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Reviewed Results For The Year Ended 28 February 2021, Dividend Declaration And Change in External Auditor
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: REVIEWED RESULTS FOR THE YEAR ENDED
28 FEBRUARY 2021, DIVIDEND DECLARATION AND CHANGE IN EXTERNAL AUDITOR
1. FINANCIAL RESULTS
* 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
remains.
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
force.
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.
2. DIVIDEND DECLARATION
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.
3. LOOKING FORWARD
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.
4. CHANGE IN EXTERNAL AUDITOR
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
course.
The change in external auditor was initiated by the group to early adopt mandatory audit
firm rotation.
5. 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/PSGKFY2021.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/PSGKFY2021.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 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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