PSG Konsult lifts final dividend 10% thanks to ‘solid’ earnings
Financial services group PSG Konsult raised its final dividend by 10% to 13.5c a share after a “solid performance” in the year ended February.
The company's total dividend for the year was up 14% at 20.5c. “The group's strong cash flow generation supports the current dividend increase,” it said.
Group recurring headline earnings per share rose 4% to 44.6c as total assets under management increased 8% to R222bn and assets under administration rose 5% to R422bn.
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“The group achieved these results against a backdrop of challenging operating conditions, which included a weak economy, subdued consumer sentiment and negative returns on local equity markets and currency volatility,” it said.
PSG Wealth's recurring headline earnings were flat amid ”poor market conditions”, while PSG Asset Management's recurring headline earnings increased 7% despite a 64% decline in performance fees as the JSE slumped.
Meanwhile, PSG Insure's recurring headline earnings grew 19% as gross written premiums increased 36% to R4.5bn.
“The cash-generative nature of the business gives PSG Konsult several options for funding business growth initiatives and optimising risk-adjusted returns for our shareholders,” it said.
“As such, the group remains confident about the prospects for continued growth.”
The group would prioritise organic growth in selected markets “we have a relatively low, but rapidly expanding market share”.
The company, headed by Francois Gouws, has a market capitalisation of R14bn.