PSG Konsult Limited Reports 21% Increase in Earnings per Share and Declares Dividend in HY2024 Interim Results

Published On: October 16, 2023Company: PSG Financial Services Limited (PSGK.mu)
What significant changes occurred in PSG Financial Services' financial status in the HY2024 interim period?
PSG Financial Services saw a 21% increase in recurring headline earnings per share and a return on equity of 22.5%. Additionally, total assets under management increased by 19% to R375.9 billion. The group reported a strong capital cover ratio of 240%, and declared an interim gross dividend of 13.5 cents per share.

Financial Results

  • PSG Financial Services reported a 21% increase in recurring headline earnings per share and a return on equity of 22.5%.
  • The firm’s total assets under management increased by 19% to R375.9 billion, showing a significant increase in assets managed by PSG Wealth and PSG Asset Management.
  • There was a 12% increase in PSG Insure’s gross written premium, amounting to R3.4 billion.
  • Despite challenging operating conditions, the firm continued investing in technology and human resources with a 12% increase in technology and infrastructure spend.

Strategy

  • PSG Wealth strategy includes a complete range of discretionary and non-discretionary investment products with competitive fees, with an emphasis on diversification.
  • PSG Asset Management focuses on long-term risk-adjusted returns, prioritizing investment performance, operational efficiency, and effective sales and marketing.
  • PSG Insure aims to provide simple and cost-effective short-term insurance solutions, investing in their claims, administration, and adviser teams.

Corporate Activity

  • PSG Financial Services focuses mainly on organic growth alongside potential acquisitions that meet their investment criteria.

Capital Management

  • Strong capital cover ratio at 240% which reflects the firm’s strong financial position and excellent liquidity.
  • The group continues to generate strong cash flows, offering various opportunities for optimising their capital structure and risk-adjusted returns.

Regulatory Landscape and Risk Management

  • PSG Financial Services holds 21 regulatory licenses in different regions and maintains good relationships with the regulators.

Marketing Initiatives

  • The group has successfully conducted multiple events and webinars to interact with clients, advisers, employees and industry representatives.
  • PSG’s “Think Big” webinar series enjoyed increased popularity, adding more than 2,400 new registrations in the six-month period.

Information Technology

  • Continued investment in technology to automate adviser and client systems and enhance cyber security.
  • Improved automated processes resulting in increased client satisfaction and retention.

Looking Forward

  • Despite short-term challenges, PSG Financial Services remains confident in its long-term strategy, continuing to invest in their businesses for future growth.

Dividend

  • PSG declared an interim gross dividend of 13.5 cents per share from income reserves for the period ended 31 August 2023, signifying confidence in its prospects.

Useful links

About PSG Konsult Limited (PSGK.mu)

PSG Konsult is a business that was established in 1993 in accordance with South African law which offers a wide array of financial services and a suite of financial products. The group predominantly services individuals and enterprises in South Africa and Namibia. PSG Konsult has a primary listing on the Johannesburg Stock Exchange and has secondary listings on the Stock Exchange of Mauritius and the Namibian Stock Exchange.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

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