PSG Konsult boosts headline earnings by 11% in challenging times

PSG Konsult, one of the leading independent providers of financial services in South Africa, has amidst challenging economic conditions achieved more than satisfactory financial results for the financial year ending February 2009. Headline earnings increased by 11% to R96,8 million with headline earnings per share growing accordingly by 10% to 13,2 cents. Turnover increased by 12% to R755,8 million.

Funds under administration decreased on a year-on-year basis by 17% to R43,6 billion compared to a fall of 39,8% in the JSE all share index, whilst collection of short-term insurance premiums increased to R1 400 million on an annualised basis from R970 million.

A final dividend of 6,0 cents per share (2008: 5,5 cents) was declared, which together with the interim dividend of 2,8 cents per share amounted to a total of 8,8 cents per share (2008: 7,9 cents) for the period under review.

PSG Konsult CEO, Willem Theron (pictured), said the results were achieved due to the company’s diversified income base, consisting of financial planning, stockbroking and short- and long-term insurance.

“The company’s consistent financial growth provides us with a solid base from which it can leverage as and when opportunities arise. We have focused on delivering on our goals of systematic growth and financial targets to continue to add value to our shareholders,” Theron said.

Subject to Competition Commission approval, PSG Konsult recently acquired the private client stockbroking division of T-Sec. This is PSG Konsult’s fifth major acquisition in four years.

“In the current year the company will seek to expand on its existing client base, and to effectively incorporate recent acquisitions into the company’s structure and operations so as to harness synergies that exist between these entities,” Theron said.

Towards the end of the financial year there were some positive economic developments with oil prices declining sharply and the SA Reserve Bank cutting interest rates at regular intervals. The company is currently well positioned to take advantage of any recovery in the financial markets and the economy.

At year-end the number of stockbrokers, financial planners and short-term insurance brokers have grown from 491 to 506, whilst PSG Konsult’s national network of offices have increased from 189 to 197. Professional associates (accountants and attorneys) numbered 290 (2008: 288).