Peregrine’s tax reference number is 9181924847.
Shares may not be dematerialised or rematerialised between Wednesday, 29 January 2020 and Friday,
31 January 2020, both dates inclusive.
Payment of the dividend will be made to shareholders on Monday, 3 February 2020. In respect of
dematerialised shares, the dividend will be transferred to the CSDP/broker accounts on Monday,
3 February 2020. Certificated shareholders’ dividend payments will be deposited on or about Monday,
3 February 2020.
Events subsequent to 30 September 2019
As announced on 31 October 2019, the board has received a non-binding expression of interest for the
acquisition of the entire issued share capital of Peregrine, which expression of interest does not constitute a
firm intention to make an offer and it is possible that no offer may result from the process. The board will
continue to engage with the interested party and will keep shareholders updated on the process.
For and on behalf of the board
Robert Katz Sean Melnick
CEO & CFO Chairman
13 November 2019
Footnotes
(1) Ongoing Segmental headline earnings excludes, in the prior period, the ad hoc performance fee of
R58 million (£3 million) and the headline earnings relating to the disposal of Broking & Structuring business
of R77 million.
(2) It needs to be noted that there are small differences between IFRS and Segmental earnings. Annexures
disclosing IFRS and Segmental earnings and the reconciliation between them are available on the Company’s
website www.peregrine.co.za.
For further information
The full commentary relating to the financial results is included in the Unaudited Condensed Consolidated
Interim Financial Statements for the six months ended 30 September 2019, and is available for viewing on the
Company’s website at www.peregrine.co.za and on the JSE website at:
https://senspdf.jse.co.za/documents/2019/jse/isse/PGR/HY2019.pdf
This short-form announcement is the responsibility of the directors. It is only a summary of the information
contained in the full announcement and does not contain full or complete details. Any investment decision
should be based on the full announcement published on the Company’s website, copies of which may be
requested by email at pere@peregrine.co.za at no cost.
Company Secretary and registered office: Peregrine Management Services Proprietary Limited, 1 Park
Lane (Entrance Wierda Rd West), Wierda Valley, Sandton, 2196, South Africa (PO Box 650361, Benmore,
2010), Telephone: +27 11 722 7400 Fax: +27 11 722 7410
Directors: SA Melnick (Non-executive Chairman); RE Katz (CEO & CFO); AP Moller (Executive);
LN Harris (Lead independent non-executive); P Goetsch (non-executive); S Sithole *; BC Beaver *;
S Stein *; B Tlhabanelo *
*Independent non-executive
Transfer Secretaries:
Computershare Investor Services
Joint Sponsor:
Java Capital
Joint Independent Sponsor:
Deloitte & Touche Sponsor Services (Pty) Ltd
Date: 13/11/2019 07:05:00
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