PSG KONSULT LIMITED - Unaudited Results For The Six Months Ended 31 August 2015
7 October, 2015 - Posted at - 12:48:00
KST 201510070027A<BR>
Unaudited Results For The Six Months Ended 31 August 2015<BR>
<BR>
PSG Konsult Limited<BR>
(Incorporated in the Republic of South Africa) <BR>
Registration number: 1993/003941/06 <BR>
JSE share code: KST<BR>
NSX share code: KFS<BR>
ISIN code: ZAE000191417<BR>
(‘PSG Konsult' or ‘the company' or ‘the group')<BR>
<BR>
<BR>
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2015<BR>
<BR>
<BR>
Recurring headline earnings per share up 26%<BR>
<BR>
Dividend per share up 10%<BR>
<BR>
Assets under management up 17%<BR>
<BR>
Assets under administration up 21%<BR>
<BR>
<BR>
COMMENTARY<BR>
<BR>
PSG Konsult delivered a commendable 26% growth in recurring headline earnings per share for the six months ended <BR>
31 August 2015. A key highlight includes the strong top-line revenue growth achieved by all divisions relative to industry <BR>
peers. The business continues gaining market share as a result of our continuous focus on our key strategic goals and <BR>
initiatives despite the challenging economic and market conditions during the period under review. In particular, <BR>
PSG Wealth and PSG Asset Management achieved stellar outperformance. PSG Insure's results are also gaining positive <BR>
momentum due to improved focus on optimising and balancing profitable new business growth.<BR>
<BR>
The board of directors is especially pleased with this set of results, taking into account that the South African equity <BR>
market delivered a relatively weaker performance. The FTSE/JSE All Share Index recorded a negative total return of 4.53% <BR>
for the six months ended 31 August 2015, compared to a positive return of 8.68% in the comparable six-month period of 2014. <BR>
The current overall sluggish economic growth and volatile equity market conditions, coupled with a sharp devaluation in <BR>
the rand, are not conducive to growth. The group's focus on client service excellence through the quality of its advice, <BR>
products and platforms is proving resilient in these trying times. Furthermore, the business increased its marketing and <BR>
technology spend during the period, and is on track to launch its new television marketing campaign.<BR>
<BR>
PSG Wealth remains a key revenue driver for the group through its formidable financial adviser base and expanding product <BR>
and platform business offering. Strengthening our competitive position by expanding our adviser networks through both <BR>
organic and selected adviser acquisition growth has delivered continued positive client inflows.<BR>
<BR>
PSG Asset Management remains a high-growth area and a key focus for the group. Its retail sales effort and marketing <BR>
campaigns are proving effective in raising awareness of the PSG Asset Management brand, leading to strong retail client <BR>
inflows. PSG Asset Management attracted net inflows of R2.6 billion during the period under review. The focus on <BR>
generating recurring earnings is to place less reliance on performance fees, with these fees contributing 7.5% of group<BR>
headline earnings, compared to 7.0% during the prior period. <BR>
<BR>
PSG Insure continues making inroads in the highly competitive short-term insurance market, having achieved revenue growth <BR>
of 19% compared to the prior financial period, with a focus on the quality of new business to achieve profitable growth. <BR>
No significant catastrophe or other related events occurred during this period. Our insurance advisers, with an ongoing <BR>
focus on growing the commercial lines' side of the business, have managed to gain market share without compromising <BR>
their overall client loss claim ratios. Against the backdrop of a particularly difficult industry environment, this is <BR>
an achievement that the group is especially pleased with.<BR>
<BR>
PSG Konsult's key financial performance indicators for the six months ended 31 August 2015 are shown below:<BR>
<BR>
31 Aug 15 Change 31 Aug 14<BR>
R000 % R000<BR>
<BR>
Earnings attributable to ordinary shareholders 189 752 30 145 494<BR>
Non-headline items (2 952) (97)<BR>
Headline earnings 186 800 28 145 397<BR>
Non-recurring headline earnings (100) 1 914<BR>
Recurring headline earnings 186 800 27 147 311<BR>
<BR>
Weighted average number of shares in issue <BR>
(net of treasury shares) (million) 1 267.2 1 1 259.5<BR>
<BR>
Earnings per share (cents)<BR>
Recurring headline 14.7 26 11.7<BR>
Headline 14.7 28 11.5<BR>
Attributable 15.0 29 11.6<BR>
<BR>
Dividend per share (cents) 4.4 10 4.0<BR>
<BR>
Assets under management (R billion) 151 17 129<BR>
Assets under administration (R billion) 321 21 266<BR>
<BR>
Divisional headline earnings<BR>
PSG Wealth 119 882 28 93 907<BR>
PSG Asset Management 46 322 37 33 758<BR>
PSG Insure 20 596 16 17 732<BR>
186 800 28 145 397<BR>
<BR>
Risk Management<BR>
<BR>
In light of events in the financial services industry over recent years, risk and its mitigation have become a top <BR>
priority. It has become increasingly important to understand and manage risks to create sustainable business practices <BR>
and returns for shareholders.<BR>
<BR>
With this in mind, we continue upholding and strengthening our commitment to risk management. Consequently, proactive <BR>
risk management is a key pillar of our risk strategy. Linked to this are our board-approved risk management plans, which <BR>
provide an integrated risk management framework designed to meet the challenges of the changing risk environment. These <BR>
plans also seek to ensure that business goals and objectives are properly supported by effective risk management. <BR>
<BR>
Responsibility for risk management is established at all levels within the business. PSG Konsult has adopted best <BR>
practice monitoring and control of the group governance framework by implementing the three layers of defence governance <BR>
model. This means that the responsibility for governance is allocated throughout the business. This includes the various <BR>
boards, executive committees, divisional committees, legal entities, business units, managers and employees within each <BR>
business area. The model contributes to embedding a strong risk culture in PSG Konsult, making risk part of everyone's <BR>
day-to-day activities. We believe this is of vital importance within risk management. <BR>
<BR>
Solvency Assessment and Management <BR>
<BR>
The Financial Services Board (FSB) classified PSG Konsult as an insurance conglomerate group, under the new Solvency <BR>
Assessment and Management (SAM) regulations. This meant that we were required to submit a mock Own Risk and Solvency <BR>
Assessment (ORSA) report to the FSB on 31 August 2015 to enable them to understand and evaluate our progress in meeting <BR>
the new SAM requirements. <BR>
<BR>
The continual focus on centrally monitoring and optimising the group's capital and cash flow management activities <BR>
ensures that careful attention is paid to maintaining sufficient liquid capital in each of the regulated entities. <BR>
At the same time, it ensures that capital is used appropriately to maximise shareholder returns. The financial soundness <BR>
of each business is closely monitored, so that the group can take advantage of opportunities when they arise.<BR>
<BR>
Credit rating<BR>
<BR>
Global Credit Rating Company (GCR), having upgraded PSG Konsult's long-term rating in August 2014, affirmed the <BR>
national scale ratings assigned to PSG Konsult of BBB+(ZA) and A2(ZA), in the long term and short term respectively. <BR>
The outlook for both ratings remained stable. GCR stated: “PSG Konsult's position is enhanced by its well-defined <BR>
strategy, within the complementary business lines of wealth management, asset management and insurance. PSG Konsult has <BR>
developed robust risk management procedures to monitor the various risks facing the business, including regulatory <BR>
compliance and counterparty risk. In addition, cash flows are monitored daily to ensure PSG Konsult can meet all its <BR>
statutory capital and liquidity requirements across the various businesses.”<BR>
<BR>
Achievements<BR>
<BR>
The group is proud of the following notable milestones, achievements and industry awards:<BR>
<BR>
PSG Wealth<BR>
– Ranked as one of South Africa's Top 3 stockbrokers in the Intellidex Stockbroker of the Year competition for the past <BR>
four years, obtaining third place in 2015.<BR>
<BR>
– Ranked second in the Intellidex Wealth Manager of the Year competition. It was further awarded joint first place as <BR>
the top wealth manager for up-and-coming professionals and successful entrepreneurs, and was ranked as a top-three <BR>
wealth manager preferred by clients.<BR>
<BR>
PSG Asset Management<BR>
– Top quartile investment returns were recorded across the entire domestic flagship range over one year, three years <BR>
and five years up to 30 June 2015, in the respective Morningstar categories.<BR>
<BR>
– As at 30 June 2015, PlexCrown ranked PSG third in its management company rankings.<BR>
<BR>
– Other PlexCrown ranking highlights include:<BR>
* PSG Equity Fund ranked first in its South African Equity General fund category<BR>
* PSG Balanced Fund ranked third in its subcategory<BR>
<BR>
PSG Insure<BR>
– Broker of the Year for Commercial Lines 2014 in Santam's National Broker Awards.<BR>
<BR>
– Various PSG offices received Santam awards, ranging from bronze to diamond.<BR>
<BR>
People<BR>
<BR>
As at 31 August 2015, PSG Konsult had 201 offices and 2 046 employees, of which 667 were financial planners, portfolio <BR>
managers, stockbrokers and asset managers. A further 404 were professional associates (accountants and attorneys). <BR>
During the six months under review, 8 new advisers were appointed through a combination of organic growth and selective <BR>
adviser book acquisitions. <BR>
<BR>
Transformation<BR>
<BR>
PSG Konsult was rated as a level 6 BBBEE contributor. This is our second rating and is an improvement from our initial <BR>
rating as a level 8 BBBEE contributor, reflecting management's commitment to transformation within the group.<BR>
<BR>
Management implemented a number of initiatives to continue driving our transformation strategy. These initiatives <BR>
include an investment in the ASISA Enterprise Development Fund and an expansion of our existing bursary and internship <BR>
programmes. Over the six months, the group made continued progress in its employment equity profile and transformation <BR>
remains a key focus area.<BR>
<BR>
Strategy<BR>
<BR>
PSG Wealth's overall strategy offers an innovative and holistic end-to-end client proposition. Despite an unpredictable <BR>
economic outlook, the division will continue investing in people and technology, believing these to be key factors with <BR>
which to grow its share of the market. The strategy to further expand and equip its adviser network will receive ongoing <BR>
attention, relying on advisers for client feedback in the development and creation of new products and services. During <BR>
the period, the division improved its offshore stockbroking offering to include additional foreign markets, and is on <BR>
track to expand its offshore product offering further to include offshore unit trusts later this financial year. The <BR>
division is also on track with the consolidation of its user interfaces. This will give clients the ability to view and <BR>
transact both local and offshore shares, exchange traded funds and an extensive range of local and offshore unit trusts <BR>
through a single log on. This improved user functionality, the group's television marketing campaign and enhanced <BR>
investor tools (planned for launch by December 2015) should further aid the division's direct client growth strategy. <BR>
<BR>
PSG Asset Management's strategy consists of three parts, namely investment excellence, operational efficiency, and <BR>
effective sales and marketing initiatives. Generating the best long-term, risk-adjusted returns for investors is the <BR>
division's primary focus. To this end, it will continue prioritising the investment team's performance, while managing <BR>
operational risks and processes. Increasing brand awareness – particularly in the retail investor market – is a key focus <BR>
area for the marketing team, allowing the division to benefit from a growing investor base.<BR>
<BR>
PSG Insure provides simple and cost-effective short-term insurance solutions to chosen clients, protecting them from <BR>
unforeseen events. Vertical integration across underwriting, administration and adviser teams underpins the focus on <BR>
providing value-added products that meet and exceed clients' expectations. The division continues to invest in its claims <BR>
and administration departments. This is to build scale and unlock operational efficiencies, while freeing up valuable <BR>
time for top-calibre advisers to focus on sales.<BR>
<BR>
As each division grows, careful attention is paid to the group's cost structure and in particular to the cost-to-income <BR>
ratio. Building a cost-efficient and scalable business is a key priority for the board. The management team is committed <BR>
to continuously investigating new ways in which to manage and reduce costs.<BR>
<BR>
Marketing<BR>
<BR>
Marketing initiatives are critical to the group's goal of becoming a leader in the financial services industry. During <BR>
the period under review, our specialist marketing team focused its efforts on enhancing our website, digital platforms, <BR>
client communication and client and adviser events, to build the PSG brand within the South African market. The production <BR>
of our television advertisement will hopefully take the group's marketing efforts to new heights as we seek to support <BR>
its network of financial advisers further and cement PSG Konsult's product offering in the minds of target clients.<BR>
<BR>
Information Technology (IT)<BR>
<BR>
The integral role that technology plays in the daily operations of PSG Konsult cannot be understated. The scalability and <BR>
efficiency of business functions are dependent on the state of its IT systems. For this reason, the group continually <BR>
invests in new and innovative technologies. It also seeks to incorporate further business process automation, to reduce <BR>
operational risk and provide real-time reporting for enhanced management decision-making. The group is confident that its <BR>
IT strategy will create a solid foundation for future growth.<BR>
<BR>
Risk and legal<BR>
<BR>
Effectively managing the risks assumed by the business allows it to benefit from opportunities. The risk management team <BR>
is moving from strength to strength as it identifies and assists in mitigating the risks the group faces relative to <BR>
revenue contributions. The group's risk appetite is constantly reviewed, as the level of risk taken on – particularly <BR>
in the insurance environment – can pose a threat to its capital position. Here, the cost of reinsurance and other <BR>
mechanisms are reviewed to ensure that risks remain within acceptable levels.<BR>
<BR>
In line with the risk management plan and as reported in the group's year-end results, PSG Asset Management made the <BR>
decision to terminate all of its current white-label client administration and related activities. This was to reduce <BR>
its overall operational and reputational risk exposures. This process, which has now largely been completed, will be <BR>
finalised before year-end and will have a negligible impact on future profitability.<BR>
<BR>
Effective engagement with regulators is a priority for PSG Konsult. The recent and forthcoming regulatory changes are <BR>
expected to lead to significant changes in the way financial services companies in South Africa operate in general. The <BR>
group endeavours to always be at the forefront in implementation of these changes. It fully supports the regulators' <BR>
stance on improving the transparency, cost-effectiveness and conduct of the industry.<BR>
<BR>
Tax matter<BR>
<BR>
Although PSG Konsult is not obliged to disclose any discussions with the South African Revenue Service (SARS), in line <BR>
with the transparent disclosure approach that we have adopted, we wish to advise that we have had recent interactions <BR>
with SARS on the classification and tax treatment of certain investments held by PSG Life Limited. The classification <BR>
and treatment at the time were supported by external expert tax advice obtained prior to making these investments and <BR>
subsequently again confirmed by independent senior council. The final outcome of these discussions is uncertain at this <BR>
stage and SARS has not issued any revised assessment to date. The line of business in question was discontinued in 2011. <BR>
This potential tax matter, however, has no relevance to any clients of the firm and has no material bearing on the <BR>
company's future projected recurring headline earnings or dividend payout policy to shareholders. Disputes of this <BR>
nature unfortunately take time to resolve. We will however keep shareholders updated once we have greater clarity on <BR>
the matter.<BR>
<BR>
Looking forward<BR>
<BR>
Our aim remains to service existing clients well and gain new clients for the firm. Current market circumstances are <BR>
uncertain and volatility has returned to investment markets. We are however confident that we will continue to build <BR>
our client franchise despite this market outlook. A number of initiatives are in place to ensure this happens. Focusing <BR>
on products, platforms and client service excellence through the quality of our advice is proving to be a resilient <BR>
strategy for PSG Konsult. <BR>
<BR>
We advised investors, when we released our year-end results, that we planned to spend an additional incremental amount <BR>
on marketing and advertising in the 2016 financial year. The majority of this additional expense is being incurred on <BR>
our television advertisement campaign, which is currently in production phase.<BR>
<BR>
Events after reporting date<BR>
<BR>
We remain committed to enhance the value proposition to our existing client base. We are pleased to announce that we <BR>
recently concluded negotiations to acquire a 70% shareholding in DMH Associates (DMH), the leading independent wealth <BR>
advisory firm in Mauritius. DMH was established in 2003 as an investment advisory firm providing independent expert <BR>
advice to entrepreneurs, high-net-worth individuals and their families. DMH is licensed and regulated by the Mauritius <BR>
Financial Services Commission and also offers corporate finance, wealth management and family office services. We see <BR>
the company – as well as the individuals involved in the company – as a good fit for PSG Konsult. Vincent Desvaux de <BR>
Marigny and Philippe Hardy are the founding members. They will continue to operate and run the business going forward. <BR>
We welcome them to the PSG Konsult Group.<BR>
<BR>
Dividend<BR>
<BR>
The board approved and declared a gross interim dividend of 4.4 cents per share (2014: 4.0 cents per share) from income <BR>
reserves for the six months ended 31 August 2015. This is in line with our dividend payout policy (communicated at the <BR>
time of listing) of distributing between 40% and 50% of recurring headline earnings as dividends (one third as an interim <BR>
dividend and two thirds as a final dividend).<BR>
<BR>
The dividend is subject to a local dividends tax rate of 15%, resulting in a net dividend of 3.74 cents per share, unless <BR>
the shareholder is exempt from paying dividends tax or is entitled to a reduced rate in terms of the applicable double-tax <BR>
agreement. The number of issued ordinary shares is 1 278 947 422 at the date of this declaration. PSG Konsult's income tax <BR>
reference number is 9550/644/07/05.<BR>
<BR>
The following are the salient dates for payment of the dividend:<BR>
<BR>
Last day to trade (cum dividend) Friday, 23 October 2015<BR>
Trading ex dividend commences Monday, 26 October 2015<BR>
Record date Friday, 30 October 2015<BR>
Date of payment Monday, 2 November 2015<BR>
<BR>
Share certificates may not be dematerialised or rematerialised between Monday, 26 October 2015, and Friday, 30 October 2015, <BR>
both days included.<BR>
<BR>
The board would like to extend its gratitude to all our stakeholders, including clients, business partners, management and <BR>
employees, for their efforts and contributions during the past six months.<BR>
<BR>
On behalf of the board<BR>
<BR>
<BR>
Willem Theron Francois Gouws<BR>
Chairman Chief executive officer<BR>
<BR>
Tyger Valley<BR>
7 October 2015<BR>
<BR>
psg.co.za<BR>
<BR>
<BR>
Condensed consolidated statement of financial position<BR>
as at 31 August and 28 February 2015<BR>
<BR>
Unaudited Unaudited Audited<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
ASSETS<BR>
Intangible assets 876 420 889 032 859 536<BR>
Property and equipment 56 827 46 202 42 273<BR>
Investment property 2 245 2 245 2 245<BR>
Investment in associated companies 40 554 39 169 39 562<BR>
Investment in joint ventures 13 453 12 511 12 971<BR>
Deferred income tax 85 913 72 993 87 674<BR>
Equity securities (note 6) 887 759 827 617 1 025 518<BR>
Debt securities (note 6) 1 666 917 1 642 197 1 605 418<BR>
Unit-linked investments (note 6) 15 566 418 11 045 876 12 345 648<BR>
Investment in investment contracts (note 6) 443 883 432 825 338 208<BR>
Loans and advances 126 110 97 800 116 393<BR>
Derivative financial instruments 13 813 19 075 23 324<BR>
Reinsurance assets 71 183 75 139 77 413<BR>
Deferred acquisition costs 2 393 1 658 1 714<BR>
Receivables including insurance receivables 2 737 279 1 856 752 2 133 136<BR>
Current income tax assets 25 081 22 509 18 954<BR>
Cash and cash equivalents (including money market investments) (note 6) 1 015 073 469 038 972 243<BR>
Non-current assets held for sale 17 751<BR>
Total assets 23 631 321 17 552 638 19 719 981<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent<BR>
Stated capital 1 445 359 1 325 111 1 325 111<BR>
Treasury shares (16 228) (546) (546)<BR>
Other reserves (400 655) (439 799) (404 471)<BR>
Retained earnings 660 614 451 560 573 065<BR>
1 689 090 1 336 326 1 493 159<BR>
<BR>
Non-controlling interest 143 406 95 085 132 491<BR>
Total equity 1 832 496 1 431 411 1 625 650<BR>
<BR>
LIABILITIES<BR>
Insurance contracts 577 638 502 668 574 331<BR>
Deferred income tax 55 640 85 015 53 610<BR>
Borrowings 407 517 363 050 427 843<BR>
Derivative financial instruments 16 410 33 846 30 749<BR>
Investment contracts (note 6) 17 229 353 12 761 154 14 222 603<BR>
Third-party liabilities arising on consolidation of mutual funds 877 844 625 462 699 202<BR>
Deferred reinsurance acquisition revenue 4 029 2 757 3 563<BR>
Trade and other payables 2 618 743 1 723 302 2 068 400<BR>
Current income tax liabilities 11 651 23 973 10 618<BR>
Non-current liabilities held for sale 3 412<BR>
Total liabilities 21 798 825 16 121 227 18 094 331<BR>
<BR>
Total equity and liabilities 23 631 321 17 552 638 19 719 981<BR>
<BR>
Net asset value per share (cents) 132.3 105.9 118.3<BR>
<BR>
<BR>
Condensed consolidated income statement<BR>
for the six months ended 31 August and the 12 months ended 28 February 2015<BR>
<BR>
Unaudited Unaudited<BR>
Six months Six months Audited<BR>
ended ended Year ended<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Gross written premium 462 590 362 974 795 237<BR>
Less: Reinsurance written premium (128 875) (98 417) (225 293)<BR>
Net premium 333 715 264 557 569 944<BR>
Change in unearned premium<BR>
Gross 4 461 9 807 (34 905)<BR>
Reinsurers' share (92) (614) 3 119<BR>
Net insurance premium revenue 338 084 273 750 538 158<BR>
Commission and other fee income 1 233 783 1 056 475 2 138 855<BR>
Investment income 301 815 198 911 499 554<BR>
Net fair value gains and losses on financial instruments 464 613 1 011 149 1 209 661<BR>
Fair value adjustment to investment contract liabilities (613 236) (1 024 359) (1 406 791)<BR>
Other operating income 15 361 14 075 35 163<BR>
Total income 1 740 420 1 530 001 3 014 600<BR>
<BR>
Insurance claims and loss adjustment expenses (330 388) (285 165) (561 548)<BR>
Insurance claims and loss adjustment expenses recovered from reinsurers 69 012 67 849 137 173<BR>
Net insurance benefits and claims (261 376) (217 316) (424 375)<BR>
Commission paid (562 655) (474 464) (910 226)<BR>
Depreciation and amortisation* (27 692) (26 339) (55 422)<BR>
Employee benefit expenses (304 867) (252 481) (511 612)<BR>
Fair value adjustment to third-party liabilities (39 988) (79 331) (41 525)<BR>
Marketing, administration and other expenses (206 399) (185 251) (427 457)<BR>
Total expenses (1 402 977) (1 235 182) (2 370 617)<BR>
<BR>
Share of profits/(losses) of associated companies 992 (379) 40<BR>
Share of profits of joint ventures 482 454 914<BR>
Total profit from associated companies and joint ventures 1 474 75 954<BR>
<BR>
Profit before finance costs and taxation 338 917 294 894 644 937<BR>
Finance costs (48 800) (62 459) (119 905)<BR>
Profit before taxation 290 117 232 435 525 032<BR>
Taxation (86 422) (75 448) (163 234)<BR>
Profit for the period 203 695 156 987 361 798<BR>
<BR>
Attributable to:<BR>
Owners of the parent 189 752 145 494 340 401<BR>
Non-controlling interest 13 943 11 493 21 397<BR>
203 695 156 987 361 798<BR>
Earnings per share (cents)<BR>
Attributable (basic) 15.0 11.6 27.0<BR>
Attributable (diluted) 14.5 11.2 26.1<BR>
Headline (basic) 14.7 11.5 26.9<BR>
Headline (diluted) 14.3 11.1 26.0<BR>
Recurring headline (basic) 14.7 11.7 27.0<BR>
Recurring headline (diluted) 14.3 11.3 26.1<BR>
<BR>
* Includes amortisation cost of R18.8 million (31 Aug 2014: R17.8 million; 28 Feb 2015: R37.5 million).<BR>
<BR>
<BR>
Condensed consolidated statement of comprehensive income<BR>
for the six months ended 31 August and the 12 months ended 28 February 2015<BR>
<BR>
Unaudited Unaudited<BR>
Six months Six months Audited<BR>
ended ended Year ended<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Profit for the period 203 695 156 987 361 798<BR>
Other comprehensive income for the period, net of taxation (4 103) (758) 224<BR>
To be reclassified to profit and loss:<BR>
Currency translation adjustments (4 103) (758) 224<BR>
Total comprehensive income for the period 199 592 156 229 362 022<BR>
<BR>
Attributable to:<BR>
Owners of the parent 185 649 144 736 340 625<BR>
Non-controlling interest 13 943 11 493 21 397<BR>
199 592 156 229 362 022<BR>
<BR>
Earnings and headline earnings per share<BR>
<BR>
Unaudited Unaudited<BR>
Six months Six months Audited<BR>
ended ended Year ended<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Profit attributable to ordinary shareholders 189 752 145 494 340 401<BR>
Non-headline items (net of non-controlling interest and<BR>
related tax effect)<BR>
Profit on disposal of intangible assets (including goodwill) (1 220) (48) (757)<BR>
Non-headline items of associated companies (503) (97) (251)<BR>
Other (1 229) 48 (132)<BR>
<BR>
Headline earnings 186 800 145 397 339 261<BR>
Recurring 186 800 147 311 341 175<BR>
Non-recurring (1 914) (1 914)<BR>
<BR>
Earnings per share (cents)<BR>
Attributable (basic) 15.0 11.6 27.0<BR>
Attributable (diluted) 14.5 11.2 26.1<BR>
Headline (basic) 14.7 11.5 26.9<BR>
Headline (diluted) 14.3 11.1 26.0<BR>
Recurring headline (basic) 14.7 11.7 27.0<BR>
Recurring headline (diluted) 14.3 11.3 26.1<BR>
<BR>
Number of shares (million)<BR>
in issue (net of treasury shares) 1 276.5 1 262.1 1 262.1<BR>
weighted average 1 267.2 1 259.5 1 261.4<BR>
<BR>
<BR>
Condensed consolidated statement of changes in equity<BR>
for the six months ended 31 August and the 12 months ended 28 February 2015<BR>
<BR>
Attributable to equity holders of the group<BR>
Non-<BR>
Treasury Other Retained controlling<BR>
Stated capital shares reserves earnings interest Total<BR>
R000 R000 R000 R000 R000 R000<BR>
<BR>
Balance at 1 March 2014 <BR>
Audited 1 134 746 (546) (445 146) 399 487 86 222 1 174 763<BR>
Comprehensive income <BR>
Profit for the period 145 494 11 493 156 987<BR>
Other comprehensive income (758) (758)<BR>
Total comprehensive income (758) 145 494 11 493 156 229<BR>
Transactions with owners 190 365 6 105 (93 421) (2 630) 100 419<BR>
Issue of ordinary shares 190 365 190 365<BR>
Share-based payment costs 6 105 6 105<BR>
Transactions with non- <BR>
controlling interest (1 320) (207) (1 527)<BR>
Dividend paid (92 101) (2 423) (94 524)<BR>
<BR>
Balance at 31 August 2014 <BR>
Unaudited 1 325 111 (546) (439 799) 451 560 95 085 1 431 411<BR>
<BR>
Comprehensive income<BR>
Profit for the period 194 907 9 904 204 811<BR>
Other comprehensive income 982 982<BR>
Total comprehensive income 982 194 907 9 904 205 793<BR>
Transactions with owners 34 346 (73 402) 27 502 (11 554)<BR>
Share-based payment costs 5 457 5 457<BR>
Capital contribution by non-<BR>
controlling interest 28 000 28 000<BR>
Equity-settled share-based<BR>
payments 28 889 (22 925) 5 964<BR>
Dividend paid (50 477) (498) (50 975)<BR>
<BR>
Balance at 28 February 2015 <BR>
Audited 1 325 111 (546) (404 471) 573 065 132 491 1 625 650<BR>
<BR>
Comprehensive income<BR>
Profit for the period - 189 752 13 943 203 695<BR>
Other comprehensive income (4 103) (4 103)<BR>
Total comprehensive income (4 103) 189 752 13 943 199 592<BR>
Transactions with owners 120 248 (15 682) 7 919 (102 203) (3 028) 7 254<BR>
Issue of ordinary shares 120 248 120 248<BR>
Share-based payment cost 7 919 7 919<BR>
Treasury shares purchased (23 857) (23 857)<BR>
Treasury shares sold 8 175 8 175<BR>
Dividend paid (102 203) (3 028) (105 231)<BR>
<BR>
Balance at 31 August 2015 <BR>
Unaudited 1 445 359 (16 228) (400 655) 660 614 143 406 1 832 496<BR>
<BR>
<BR>
Condensed consolidated statement of cash flows<BR>
for the six months ended 31 August and the 12 months ended 28 February 2015<BR>
<BR>
Unaudited Unaudited<BR>
Six months Six months Audited<BR>
ended ended Year ended<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Cash flows from operating activities <BR>
Cash (utilised in)/generated by operating activities (30 628) (176 759) 232 202<BR>
Interest income 209 636 169 002 372 278<BR>
Dividend income 91 977 29 727 126 900<BR>
Finance costs (22 922) (20 498) (44 118)<BR>
Taxation paid (84 027) (62 986) (172 853)<BR>
Operating cash flows before policyholder cash movement 164 036 (61 514) 514 409<BR>
Policyholder cash movement (4 883) (36 652) (24 380)<BR>
Net cash flow from operating activities 159 153 (98 166) 490 029<BR>
<BR>
Cash flows from investing activities<BR>
Acquisition of intangible assets (37 394) (22 593) (30 473)<BR>
Purchases of property and equipment (24 372) (7 828) (13 241)<BR>
Proceeds from disposal of non-current assets held for sale 16 054 <BR>
Other 6 798 2 388 4 120<BR>
Net cash flow from investing activities (38 914) (28 033) (39 594)<BR>
<BR>
Cash flows from financing activities<BR>
Dividends paid (105 231) (94 524) (145 500)<BR>
Capital contributions by non-controlling interest (ordinary shares) 28 000<BR>
Transactions with non-controlling interest (1 526)<BR>
Repayment of borrowings (1 964) (26 607) (73 344)<BR>
Shares issued 40 520 7 476 7 476<BR>
Other (15 682) 209<BR>
Net cash flow from financing activities (82 357) (113 655) (184 685)<BR>
<BR>
Net increase/(decrease) in cash and cash equivalents 37 882 (239 854) 265 750<BR>
Cash and cash equivalents at beginning of period 975 018 709 173 709 173<BR>
Exchange gains/(losses) on cash and cash equivalents 2 173 (281) 95<BR>
Cash and cash equivalents at end of period* 1 015 073 469 038 975 018<BR>
<BR>
Current, cheque and money market investment accounts 1 015 073 469 038 972 243<BR>
Cash and cash equivalents classified as non-current assets held for sale 2 775<BR>
<BR>
* Includes the following:<BR>
Clients' cash linked to investment contracts 22 071 14 682 26 954<BR>
Other client related balances 105 445 7 232 139 381<BR>
127 516 21 914 166 335<BR>
<BR>
Notes to the statement of cash flow:<BR>
The movement in cash utilised/generated in operating activities can vary significantly as a result of daily fluctuations <BR>
in cash linked to investment contracts and cash held by the stockbroking business. PSG Life Limited, the group's linked <BR>
insurance company, issues linked policies to policyholders (where the value of policy benefits is directly linked to the <BR>
fair value of the supporting assets). When these policies mature, the company raises a debtor for the money receivable <BR>
from the third-party investment provider, and raises a creditor for the amount owing to the client. A timing difference <BR>
occurs at month-end where the money was received from the third-party investment provider, but only paid out by the <BR>
company after month-end, resulting in significant fluctuations in the working capital of the company. Similar working <BR>
capital fluctuations incur at PSG Securities Limited, the group's stockbroking business, mainly due to the timing of the <BR>
close of the JSE in terms of client settlements.<BR>
<BR>
Cash flow from operating activities for the six months ended 31 August 2014 was negatively impacted by the fluctuations <BR>
in the working capital at PSG Life Limited, as well as cash utilised during the period for the scrip lending facility at <BR>
PSG Securities Limited. Cash held in money market investments (classified as ‘Cash and cash equivalents' on the face of <BR>
the statement of financial position), held by the two short-term insurance companies in the group, was also utilised in <BR>
the period to invest in low-risk income funds which were classified as either debt securities or unit-linked investments, <BR>
depending on the nature of the income fund invested in.<BR>
<BR>
<BR>
Notes to the condensed consolidated interim financial statements for the six months ended 31 August 2015<BR>
<BR>
1. Reporting entity<BR>
<BR>
PSG Konsult Limited is a company domiciled in the Republic of South Africa. The condensed consolidated interim financial<BR>
statements of the company as at and for the six months ended 31 August 2015 comprise the company and its subsidiaries<BR>
(together referred to as 'the group') and the group's interests in associated companies and joint ventures.<BR>
<BR>
2. Basis of presentation<BR>
<BR>
The condensed consolidated interim financial statements are prepared in accordance with the listings requirements of the <BR>
JSE Limited (JSE) and the requirements of the Companies Act No 71 of 2008, as amended applicable to condensed financial <BR>
statements. The JSE requires condensed financial statements to be prepared in accordance with the framework concepts and <BR>
the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial <BR>
Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial <BR>
Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial <BR>
Reporting. The condensed consolidated interim financial statements do not include all of the information required for <BR>
full annual financial statements and should be read in conjunction with the consolidated financial statements of the <BR>
group as at and for the year ended 28 February 2015.<BR>
<BR>
3. Preparation<BR>
<BR>
These condensed consolidated interim financial statements were prepared by Stephan van der Merwe, CA(SA), under the<BR>
supervision of the chief financial officer, Mike Smith, CA(SA). Neither these condensed consolidated interim financial<BR>
statements, nor any reference to future financial performance included in this results announcement, have been reviewed <BR>
or reported on by the company's external auditor, PricewaterhouseCoopers Inc.<BR>
<BR>
4. Accounting policies<BR>
<BR>
The accounting policies applied in the preparation of these condensed consolidated interim financial statements are in <BR>
terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated <BR>
annual financial statements as at and for the year ended 28 February 2015.<BR>
<BR>
The following new accounting standards and amendments to IFRSs, which were relevant to the group's operations, were<BR>
effective for the first time from 1 March 2015:<BR>
<BR>
- Amendment to IAS 19 Employee benefits<BR>
<BR>
- Annual Improvements 2010 12 cycle<BR>
<BR>
- Annual Improvements 2011 13 cycle<BR>
<BR>
These revisions have not resulted in material changes to the group's reported results and disclosures in these condensed<BR>
consolidated interim financial statements.<BR>
<BR>
The following new or revised IFRSs and interpretations that are applicable to the group have effective dates applicable <BR>
to future financial years and have not been early adopted:<BR>
<BR>
- IFRS 9 Financial Instruments (effective 1 January 2018)<BR>
<BR>
- IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018)<BR>
<BR>
The impact of the application of these revised standards and interpretations in future financial reporting periods on <BR>
the group's reported results, financial position and cash flows is still being assessed.<BR>
<BR>
5. Use of estimates and judgements<BR>
<BR>
In preparing these condensed consolidated interim financial statements, the significant judgements made by management <BR>
in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that <BR>
applied to the consolidated annual financial statements for the year ended 28 February 2015.<BR>
<BR>
6. Segment information<BR>
<BR>
The composition of the reportable segments represents the internal reporting structure and the monthly reporting to the <BR>
chief operating decision-maker (CODM). The CODM for the purpose of IFRS 8, Operating Segments, has been identified as <BR>
the chief executive officer, supported by the group management committee (Manco). The group's internal reporting structure <BR>
is reviewed in order to assess performance and allocate resources. The group is organised into three reportable segments, <BR>
namely: <BR>
<BR>
- PSG Wealth<BR>
<BR>
- PSG Asset Management<BR>
<BR>
- PSG Insure<BR>
<BR>
Corporate support costs refer to a variety of services and functions that are performed centrally for the individual <BR>
business units within each business segment, and also include the group's executive office. Besides the traditional <BR>
accounting and secretarial services provided to group divisions and subsidiaries, the corporate office also provides legal, <BR>
risk, information technology (IT), marketing, human resources (HR), payroll, internal audit and corporate finance services. <BR>
The strategic elements of IT, in terms of both services and infrastructure, are also centralised in the corporate office. <BR>
The corporate costs are allocated to the three reportable segments.<BR>
<BR>
6.1 Description of business segments<BR>
<BR>
PSG Wealth, which consists of five business units Distribution, PSG Securities, LISP and Life Platform, Multi-Management <BR>
and Employee Benefits is designed to meet the needs of individuals, families and businesses. Through our highly skilled <BR>
wealth managers, PSG Wealth offers a wide range of personalised services (including portfolio management, stockbroking, <BR>
local and offshore investments, estate planning, financial planning, local and offshore fiduciary services, multi-managed <BR>
solutions and retirement products). Our Wealth offices are fully equipped to deliver a high-quality personal service to <BR>
our customers.<BR>
<BR>
PSG Asset Management is an established investment management company with a proven investment track record. We offer<BR>
investors a simple but comprehensive range of local and global investment products. Our products include both local and<BR>
international unit trusts.<BR>
<BR>
PSG Insure, through our registered insurance brokers and PSG's short-term insurance company Western National Insurance<BR>
Company Limited, offers a full range of tailor-made short-term insurance products and services for personal (home, car and<BR>
household insurance) and commercial (business and agri-insurance) requirements. To harness the insurance solutions available<BR>
to our customers effectively, our expert insurance specialists, through our strict due diligence process, will simplify the <BR>
selection process for the most appropriate solution for our clients. In addition to the intermediary services we offer, <BR>
PSG Short-Term Administration supports clients through the claim process, administrative issues and general policy <BR>
maintenance, including an annual reappraisal of their portfolios.<BR>
<BR>
The Manco considers the performance of reportable segments based on total income as a measure of growth and headline<BR>
earnings as a measure of profitability. The segment information provided to the Manco for the reportable segments for <BR>
the period ended 31 August 2015 is set out below:<BR>
<BR>
<BR>
6.2 Headline earnings per reportable segments<BR>
<BR>
Asset<BR>
Manage-<BR>
Wealth ment Insure Total<BR>
Headline earnings R000 R000 R000 R000<BR>
<BR>
For the six months ended 31 August 2015 (Unaudited)<BR>
Headline earnings 119 882 46 322 20 596 186 800<BR>
recurring 119 882 46 322 20 596 186 800<BR>
non-recurring <BR>
<BR>
For the six months ended 31 August 2014(Unaudited)<BR>
Headline earnings 93 907 33 758 17 732 145 397<BR>
recurring 94 749 34 179 18 383 147 311<BR>
non-recurring (842) (421) (651) (1 914)<BR>
<BR>
For the year ended 28 February 2015 (Audited)<BR>
Headline earnings 227 478 81 915 29 868 339 261<BR>
recurring 228 320 82 336 30 519 341 175<BR>
non-recurring (842) (421) (651) (1 914)<BR>
<BR>
<BR>
6.3 Income per reportable segment<BR>
<BR>
Asset<BR>
Manage-<BR>
Wealth ment Insure Total<BR>
Total income R000 R000 R000 R000<BR>
<BR>
For the six months ended 31 August 2015 (Unaudited)<BR>
Total segment income 1 200 924 333 170 578 569 2 112 663<BR>
Intersegment income (238 724) (133 519) (372 243)<BR>
Income from external customers 962 200 199 651 578 569 1 740 420<BR>
<BR>
For the six months ended 31 August 2014 (Unaudited)<BR>
Total segment income 1 072 668 282 074 484 678 1 839 420<BR>
Intersegment income (200 477) (108 672) (270) (309 419)<BR>
Income from external customers 872 191 173 402 484 408 1 530 001<BR>
<BR>
For the year ended 28 February 2015 (Audited)<BR>
Total segment income 2 146 463 587 111 979 622 3 713 196<BR>
Intersegment income (461 848) (219 347) (17 401) (698 596)<BR>
Income from external customers 1 684 615 367 764 962 221 3 014 600<BR>
<BR>
<BR>
Other information provided to the Manco is measured in a manner consistent with that of the financial statements.<BR>
<BR>
<BR>
6.4 Divisional income statements<BR>
The profit or loss information follows a similar format to the consolidated income statement.<BR>
<BR>
Asset<BR>
Manage-<BR>
Wealth ment Insure Total<BR>
R000 R000 R000 R000<BR>
<BR>
For the six months ended 31 August 2015 (Unaudited)<BR>
Total income 962 200 199 651 578 569 1 740 420<BR>
Total expenses (727 436) (136 829) (538 712) (1 402 977)<BR>
234 764 62 822 39 857 337 443<BR>
Total profit from associated <BR>
companies and joint ventures 1 474 1 474<BR>
Profit before finance cost and taxation 234 764 62 822 41 331 338 917<BR>
Finance costs* (47 821) (212) (767) (48 800)<BR>
Profit before taxation 186 943 62 610 40 564 290 117<BR>
Taxation (62 048) (16 013) (8 361) (86 422)<BR>
Profit for the period 124 895 46 597 32 203 203 695<BR>
<BR>
Attributable to:<BR>
Owners of the parent 122 069 46 597 21 086 189 752<BR>
Non-controlling interest 2 826 11 117 13 943<BR>
124 895 46 597 32 203 203 695<BR>
<BR>
Headline earnings 119 882 46 322 20 596 186 800<BR>
<BR>
<BR>
Asset<BR>
Manage-<BR>
Wealth ment Insure Total<BR>
R000 R000 R000 R000<BR>
<BR>
For the six months ended 31 August 2015 (Unaudited)<BR>
Total income 872 191 173 402 484 408 1 530 001<BR>
Total expenses (661 678) (128 400) (445 104) (1 235 182)<BR>
210 513 45 002 39 304 294 819<BR>
Total profit from associated companies and <BR>
joint ventures 75 75<BR>
Profit before finance cost and taxation 210 513 45 002 39 379 294 894<BR>
Finance costs* (59 278) (199) (2 982) (62 459)<BR>
Profit before taxation 151 235 44 803 36 397 232 435<BR>
Taxation (54 906) (11 045) (9 497) (75 448)<BR>
Profit for the period 96 329 33 758 26 900 156 987<BR>
<BR>
Attributable to:<BR>
Owners of the parent 93 896 33 758 17 840 145 494<BR>
Non-controlling interest 2 433 9 060 11 493<BR>
96 329 33 758 26 900 156 987<BR>
<BR>
Headline earnings 93 907 33 758 17 732 145 397<BR>
<BR>
Asset<BR>
Manage-<BR>
Wealth ment Insure Total<BR>
R000 R000 R000 R000<BR>
<BR>
For the year ended 28 February 2015 (Audited)<BR>
Total income 1 684 615 367 764 962 221 3 014 600<BR>
Total expenses (1 219 987) (257 541) (893 089) (2 370 617)<BR>
464 628 110 223 69 132 643 983<BR>
Total profit from associated<BR>
companies and joint ventures 954 954<BR>
Profit before finance cost and taxation 464 628 110 223 70 086 644 937<BR>
Finance costs* (115 607) (396) (3 902) (119 905)<BR>
Profit before taxation 349 021 109 827 66 184 525 032<BR>
Taxation (115 019) (27 905) (20 310) (163 234)<BR>
Profit for the period 234 002 81 922 45 874 361 798<BR>
<BR>
Attributable to:<BR>
Owners of the parent 228 177 81 922 30 302 340 401<BR>
Non-controlling interest 5 825 15 572 21 397<BR>
234 002 81 922 45 874 361 798<BR>
<BR>
Headline earnings 227 478 81 915 29 868 339 261<BR>
<BR>
* Finance cost in the PSG Wealth division consists mainly of the finance charge on the held-to-maturity policyholder<BR>
financial assets (linked investment business). The finance cost of R47.8 million (31 Aug 2014: R59.3 million; 28 Feb <BR>
2015: R115.6 million) consists of R25.9 million (31 Aug 2014: R42.0 million; 28 Feb 2015: R75.8 million) on the client-<BR>
related linked investment business, R15.5 million (31 Aug 2014: R10.2 million; 28 Feb 2015: R25.8 million) on the loan <BR>
facilities provided to clients on their share portfolios at PSG Securities (secured by the underlying JSE Top 100 equity <BR>
securities held in excess of four times the value of the loan facilities) on which PSG Wealth receives a margin, with <BR>
the remaining portion of the finance charge on the CFD margin and the bank overdrafts.<BR>
<BR>
6.5 Statement of financial position (client vs own)<BR>
<BR>
In order to evaluate the consolidated financial position of the group, the Manco segregates the statement of financial <BR>
position of the group between own balances and client-related balances.<BR>
<BR>
Client-related balances represent the investment contract liabilities and related linked client assets of PSG Life <BR>
Limited, the broker and clearing accounts, and the settlement control accounts of the stockbroking business, the <BR>
collective investment schemes consolidated under IFRS 10 Consolidated Financial Statements and corresponding third-party <BR>
liabilities, the short-term claim control accounts and related bank accounts as well as the contracts for difference assets <BR>
and related liabilities.<BR>
<BR>
Unaudited as at 31 August 2015<BR>
Client-<BR>
Own related<BR>
Total balances balances<BR>
R000 R000 R000<BR>
<BR>
ASSETS<BR>
Equity securities 887 759 6 271 881 488<BR>
Debt securities 1 666 917 96 839 570 078<BR>
Unit-linked investments 15 566 418 431 714 15 134 704<BR>
Investment in investment contracts 443 883 443 883<BR>
Receivables including insurance receivables 2 737 279 243 291 2 493 988<BR>
Derivative financial instruments 13 813 13 813<BR>
Cash and cash equivalents (including money market investments) 1 015 073 887 557 127 516<BR>
Other assets* 1 300 179 1 300 179 <BR>
Total assets 23 631 321 2 965 851 20 665 470<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent 1 689 090 1 689 090 <BR>
Non-controlling interest 143 406 143 406 <BR>
Total equity 1 832 496 1 832 496 <BR>
<BR>
LIABILITIES<BR>
Borrowings 407 517 12 382 395 135<BR>
Investment contracts 17 229 353 17 229 353<BR>
Third-party liabilities arising on consolidation of mutual funds 877 844 877 844<BR>
Derivative financial instruments 16 410 16 410<BR>
Trade and other payables 2 618 743 472 015 2 146 728<BR>
Other liabilities** 648 958 648 958 <BR>
Total liabilities 21 798 825 1 133 355 20 665 470<BR>
<BR>
Total equity and liabilities 23 631 321 2 965 851 20 665 470<BR>
<BR>
Unaudited as at 31 August 2014<BR>
Client-<BR>
Own related<BR>
Total balances balances<BR>
R000 R000 R000<BR>
<BR>
ASSETS<BR>
Equity securities 827 617 3 505 824 112<BR>
Debt securities 1 642 197 106 302 1 535 895<BR>
Unit-linked investments 11 045 876 473 320 10 572 556<BR>
Investment in investment contracts 432 825 432 825<BR>
Receivables including insurance receivables 1 856 752 212 470 1 644 282<BR>
Derivative financial instruments 19 075 19 075<BR>
Cash and cash equivalents (including money market investments) 469 038 447 124 21 914<BR>
Other assets* 1 259 258 1 259 258 <BR>
Total assets 17 552 638 2 501 979 15 050 659<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent 1 336 326 1 336 326 <BR>
Non-controlling interest 95 085 95 085 <BR>
Total equity 1 431 411 1 431 411 <BR>
<BR>
LIABILITIES<BR>
Borrowings 363 050 61 252 301 798<BR>
Investment contracts 12 761 154 12 761 154<BR>
Third-party liabilities arising on consolidation of mutual funds 625 462 625 462<BR>
Derivative financial instruments 33 846 33 846<BR>
Trade and other payables 1 723 302 394 903 1 328 399<BR>
Other liabilities** 614 413 614 413 <BR>
Total liabilities 16 121 227 1 070 568 15 050 659<BR>
<BR>
Total equity and liabilities 17 552 638 2 501 979 15 050 659<BR>
<BR>
<BR>
Audited as at 28 February 2015<BR>
Client-<BR>
Own related<BR>
Total balances balances<BR>
R000 R000 R000<BR>
<BR>
ASSETS<BR>
Equity securities 1 025 518 2 259 1 023 259<BR>
Debt securities 1 605 418 99 614 1 505 804<BR>
Unit-linked investments 12 345 648 378 015 11 967 633<BR>
Investment in investment contracts 338 208 338 208<BR>
Receivables including insurance receivables 2 133 136 228 588 1 904 548<BR>
Derivative financial instruments 23 324 23 324<BR>
Cash and cash equivalents (including money market investments) 972 243 805 908 166 335<BR>
Other assets* 1 276 486 1 276 486 <BR>
Total assets 19 719 981 2 790 870 16 929 111<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent 1 493 159 1 493 159 <BR>
Non-controlling interest 132 491 132 491 <BR>
Total equity 1 625 650 1 625 650 <BR>
<BR>
LIABILITIES<BR>
Borrowings 427 843 14 273 413 570<BR>
Investment contracts 14 222 603 14 222 603<BR>
Third-party liabilities arising on consolidation of mutual funds 699 202 699 202<BR>
Derivative financial instruments 30 749 30 749<BR>
Trade and other payables 2 068 400 505 413 1 562 987<BR>
Other liabilities** 645 534 645 534 <BR>
Total liabilities 18 094 331 1 165 220 16 929 111<BR>
<BR>
Total equity and liabilities 19 719 981 2 790 870 16 929 111<BR>
<BR>
* Other assets consist of property and equipment, investment property, intangible assets, investment in<BR>
associated companies, investment in joint ventures, current and deferred income tax assets, loans and advances,<BR>
reinsurance assets, deferred acquisition costs and non-current assets held for sale.<BR>
** Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities,<BR>
insurance contracts and non-current liabilities held for sale.<BR>
<BR>
6.6 Income statement (client vs own)<BR>
<BR>
In order to evaluate the consolidated income statement of the group, the Manco segregates the income statement by<BR>
eliminating the impact of the linked investment policies issued and the consolidation of the collective investment schemes <BR>
from the core operations in the group.<BR>
<BR>
A subsidiary of the group, PSG Life Limited, is a linked insurance company and issues linked policies to policyholders <BR>
(where the value of policy benefits is directly linked to the fair value of the supporting assets), and as such does not <BR>
expose the group to the market risk of fair value adjustments on the financial asset as this risk is assumed by the <BR>
policyholder.<BR>
<BR>
The group consolidates collective investment schemes in terms of IFRS 10 Consolidated Financial Statements over which <BR>
the group has control. The consolidation of these funds does not impact total earnings, comprehensive income, shareholders' <BR>
funds or the net asset value of the group; however, it requires the group to recognise the income statement impact as <BR>
part of that of the group.<BR>
<BR>
Unaudited Six months ended 31 August 2015<BR>
Linked<BR>
investment<BR>
Core business<BR>
Total business and other<BR>
R000 R000 R000<BR>
<BR>
Commission and other fee income 1 233 783 1 222 542 11 241<BR>
Investment income 301 815 74 589 227 226<BR>
Net fair value gains and losses on financial instruments 464 613 4 515 460 098<BR>
Fair value adjustment to investment contract liabilities (613 236) (613 236)<BR>
Other* 353 445 352 668 777<BR>
Total income 1 740 420 1 654 314 86 106<BR>
<BR>
Insurance claims and loss adjustment expenses (330 388) (329 828) (560)<BR>
Fair value adjustment to third-party liabilities (39 988) (39 988)<BR>
Other** (1 032 601) (1 025 148) (7 453)<BR>
Total expenses (1 402 977) (1 354 976) (48 001)<BR>
<BR>
Total profit from associated companies and joint ventures 1 474 1 474 <BR>
Profit before finance cost and taxation 338 917 300 812 38 105<BR>
Finance costs*** (48 800) (22 922) (25 878)<BR>
Profit before taxation 290 117 277 890 12 227<BR>
Taxation (86 422) (74 195) (12 227)<BR>
Profit for the period 203 695 203 695 <BR>
<BR>
Attributable to:<BR>
Owners of the parent 189 752 189 752 <BR>
Non-controlling interest 13 943 13 943 <BR>
203 695 203 695 <BR>
<BR>
<BR>
Unaudited Six months ended 31 August 2014<BR>
Linked<BR>
investment<BR>
Core business<BR>
Total business and other<BR>
R000 R000 R000<BR>
<BR>
Commission and other fee income 1 056 475 1 042 390 14 085<BR>
Investment income 198 911 57 444 141 467<BR>
Net fair value gains and losses on financial instruments 1 011 149 6 051 1 005 098<BR>
Fair value adjustment to investment contract liabilities (1 024 359) (1 024 359)<BR>
Other* 287 825 287 825 <BR>
Total income 1 530 001 1 393 710 136 291<BR>
<BR>
Insurance claims and loss adjustment expenses (285 165) (285 639) 474<BR>
Fair value adjustment to third-party liabilities (79 331) (79 331)<BR>
Other** (870 686) (870 686) <BR>
Total expenses (1 235 182) (1 156 325) (78 857)<BR>
<BR>
Total profit from associated companies and joint ventures 75 75 <BR>
Profit before finance cost and taxation 294 894 237 460 57 434<BR>
Finance costs*** (62 459) (20 498) (41 961)<BR>
Profit before taxation 232 435 216 962 15 473<BR>
Taxation (75 448) (59 975) (15 473)<BR>
Profit for the period 156 987 156 987 <BR>
<BR>
Attributable to:<BR>
Owners of the parent 145 494 145 494 <BR>
Non-controlling interest 11 493 11 493 <BR>
156 987 156 987 <BR>
<BR>
<BR>
Audited Year ended 28 February 2015<BR>
Linked<BR>
vestment<BR>
Core business<BR>
Total business and other<BR>
R000 R000 R000<BR>
<BR>
Commission and other fee income 2 138 855 2 114 106 24 749<BR>
Investment income 499 554 158 201 341 353<BR>
Net fair value gains and losses on financial instruments 1 209 661 12 817 1 196 844<BR>
Fair value adjustment to investment contract liabilities (1 406 791) (1 406 791)<BR>
Other* 573 321 572 946 375<BR>
Total income 3 014 600 2 858 070 156 530<BR>
<BR>
Insurance claims and loss adjustment expenses (561 548) (561 293) (255)<BR>
Fair value adjustment to third-party liabilities (41 525) (41 525)<BR>
Other** (1 767 544) (1 755 855) (11 689)<BR>
Total expenses (2 370 617) (2 317 148) (53 469)<BR>
<BR>
Total profit from associated companies and joint ventures 954 954 <BR>
Profit before finance cost and taxation 644 937 541 876 103 061<BR>
Finance costs*** (119 905) (44 118) (75 787)<BR>
Profit before taxation 525 032 497 758 27 274<BR>
Taxation (163 234) (135 960) (27 274)<BR>
Profit for the period 361 798 361 798 <BR>
<BR>
Attributable to:<BR>
Owners of the parent 340 401 340 401 <BR>
Non-controlling interest 21 397 21 397 <BR>
361 798 61 798 <BR>
<BR>
<BR>
* Other consists of net insurance premium revenue and other operating income.<BR>
** Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid,<BR>
depreciation and amortisation, employee benefit expenses, marketing, administration and other expenses.<BR>
*** Finance costs on core business increased from 2014 largely due to the increase in the loan facilities provided to<BR>
clients in their share portfolios at PSG Securities (secured by the underlying JSE Top 100 equity securities held <BR>
in excess of four times the value of the loan facilities). The increase was countered by the decrease in finance <BR>
cost paid to external debt (excluding the finance lease) as these were repaid in full during the 2015 financial <BR>
year.<BR>
<BR>
<BR>
Investment contracts are represented by the following financial assets:<BR>
<BR>
Unaudited Unaudited Audited<BR>
as at as at as at<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Equity securities 816 727 824 112 955 147<BR>
Debt securities 730 721 940 242 800 198<BR>
Unit-linked investments 15 215 950 10 549 293 12 102 096<BR>
Investment in investment contracts 443 884 432 825 338 208<BR>
Cash and cash equivalents 22 071 14 682 26 954<BR>
17 229 353 12 761 154 14 222 603<BR>
<BR>
7. Receivables including insurance receivables and trade and other payables<BR>
<BR>
Included under receivables are broker and clearing accounts at our stockbroking business of which R2 455.5 million<BR>
(31 Aug 2014: R1 629.1 million; 28 Feb 2015: R1 871.9 million) represents amounts owing by the JSE for trades conducted <BR>
during the last few days before the end of the period. These balances fluctuate on a daily basis depending on the <BR>
activity in the market.<BR>
<BR>
The control account for the settlement of these transactions is included under the trade and other payables, with the <BR>
settlement to the clients taking place within three days after the transaction date.<BR>
<BR>
8. Transactions with non-controlling interest<BR>
<BR>
For the year ended 28 February 2015<BR>
<BR>
i) Acquisition of an additional interest in PSG Namibia Proprietary Limited <BR>
With effect from 1 March 2014, PSG Konsult Limited (through its subsidiary PSG Distribution Holdings Proprietary <BR>
Limited) acquired an additional 3% interest in PSG Namibia Proprietary Limited, a company incorporated in Namibia, <BR>
for a consideration of R1.5 million. The 3% stake was bought from a minority shareholder and the consideration was <BR>
paid in full on 28 February 2014. The group now holds 54% of the issued share capital of PSG Namibia Proprietary <BR>
Limited.<BR>
<BR>
9. Non-current assets (or disposal groups) held for sale<BR>
<BR>
For the six months ended 31 August 2015<BR>
<BR>
PSG Konsult Limited sold 100% of its shareholding in PSG Academy Proprietary Limited, the group's private higher<BR>
education institute, to Moonstone Information Refinery Proprietary Limited and its health insurance administration <BR>
business (through its subsidiary Nhluvuko Risk Administration Proprietary Limited) to African Unity Health Proprietary <BR>
Limited for R1.3 million and R15.0 million respectively.<BR>
<BR>
The effective date for both of these transactions was 1 March 2015, subject to suspensive conditions, and was treated<BR>
as non-current assets and liabilities held for sale on 28 February 2015.<BR>
<BR>
10. Other acquisitions<BR>
<BR>
For the year ended 28 February 2015<BR>
<BR>
i) Standardising of revenue sharing model<BR>
Effective 1 March 2014, the group (through its subsidiary PSG Wealth Financial Planning Proprietary Limited) concluded <BR>
an asset-for-share transaction (utilising Section 42 of the Income Tax Act) with a large number of its advisers. The <BR>
purpose of this transaction was to standardise the revenue sharing arrangements between the advisers and PSG Konsult. <BR>
This provided the opportunity for the advisers to become shareholders in the business and be part of our loyal <BR>
shareholder base of individuals.<BR>
<BR>
The consideration was paid with the issue of PSG Konsult shares (35.8 million shares at R4.50 per share) and the <BR>
remaining R12.5 million paid in cash on the effective date. The transaction did not qualify for accounting in terms <BR>
of IFRS 3R Business Combinations as the assets acquired (the right to an increased share in the income stream of <BR>
the adviser) did not constitute a business acquired.<BR>
<BR>
This transaction contributed R10.1 million to our headline earnings during the 2015 financial year.<BR>
<BR>
For the six months ended 31 August 2015<BR>
<BR>
i) Standardising of revenue sharing model<BR>
During the period under review, the group, through its subsidiaries PSG Wealth Financial Planning Proprietary Limited <BR>
and PSG Corporate Financial Planning Proprietary Limited, concluded further revenue-sharing arrangements (on the same <BR>
basis as in the 2015 financial year) with a number of its advisers for a cash consideration of R17.6 million.<BR>
<BR>
These transactions contributed R0.5 million to our headline earnings during the six months ended 31 August 2015.<BR>
<BR>
11. Financial risk management<BR>
<BR>
The group's activities expose it to a variety of financial risks: market risk (including price risk, foreign currency <BR>
risk, cash flow risk and fair value interest rate risks), credit risk and liquidity risk. Insurance activities expose the <BR>
group to insurance risk (including pricing risk, reserving risk, underwriting risk and reinsurance risk). The group is <BR>
also exposed to operational risk and legal risk.<BR>
<BR>
The capital risk management philosophy is to maximise the return on shareholders' capital within an appropriate risk<BR>
framework.<BR>
<BR>
The condensed consolidated interim financial statements do not include all risk management information and disclosure <BR>
required in the annual financial statements and should be read in conjunction with the group's annual financial<BR>
statements as at 28 February 2015.<BR>
<BR>
There have been no changes in the group's financial risk management objectives and policies since the previous financial <BR>
year-end.<BR>
<BR>
Market risk (price risk, foreign currency risk and interest rate risks)<BR>
Market risk is the risk of an adverse financial impact due to changes in fair values or future cash flows of financial<BR>
instruments from fluctuations in interest rates, equity prices and foreign currency exchange rates.<BR>
<BR>
A portion of the policyholders' and shareholders' investments are valued at fair value and are therefore susceptible to<BR>
market fluctuations.<BR>
<BR>
With regard to the subsidiary, PSG Life Limited, this company only invests assets into portfolios that are exposed to<BR>
market price risk that matches linked policies to policyholders (where the value of policy benefits is directly linked <BR>
to the fair value of the supporting assets), and as such does not expose the business to the market risk of fair value <BR>
adjustments on the financial asset as this risk is assumed by the policyholder. Fees charged on this business are <BR>
determined as a percentage of the fair value of the underlying assets held in the linked funds, which are subject to <BR>
equity and interest rate risk. As a result, the management fees fluctuate, but cannot be less than nil.<BR>
<BR>
Included in the equity securities of R887.8 million (31 Aug 2014: R827.6 million; 28 Feb 2015: R1 025.5 million) are<BR>
quoted equity securities of R886.9 million (31 Aug 2014: R826.8 million; 28 Feb 2015: R1 024.7 million), of which <BR>
R816.7 million (31 Aug 2014: R824.1 million; 28 Feb 2015: R955.1 million) relates to investments in linked investment <BR>
contracts. The price risk of these instruments is carried by the policyholders of the linked investment contracts.<BR>
<BR>
Debt securities linked to policyholder investments amounted to R730.7 million (31 Aug 2014: R940.2 million; 28 Feb<BR>
2015: R800.2 million) and do not expose the group to interest rate risk. Cash and cash equivalents linked to policyholder<BR>
investments amounted to R22.1 million (31 Aug 2014: R14.7 million; 28 Feb 2015: R27.0 million) and do not expose the <BR>
group to interest rate risk.<BR>
<BR>
Fair value estimation<BR>
The information below analyses financial instruments, carried at fair value, by level of hierarchy as required by IFRS 13.<BR>
The different levels have been defined as follows:<BR>
<BR>
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).<BR>
<BR>
- Input other than quoted prices included within level 1 that is observable for the asset or liability, either directly <BR>
(that is, as prices) or indirectly (that is, derived from prices) (level 2).<BR>
<BR>
- Input for the asset or liability that is not based on observable market data (that is, unobservable input) (level 3).<BR>
<BR>
There have been no significant transfers between level 1, 2 or 3 during the period under review.<BR>
<BR>
The table below analyses financial assets and liabilities, which are carried at fair value, by valuation method. There <BR>
were no significant changes in the valuation techniques and assumptions applied since 28 February 2015.<BR>
<BR>
Valuation techniques and main assumptions used in determining the fair value of financial assets and liabilities<BR>
classified within level 2 can be summarised as follows:<BR>
<BR>
Instrument Valuation techniques Main assumptions<BR>
<BR>
Derivative financial instruments Exit price on recognised over-the- Not applicable<BR>
counter (OTC) platforms<BR>
<BR>
Debt securities Valuation model that uses the market Bond interest rate curves<BR>
input (yield of benchmark bonds) Issuer credit ratings<BR>
Liquidity spreads<BR>
<BR>
Unit-linked investments Quoted put (exit) price provided by Not applicable prices <BR>
the fund manager are publicly available<BR>
<BR>
Investment in investment contracts Prices are obtained from the insurer of Not applicable prices <BR>
the particular investment contract provided by registered <BR>
long-term insurers<BR>
<BR>
Policyholder investment contract Current unit price of underlying Not applicable<BR>
liabilities unit linked unitised financial asset that is linked to<BR>
the liability, multiplied by the number<BR>
of units held<BR>
<BR>
Third-party financial liabilities arising Quoted put (exit) price provided by the Not applicable prices<BR>
on the consolidation of mutual funds fund manager are publicly available<BR>
<BR>
<BR>
The fair value of financial assets and liabilities measured at fair value in the statement of financial position can be <BR>
summarised as follows:<BR>
<BR>
Level 1 Level 2 Level 3 Total<BR>
Unaudited R000 R000 R000 R000<BR>
<BR>
Financial assets <BR>
At 31 August 2015<BR>
Financial assets at fair value through profit or loss<BR>
Derivative financial assets 13 813 13 813<BR>
Equity securities 886 914 886 914<BR>
Debt securities 466 140 530 178 90 447 1 086 765<BR>
Unit-linked investments 14 620 667 945 751 15 566 418<BR>
Investment in investment contracts 384 021 384 021<BR>
Available-for-sale<BR>
Equity securities 845 845<BR>
1 353 054 15 548 679 1 037 043 17 938 776<BR>
<BR>
Financial liabilities<BR>
At 31 August 2015<BR>
Financial liabilities at fair value through profit or loss<BR>
Derivative financial liabilities 16 410 16 410<BR>
Investment contracts 15 563 141 1 026 198 16 589 339<BR>
Trade and other payables 14 988 14 988<BR>
Third-party liabilities arising on consolidation of<BR>
mutual funds 877 844 877 844<BR>
16 457 395 1 041 186 17 498 581<BR>
<BR>
<BR>
Level 1 Level 2 Level 3 Total<BR>
Unaudited R000 R000 R000 R000<BR>
<BR>
Financial assets <BR>
At 31 August 2014<BR>
Financial assets at fair value through profit or loss<BR>
Derivative financial assets 19 075 19 075<BR>
Equity securities 826 772 826 772<BR>
Debt securities 27 178 826 546 853 724<BR>
Unit-linked investments 9 701 389 1 344 487 11 045 876<BR>
Investment in investment contracts 227 278 227 278<BR>
Available-for-sale<BR>
Equity securities 845 845<BR>
853 950 10 774 288 1 345 332 12 973 570<BR>
<BR>
Financial liabilities<BR>
At 31 August 2014<BR>
Financial liabilities at fair value through profit or loss<BR>
Derivative financial liabilities 33 846 33 846<BR>
Investment contracts 10 413 034 1 344 487 11 757 521<BR>
Trade and other payables 13 659 13 659<BR>
Third-party liabilities arising on consolidation of<BR>
mutual funds 625 462 625 462<BR>
11 072 342 1 358 146 12 430 488<BR>
<BR>
<BR>
Level 1 Level 2 Level 3 Total<BR>
Audited R000 R000 R000 R000<BR>
<BR>
Financial assets <BR>
At 28 February 2015<BR>
Financial assets at fair value through profit or loss<BR>
Derivative financial assets 23 324 23 324<BR>
Equity securities 1 024 673 1 024 673<BR>
Debt securities 476 539 373 071 849 610<BR>
Unit-linked investments 11 228 992 1 116 656 12 345 648<BR>
Investment in investment contracts 226 305 226 305<BR>
Available-for-sale<BR>
Equity securities 845 845<BR>
1 501 212 11 851 692 1 117 501 14 470 405<BR>
<BR>
Financial liabilities<BR>
At 28 February 2015<BR>
Financial liabilities at fair value through profit or loss<BR>
Derivative financial liabilities 30 749 30 749<BR>
Investment contracts 12 282 705 1 106 656 13 389 361<BR>
Trade and other payables 13 453 13 453<BR>
Third-party liabilities arising on consolidation of<BR>
mutual funds 699 202 699 202<BR>
13 012 656 1 120 109 14 132 765<BR>
<BR>
The following tables presents the changes in level 3 financial instruments during the reporting periods under review:<BR>
<BR>
Unaudited Unaudited Audited<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
ASSETS<BR>
Opening carrying value 1 117 501 2 488 657 2 488 657<BR>
Additions 1 846 823 3 106 266 3 294 440<BR>
Disposals (2 033 834) (4 386 990) (4 762 552)<BR>
Gains recognised in profit and loss 106 553 137 399 96 956<BR>
1 037 043 1 345 332 1 117 501<BR>
LIABILITIES<BR>
Opening carrying value 1 120 109 2 498 451 2 498 451<BR>
Additions 1 852 842 3 113 635 3 293 979<BR>
Disposals (2 038 341) (4 391 450) (4 769 442)<BR>
Losses recognised in profit and loss 106 553 137 399 97 121<BR>
Interest and other 23 111 <BR>
1 041 186 1 358 146 1 120 109<BR>
<BR>
Level 3 significant fair value model assumptions and sensitivities<BR>
<BR>
Financial assets and liabilities<BR>
Unit-linked investments and debt securities represent the largest portion of the level 3 financial assets and relate to <BR>
units and debentures held in hedge funds and are priced monthly. The prices are obtained from the asset managers of the <BR>
particular hedge funds. These are held to match investment contract liabilities, and as such any change in measurement <BR>
would result in a similar adjustment to investment contract liabilities. The group's overall profit or loss is therefore <BR>
not materially sensitive to the input of the models applied to derive fair value.<BR>
<BR>
Trade and other payables classified within level 3 have significant unobservable input, as the valuation technique used <BR>
to determine the fair values takes into account the probability (at each reporting period) that the contracted party will <BR>
achieve the profit guarantee as stipulated in the business agreement.<BR>
<BR>
The table below summarises the carrying amounts and fair values of financial instruments not presented on the statement <BR>
of financial position at fair value, for which their carrying values do not approximate their fair values:<BR>
<BR>
Unaudited Unaudited Audited<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
Debt securities held-to-maturity<BR>
Carrying value 580 152 788 473 721 341<BR>
Fair value 587 107 800 585 736 883<BR>
<BR>
Investment in investment contracts<BR>
Carrying value 59 862 205 547 111 904<BR>
Fair value 61 480 214 216 112 736<BR>
<BR>
Total<BR>
Carrying value 640 014 994 020 833 245<BR>
Fair value 648 587 1 014 801 849 619<BR>
<BR>
The fair value of the financial assets in the table above is categorised in terms of level 2.<BR>
<BR>
12. Related-party transactions<BR>
<BR>
Related-party transactions similar to those disclosed in the group's annual financial statements for the year ended <BR>
28 February 2015 took place during the period under review.<BR>
<BR>
<BR>
13. Capital commitments and contingencies<BR>
<BR>
Unaudited Unaudited Audited<BR>
31 Aug 15 31 Aug 14 28 Feb 15<BR>
R000 R000 R000<BR>
<BR>
Operating lease commitments 124 937 74 736 82 843<BR>
Capital commitments 16 971<BR>
<BR>
<BR>
14. Events after the reporting date<BR>
<BR>
No event material to the understanding of these results has occurred between the end of the reporting period and the date <BR>
of approval of the condensed consolidated interim financial statements, other than the acquisition of a 70% shareholding <BR>
in DMH Associates, which is a leading independent wealth advisory firm located in Mauritius. Refer to the commentary for <BR>
more detail on this transaction.<BR>
<BR>
<BR>
DIRECTORATE<BR>
<BR>
Non-executive directors<BR>
W Theron (Chairman), JF Mouton, PJ Mouton, J de V du Toit^, PE Burton*, ZL Combi*<BR>
(^ Lead independent; * Independent)<BR>
<BR>
Executive directors<BR>
FJ Gouws (Chief executive officer), MIF Smith (Chief financial officer)<BR>
<BR>
COMPANY INFORMATION<BR>
<BR>
Company secretary<BR>
PSG Management Services Proprietary Limited<BR>
<BR>
PSG Konsult head office and registered office<BR>
4th Floor, The Edge, 3 Howick Close, Tyger Waterfront, Tyger Valley, Bellville, 7530<BR>
PO Box 3335, Tyger Valley, Bellville, 7536<BR>
<BR>
Listing<BR>
Johannesburg Stock Exchange (JSE)<BR>
Namibian Stock Exchange (NSX)<BR>
<BR>
Transfer secretary<BR>
Computershare Investor Services Proprietary Limited, 70 Marshall Street, Johannesburg, 2001<BR>
PO Box 61051, Marshalltown, 2107<BR>
<BR>
Sponsors<BR>
JSE sponsor: PSG Capital Proprietary Limited<BR>
NSX sponsor: PSG Wealth Management (Namibia) Proprietary Limited<BR>
<BR>
Auditor<BR>
PricewaterhouseCoopers Inc.<BR>
Cape Town<BR>
<BR>
psg.co.za<BR>
Date: 07/10/2015 12:48:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). <BR>
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