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PSG KONSULT LIMITED - Reviewed Results For The Year Ended 28 February 2021, Dividend Declaration And Change in External Auditor

Release Date: 15/04/2021 12:00
Code(s): KST     PDF:  
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Reviewed Results For The Year Ended 28 February 2021, Dividend Declaration And Change in External Auditor

(Incorporated in the Republic of South Africa)
Registration Number: 1993/003941/06
JSE Share Code: KST
NSX Share Code: KFS
SEM Share Code: PSGK.N0000
ISIN Code: ZAE000191417
LEI Code: 378900ECF3D86FD28194
(“PSG Konsult” or “the company” or “the group”)


     * Recurring headline earnings per share increased by 10% to 52.7 cents
     * Total dividend per share for the year increased by 9% to 24.5 cents
     * Total assets under management increased by 17% to R268bn
     * Gross written premium increased by 1% to R5.51bn

     PSG Konsult generated a 10% recurring headline earnings per share growth and 20%
     return on equity for 2021. We continue to manage and evaluate our performance against
     an unchanged set of metrics, notwithstanding changes in our operating environment. All
     key financial and operational metrics were positive, once again demonstrating the
     resilience of our franchise. We generated strong net client inflows and sustained
     investment in long-term growth initiatives, including those that enhance the experience of
     clients, systems and processes. Our primary focus of being an advice-led business

     We believe that growing our own talent will support PSG Konsult’s long-term business
     goals. During the 2021 financial year, the group employed 65 newly qualified graduates
     (92% of whom are ACI candidates) as part of the core business operations and adviser

     PSG Konsult’s key financial performance indicators for the year ended 28 February 2021
     are shown below.

                                                                                28 Feb 2021   Change      29 Feb 2020
                                                                                      R’000          %           R’000

 Core income                                                                      5 267 715           4        5 068 869

 Recurring headline earnings                                                        703 835           9          644 408
 Non-recurring item^                                                                (7 200)                            -
 Headline earnings                                                                  696 635           8          644 408
 Non-headline items                                                                   1 055                        2 549
 Earnings attributable to ordinary shareholders                                     697 690           8          646 957
 Divisional recurring headline earnings
 PSG Wealth                                                                         447 656          19          376 384
 PSG Asset Management                                                               104 940         (28)         146 420
 PSG Insure                                                                         151 239          24          121 604
                                                                                    703 835           9          644 408
 Weighted average number of shares in issue
 (net of treasury shares) (millions)                                                1 334.6           -          1 340.9

 Earnings per share (basic) (cents)
 – Recurring headline                                                                  52.7          10             48.1
 – Headline                                                                            52.2           9             48.1
 – Attributable                                                                        52.3           8             48.2
 – Recurring headline (excluding intangible asset amortisation cost)                   57.5          10             52.2
Dividend per share (cents)                                                             24.5           9             22.5
 – Interim dividend per share (cents)                                                   8.0           7              7.5
 – Final dividend per share (cents)                                                    16.5          10             15.0
 Return on equity (ROE) (%)                                                            20.4                         20.5
^ Non-recurring item relates to a R10.0 million (R7.2 million net of tax) donation to the South African Solidarity Fund in April 2020.

     Capital management
     PSG Konsult generates strong cash flows which gives us various options to optimise our
     capital structure and risk adjusted returns to shareholders. During the past financial year,
     the group repurchased and cancelled 20 992 115 shares at a cost of R166.8 million.

     PSG Konsult remains strongly capitalised, with a capital cover ratio of 213% (2020: 191%)
     based on the latest insurance group return. This capital cover ratio substantially exceeds
     the required minimum of 100%. Our approach to investing shareholder assets, supporting
     regulatory capital requirements, remains prudent and ensures that the group has a strong
     balance sheet and excellent liquidity.

     Shareholders were advised on 26 October 2020 that the rating agency Global Credit
     Rating Company confirmed that the group’s credit ratings remain unchanged. PSG
     Konsult’s long-term South Africa national scale rating is A(ZA), while the short-term South
     Africa national scale rating is A1(ZA), with a stable outlook.


     The board approved and declared a final gross dividend of 16.5 ZAR cents per share from
     income reserves for the year ended 28 February 2021 (2020: 15.0 ZAR cents per share)
     given the group’s strong financial position and confidence in the group’s prospects. The
     group’s dividend pay-out ratio remains consistent with the dividend policy communicated
     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 13.2 ZAR cents (2020: 12.0 ZAR cents) per share. The number of issued
     ordinary shares is 1 340 930 485 at the date of this declaration. PSG Konsult’s income
     tax reference number is 9550/644/07/5.
     The salient dates of the dividend declaration are:

     Declaration date                                Thursday, 15 April 2021
     Last day to trade cum dividend                  Tuesday, 4 May 2021
     Trading ex-dividend commences                   Wednesday, 5 May 2021
     Record date                                     Friday, 7 May 2021
     Date of payment                                 Monday, 10 May 2021

     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.

     Share certificates may not be dematerialised or rematerialised between Wednesday,
     5 May 2021 and Friday, 7 May 2021, both days inclusive.


     We will monitor the local and global macroeconomic environment, and the associated
     impact on our clients and other stakeholders.

     The group remains confident about the prospects for growth and will continue to prioritise
     organic growth.


     The group, following the conclusion of a tender process, on recommendation of the audit
     committee and endorsement by the board, has proposed the appointment of Deloitte &
     Touche as external auditor, with Nina le Riche as the designated audit partner, with effect
     from the financial year ending 28 February 2022. This appointment is subject to approval
     from the Prudential Authority of the South African Reserve Bank.

     Shareholders will be requested to approve the above appointment at PSG Konsult’s 2021
     annual general meeting, details of which will be communicated to shareholders in due

     The change in external auditor was initiated by the group to early adopt mandatory audit
     firm rotation.


     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:

     A copy of the Full Announcement is also available for viewing on the company’s website
     In addition, electronic copies of the Full Announcement may be requested and obtained,
     at no charge, from the company at and from PSG Capital.

     Any investment decisions by investors and/or shareholders should be based on
     consideration of the Full Announcement, as a whole.
    The company has based this short-form announcement on the financial results for the
    year ended 28 February 2021 which have been reviewed by the company’s auditor,
    PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion.

Tyger Valley
15 April 2021

JSE Sponsor: PSG Capital Proprietary Limited
Independent Joint JSE Sponsor: UBS South Africa 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: 15-04-2021 12:00:00
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