PSG Konsult delivers strong results

PSG Konsult, the independent financial services company, delivered strong results for the six months to end August this year, amidst financial markets mainly moving sideways for the year to date.

Headline earnings increased by 22% from R63 million to R77 million and the headline earnings per share by 22% from 5,9 cents to 7,2 cents. The recurring headline earnings rose by 20% from R61 million to R73 million. This was on the back of turnover growing by 9% from R675 million to R733 million. An interim dividend of 3,5 cents (2011: 3,0 cents) per share was declared, representing an increase of 17% compared to the same period last year. PSG Konsult CEO, Willem Theron, said management is satisfied with the company’s results, especially with headline earnings increasing more than turnover.

“It is evident that PSG Konsult’s strategy of changing from a mere financial services and products distribution channel, to a fully-fledged financial services company, is bearing fruit.

“We are also awaiting final approval by the regulators on a transaction to acquire a meaningful interest in Western National Insurance Company Ltd, a commercial Short-Term Insurer. This will further increase our capacity as a fully-fledged financial services company, focusing on wealth management for the mass affluent market and high net worth individuals, asset management services, as well as the protection of assets with suitable insurance products.

“We constantly invest in the company to improve technology, service delivery and support with the aim to provide our clients with the best possible experience. This is evident by PSG Online being voted Business Day Investors Monthly 2012 Stockbroker of the Year for the second consecutive year. A rights issue for R187 million was also recently successfully concluded” Theron said.

PSG Asset Management also performed well during the period under review. The division recently claimed the prestigious Morningstar- and Raging Bull awards, which is evident of the quality and consistency of the team’s investment processes.

Regarding the latest wave of collapsing illegal or unsustainable investment schemes in the country, Theron said that people must make sure that they are dealing with registered institutions and financial planners.

PSG Konsult employs substantial resources to ensure that all services and products are above board. Due diligence investigations on suppliers are done thoroughly to protect clients in this regard.

The local financial markets are currently being influenced by events in the USA en Europe. Against this background it is of the utmost importance for people to have a financial plan and to stick to it, with the help of a qualified financial planner.