Trading statement
 
 
PSG GROUP LIMITED
 
Incorporated in the Republic of South Africa
 
Registration number: 1970/008484/06
 
Share code: PSG
 
ISIN number: ZAE000013017
 
(“PSG”)
 
 
PSG FINANCIAL SERVICES LIMITED
 
Incorporated in the Republic of South Africa
 
Registration number: 1919/000478/06
 
Share code: PGFP
 
ISIN number: ZAE000096079
 
 
SUM-OF-THE-PARTS (“SOTP”) VALUE AND RECURRING HEADLINE
 
EARNINGS
 
 
PSG, an investment holding company, continues to use the
 
SOTP value and recurring headline earnings per share
 
benchmarks to provide management and investors with a
 
realistic and transparent way of evaluating PSG’s
 
performance.
 
 
PSG’s SOTP value is calculated using the quoted market
 
prices for all JSE-listed investments, and market-related
 
valuations for unlisted investments.
 
 
PSG’s recurring headline earnings is the sum of its
 
effective interest in that of each of its underlying
 
investments. The result is that investments in which PSG
 
holds less than 20% and are generally not equity
 
accountable in terms of accounting standards, are
 
included in the calculation of consolidated recurring
 
headline earnings. One-off items are excluded from
 
recurring headline earnings.
 
 
RESTATEMENT OF COMPARATIVES
 
 
The comparative results for the six-month period ended 31
 
August 2014 have been restated following Capespan’s, a
 
subsidiary of Zeder Investments, change in the accounting
 
treatment of an existing lease arrangement, as well as
 
the early adoption of amendments to its accounting for
 
bearer plant biological assets.
 
 
The aforementioned restatements had the following impact
 
on PSG’s results for the previous financial period ended
 
31 August 2014:
 
 
- Recurring headline earnings per share amounts to
 
249.4 cents instead of 252.7 cents;
 
 
- Headline earnings per share amounts to 309.7
 
cents instead of 312.9 cents; and
 
 
- Attributable earnings per share amounts to 302.7
 
cents instead of 305.8 cents.
 
 
It should be noted that the aforementioned restatements
 
were already accounted for in PSG’s audited financial
 
results for the year ended 28 February 2015. The full
 
particulars of the aforementioned restatements will be
 
included in the announcement containing PSG’s unaudited
 
financial results for the six months ended 31 August
 
2015.
 
 
TRADING STATEMENT
 
 
In terms of the Listings Requirements of the JSE Limited,
 
a listed company is required to publish a trading
 
statement as soon as it becomes reasonably certain that
 
the financial results for the next period to be reported
 
on will show a 20% or more difference from those of the
 
previous corresponding period.
 
 
PSG hereby advises that a reasonable degree of certainty
 
exists that:
 
 
1. Its SOTP value per share as at 31 August 2015 was
 
R196.85, being 20.6% higher than the R163.28
 
reported as at 28 February 2015;
 
 
2. Its SOTP value per share as at 7 October 2015 was
 
R209.35;
 
 
3. For the six-month period ended 31 August 2015:
 
 
- Recurring headline earnings per share will be
 
between 352 cents and 357 cents, being between
 
41.1% and 43.1% higher than that of the six-
 
month period ended 31 August 2014;
 
 
- Headline earnings per share will be between 419
 
cents and 425 cents, being between 35.3% and
 
37.2% higher than that of the six-month period
 
ended 31 August 2014; and
 
 
- Attributable earnings per share will be between
 
420 cents and 426 cents, being between 38.8% and
 
40.7% higher than that of the six-month period
 
ended 31 August 2014.
 
 
The increase in recurring headline earnings per share was
 
mainly as a result of strong earnings growth from Capitec
 
and PSG Konsult.
 
 
Headline earnings per share increased by a smaller margin
 
than recurring headline earnings per share mainly due to
 
lower marked-to-market gains achieved on equity
 
securities held by Zeder Investments and Dipeo Capital, a
 
BEE investment holding company emanating from the
 
PSG/Thembeka scheme of arrangement, in which PSG holds a
 
49% interest.
 
 
Attributable earnings per share increased by a higher
 
margin than headline earnings per share mainly due to
 
non-headline gains made on the disposal of investments in
 
associated companies.
 
 
This financial information has not been reviewed or
 
reported on by the auditor of PSG. The unaudited results
 
for the six-month period ended 31 August 2015 will be
 
published on or about 12 October 2015.
 
 
Stellenbosch
 
8 October 2015
 
 
Sponsor
 
PSG Capital
 
 
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