Abridged announcement: unaudited interim results for the six-month period ended August 31, 2021 and declaration of dividend
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 ANNOUNCEMENT: UNAUDITED INTERIM RESULTS FOR THE SIX
MONTHS ENDED AUGUST 31, 2021 AND DECLARATION OF DIVIDEND
1. FINANCIAL RESULTS
• Recurring net earnings per share increased 23% to 30.6 cents per share
• Recurring net earnings per share excluding amortization of intangible assets
increased 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 premiums increased by 4% to R2.82bn
Note: All amounts contained in this short notice are presented in ZAR.
PSG Konsult increased its recurring net profit per share by 23% and generated a
return on equity of 22%, thus delivering a result that is approximately 30% above its high
recent pre-COVID interim period ended August 31, 2019. These results reflect the
continuous improvement of the group’s global competitive position on the market. Our strategy
aim to be a consulting company, with a strong focus on technology to improve
the customer experience, allowed us to achieve these results despite the conditions at the time. In
supporting the group’s long-term business goal of developing our own talents, we have
continued to make significant investments in newly qualified graduates.
PSG Konsult Main financial performance indicators for the six-month period ended August 31
2021 are shown below.
31 Aug 21 Change 31 Aug 20
Basic income 2,878,990 13 2,558,329
Recurring comprehensive income 404,567 22,331,655
Non-recurring item ^ – (7,200)
Overall profit 404,567 25,324,455
Non-title items 65,624
Profit attributable to ordinary shareholders 404,632 24,325,079
Recurring overall profit of the division
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 outstanding
(net of treasury shares) (millions) 1,323.6 (1) 1,338.5
Earnings per share (basic) (cents)
– Recurring title 30.6 23 24.8
– Title 30.6 26 24.2
– Attributable 30.6 26 24.3
– Recurring security – excluding amortization cost of intangible assets 33.1 22 27.0
Dividend per share (cents) 10.0 25 8.0
Return on equity (ROE) (%) 22.0 19.6
^ The non-recurring item from the previous period relates to a donation of R10.0 million (R7.2 million net of tax) to South African Solidarity
Fund in April 2020.
PSG Konsult’s capital coverage ratio increased to 233% (2020: 208%), based on the latest
insurance group performance, and comfortably exceeds the minimum of 100%. Our financier
the performance and prudent approach to investing shareholders’ assets continues to ensure
that the group is in a solid financial position with excellent liquidity.
The group’s long-term credit rating has been upgraded by Global Credit Rating Company
in July 2021 at A + (ZA), while the short-term credit rating was confirmed at A1 (ZA), with
a stable outlook.
The increase in the group’s capital coverage ratio and the improvement of the credit rating underline
our ability to gradually improve our financial situation and to highlight the
resilience, despite the current economic environment.
PSG Konsult continue to generate strong cash flow, which gives us various options for
optimize our capital structure and risk-adjusted returns for shareholders. During the
period, the group repurchased and canceled 7.2 million shares at a cost of 80.4 rand
2. DECLARATION OF DIVIDEND
The Board of Directors has decided to declare an interim gross dividend of 10.0 cents per share of
income reserves for the six months ended August 31, 2021 (2020: 8.0 cents per share)
reflecting the group’s financial strength and confidence in its prospects. The
the group’s dividend distribution rate remains between 40% and 50% of annual profits. The
group has however changed the payout rate base to a recurring title
result excluding amortization of intangible assets, a metric better aligned with the
income generated by the group’s cash flow.
The dividend is subject to a withholding tax rate on South African dividends (DWT) of 20%,
unless the shareholder is exempt from paying dividend tax or is entitled to a reduction
rate under the applicable double taxation agreement. The inclusion of DWT at 20% gives a
net dividend of 8.0 cents (2020: 6.4 cents) per share. The number of ordinary prescriptions issued
shares is 1,333,691,715 as of the date of this statement. PSG Konsult income tax
the reference number is 9550/644/07/5.
The important dates of the declaration of dividend are:
Declaration date Thursday, October 7, 2021
Last trading day with dividend Tuesday, October 26, 2021
Start of ex-dividend negotiations on Wednesday, October 27, 2021
Recording date Friday, October 29, 2021
Payment date * Monday, November 1, 2021
* If November 1, 2021 is declared a public holiday in South Africa, the payment date will change to Tuesday,
November 2, 2021.
Since the dividend has been declared and denominated in ZAR, it will be paid (in ZAR) in
the bank accounts of shareholders appearing in the Mauritian register.
Share certificates cannot be dematerialized or rematerialized between Wednesday 27
October 2021 and Friday October 29, 2021, both days included.
3. LOOKING TO THE FUTURE
The group remains confident about growth prospects, with a focus on organic
growth and optimization of returns for shareholders. We will continue to monitor the local and global levels
events, and the associated impact on our customers and other stakeholders.
4. SHORT ANNOUNCEMENT
This abridged announcement is the responsibility of the directors of the Company. This
only contains a summary of the information in the full announcement
(“Full Listing”) and does not contain full or complete details. full
The ad can be found at:
Copies of the full announcement are also available for viewing on the Company’s website.
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,
free of charge from the Company at [email protected] and its sponsor,
Capital of PSG.
Any investment decision taken by investors and / or shareholders should be based on
review of the full ad, as a whole.
October 7, 2021
JSE Sponsor: PSG Capital Proprietary Limited (“PSG Capital”)
Joint Independent Sponsor of JSE: UBS South Africa Proprietary Limited
NSX sponsor: PSG Wealth Management (Namibia) Proprietary Limited, member of the
Namibia Stock Exchange
SEM authorized representative and SEM sponsor: Perigeum Capital Ltd
This notice is issued in accordance with JSE requirements for Limited Lists, to SEM List
Rules and the Mauritian Securities Act 2005. The board of directors of PSG Konsult accepts
sole responsibility for the accuracy of the information contained in this press release.
Date: 07-10-2021 11:42:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by JSE Limited (“JSE”).
The JSE does not represent, warrant or warrant in any way, expressly, tacitly or impliedly, the truthfulness, accuracy or completeness of the
the information published on SENS. The JSE, their officers, employees and agents accept no responsibility for (or in respect of) any
indirect, accidental or consequential loss or damage of any kind, whatever the nature, resulting from the use of SENS or the use or reliance on,
information disseminated via SENS.