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PSG Group delivers stellar interim results

14 October 2015 Piet Mouton, PSG Group
Piet Mouton, PSG Group CEO.

Piet Mouton, PSG Group CEO.

PSG Group, the JSE-listed investment holding company with underlying investments in banking, education, financial services, food and related business, and private equity, delivered stellar financial results for the six months to August 2015 with recurring headline earnings per share increasing by 42% to 354.5 cents.

The sum-of-the-parts (SOTP) value per PSG share amounted to R196.85 at the end of August against R163.28 as at 28 February 2015. At 7 October 2015 the SOTP value was R209.35. The SOTP value and recurring headline earnings per share are considered by PSG Group as the two key benchmarks to measure performance.

Headline earnings increased by 37% to 422.8 cents per share.

The increase in profitability paved the way for the declaration of an interim gross dividend of 100 cents (2014: 55 cents), representing an increase of 82%.

Capitec remained PSG Group’s largest investment and at 31 August 2015 it comprised 40% (February 2015: 41%) of the SOTP value’s total assets. Capitec continues to be the major contributor to PSG’s recurring headline earnings.

Commenting on the results, PSG Group CEO, Piet Mouton, said the results were underpinned by sturdy performances from al the key investments in the group’s portfolio. Strong recurring headline earnings per share growth were achieved in the period under review by Capitec, PSG Konsult and Zeder’s investment in Pioneer Foods in particular.

Although Curro reported a 68% increase in recurring headline earnings per share for the six months to June 2015, its earnings contribution to the larger PSG group remains relatively small. However, we remain confident that this investment will make a significant contribution to PSG’s earnings in years to come.

PSG Private Equity reported a 144% increase in recurring headline earnings per share, albeit from a low base, following challenging trading conditions at select investments during the comparative period in the prior year.

“We remain positive about PSG Private Equity with momentum in the right direction. PSG Group considers itself as ’n long-term investor and overnight ‘miracles’ should not be expected.”

“Our key investments are well positioned for continued growth, and our private equity portfolio holds promise. This provides us with confidence that PSG should continue yielding above average returns in future,” Mouton said.

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