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Short-Form Announcement: Unaudited Interim Results For The Six Months Ended 31 August 2021 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
LEI Code: 378900ECF3D86FD28194
(“PSG Konsult” or “the Company” or “the group”)
SHORT-FORM ANNOUNCEMENT: UNAUDITED INTERIM RESULTS FOR THE SIX
MONTHS ENDED 31 AUGUST 2021 AND DIVIDEND DECLARATION
1. FINANCIAL RESULTS
• Recurring headline earnings per share increased by 23% to 30.6 cents per share
• Recurring headline earnings per share excluding intangible asset amortisation
increased by 22% to 33.1 cents per share
• Dividend per share increased by 25% to 10.0 cents per share
• Total assets under management increased by 21% to R296bn
• Gross written premium increased by 4% to R2.82bn
Note: All amounts contained in this short-form announcement are presented in ZAR.
PSG Konsult increased recurring headline earnings per share by 23% and generated a
return on equity of 22%, thereby delivering a result which is circa 30% above its most
recent pre-COVID interim period ended 31 August 2019. These results reflect the
continued improvement in the group’s overall competitive market position. Our strategic
objective of being an advice-led firm, with a strong focus on technology to enhance
client experience, enabled us to achieve these results despite prevailing conditions. In
support of the group’s long-term business objective to grow our own talent, we have
continued to make significant investments in newly qualified graduates.
PSG Konsult’s key financial performance indicators for the six months ended 31 August
2021 are shown below.
31 Aug 21 Change 31 Aug 20
R’000 % R’000
Core income 2 878 990 13 2 558 329
Recurring headline earnings 404 567 22 331 655
Non-recurring item^ - (7 200)
Headline earnings 404 567 25 324 455
Non-headline items 65 624
Earnings attributable to ordinary shareholders 404 632 24 325 079
Divisional recurring headline earnings
PSG Wealth 234 246 7 218 972
PSG Asset Management 96 450 95 49 542
PSG Insure 73 871 17 63 141
404 567 22 331 655
Weighted average number of shares in issue
(net of treasury shares) (millions) 1 323.6 (1) 1 338.5
Earnings per share (basic) (cents)
– Recurring headline 30.6 23 24.8
– Headline 30.6 26 24.2
– Attributable 30.6 26 24.3
– Recurring headline - excluding intangible asset amortisation cost 33.1 22 27.0
Dividend per share (cents) 10.0 25 8.0
Return on equity (ROE) (%) 22.0 19.6
^The prior period 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’s capital cover ratio increased to 233% (2020: 208%), based on the latest
insurance group return, and comfortably exceeds the 100% minimum. Our financial
performance and prudent approach to investing shareholder assets continue to ensure
that the group is in a strong financial position with excellent liquidity.
The group’s long-term credit rating was upgraded by Global Credit Rating Company
during July 2021 to A+ (ZA) , while the short-term credit rating was affirmed at A1 (ZA), with
a Stable Outlook.
The increase in the group’s capital cover ratio and the credit rating upgrade underscore
our ability to incrementally improve our financial position and highlight the group’s
resilience, notwithstanding the current economic environment.
PSG Konsult continues to generate strong cash flows which gives us various options to
optimise our capital structure and risk adjusted returns to shareholders. During the
period, the group repurchased and cancelled 7.2 million shares at a cost of R80.4
million.
2. DIVIDEND DECLARATION
The board decided to declare an interim gross dividend of 10.0 cents per share from
income reserves for the six months ended 31 August 2021 (2020: 8.0 cents per share)
reflecting the group’s strong financial position and confidence in its prospects. The
group’s dividend pay-out ratio remains between 40% to 50% of full year earnings. The
group has, however, changed the basis of the pay-out ratio to recurring headline
earnings excluding intangible asset amortisation, a metric that is better aligned to the
group’s cash generated earnings.
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 at 20% results in a
net dividend of 8.0 cents (2020: 6.4 cents) per share. The number of issued ordinary
shares is 1 333 691 715 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, 7 October 2021
Last day to trade cum dividend Tuesday, 26 October 2021
Trading ex-dividend commences Wednesday, 27 October 2021
Record date Friday, 29 October 2021
Date of payment* Monday, 1 November 2021
*If 1 November 2021 is declared a public holiday in South Africa, the date of payment will change to Tuesday,
2 November 2021.
As the dividend has been declared and denominated in ZAR, it will be paid (in ZAR) into
the bank accounts of shareholders appearing on the Mauritian register.
Share certificates may not be dematerialised or rematerialised between Wednesday, 27
October 2021 and Friday, 29 October 2021, both days inclusive.
3. LOOKING FORWARD
The group remains confident about the prospects for growth, with a focus on organic
growth and optimising shareholder returns. We will continue to monitor local and global
events, and the associated impact on our clients and other stakeholders.
4. SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors of the Company. It
contains only a summary of the information in the full announcement
(“Full Announcement”) and does not contain full or complete details. The Full
Announcement can be found at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/KST/PSGKH12022.pdf
Copies of the Full Announcement are also available for viewing on the Company’s
website at https://www.psg.co.za/files/investor-relations/overview/PSGKH12022.pdf
In addition, electronic copies of the Full Announcement may be requested and obtained,
at no charge, from the Company at company.secretary@psg.co.za and from its sponsor,
PSG Capital.
Any investment decisions by investors and/or shareholders should be based on
consideration of the Full Announcement, as a whole.
Tyger Valley
7 October 2021
JSE Sponsor: PSG Capital Proprietary Limited (“PSG Capital”)
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: 07-10-2021 11:42:00
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