To view the PDF file, sign up for a MySharenet subscription.

PSG KONSULT LIMITED - Short-Form Announcement: Unaudited Interim Results For The Six Months Ended 31 August 2020 And Dividend Declaration

Release Date: 08/10/2020 11:45
Code(s): KST     PDF:  
Wrap Text
Short-Form Announcement: Unaudited Interim Results For The Six Months Ended 31 August 2020 And Dividend Declaration

(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”)


     • Recurring headline earnings per share increased by 7% to 24.8 cents per share
     • Dividend per share increased by 7% to 8.0 cents per share
     • Total assets under management increased by 7% to R245bn
     • Gross written premium remained at R2.7bn

     PSG Konsult achieved a solid 7% growth in recurring headline earnings per share and
     generated a return on equity of 19.6%, despite poor operating conditions. We continued
     to further automate and streamline our platforms and processes, aligned with our goal of
     enhancing our digital capabilities and overall client experience. Our results were
     adversely impacted by the sharp decline in interest rates, which reduced our net
     investment income, and the support we provided clients through premium relief, interim
     business interruption relief payments and other measures.
     PSG Konsult’s key financial performance indicators for the six months ended 31 August
     2020 are shown below.

                                                                 31 Aug 20    Change      31 Aug 19
                                                                     R’000        %           R’000

     Core income                                                 2 558 329          1     2 525 143

     Recurring headline earnings                                   331 655          7       310 634
     Non-recurring item^                                            (7 200)                       -
     Headline earnings                                             324 455          4       310 634
     Non-headline items                                                624                      (57)
     Earnings attributable to ordinary shareholders                325 079          5       310 577

     Divisional recurring headline earnings
     PSG Wealth                                                    218 972          25      175 476
     PSG Asset Management                                           49 542        (39)       81 064
     PSG Insure                                                     63 141          17       54 094
                                                                   331 655           7      310 634
     Weighted average number of shares in issue
     (net of treasury shares) (millions)                           1 338.5           -       1 339.4
     Earnings per share (basic) (cents)
     – Recurring headline                                             24.8           7          23.2
     – Headline                                                       24.2           5          23.2
     – Attributable                                                   24.3           5          23.2
     – Headline - excluding intangible asset amortisation cost        27.0           7          25.2
     Dividend per share (cents)                                        8.0           7           7.5

     Return on equity (ROE) (%)                                       19.6                      20.2

     ^ 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 remains strongly capitalised, notwithstanding current market conditions, and
     complies with the Prudential Authority’s Financial Soundness Standards, with a capital
     cover ratio of 208% (2019: 182%) based on the latest insurance group return. Our prudent
     approach to investing shareholder assets, that support our regulatory capital
     requirements, continues to ensure that the group has a strong balance sheet and
     excellent liquidity. Shareholder assets invested in cash, money market and related
     instruments continue to comprise circa 90% of total investable shareholder assets.


     The board decided to approve and declare an interim gross dividend of 8.0 ZAR cents per
     share from income reserves for the six months ended 31 August 2020 (2019: 7.5 ZAR
     cents per share) given the group’s strong financial position and confidence in the group’s
     prospects. The group’s dividend payout ratio remains consistent with the dividend policy
     communicated at the time of listing. The dividend amount, net of South African dividend
     tax of 20%, is 6.4 ZAR cents (2019: 6.0 ZAR cents) per share for those shareholders who
     are not exempt from dividend tax or are not entitled to a reduced rate in terms of the
     applicable double-tax agreement. The number of ordinary shares in issue at the
     declaration date is 1 352 797 270 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, 8 October 2020
     Last day to trade cum dividend                                               Tuesday, 27 October 2020
     Trading ex-dividend commences                                                Wednesday, 28 October 2020
     Record date                                                                  Friday, 30 October 2020
     Date of payment                                                              Monday, 2 November 2020

     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, 28
     October 2020 and Friday, 30 October 2020, both days inclusive.


     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:

     Copies 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

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

Tyger Valley
8 October 2020

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: 08-10-2020 11:45:00
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
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story