PSG Konsult CEO, Willem Theron
PSG Konsult, the independent financial services provider, posted solid results for the financial year ending February 2012 by increasing headline earnings per share by 21,6% from 12,5 cents to 15,2 cents, it was announced today.
The results fully reflects the amalgamation with PSG Asset Management (previously PSG Fund Management) on 1 March 2011, with an increase in the number of issued shares from 733 million to 1 070 million.
Headline earnings increased by 77% from R91,5 million to R162,3 million, which was partly due to the amalgamation. Turnover increased by 40% to R1 379 million, while funds under administration grew from R97,3 billion to R139,0 billion.
A final dividend of 7,3 cents per share (2011: 6,0 cents) was declared which, together with the interim dividend of 3,0 cents per share, brought the total for the period under review to 10,3 cents per share (2011: 8,8 cents), an increase of 17,0%.
PSG Konsult’s countrywide office network was extended from 216 to 224 offices, while the number of financial planners, portfolio managers, stockbrokers and asset managers increased from 642 to 694.
PSG Konsult CEO, Willem Theron, said the results are considered as most satisfactory. While the higher stock market during the last three months of the period under review also played a role, it was continued cost savings in the last few years, as well as higher productivity and efficiency which now paid dividends.
“Of greater importance, however, is the growing trust in the PSG Konsult brand and the steadfastness the group offers during times of financial instability,” Theron said.
PSG Konsult’s strategy provides for a more or less equal diversified income stream from investment- and financial planning business, stockbroking- and portfolio management activities, as well as short-term insurance. All three these businesses lines provided meaningful contributions to the results.
Theron said awards received by PSG Asset Management, which include two Raging Bull Awards and a Morningstar Award, as well as PSG Online being named Stockbroker of the Year by Business Day Investors Monthly, are proud achievements.
The focus now is to bring about further growth in all the businesses of the group and to share further in the financial services value chain.
While the group has a well-established geographical footprint, it is believed that the expansion of existing offices in the greater Johannesburg and KZN regions will provide opportunities for further growth.
With regard to the current investment environment, Theron said while markets have strengthened considerably over the last three months, it seems there may still be some value out there. The key, however, is a well balanced portfolio of local and offshore investments.
“PSG Konsult will continue to guard with care over clients investments. This is especially in relation to questionable investment schemes,” Theron said.
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