PSG KONSULT LIMITED - Reviewed Preliminary Results For The Year Ended 28 February 2018
19 April, 2018 - Posted at - 11:45:00
KST 201804190023A<BR>
Reviewed Preliminary Results For The Year Ended 28 February 2018<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>
REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2018<BR>
<BR>
SALIENT FEATURES<BR>
<BR>
- Recurring headline earnings per share up 16% to 43.0 cents<BR>
- Gross written premium* up 15% to R3 296m<BR>
- Number of advisers up 5% to 784<BR>
- Total assets under management up 17% to R205bn<BR>
- Dividend per share up 18% to 18.0 cents<BR>
- Total assets under administration up 8% to R402bn**<BR>
<BR>
* Includes gross written premiums on policies administered by the Insure distribution advisers, which are placed with third-party insurers.<BR>
The group earns commission and administration fees on this. It excludes the short-term administration platform gross written premium.<BR>
** Includes assets administered by PSG Asset Management of R101bn.<BR>
<BR>
COMMENTARY<BR>
<BR>
Overview<BR>
<BR>
PSG Konsult delivered a solid 16% growth in recurring headline earnings per share and a return on equity of 24%.<BR>
<BR>
This was during a year of tough operating conditions, in which the country continued to be plagued by low economic growth, low consumer and <BR>
business confidence and volatile market conditions. Against this backdrop, the upward trajectory of our key operating and financial metrics <BR>
demonstrates the resilience of our business model. Total assets under management increased by 17% to R205.4 billion, comprising assets <BR>
managed by PSG Wealth of R162.7 billion and PSG Asset Management of R42.7 billion, while PSG Insure's gross written premium increased by 15% <BR>
to R3.3 billion. Performance fees earned constituted 8.6% of headline earnings in comparison to 8.8% in the previous financial year.<BR>
<BR>
PSG Konsult's key financial performance indicators for the financial year ended 28 February 2018 are shown below:<BR>
<BR>
28 Feb 18 Change 28 Feb 17<BR>
R000 % R000<BR>
<BR>
Core income 4 200 308 11 3 789 371<BR>
<BR>
Headline and recurring headline earnings 566 396 16 486 439<BR>
Non-headline items 80 (81) 423<BR>
Earnings attributable to ordinary shareholders 566 476 16 486 862<BR>
<BR>
Divisional recurring headline earnings<BR>
PSG Wealth 339 129 18 287 345<BR>
PSG Asset Management 155 825 20 130 245<BR>
PSG Insure 71 442 4 68 849<BR>
566 396 16 486 439<BR>
<BR>
Weighted average number of shares in issue (net of treasury shares) (millions) 1 317.6 1 1 307.1<BR>
<BR>
Earnings per share (basic) (cents)<BR>
- Headline and recurring headline 43.0 16 37.2<BR>
- Attributable 43.0 16 37.3<BR>
- Headline and recurring headline - excluding intangible amortisation cost 46.4 15 40.4<BR>
<BR>
Dividend per share (cents) 18.0 18 15.3<BR>
<BR>
Return on equity (ROE) (%) 24.3 25.3<BR>
<BR>
PSG Wealth<BR>
<BR>
PSG Wealth achieved recurring headline earnings growth of 18%. We are satisfied with this result in the context of the prevailing investment <BR>
market conditions. Management and other fees increased by 11% as the business continues to focus on recurring income and reducing its <BR>
reliance on cyclical transactional brokerage fees, which increased by a notable 7% during the year under review. We continue to focus our <BR>
efforts on enhancing our information technology (IT) system infrastructure and digital platforms, and all related costs continue to be <BR>
fully expensed.Clients' assets managed by our Wealth advisers increased by 14% to R162.7 billion during the year under review, which included<BR>
R11.8 billion of positive net inflows.<BR>
<BR>
We remain confident about the fundamentals and prospects for this division and believe that our advisers and clients will gain, over the <BR>
long term, from the client-centric digital projects we have embarked upon. We are particularly pleased with the division's formidable <BR>
financial adviser network which grew by 5%, to 539 advisers, through both organic growth and selected acquisitions. The experience and <BR>
stature of the advisers joining the firm continue to add credibility to our growing brand equity. We also continue to increase client <BR>
engagement and gain market share.<BR>
<BR>
PSG Asset Management<BR>
<BR>
PSG Asset Management's recurring headline earnings grew by 20%. The commendable results achieved by this division is testimony to the team's <BR>
excellent long-term track record of delivering top-quartile risk-adjusted investment returns for our clients. The team's ability to <BR>
consistently generate alpha for clients across all asset classes over the appropriate investment horizon remains compelling. Client assets <BR>
under management increased by 29% to R42.7 billion during the year under review. This included R7.9 billion of positive net client inflows, <BR>
predominately into our higher-margin funds, with the bulk coming from our retail-orientated target market. As such, we are pleased with <BR>
the strong increase in high-quality annuity earnings from our ever increasing retail client base. PSG Asset Management continues to gain <BR>
industry accolades, such as being voted as a top two South African fund house by both Plexcrown and Morningstar.<BR>
<BR>
PSG Insure<BR>
<BR>
PSG Insure achieved recurring headline earnings growth of 4%. The group is satisfied with this achievement, against the backdrop of a <BR>
difficult industry environment. This division, which is in an early growth phase, continues to make inroads into the highly competitive <BR>
short-term insurance market and is starting to reap economies of scale benefits. It achieved gross written premium growth of 15% as we <BR>
continue to focus our efforts on growing the commercial lines side of the business, which requires specialist adviser expertise. The <BR>
comprehensive reinsurance programme we have in place reduced the adverse impact of catastrophe events, such as the Knysna fires that occurred <BR>
during the year under review. This, when combined with our quality underwriting practices, allowed us to achieve a net underwriting margin <BR>
of 8.3%, which is commendable despite being lower than the exceptional 9.7% we achieved in the prior year. The insurance advisers,<BR>
who increased by 7% to 245, continue to gain market share on the commercial lines side. PSG Insure was voted overall national winner at the <BR>
Old Mutual Insure 2017 Broker Awards ceremony, and also won the Santam National Broker of the Year for commercial lines award.<BR>
<BR>
Strategy<BR>
<BR>
PSG Wealth's overall strategy offers an innovative and holistic end-to-end client proposition. We continue to invest in people (including <BR>
the recruitment of experienced specialists) and in technology with the aim of enhancing user functionality to improve our client experience <BR>
and product offering. Advisers play a key role in client feedback on the enhancement of our platform and product capabilities. Management <BR>
is proud of the experience and stature of advisers that have joined the business through organic growth and selective adviser acquisitions. <BR>
PSG Wealth continues to invest in enhancing the strength and depth of our in-house investment research team and technology capabilities. <BR>
This fully-fledged team has both fund and security investment research analysis capabilities. This year also saw an increased focus on <BR>
digital marketing and initiatives to determine client needs in this regard. Our Wealth business is therefore well placed to meet all the <BR>
investment needs of our clients. We nevertheless relentlessly strive to improve both our client and service offering.<BR>
<BR>
PSG Asset Management's strategy consists of three parts, namely investment excellence, operational efficiency, and effective sales and<BR>
marketing initiatives. Generating the best long-term, risk-adjusted returns for investors is the division's primary focus. To this end, the<BR>
division will continue to prioritise the investment team's performance while managing operational risks and processes. Increasing brand <BR>
awareness, particularly in the retail investor market, continues to be a key focus area for the marketing team, allowing the division to <BR>
benefit from a growing investor base.<BR>
<BR>
PSG Insure provides simple and cost-effective short-term insurance solutions to clients, protecting them from unforeseen events. Building <BR>
critical expertise across underwriting, administration and adviser teams underpins the focus on providing value-added products that meet <BR>
and exceed clients' expectations. The division continues to invest in its claims and administration departments. This is to build scale <BR>
and unlock operational efficiencies while freeing up valuable time for our top-calibre advisers to focus on client relationships, especially <BR>
on the commercial lines side of the business. The entrepreneurial best-of-breed partnership model that is in place with our advisers allows<BR>
our advisers to operate their own businesses independently under the PSG brand and benefit from the central services provided. Key central <BR>
services include compliance, finance, human resources (HR), IT, marketing and risk management.<BR>
<BR>
Careful attention is paid to the group's cost structure, as each division grows, in particular to the cost-to-income ratio. Building a <BR>
cost-efficient and scalable business is a key priority for the board. The management team is committed to continuously investing in <BR>
technology as a key enabler to achieve efficiency, automation and, ultimately, our growth objectives.<BR>
<BR>
Corporate activity<BR>
<BR>
In order to augment our organic growth strategy, we concluded a number of smaller earnings-accretive acquisition transactions. These <BR>
transactions were funded from existing cash resources and are aligned with our aim of identifying opportunities that will either expand <BR>
our adviser footprint or enhance our overall client service offering. These transactions will be seamlessly integrated into PSG Konsult's<BR>
existing business operations and will contribute positively to the long-term organic growth of the firm.<BR>
<BR>
PSG Wealth acquired the clients of 28E Capital, effective 1 April 2018. 28E Capital is a leading boutique brokerage that offers retail <BR>
clients a specialist online platform. We continued to expand our financial adviser network both organically and through selective adviser <BR>
business acquisitions, such as SP Wealth in Rosebank, to enable us to service and grow our client base. To simplify and standardise our <BR>
adviser network, we also concluded a few remaining revenue-sharing standardisation arrangement transactions post-year-end.<BR>
<BR>
PSG Insure concluded two acquisition agreements with Absa Insurance and Financial Advisers (AIFA), as announced on SENS on 26 September 2017 <BR>
and 12 February 2018. Good progress is being made with the fulfilment of the conditions precedent in respect of the commercial and industrial <BR>
short-term insurance brokerage business, with only some regulatory approvals remaining outstanding. We expect this to be completed in the <BR>
immediate future, with an effective date circa mid-current year. The implementation of the acquisition of the remainder of the personal lines <BR>
short-term insurance face-to-face advisory insurance brokerage business from AIFA is still in the early stages, and will follow a similar <BR>
process to the first transaction. We expect this to be completed during the latter part of the 2019 financial year. PSG Insure also concluded<BR>
an association agreement with firstEquity, a leading insurance adviser and service group, effective 1 November 2017. This business was merged <BR>
with the PSG Insure Randburg short-term branch, creating a business with significant scale. These three transactions will add a further <BR>
152 advisers and over 77 000 new clients to our business.<BR>
<BR>
Subsequent to year-end, PSG Insure concluded an agreement to acquire the remaining 40% shareholding in the Western Group's Namibian entities,<BR>
currently held by Santam.<BR>
<BR>
Capital management<BR>
<BR>
PSG Konsult is strongly capitalised and already complies with the more stringent capital requirements of Solvency Assessment and Management (SAM).<BR>
Our strong financial position was also affirmed by the long and short-term investment grade national scale ratings assigned to PSG Konsult by <BR>
rating agency Global Credit Rating Co. (GCR) of A-(ZA) and A1-(ZA), respectively, with a stable outlook.<BR>
<BR>
PSG Konsult established a Domestic Medium Term Note (DMTN) programme to provide the business with a flexible, cost-effective funding structure <BR>
that will internally fund our Scriptfin loan book. We concluded our maiden listing on the JSE's Interest Rate Market of a three-year <BR>
R100 million senior unsecured floating rate note on 12 July 2017, at competitive rates. Other than the DMTN programme, the group has no <BR>
material interest-bearing debt. In the longer term, however, building a credible track record with the debt market will naturally give the <BR>
group overall funding flexibility.<BR>
<BR>
We will maintain solid capital buffers at all times. At the same time, our strong cash flow and low debt position allow us several levers to<BR>
optimise risk-adjusted returns for our shareholders. In pursuit of this objective, and in order to avoid share issuance dilution as a result<BR>
of the exercising of the share options, we repurchased 15 712 951 PSG Konsult shares at an average effective price of R8.22, during the year<BR>
under review. The PSG Konsult share incentive trust acquired 8 427 846 shares to meet obligations to participants of the share scheme, <BR>
while the remaining 7 285 105 shares were acquired as treasury shares.<BR>
<BR>
Shareholders<BR>
<BR>
The company's demonstrable track record on executing and delivering on our strategic goals has enabled us to further increase our <BR>
institutional shareholder base and improve the liquidity of the PSG Konsult shares.<BR>
<BR>
People<BR>
<BR>
PSG Konsult had 211 adviser offices and 2 488 employees as at 28 February 2018, which included 784 financial planners, portfolio managers,<BR>
stockbrokers and asset managers. In addition, we also have 418 professional associates (accountants and attorneys). During the year <BR>
under review, 40 new advisers were appointed through a combination of organic growth and selective adviser book acquisitions. We strongly <BR>
believe in building our own future talent and are confident that the investment in our graduate programme and the other key appointments <BR>
we have made will allow us to build on our success and take the business to the next level.<BR>
<BR>
Changes to the board of directors<BR>
<BR>
The board is pleased with the appointment of Zodwa Matsau as an independent non-executive director and a member of PSG Konsult's audit <BR>
and risk committees, effective 20 July 2017. Zodwa brings a wealth of knowledge to the board after 18 years of experience at the <BR>
South African Reserve Bank.<BR>
<BR>
Regulatory landscape and risk management<BR>
<BR>
PSG Konsult, which has 20 regulatory licences (14 in South Africa and 6 in foreign jurisdictions), continues to foster good relationships <BR>
with our regulators.<BR>
<BR>
Marketing<BR>
<BR>
Marketing initiatives are important to the group's goal of becoming a leader in the financial services industry.<BR>
<BR>
During the year under review, the specialist marketing team focused its efforts on increasing its public relations, digital exposure and <BR>
adviser-hosted client events, and maintaining quality client communication during difficult market conditions. This is all with the <BR>
objective of building the PSG brand within our chosen target markets. Responsible spend is critical and tightly controlled in line with <BR>
the growth of the firm.<BR>
<BR>
Information technology<BR>
<BR>
The group continues to invest in new and innovative technology as we seek to incorporate further business process automation, reduce <BR>
operational risk and provide real-time reporting for enhanced management decision-making. The group is confident that the IT strategy, which<BR>
includes robust disaster recovery and business continuity plans, will create a solid foundation for future growth.<BR>
<BR>
Looking forward<BR>
<BR>
The recent political party leadership changes that led to a strengthening of the rand have improved the mood of South Africans, resulting in <BR>
clients being more optimistic and confident about their future financial well-being. <BR>
<BR>
The group's aim remains to service existing clients in an integrated manner that is seamless and market-leading, as well as to gain <BR>
new clients. Several initiatives are in place to ensure this happens. The group's focus on products, platforms and client service excellence,<BR>
through the quality of its advice process, works. As such, the prospects for continued growth are compelling.<BR>
<BR>
The cash-generative nature of the business gives PSG Konsult several options of funding business growth initiatives which are, ultimately,<BR>
aimed at enhancing our overall client experience.<BR>
<BR>
The group will continue to prioritise organic growth in the domestic market, where we have relatively low but rapidly expanding market <BR>
shares. The group's capital position adequately takes into account our current growth plans.<BR>
<BR>
Events after reporting date<BR>
<BR>
No event material to the understanding of these results has occurred between 28 February 2018 and the date of approval of the condensed <BR>
consolidated financial statements other than those disclosed in note 13 of the condensed consolidated financial statements.<BR>
<BR>
Dividend<BR>
<BR>
Given our increased confidence in business prospects and an improved economic outlook, the board decided to approve and declare a final <BR>
gross dividend of 12.3 cents per share for the 2018 financial year (2017: 10.2 cents per share), representing a 21% increase from the<BR>
previous financial year, from income reserves. This brings the full year increase in the total dividend to 18%, which for the first time <BR>
in several years is more than our per share earnings growth for the full year. The group's dividend payout ratio nevertheless remains<BR>
at the low end of the dividend payout policy range announced at the time of listing.<BR>
<BR>
The dividend is subject to a South African dividend withholding tax (DWT) rate of 20% unless the shareholder is exempt from paying <BR>
dividends tax or is entitled to a reduced rate in terms of the applicable double-tax agreement. Including DWT results in a net dividend of <BR>
9.84 cents per share. The number of issued ordinary shares is 1 342 242 208 at the date of this declaration. PSG Konsult's income tax<BR>
reference number is 9550/644/07/5.<BR>
<BR>
The following are the salient dates in relation to the dividend:<BR>
<BR>
Last day to trade (cum dividend) Tuesday, 8 May 2018<BR>
Trading ex dividend commences Wednesday, 9 May 2018<BR>
Record date Friday, 11 May 2018<BR>
Date of payment Monday, 14 May 2018<BR>
<BR>
Share certificates may not be dematerialised or rematerialised between Wednesday, 9 May 2018, and Friday, 11 May 2018, both days included.<BR>
<BR>
The board would like to extend its gratitude to stakeholders, including shareholders, advisers, clients, business partners, management and <BR>
employees, for their efforts and contributions during the past year.<BR>
<BR>
On behalf of the board<BR>
<BR>
Willem Theron Francois Gouws <BR>
Chairman Chief executive officer<BR>
<BR>
Tyger Valley<BR>
19 April 2018<BR>
<BR>
<BR>
FINANCIAL RESULTS<BR>
<BR>
Condensed consolidated statement of financial position<BR>
as at 28 February 2018<BR>
<BR>
Reviewed Audited<BR>
as at as at<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
ASSETS<BR>
Intangible assets 1 027 805 987 042<BR>
Property and equipment 74 286 53 469<BR>
Investment in joint ventures 1 094 1 178<BR>
Deferred income tax assets 102 091 96 651<BR>
Equity securities (note 6.5, note 7) 2 321 482 2 256 923<BR>
Debt securities (note 6.5, note 7) 2 582 815 2 835 244<BR>
Unit-linked investments (note 6.5, note 7) 42 196 090 37 653 998<BR>
Investment in investment contracts (note 6.5, note 7) 14 798 15 521<BR>
Loans and advances 134 202 134 308<BR>
Derivative financial instruments 8 854 14 593<BR>
Reinsurance assets 80 544 71 966<BR>
Deferred acquisition costs 4 820 4 073<BR>
Receivables including insurance receivables 1 904 775 1 529 894<BR>
Current income tax assets 39 089 22 608<BR>
Cash and cash equivalents (including money market investments) (note 6.5, note 7) 1 920 626 1 385 542<BR>
Total assets 52 413 371 47 063 010<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent<BR>
Stated capital 1 908 804 1 749 505<BR>
Treasury shares (192 247) (59 206)<BR>
Other reserves (386 722) (399 700)<BR>
Retained earnings 1 175 226 862 689<BR>
2 505 061 2 153 288<BR>
Non-controlling interest 235 654 197 212<BR>
Total equity 2 740 715 2 350 500<BR>
<BR>
LIABILITIES<BR>
Insurance contracts 542 709 544 235<BR>
Deferred income tax liabilities 18 894 24 089<BR>
Borrowings 103 695 37 791<BR>
Derivative financial instruments 16 857 17 379<BR>
Investment contracts (note 6.5, note 7) 24 278 949 22 560 598<BR>
Third-party liabilities arising on consolidation of mutual funds (note 6.5) 22 585 256 19 690 982<BR>
Deferred reinsurance acquisition revenue 3 681 3 731<BR>
Trade and other payables 2 116 527 1 821 500<BR>
Current income tax liabilities 6 088 12 205<BR>
Total liabilities 49 672 656 44 712 510<BR>
<BR>
Total equity and liabilities 52 413 371 47 063 010<BR>
<BR>
Net asset value per share (cents) 190.1 164.0<BR>
<BR>
<BR>
Condensed consolidated income statement<BR>
for the year ended 28 February 2018<BR>
<BR>
Restated<BR>
Reviewed Audited<BR>
Year ended Year ended<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Gross written premium 1 181 333 1 010 058<BR>
Less: Reinsurance written premium (296 740) (247 116)<BR>
Net written premium 884 593 762 942<BR>
Change in unearned premium<BR>
- Gross 28 477 54 462<BR>
- Reinsurers' share (4 033) (630)<BR>
Net insurance premium revenue 909 037 816 774<BR>
Commission and other fee income 2 880 635 2 606 092<BR>
Investment income 1 626 852 1 343 786<BR>
Net fair value gains and losses on financial instruments 2 053 793 972 866<BR>
Fair value adjustment to investment contract liabilities (1 654 563) (932 672)<BR>
Fair value adjustment to third-party liabilities (1 722 789) (1 065 313)<BR>
Other operating income 110 675 101 539<BR>
Total income 4 203 640 3 843 072<BR>
<BR>
Insurance claims and loss adjustment expenses (816 429) (701 803)<BR>
Insurance claims and loss adjustment expenses recovered from reinsurers 187 368 120 620<BR>
Net insurance benefits and claims (629 061) (581 183)<BR>
Commission paid (1 199 447) (1 111 506)<BR>
Depreciation and amortisation (1) (69 725) (78 995)<BR>
Employee benefit expenses (825 668) (729 157)<BR>
Marketing, administration and other expenses (571 842) (536 936)<BR>
Total expenses (3 295 743) (3 037 777)<BR>
<BR>
Share of profits of associated companies - 32<BR>
Loss on impairment of associated companies - (35)<BR>
Share of (losses)/profits of joint ventures (84) 2 268<BR>
Total (loss)/profit from associated companies and joint ventures (84) 2 265<BR>
<BR>
Profit before finance costs and taxation 907 813 807 560<BR>
Finance costs (38 941) (72 274)<BR>
Profit before taxation 868 872 735 286<BR>
Taxation (256 221) (203 416)<BR>
Profit for the year 612 651 531 870<BR>
<BR>
Attributable to:<BR>
Owners of the parent 566 476 486 862<BR>
Non-controlling interest 46 175 45 008<BR>
612 651 531 870<BR>
<BR>
Earnings per share (cents)<BR>
Attributable (basic) 43.0 37.3<BR>
Attributable (diluted) 42.6 36.8<BR>
Headline and recurring headline (basic) 43.0 37.2<BR>
Headline and recurring headline (diluted) 42.6 36.8<BR>
<BR>
(1) Includes amortisation cost on intangible assets of R45.6 million (2017: R55.5 million).<BR>
<BR>
<BR>
Condensed consolidated statement of comprehensive income<BR>
for the year ended 28 February 2018<BR>
<BR>
Reviewed Audited<BR>
Year ended Year ended<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Profit for the year 612 651 531 870<BR>
<BR>
Other comprehensive income for the year, net of taxation (1 851) (14 900)<BR>
To be reclassified to profit and loss:<BR>
Currency translation adjustments (1 851) (14 900)<BR>
<BR>
Total comprehensive income for the year 610 800 516 970<BR>
<BR>
Attributable to:<BR>
Owners of the parent 564 625 471 962<BR>
Non-controlling interest 46 175 45 008<BR>
610 800 516 970<BR>
<BR>
<BR>
Earnings and headline earnings per share<BR>
for the year ended 28 February 2018<BR>
<BR>
Reviewed Audited<BR>
Year ended Year ended<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Headline earnings 566 396 486 439<BR>
Recurring 566 396 486 439<BR>
Non-recurring - -<BR>
<BR>
Non-headline items (net of non-controlling interest and related tax effect)<BR>
(Loss)/profit on disposal of intangible assets (including goodwill) (148) 83<BR>
Other 228 340<BR>
Profit attributable to ordinary shareholders 566 476 486 862<BR>
<BR>
Earnings per share (cents)<BR>
Attributable (basic) 43.0 37.3<BR>
Attributable (diluted) 42.6 36.8<BR>
Headline and recurring headline (basic) 43.0 37.2<BR>
Headline and recurring headline (diluted) 42.6 36.8<BR>
<BR>
Number of shares (millions)<BR>
In issue (net of treasury shares) 1 317.5 1 313.1<BR>
Weighted average (net of treasury shares) 1 317.6 1 307.1<BR>
<BR>
<BR>
Condensed consolidated statement of changes in equity<BR>
for the year ended 28 February 2018<BR>
<BR>
Attributable to equity holders of the group<BR>
Non-<BR>
Stated Treasury Other Retained controlling <BR>
capital shares reserves earnings interest Total<BR>
R000 R000 R000 R000 R000 R000<BR>
<BR>
Balance at 1 March 2016 (Audited) 1 446 604 (13 462) (394 755) 650 059 157 212 1 845 658<BR>
<BR>
Comprehensive income<BR>
Profit for the year - - - 486 862 45 008 531 870<BR>
Other comprehensive income for the year - - (14 900) - - (14 900)<BR>
Total comprehensive income for the year - - (14 900) 486 862 45 088 516 970<BR>
Transactions with owners 302 901 (45 744) 9 955 (274 232) (5 008) (12 128)<BR>
Issue of ordinary shares 302 901 - - - - 302 901<BR>
Share-based payment costs - - 28 224 - - 28 224<BR>
Capital contribution by non-controlling interest - - - - 750 750<BR>
Net movement in treasury shares - (48 078) - - - (48 078)<BR>
Current tax on equity-settled share-based payments - - 25 675 - - 25 675<BR>
Deferred tax on equity-settled share-based payments - - (17 015) - - (17 015)<BR>
Loss on issue of shares in terms of share scheme - - (118 469) - - (118 469)<BR>
Release of share-based payment reserve to retained earnings on <BR>
vested share options - - 80 794 (80 794) - -<BR>
Release of loss from treasury shares to retained earnings - 2 334 - (2 334) - -<BR>
Release of revaluation reserve on disposal of property - - (702) 1 346 (467) 177<BR>
Release of common control reserve to retained earnings - - 11 448 (11 448) - -<BR>
Dividends paid - - - (181 002) (5 291) (186 293)<BR>
<BR>
Balance at 28 February 2017 (Audited) 1 749 505 (59 206) (399 700) 862 689 197 212 2 350 500<BR>
<BR>
Comprehensive income<BR>
Profit for the year - - - 566 476 46 175 612 651<BR>
Other comprehensive income for the year - - (1 851) - - (1 851)<BR>
Total comprehensive income for the year - - (1 851) 566 476 46 175 610 800<BR>
Transactions with owners 159 299 (133 041) 14 829 (253 939) (7 733) (220 585)<BR>
Issue of ordinary shares 159 299 - - - - 159 299<BR>
Share-based payment costs - - 36 079 - - 36 079<BR>
Capital contribution by non-controlling interest - - - - 432 432<BR>
Net movement in treasury shares - (126 788) - - - (126 788)<BR>
Current tax on equity-settled share-based payments - - 16 404 - - 16 404<BR>
Deferred tax on equity-settled share-based payments - - (5 089) - - (5 089)<BR>
Loss on issue of shares in terms of share scheme - - (83 673) - - (83 673)<BR>
Release of share-based payment reserve to retained earnings on <BR>
vested share options - - 51 108 (51 108) - -<BR>
Release of profits from treasury shares to retained earnings - (6 253) - 6 253 - -<BR>
Dividends paid - - - (209 084) (8 165) (217 249)<BR>
<BR>
Balance at 28 February 2018 (Reviewed) 1 908 804 (192 247) (386 722) 1 175 226 235 654 2 740 715<BR>
<BR>
<BR>
Condensed consolidated statement of cash flows<BR>
for the year ended 28 February 2018<BR>
<BR>
Restated<BR>
Reviewed Audited<BR>
Year ended Year ended<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Cash flows from operating activities<BR>
Cash utilised in operations (487 401) (727 577)<BR>
Interest income 1 203 376 961 504<BR>
Dividend income 423 476 381 849<BR>
Finance costs (23 105) (28 521)<BR>
Taxation paid (276 860) (364 747)<BR>
Operating cash flows before policyholder cash movement 839 486 222 508<BR>
Policyholder cash movement (13 238) (100 652)<BR>
Net cash flow from operating activities 826 248 121 856<BR>
<BR>
Cash flows from investing activities<BR>
Acquisition of subsidiaries (including collective investment schemes) - 30 916<BR>
Acquisition of intangible assets (68 497) (28 069)<BR>
Purchases of property and equipment (45 321) (23 428)<BR>
Proceeds from disposal of non-current assets held for sale - 38 948<BR>
Proceeds from disposal of investment property - 7 445<BR>
Other 860 6 763<BR>
Net cash flow from investing activities (112 958) 32 575<BR>
<BR>
Cash flows from financing activities<BR>
Dividends paid (217 249) (186 293)<BR>
Capital contribution by non-controlling interest (ordinary shares) 432 750<BR>
Advance of borrowings 100 000 -<BR>
Repayment of borrowings (3 612) (4 822)<BR>
Shares issued 70 339 81 959<BR>
Holding company's treasury shares sold by subsidiary 172 170 203 744<BR>
Purchase of holding company's treasury shares (298 958) (251 822)<BR>
Net cash flow from financing activities (176 878) (156 484)<BR>
<BR>
Net increase/(decrease) in cash and cash equivalents 536 412 (2 053)<BR>
Cash and cash equivalents at beginning of the year 1 385 542 1 395 952<BR>
Exchange losses on cash and cash equivalents (1 328) (8 357)<BR>
Cash and cash equivalents at end of the year (1) 1 920 626 1 385 542<BR>
<BR>
(1) Includes the following:<BR>
Clients' cash linked to investment contracts 974 14 212<BR>
Other client-related balances 353 759 89 211<BR>
354 733 103 423<BR>
<BR>
Notes to the statement of cash flows:<BR>
The movement in cash utilised in operations can vary significantly as a result of daily fluctuations in cash linked to investment contracts,<BR>
cash held by the stockbroking business and cash utilised for the loan facility obtained by the group on the loan facilities provided to <BR>
clients on their share portfolios at PSG Securities Limited. PSG Life Limited, the group's linked insurance company, issues linked policies<BR>
to policyholders (where the value of policy benefits is directly linked to the fair value of the supporting assets). When these policies <BR>
mature, the company raises a debtor for the money receivable from the third-party investment provider, and raises a creditor for the amount<BR>
owing to the client. A timing difference occurs at month-end when the money was received from the third-party investment provider, but only<BR>
paid out by the company after month-end, resulting in significant fluctuations in the working capital of the company. Similar working <BR>
capital fluctuations occur at PSG Securities Limited, the group's stockbroking business, mainly due to the timing of the close of the JSE <BR>
in terms of client settlements. Refer to note 6.7 for the impact of the client-related balances on the cash flows from operating activities.<BR>
<BR>
<BR>
Notes to the condensed consolildated financial statements <BR>
for the year ended 28 February 2018<BR>
<BR>
1. Reporting entity<BR>
<BR>
PSG Konsult Limited is a public company domiciled in the Republic of South Africa. The condensed consolidated financial statements as at<BR>
and for the year ended 28 February 2018, comprise the company and its subsidiaries (together referred to as the 'group') and the group's<BR>
interest in joint ventures.<BR>
<BR>
2. Basis of preparation<BR>
<BR>
The condensed consolidated preliminary financial statements are prepared in accordance with the requirements of the JSE Limited (JSE) and<BR>
the requirements of the Companies Act, No. 71 of 2008, as amended, applicable to summary financial statements. The JSE requires summary <BR>
financial statements to be prepared in accordance with the framework concepts and the measurement and recognition requirements of <BR>
International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee <BR>
and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information <BR>
required by IAS 34 - Interim financial reporting. A few enhancements were made to the summary financial statements; refer to note 14 for <BR>
further details.<BR>
<BR>
3. Preparation<BR>
<BR>
The condensed consolidated preliminary financial statements are the responsibility of the board of directors of the company and were prepared <BR>
under the supervision of the chief financial officer, Mike Smith, CA(SA). These condensed consolidated preliminary financial statements <BR>
for the year ended 28 February 2018 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion. <BR>
A copy of the auditor's review report is available for inspection at PSG Konsult's registered office together with the financial statements<BR>
identified in the auditor's report. The auditor's report does not necessarily report on all of the information contained in this announcement. <BR>
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement they should obtain<BR>
a copy of the auditor's report together with the accompanying financial information from PSG Konsult's registered office.<BR>
<BR>
4. Accounting policies<BR>
<BR>
The accounting policies applied in the preparation of these condensed consolidated financial statements are in terms of IFRS and are <BR>
consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements as at and <BR>
for the year ended 28 February 2017.<BR>
<BR>
The following new accounting standards and amendments to IFRS, as issued by the International Accounting Standards Board (IASB), which were <BR>
relevant to the group's operations, were effective for the first time from 1 March 2017 or early adopted:<BR>
- Amendment to IAS 7 - Statement of cash flows - Disclosure initiative<BR>
- Amendments to IAS 12 - Income taxes - Recognition of deferred tax assets for unrealised losses<BR>
- Amendment to IFRS 2 - Share-based payment<BR>
<BR>
These revisions have not resulted in material changes to the group's reported results or disclosures in these condensed consolidated <BR>
financial statements.<BR>
<BR>
5. Use of estimates and judgements<BR>
<BR>
In preparing these condensed consolidated financial statements, the significant judgements made by management in applying the group's <BR>
accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated annual financial<BR>
statements for the year ended 28 February 2017.<BR>
<BR>
6. Segment information<BR>
<BR>
The composition of the reportable segments represents the internal reporting structure and the monthly reporting to the chief operating<BR>
decision-maker (CODM). The CODM, for the purpose of IFRS 8 - Operating segments, has been identified as the chief executive officer, <BR>
supported by the group management committee (Manco). The group's internal reporting structure is reviewed in order to assess performance <BR>
and allocate resources. The group is organised into three reportable segments, namely:<BR>
- PSG Wealth - deriving income mainly from total managed assets and total platform assets<BR>
- PSG Asset Management - deriving income mainly from total assets under management and administration<BR>
- PSG Insure - deriving income mainly from written premiums and underwriting<BR>
<BR>
Corporate support costs refer to a variety of services and functions that are performed centrally for the individual business units within<BR>
each business segment, as well as housing the group's executive office. Besides the traditional accounting and secretarial services <BR>
provided to group divisions and subsidiaries, the corporate office also provides legal, risk, IT, marketing, HR, payroll, internal audit <BR>
and corporate finance services. The strategic elements of IT, in terms of both services and infrastructure, are also centralised in the<BR>
corporate office. 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, Securities, LISP and Life Platform, Multi Management and Employee Benefits<BR>
- is designed to meet the needs of individuals, families and businesses. Through its highly skilled wealth managers, PSG Wealth offers<BR>
a wide range of personalised services (including portfolio management, stockbroking, local and offshore investments, estate planning,<BR>
financial planning, local and offshore fiduciary services, multi-managed solutions and retirement products). The Wealth offices are fully <BR>
equipped to deliver a high-quality personal service to customers.<BR>
<BR>
PSG Asset Management is an established investment management company with a proven investment track record. It offers investors a simple<BR>
yet comprehensive range of local and global investment products. The division's products include both local and international unit trust <BR>
funds.<BR>
<BR>
PSG Insure, through its registered insurance brokers and PSG's short-term insurance company, Western National Insurance Company Limited,<BR>
offers a full range of tailor-made short-term insurance products and services from personal (home, car and household insurance) to<BR>
commercial (business and agri-insurance) requirements. To harness the insurance solutions available to customers effectively, the division's<BR>
expert insurance specialists, through a strict due diligence process, will simplify the selection process of the most appropriate solution <BR>
for its clients. In addition to the intermediary services which PSG Insure offers, PSG Short-Term Administration supports clients<BR>
through the claim process, administrative issues and general policy maintenance, including an annual reappraisal of their portfolio.<BR>
<BR>
The CODM considers the performance of reportable segments based on total core income as a measure of growth and headline earnings <BR>
as a measure of profitability. In order to evaluate the core results of the group, the CODM segregates the income statement by eliminating<BR>
the impact of the linked investment policies issued and the consolidation of the collective investment schemes from the core operations <BR>
in the group.<BR>
<BR>
A subsidiary of the group, PSG Life Limited, is a linked insurance company that issues linked policies to policyholders (where the value of <BR>
policy benefits is directly linked to the fair value of the supporting assets), and as such does not expose the group to the market risk <BR>
of fair value adjustments on the financial assets as this risk is assumed by the policyholder.<BR>
<BR>
The group consolidates collective investment schemes, in terms of IFRS 10 - Consolidated financial statements, over which the group<BR>
has control. The consolidation of these funds does not impact total earnings, comprehensive income, shareholders' funds or the net asset <BR>
value of the group; however, it requires the group to recognise the income statement impact as part of that of the group.<BR>
<BR>
6.2 Headline earnings per reportable segment<BR>
<BR>
Asset <BR>
Wealth Management Insure Total <BR>
Headline earnings R000 R000 R000 R000 <BR>
<BR>
For the year ended 28 February 2018 (Reviewed)<BR>
Headline earnings (1) 339 129 155 825 71 442 566 396<BR>
- recurring 339 129 155 825 71 442 566 396<BR>
- non-recurring - - - -<BR>
<BR>
For the year ended 28 February 2017 (Audited)<BR>
Headline earnings (1) 287 345 130 245 68 849 486 439<BR>
- recurring 287 345 130 245 68 849 486 439<BR>
- non-recurring - - - -<BR>
<BR>
(1) Headline earnings, calculated in terms of the requirements stipulated in Circular 2/2015 as issued by SAICA, comprise recurring and<BR>
non-recurring headline earnings. Recurring headline earnings are calculated by excluding non-recurring headline earnings to increase<BR>
comparability of the performance of the group from one year to another. Non-recurring headline earnings include one-off gains and <BR>
losses and the resulting tax charge on these items.<BR>
<BR>
6.3 Income per reportable segment<BR>
<BR>
Asset <BR>
Wealth Management Insure Total<BR>
For the year ended 28 February 2018 (Reviewed) R000 R000 R000 R000<BR>
<BR>
Total IFRS reported income 2 133 530 527 188 1 542 922 4 203 640<BR>
Linked investment business and other income (3 332) - - (3 332)<BR>
Total core income 2 130 198 527 188 1 542 922 4 200 308<BR>
<BR>
Total segment income 2 931 355 825 512 1 593 439 5 350 306<BR>
Intersegment income (801 157) (298 324) (50 517) (1 149 998)<BR>
<BR>
Asset<BR>
Wealth(1) Management Insure Total(1)<BR>
For the year ended 28 February 2017 (Audited) (Restated) R000 R000 R000 R000<BR>
<BR>
Total IFRS reported income 2 014 817 445 598 1 382 657 3 843 072<BR>
Linked investment business and other income (53 701) - - (53 701)<BR>
Total core income 1 961 116 445 598 1 382 657 3 789 371<BR>
<BR>
Total segment income 2 669 900 721 631 1 429 318 4 820 849<BR>
Intersegment income (708 784) (276 033) (46 661) (1 031 478)<BR>
<BR>
(1) Comparative figures have been restated to include the fair value adjustment to third-party liabilities, which arises as a result of the <BR>
consolidation of the collective investments schemes, as part of both the total IFRS reported income and the linked investment business <BR>
and other income. The reclassification has no impact on total core income. Refer to note 14 for the detail of the reclassification.<BR>
<BR>
Other information provided to the CODM is measured in a manner consistent with that of the financial statements.<BR>
<BR>
6.4 Divisional income statement<BR>
<BR>
The profit or loss information follows a similar format to the consolidated income statement. The divisional income statement reflects the <BR>
core business operations of the group.<BR>
<BR>
Asset<BR>
Wealth Management Insure Total<BR>
For the year ended 28 February 2018 (Reviewed) R000 R000 R000 R000<BR>
<BR>
Total income 2 130 198 527 188 1 542 922 4 200 308<BR>
Total expenses (1 618 621) (314 333) (1 391 731) (3 324 685)<BR>
511 577 212 855 151 191 875 623<BR>
Total loss from joint ventures - - (84) (84)<BR>
Profit before finance costs and taxation 511 577 212 855 151 107 875 539<BR>
Finance costs (1) (22 504) (540) (61) (23 105)<BR>
Profit before taxation 489 073 212 315 151 046 852 434<BR>
Taxation (142 496) (56 460) (40 827) (239 783)<BR>
Profit for the year 346 577 155 855 110 219 612 651<BR>
<BR>
Attributable to:<BR>
Owners of the parent 339 031 155 855 71 590 566 476<BR>
Non-controlling interest 7 546 - 38 629 46 175<BR>
346 577 155 855 110 219 612 651<BR>
<BR>
Headline and recurring headline earnings 339 129 155 825 71 442 566 396<BR>
<BR>
Asset <BR>
Wealth Management Insure Total<BR>
For the year ended 28 February 2017 (Audited) R000 R000 R000 R000<BR>
<BR>
Total income 1 961 116 445 598 1 382 657 3 789 371<BR>
Total expenses (1 525 929) (274 537) (1 243 664) (3 044 130)<BR>
435 187 171 061 138 993 745 241<BR>
Total profit from associated companies and joint ventures - - 2 265 2 265<BR>
Profit before finance costs and taxation 435 187 171 061 141 258 747 506<BR>
Finance costs (1) (26 856) (336) (1 329) (28 521)<BR>
Profit before taxation 408 331 170 725 139 929 718 985<BR>
Taxation (114 800) (40 487) (31 828) (187 115)<BR>
Profit for the year 293 531 130 238 108 101 531 870<BR>
<BR>
Attributable to:<BR>
Owners of the parent 286 244 130 238 70 380 486 862<BR>
Non-controlling interest 7 287 - 37 721 45 008<BR>
293 531 130 238 108 101 531 870<BR>
<BR>
Headline and recurring headline earnings 287 345 130 245 68 849 486 439<BR>
<BR>
(1) Finance costs in the PSG Wealth division include the finance charge on the funding utilised to provide loan facilities to clients <BR>
on their share portfolios at PSG Securities (secured by the underlying JSE Top 100 equity securities held in excess of four times<BR>
the value of the loan facilities) on which PSG Wealth receives a margin. The finance costs of R22.5 million (2017: R26.9 million) <BR>
consist of R8.0 million (2017: R15.3 million) on the loan funding, with the remaining portion of the finance charge on the CFD margin <BR>
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 CODM segregates the statement of financial position of the group <BR>
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 Limited, the broker and <BR>
clearing accounts, and the settlement control accounts of the stockbroking business, the collective investment schemes consolidated under <BR>
IFRS 10 - Consolidated financial statements and corresponding third-party liabilities, the short-term claim control accounts and related<BR>
bank accounts, as well as the contracts for difference assets and related liabilities.<BR>
<BR>
Total Client-<BR>
IFRS Own related<BR>
reported balances balances<BR>
As at 28 February 2018 (Reviewed) R000 R000 R000<BR>
<BR>
ASSETS<BR>
Equity securities 2 321 482 17 279 2 304 203<BR>
Debt securities 2 582 815 50 974 2 531 841<BR>
Unit-linked investments 42 196 090 629 630 41 566 460<BR>
Investment in investment contracts 14 798 - 14 798<BR>
Receivables including insurance receivables 1 904 775 310 491 1 594 284<BR>
Derivative financial instruments 8 854 - 8 854<BR>
Cash and cash equivalents (including money market investments) 1 920 626 1 565 893 354 733<BR>
Other assets (1) 1 463 931 1 463 931 -<BR>
Total assets 52 413 371 4 038 198 48 375 173<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent 2 505 061 2 505 061 -<BR>
Non-controlling interest 235 654 235 654 -<BR>
Total equity 2 740 715 2 740 715 -<BR>
<BR>
LIABILITIES<BR>
Borrowings (2) 103 695 2 467 101 228<BR>
Investment contracts 24 278 949 - 24 278 949<BR>
Third-party liabilities arising on consolidation of mutual funds 22 585 256 - 22 585 256<BR>
Derivative financial instruments 16 857 - 16 857<BR>
Trade and other payables 2 116 527 723 644 1 392 883<BR>
Other liabilities (3) 571 372 571 372 -<BR>
Total liabilities 49 672 656 1 297 483 48 375 173<BR>
<BR>
Total equity and liabilities 52 413 371 4 038 198 48 375 173<BR>
<BR>
(1) Other assets consist of property and equipment, intangible assets, investment in joint ventures, current and deferred income tax assets,<BR>
loans and advances, reinsurance assets and deferred acquisition costs.<BR>
(2) The DMTN programme funding raised in order to internally fund the clients' Scriptfin loans has been reflected under client-related<BR>
balances.<BR>
(3) Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities and insurance <BR>
contracts.<BR>
<BR>
Total Client-<BR>
IFRS Own related<BR>
reported balances balances<BR>
As at 28 February 2017 (Audited) R000 R000 R000<BR>
<BR>
ASSETS<BR>
Equity securities 2 256 923 10 952 2 245 971<BR>
Debt securities 2 835 244 86 581 2 748 663<BR>
Unit-linked investments 37 653 998 561 171 37 092 827<BR>
Investment in investment contracts 15 521 - 15 521<BR>
Receivables including insurance receivables 1 529 894 251 861 1 278 033<BR>
Derivative financial instruments 14 593 - 14 593<BR>
Cash and cash equivalents (including money market investments) 1 385 542 1 282 119 103 423<BR>
Other assets (1) 1 371 295 1 371 295 -<BR>
Total assets 47 063 010 3 563 979 43 499 031<BR>
<BR>
EQUITY<BR>
Equity attributable to owners of the parent 2 153 288 2 153 288 -<BR>
Non-controlling interest 197 212 197 212 -<BR>
Total equity 2 350 500 2 350 500 -<BR>
<BR>
LIABILITIES<BR>
Borrowings 37 791 5 989 31 802<BR>
Investment contracts 22 560 598 - 22 560 598<BR>
Third-party liabilities arising on consolidation of mutual funds 19 690 982 - 19 690 982<BR>
Derivative financial instruments 17 379 - 17 379<BR>
Trade and other payables 1 821 500 623 230 1 198 270<BR>
Other liabilities (2) 584 260 584 260 -<BR>
Total liabilities 44 712 510 1 213 479 43 499 031<BR>
<BR>
Total equity and liabilities 47 063 010 3 563 979 43 499 031<BR>
<BR>
(1) Other assets consist of property and equipment, intangible assets, investment in joint ventures, current and deferred income tax assets, <BR>
loans and advances, reinsurance assets and deferred acquisition costs.<BR>
(2) Other liabilities consist of deferred reinsurance acquisition revenue, current and deferred income tax liabilities and insurance <BR>
contracts.<BR>
<BR>
6.6 Income statement (client vs own)<BR>
<BR>
In order to evaluate the consolidated income statement of the group, the CODM segregates the income statement by eliminating the impact of<BR>
the linked investment policies issued and the consolidation of the collective investment schemes from the core operations in the group.<BR>
<BR>
Linked<BR>
Total investment<BR>
IFRS Core business<BR>
reported business and other<BR>
For the year ended 28 February 2018 (Reviewed) R000 R000 R000<BR>
<BR>
Commission and other fee income (3) 2 880 635 3 064 790 (184 155)<BR>
Investment income 1 626 852 191 200 1 435 652<BR>
Net fair value gains and losses on financial instruments 2 053 793 16 972 2 036 821<BR>
Fair value adjustment to investment contract liabilities (1 654 563) - (1 654 563)<BR>
Fair value adjustment to third-party liabilities (1 722 789) - (1 722 789)<BR>
Other (1) 1 019 712 927 346 92 366<BR>
Total income 4 203 640 4 200 308 3 332<BR>
<BR>
Insurance claims and loss adjustment expenses (816 429) (816 429) -<BR>
Other (2),(3) (2 479 314) (2 508 256) 28 942<BR>
Total expenses (3 295 743) (3 324 685) 28 942<BR>
<BR>
Total loss from joint ventures (84) (84) -<BR>
Profit before finance costs and taxation 907 813 875 539 32 274<BR>
Finance costs (38 941) (23 105) (15 836)<BR>
Profit before taxation 868 872 852 434 16 438<BR>
Taxation (256 221) (239 783) (16 438)<BR>
Profit for the year 612 651 612 651 -<BR>
<BR>
Attributable to:<BR>
Owners of the parent 566 476 566 476 -<BR>
Non-controlling interest 46 175 46 175 -<BR>
612 651 612 651 -<BR>
<BR>
(1) Other consists of net insurance premium revenue and other operating income.<BR>
(2) Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid, depreciation and <BR>
amortisation, employee benefit expenses, marketing, administration and other expenses.<BR>
(3) The linked investment business and other income statement includes the impact of the fees eliminated between the collective investment <BR>
schemes (consolidated under IFRS 10 - Consolidated financial statements) and the collective investment scheme management company, <BR>
PSG Collective Investments (RF) Limited.<BR>
<BR>
Linked<BR>
Total investment<BR>
IFRS Core business<BR>
reported business and other<BR>
For the year ended 28 February 2017 (Audited) (Restated) R000 R000 R000<BR>
<BR>
Commission and other fee income (3),(5) 2 606 092 2 759 560 (153 468)<BR>
Investment income (5) 1 343 786 164 069 1 179 717<BR>
Net fair value gains and losses on financial instruments 972 866 16 359 956 507<BR>
Fair value adjustment to investment contract liabilities (932 672) - (932 672)<BR>
Fair value adjustment to third-party liabilities (4) (1 065 313) - (1 065 313)<BR>
Other (1),(3) 918 313 849 383 68 930<BR>
Total income 3 843 072 3 789 371 53 701<BR>
<BR>
Insurance claims and loss adjustment expenses (701 803) (700 589) (1 214)<BR>
Other (2),(3) (2 335 974) (2 343 541) 7 567<BR>
Total expenses (3 037 777) (3 044 130) 6 353<BR>
<BR>
Total profit from associated companies and joint ventures 2 265 2 265 -<BR>
Profit before finance costs and taxation 807 560 747 506 60 054<BR>
Finance costs (72 274) (28 521) (43 753)<BR>
Profit before taxation 735 286 718 985 16 301<BR>
Taxation (203 416) (187 115) (16 301)<BR>
Profit for the year 531 870 531 870 -<BR>
<BR>
Attributable to:<BR>
Owners of the parent 486 862 486 862 -<BR>
Non-controlling interest 45 008 45 008 -<BR>
531 870 531 870 -<BR>
<BR>
(1) Other consists of net insurance premium revenue and other operating income.<BR>
(2) Other consists of insurance claims and loss adjustment expenses recovered from reinsurers, commission paid, depreciation and <BR>
amortisation, employee benefit expenses, marketing, administration and other expenses.<BR>
(3) The linked investment business and other income statement includes the impact of the fees eliminated between the collective investment <BR>
schemes (consolidated under IFRS 10 - Consolidated financial statements) and the collective investment scheme management company, <BR>
PSG Collective Investments (RF) Limited.<BR>
(4) Comparative figures have been restated to include the fair value adjustment to third-party liabilities, which arises as a result of the<BR>
consolidation of the collective investments schemes, as part of both the total IFRS reported income and the linked investment business<BR>
and other income. The reclassification has no impact on the core income statement. Refer to note 14 for the detail of the <BR>
reclassification.<BR>
(5) Fees received by PSG Securities Limited from the JSE, which were previously disclosed under investment income, have now been shown as <BR>
commission and other fee income on the core income statement in order to more correctly reflect the nature of these fees. Refer to <BR>
note 14 for the detail of the restatement.<BR>
<BR>
6.7 Statement of cash flows (client vs own)<BR>
<BR>
In order to assist the CODM to evaluate the consolidated statement of cash flows of the group, the statement of cash flows is segregated <BR>
between cash flows relating to own balances and client-related balances.<BR>
<BR>
Total Client-<BR>
IFRS Own related<BR>
reported balances balances<BR>
For the year ended 28 February 2018 (Reviewed) R000 R000 R000<BR>
<BR>
Cash flows from operating activities 826 248 674 938 151 310<BR>
Cash (utilised in)/generated by operations (487 401) 754 527 (1 241 928)<BR>
Interest income 1 203 376 188 355 1 015 021<BR>
Dividend income 423 476 2 846 420 630<BR>
Finance costs (23 105) (23 105) -<BR>
Taxation paid (276 860) (247 685) (29 175)<BR>
Policyholder cash movement (13 238) - (13 238)<BR>
<BR>
Cash flows from investing activities (112 958) (112 958) -<BR>
<BR>
Cash flows from financing activities (1) (176 878) (276 878) 100 000<BR>
<BR>
Net increase in cash and cash equivalents 536 412 285 102 251 310<BR>
Cash and cash equivalents at beginning of the year 1 385 542 1 282 119 103 423<BR>
Exchange losses on cash and cash equivalents (1 328) (1 328) -<BR>
Cash and cash equivalents at end of the year 1 920 626 1 565 893 354 733<BR>
<BR>
(1) The DMTN programme funding raised in order to internally fund the clients' Scriptfin loans has been reflected under client-related <BR>
balances.<BR>
<BR>
Total Client-<BR>
IFRS Own related<BR>
reported balances balances<BR>
For the year ended 28 February 2017 (Audited) (Restated) R000 R000 R000<BR>
<BR>
Cash flows from operating activities 121 856 331 652 (209 796)<BR>
Cash (utilised in)/generated by operations (3) (727 577) 511 487 (1 239 064)<BR>
Interest income (3) 961 504 156 404 805 100<BR>
Dividend income 381 849 7 316 374 533<BR>
Finance costs (28 521) (28 521) -<BR>
Taxation paid (1) (364 747) (315 034) (49 713)<BR>
Policyholder cash movement (100 652) - (100 652)<BR>
<BR>
Cash flows from investing activities 32 575 190 32 385<BR>
Acquisition of subsidiaries (including collective investment schemes) 30 916 (1 469) 32 385<BR>
Other (2) 1 659 1 659 -<BR>
<BR>
Cash flows from financing activities (156 484) (156 484) -<BR>
<BR>
Net (decrease)/increase in cash and cash equivalents (2 053) 175 358 (177 411)<BR>
Cash and cash equivalents at beginning of the year 1 395 952 1 115 118 280 834<BR>
Exchange losses on cash and cash equivalents (8 357) (8 357) -<BR>
Cash and cash equivalents at end of the year 1 385 542 1 282 119 103 423<BR>
<BR>
(1) The taxation paid relating to own balances includes R114.3 million which was paid to settle the PSG Life tax matter in March 2016.<BR>
(2) Other consists of cash flows relating to the acquisition of intangible assets, purchases of property and equipment, proceeds from <BR>
disposal of non-current assets held for sale, proceeds from disposal of investment property, proceeds from disposal of intangible assets<BR>
and other.<BR>
(3) The fees received by PSG Securities Limited from the JSE, which were previously dislosed under investment income, have now been shown <BR>
as commission and other fee income, which impacts the cash (utilised in)/ generated by operations. This related to own balances,<BR>
however, had no impact on the total cash flows from operating activities. Refer to note 14 for the detail of the restatement.<BR>
<BR>
7. Investment contracts<BR>
<BR>
Investment contracts are represented by the following financial assets:<BR>
<BR>
Reviewed Audited<BR>
as at as at<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Equity securities 2 192 586 2 154 854<BR>
Debt securities 483 551 443 311<BR>
Unit-linked investments 21 587 040 19 932 700<BR>
Investments in investment contracts 14 798 15 521<BR>
Cash and cash equivalents 974 14 212<BR>
24 278 949 22 560 598<BR>
<BR>
8. 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 R1 372.6 million (2017: R1 230.5 million)<BR>
represents amounts owing by the JSE for trades conducted during the last few days before the end of the financial year. These balances<BR>
fluctuate on a daily basis depending on the activity in the market.<BR>
<BR>
The control account for the settlement of these transactions is included under trade and other payables, with the settlement to the clients<BR>
taking place within three days after the transaction date.<BR>
<BR>
9. Notes to the statement of cash flows<BR>
<BR>
9.1 Acquisition of subsidiaries (including collective investment schemes)<BR>
<BR>
For the year ended 28 February 2017<BR>
<BR>
The group obtained control of the PSG Wealth Income Fund of Funds and the PSG Wealth Global Creator Feeder Fund during the 2017 financial year. <BR>
These funds were consolidated in accordance with IFRS 10 - Consolidated financial statements and are collective investment schemes managed by <BR>
entities within the group.<BR>
<BR>
PSG Wealth PSG Wealth<BR>
Income Global <BR>
Fund Creator<BR>
Fund consolidated of Funds Feeder Fund<BR>
<BR>
% interest in fund on effective date 30 30<BR>
Date of acquisition 31 August 28 February <BR>
2016 2017<BR>
<BR>
2017 2017<BR>
Details of the net assets acquired are as follows: R000 R000<BR>
<BR>
Unit-linked investments 1 969 562 3 657 943<BR>
Receivables including insurance receivables 34 1 848<BR>
Cash and cash equivalents (including money market investments) 11 076 21 309<BR>
Third-party liabilities arising on consolidation of mutual funds (1 392 596) (2 598 124)<BR>
Trade and other payables (699) (1 762)<BR>
Net asset value 587 377 1 081 214<BR>
Fair value of equity interest held before the business combination (587 377) (1 081 214)<BR>
Total consideration paid - -<BR>
<BR>
9.2 Non-current assets held for sale<BR>
<BR>
For the year ended 28 February 2017<BR>
<BR>
PSG Konsult Limited (through its subsidiary Western Group Holdings Limited) sold 100% of its shareholding in the logistics company,<BR>
Xinergistix Limited, for R41.5 million effective on 1 December 2016.<BR>
<BR>
9.3 Other acquisitions - standardising of revenue sharing model<BR>
<BR>
For the year ended 28 February 2018<BR>
<BR>
The group (through its subsidiary PSG Wealth Financial Planning Proprietary Limited) concluded various asset-for-share transactions <BR>
(utilising section 42 of the Income Tax Act, No. 58 of 1962) as well as further revenue sharing arrangements with a number of its advisers <BR>
during the financial year. The purpose of these transactions was to standardise the revenue sharing arrangements between the advisers <BR>
and PSG Konsult.<BR>
<BR>
The consideration was paid with the issue of PSG Konsult shares (0.6 million shares at an average of R8.97 per share) and a cash consideration <BR>
of R17.3 million on the effective dates. These transactions did not qualify for accounting in terms of IFRS 3 - Business combinations as the<BR>
assets acquired (the right to an increased share in the income stream of the adviser) did not constitute a business acquired.<BR>
<BR>
These transactions contributed R1.1 million to our headline earnings during the 2018 financial year, net of amortisation cost of R0.5 million.<BR>
<BR>
For the year ended 28 February 2017<BR>
<BR>
The group (through its subsidiaries PSG Wealth Financial Planning Proprietary Limited and PSG Multi Management Proprietary Limited) concluded<BR>
various asset-for-share transactions (utilising section 42 of the Income Tax Act, No. 58 of 1962) as well as further revenue sharing <BR>
arrangements with a large number of its advisers during the financial year. The purpose of these transactions was to standardise the revenue <BR>
sharing arrangements between the advisers and PSG Konsult.<BR>
<BR>
The consideration was paid with the issue of PSG Konsult shares (14.9 million shares at an average of R6.86 per share) and a cash consideration<BR>
of R2.8 million on the effective dates. These transactions did not qualify for accounting in terms of IFRS 3 - Business combinations as the <BR>
assets acquired (the right to an increased share in the income stream of the adviser) did not constitute a business acquired.<BR>
<BR>
These transactions contributed R11.3 million to our headline earnings during the 2017 financial year, net of amortisation cost of<BR>
R6.6 million.<BR>
<BR>
10. Financial risk management<BR>
<BR>
The group's activities expose it to a variety of financial risks: market risk (including price risk, foreign currency risk, cash flow and fair<BR>
value interest rate risks), credit risk and liquidity risk. Insurance activities expose the group to insurance risk (including pricing risk, <BR>
reserving risk, underwriting risk and reinsurance risk). The group is 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 framework.<BR>
<BR>
The condensed consolidated financial statements do not include all risk management information and disclosure required in the annual <BR>
financial statements and should be read in conjunction with the group's annual financial statements as at 28 February 2018.<BR>
<BR>
There have been no changes in the group's financial risk management objectives and policies since the previous financial year-end.<BR>
<BR>
Market risk (price risk, foreign currency risk and interest rate risk)<BR>
Market risk is the risk of an adverse financial impact due to changes in fair values or future cash flows of financial instruments from <BR>
fluctuations in interest rates, equity prices and foreign currency exchange rates.<BR>
<BR>
A portion of the policyholders' and shareholders' investments is valued at fair value and is therefore susceptible to market fluctuations.<BR>
<BR>
With regard to the subsidiary, PSG Life Limited, this company only invests assets into portfolios that are exposed to market price risk that <BR>
matches linked policies to policyholders (where the value of policy benefits is directly linked to the fair value of the supporting assets), <BR>
and as such does not expose the business to the market risk of fair value adjustments on the financial asset as this risk is assumed by the <BR>
policyholder. Fees charged on this business are determined as a percentage of the fair value of the underlying assets held in the linked <BR>
funds, which are subject to price 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 R2 321.5 million (2017: R2 256.9 million) are quoted equity securities of R2 321.2 million <BR>
(2017: R2 256.6 million), of which R2 192.6 million (2017: R2 154.9 million) relates to investments in linked investment contracts. The price<BR>
risk of these instruments is carried by the policyholders of the linked investment contracts.<BR>
<BR>
Unit-linked investments of R21 587.0 million (2017: R19 932.7 million) are linked to investment contracts and do not directly expose the <BR>
group to price or interest rate risk.<BR>
<BR>
Debt securities linked to policyholder investments amounted to R483.6 million (2017: R443.3 million) and do not expose the group to interest<BR>
rate risk. Cash and cash equivalents linked to policyholder investments amounted to R1.0 million (2017: R14.2 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 7 - Financial <BR>
instruments and IFRS 13 - Fair value measurement. The different levels have been defined as follows:<BR>
- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;<BR>
- Level 2 - input other than quoted prices included within level 1 that is observable for the asset or liability, either directly (that is,<BR>
as prices) or indirectly (that is, derived from prices); and<BR>
- Level 3 - input for the asset or liability that is not based on observable market data (that is, unobservable input).<BR>
<BR>
There have been no significant transfers between level 1, 2 or 3 during the financial year under review.<BR>
<BR>
The table below analyses financial assets and liabilities, which are carried at fair value, by valuation method. There were no significant<BR>
changes in the valuation techniques and assumptions applied since 28 February 2017.<BR>
<BR>
Valuation techniques and main assumptions used in determining the fair value of financial assets and liabilities classified within level 2 <BR>
can be summarised as follows:<BR>
<BR>
Instruments Valuation techniques Main assumptions<BR>
<BR>
Derivative financial instruments Exit price on recognised over-the-counter (OTC) Not applicable<BR>
platforms<BR>
<BR>
Debt securities Valuation model that uses the market input (yield Bond interest rate curves<BR>
of benchmark bonds) Issuer credit ratings<BR>
Liquidity spreads<BR>
<BR>
Unit-linked investments Quoted put (exit) price provided by the fund manager Not applicable - daily prices <BR>
are publicly available<BR>
<BR>
Investment in investment contracts Prices are obtained from the insurer of the Not applicable - prices provided <BR>
particular investment contract by registered long-term insurers <BR>
<BR>
Investment contract liabilities - unit-linked Current unit price of underlying unitised financial Not applicable<BR>
asset that is linked to the liability, multiplied by <BR>
the number of units held <BR>
<BR>
Third-party liabilities arising on the Quoted put (exit) price provided by the fund manager Not applicable - prices are <BR>
consolidation of mutual funds publicly available <BR>
<BR>
The fair value of financial assets and liabilities measured at fair value in the statement of financial position can be summarised as follows:<BR>
<BR>
Level 1 Level 2 Level 3 Total<BR>
As at 28 February 2018 (Reviewed) R000 R000 R000 R000<BR>
<BR>
Financial assets<BR>
Derivative financial instruments - 8 854 - 8 854<BR>
Equity securities 2 321 235 7 240 2 321 482<BR>
Debt securities 922 377 1 500 509 - 2 422 886<BR>
Unit-linked investments - 41 478 953 717 137 42 196 090<BR>
Investment in investment contracts - 14 798 - 14 798<BR>
3 243 612 43 003 121 717 377 46 964 110<BR>
<BR>
Financial liabilities<BR>
Derivative financial instruments - 16 857 - 16 857<BR>
Investment contracts - 23 420 874 698 146 24 119 020<BR>
Trade and other payables - - 45 344 45 344<BR>
Third-party liabilities arising on consolidation of mutual funds - 22 585 256 - 22 585 256<BR>
- 46 022 987 743 490 46 766 477<BR>
<BR>
Level 1 Level 2 Level 3 Total<BR>
As at 28 February 2017 (Audited) R000 R000 R000 R000<BR>
<BR>
Financial assets<BR>
Derivative financial instruments - 14 593 - 14 593<BR>
Equity securities 2 256 555 7 361 2 256 923<BR>
Debt securities 1 004 941 1 686 210 - 2 691 151<BR>
Unit-linked investments - 36 544 759 1 109 239 37 653 998<BR>
Investment in investment contracts - 15 521 - 15 521<BR>
3 261 496 38 261 090 1 109 600 42 632 186<BR>
<BR>
Financial liabilities<BR>
Derivative financial instruments - 17 379 - 17 379<BR>
Investment contracts - 21 317 267 1 099 239 22 416 506<BR>
Trade and other payables - - 38 141 38 141<BR>
Third-party liabilities arising on consolidation of mutual funds - 19 690 982 - 19 690 982<BR>
- 41 025 628 1 137 380 42 163 008<BR>
<BR>
The following table presents the changes in level 3 financial instruments during the financial years under review:<BR>
<BR>
Reviewed Audited<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Assets<BR>
Opening carrying value 1 109 600 1 309 224<BR>
Additions 487 832 192 189<BR>
Disposals (903 023) (423 345)<BR>
Gains recognised in profit and loss (1) 22 968 31 532<BR>
Closing carrying value 717 377 1 109 600<BR>
<BR>
Liabilities<BR>
Opening carrying value 1 137 380 1 304 281<BR>
Additions 541 839 250 598<BR>
Disposals (962 005) (449 047)<BR>
Losses recognised in profit and loss (2) 26 276 31 548<BR>
Closing carrying value 743 490 1 137 380<BR>
<BR>
(1) Gains on these items were recognised in profit and loss under 'net fair value gains and losses on financial instruments'.<BR>
(2) Losses recognised in profit and loss were recognised under 'fair value adjustment to investment contract liabilities'.<BR>
<BR>
Unit-linked investments represent the largest portion of the level 3 financial assets and relate to units held in hedge funds and are priced <BR>
monthly. The prices are obtained from the asset managers of the particular hedge funds. These are held to match investment contract <BR>
liabilities and, as such, any change in measurement would result in a similar adjustment to investment contract liabilities. Therefore, the <BR>
group's overall profit or loss is 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 inputs, as the valuation technique used to determine the<BR>
fair values takes into account the probability (at each reporting period) that the contracted party will achieve the profit guarantee <BR>
as stipulated in the business agreement.<BR>
<BR>
The table below summarises the carrying values and fair values of financial instruments not presented on the statement of financial position <BR>
at fair value, for which their carrying values do not approximate their fair values:<BR>
<BR>
Reviewed Audited<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Assets<BR>
Debt securities - held to maturity<BR>
- Carrying value 159 929 144 092<BR>
- Fair value 159 038 141 481<BR>
<BR>
Liabilities<BR>
Investment contracts<BR>
- Carrying value 159 929 144 092<BR>
- Fair value 159 038 141 481<BR>
<BR>
The fair value of the financial assets and liabilities in the table above is categorised as level 3.<BR>
<BR>
11. Related-party transactions<BR>
<BR>
Related-party transactions similar to those disclosed in the group's annual financial statements for the year ended 28 February 2017 <BR>
took place during the current financial year.<BR>
<BR>
12. Capital commitments and contingencies<BR>
<BR>
Reviewed Audited<BR>
28 Feb 18 28 Feb 17<BR>
R000 R000<BR>
<BR>
Operating lease commitments 142 975 156 379<BR>
Capital commitments - 1 943<BR>
<BR>
13. 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 of approval of the <BR>
condensed consolidated financial statements other than the following:<BR>
- Shareholders are referred to PSG Konsult's announcements made on 26 September 2017 and 12 February 2018 regarding the two acquisition <BR>
agreements with Absa Insurance and Financial Advisers. The finalisation of the acquisition of AIFA's commercial and industrial short-term <BR>
insurance brokerage business is pending some regulatory approvals, while the agreement to acquire the remainder of the personal lines <BR>
short-term insurance face-to-face advisory insurance brokerage business is still in the early stages. Refer to the commentary for further<BR>
details on these transactions.<BR>
- Subsequent to year-end, PSG Insure concluded an agreement to acquire the remaining 40% shareholding in the Western Group's Namibian <BR>
entities, currently held by Santam Limited. The cash consideration paid will be approximately R47 million and will be funded from existing<BR>
cash resources.<BR>
- The group concluded further revenue sharing arrangements (on the same basis as in the 2017 and 2018 financial years) with a number of its <BR>
advisers during March 2018 for a consideration of R24.6 million.<BR>
<BR>
14. Reclassification and restatement of prior year figures<BR>
<BR>
The following reclassification and restatement were applied to the 28 February 2017 results:<BR>
<BR>
Fair value adjustment to third-party liabilities - reclassification<BR>
The group consolidates collective investment schemes, in terms of IFRS 10 - Consolidated financial statements, over which the group has <BR>
control. The consolidation of these funds does not impact total earnings, comprehensive income, shareholders' funds or the net asset value <BR>
of the group; however, it requires the group to recognise the fund's income and expenses on the consolidated income statement. The group <BR>
previously disclosed the fair value adjustment to third-party liabilities, which arises as a result of the consolidation of mutual funds,<BR>
as part of expenses on the face of the income statement. In order to align where on the income statement the group discloses the fair value <BR>
adjustments and investment income of the underlying assets of the consolidated collective investment schemes, a decision was taken to <BR>
reflect the fair value adjustment to third-party liabilities as part of total income.<BR>
<BR>
Fee income - restatement<BR>
Management performed a detailed analysis of the fees received by PSG Securities Limited from the JSE. As part of this assessment, management <BR>
investigated certain fees which were previously disclosed under investment income in the 28 February 2017 financial statements. Based on the<BR>
findings, management decided to disclose these fees as commission and other fee income in order to more correctly reflect the nature of <BR>
these fees received from the JSE.<BR>
<BR>
The reclassification and restatement had no impact on the current or prior year reported earnings, diluted earnings or headline earnings <BR>
per share, or on the net asset value or net cash flow. The financial effects of the reclassification and restatement are set out below:<BR>
<BR>
Reclassific-<BR>
ation - <BR>
fair value <BR>
adjustment <BR>
As to Restate-<BR>
previously third-party ment -<BR>
stated liabilities fee income Restated<BR>
R000 R000 R000 R000<BR>
<BR>
Consolidated income statement<BR>
Total income<BR>
Commission and other fee income 2 560 814 - 45 278 2 606 092<BR>
Investment income 1 389 064 - (45 278) 1 343 786<BR>
Fair value adjustment to third-party liabilities - (1 065 313) - (1 065 313)<BR>
<BR>
Total expenses<BR>
Fair value adjustment to third-party liabilities (1 065 313) 1 065 313 - -<BR>
<BR>
Consolidated statement of cash flows<BR>
Cash flows from operating activities<BR>
Cash utilised in operations (772 855) - 45 278 (727 577)<BR>
Interest income 1 006 782 - (45 278) 961 504<BR>
<BR>
<BR>
CORPORATE INFORMATION<BR>
<BR>
Non-executive directors<BR>
W Theron (Chairman)<BR>
PJ Mouton<BR>
J de V du Toit^<BR>
PE Burton*<BR>
ZL Combi*<BR>
R Stassen*<BR>
ZRP Matsau* (Appointed 20 July 2017)<BR>
(^ Lead independent; * Independent)<BR>
<BR>
Executive directors<BR>
FJ Gouws (Chief executive officer)<BR>
MIF Smith (Chief financial officer)<BR>
<BR>
PSG Konsult head office and registered office<BR>
4th Floor, The Edge, 3 Howick Close<BR>
Tyger Waterfront<BR>
Tyger Valley<BR>
Bellville<BR>
7530<BR>
<BR>
Postal address<BR>
PO Box 3335<BR>
Tyger Valley<BR>
Bellville<BR>
7536<BR>
<BR>
Company secretary<BR>
PSG Management Services Proprietary Limited<BR>
<BR>
Listings<BR>
Johannesburg Stock Exchange (JSE)<BR>
Namibian Stock Exchange (NSX)<BR>
<BR>
Transfer secretary<BR>
Computershare Investor Services Proprietary Limited<BR>
Rosebank Towers<BR>
15 Biermann Avenue<BR>
Rosebank<BR>
2196<BR>
<BR>
PO Box 61051<BR>
Marshalltown<BR>
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>
Website address<BR>
www.psg.co.za<BR>
<BR>
<BR>
Date: 19/04/2018 11:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). <BR>
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of<BR>
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, <BR>
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,<BR>
information disseminated through SENS.<BR>