Unaudited Financial Results And Ad Hoc Dividend Declaration For The Six Months Ended 31 August 2020
 
 
PSG GROUP LIMITED
 
(Incorporated in the Republic of South Africa)
 
(Registration number: 1970/008484/06)
 
JSE Limited (“JSE”) share code: PSG
 
ISIN code: ZAE000013017
 
LEI code: 378900CD0BEE79F35A34
 
(“PSG Group” or “the Company”)
 
 
 
UNAUDITED FINANCIAL RESULTS AND AD HOC DIVIDEND DECLARATION FOR THE
 
SIX MONTHS ENDED 31 AUGUST 2020
 
 
1. SALIENT FEATURES
 
 
• At 31 August 2020, the –
 
o Sum-of-the-parts (“SOTP”) value per share was R75,86, representing a
 
decrease of 20% when compared to the R94,44 per share as at
 
29 February 2020 if the unbundled Capitec Bank Holdings Ltd (“Capitec”)
 
shares, as contained in PSG Group’s SOTP value at its ruling market value as
 
at 29 February 2020, are excluded therefrom at such date for comparative
 
purposes; and
 
o Net asset value per share was R73,27, representing a decrease of 14% and 16%
 
when compared to the R85,27 as at 31 August 2019 and R87,49 as at
 
29 February 2020, respectively.
 
 
• At 9 October 2020, the SOTP value per share was R82,80.
 
 
• Ad hoc interim dividend declared of R1,64 per share.
 
 
2. CHANGE IN INVESTMENT ENTITY STATUS AND EARNINGS
 
 
International Financial Reporting Standards (“IFRS”) require that an entity reassess
 
whether it is an Investment Entity if facts or circumstances indicate changes to one or
 
more of the elements making up the definition of an Investment Entity or the typical
 
characteristics of an Investment Entity.
 
 
Whilst PSG Group's focus on value creation for its shareholders has not changed, the
 
major corporate action detailed in the full announcement has necessitated PSG Group to
 
reassess its Investment Entity status in terms of IFRS, whereby it was determined that it
 
became an Investment Entity with effect from 1 March 2020. The performance of its
 
remaining investment portfolio is accordingly measured with reference to the fair value of
 
each investment (i.e. SOTP value) rather than the consolidated profitability of PSG Group
 
(i.e. recurring earnings) with effect from 1 March 2020 in PSG Group’s strive to meet its
 
objective of value creation through capital appreciation, investment income or both.
 
 
Where an entity’s status change to that of an Investment Entity, it does not consolidate its
 
subsidiaries, but rather measures subsidiaries at fair value through profit or loss. Such
 
change in accounting is applied prospectively, with no adjustment to prior year
 
comparatives. However, an Investment Entity continues to consolidate subsidiaries that
 
provide services related to the Investment Entity’s investment activities (i.e. those wholly-
 
owned subsidiaries comprising PSG Group’s head office operations).
 
 
Pursuant to the aforementioned change in Investment Entity status, PSG Group’s
 
financial statements prepared in accordance with IFRS are not comparable to prior
 
periods. For the period under review, PSG Group reported earnings per share of R118,62
 
(2019: R6,39) and a headline loss per share of R14,14 (2019: earnings of R5,68). The
 
headline loss per share is representative of mainly the decrease in the share prices of
 
PSG Group’s listed investments, while the earnings per share included a significant non-
 
headline gain to the extent that the fair value of the unbundled Capitec interest exceeded
 
its accounting carrying value as a non-current asset held for sale on the date of
 
unbundling, being 30 July 2020 when PSG Group shareholder approval was obtained.
 
Continuing operations’ profit before finance costs and taxation, as detailed in PSG
 
Group’s full announcement, amounted to R5,7bn (2019: R1,1bn).
 
 
3. DIVIDEND DECLARATION
 
 
Following the aforementioned unbundling of Capitec, PSG Group’s policy is to pay ad hoc
 
dividends as and when circumstances allow. As part of PSG Group’s objective of
 
continued wealth creation, the directors have resolved to declare an ad hoc interim gross
 
dividend of 164 cents (2019: 164 cents) per share from income reserves for the six months
 
ended 31 August 2020.
 
 
The ad hoc interim dividend amount, net of South African dividend tax of 20%, is 131,2
 
cents per share for those shareholders that are not exempt from dividend tax or are not
 
entitled to a reduced rate in terms of the applicable double-tax agreement. The number
 
of ordinary shares in issue at the declaration date is 229 936 695, and the income tax
 
number of the Company is 9950080714.
 
 
The salient dates for this ad hoc dividend distribution are:
 
 
Last day to trade cum dividend Tuesday, 3 November 2020
 
Trading ex-dividend commences Wednesday, 4 November 2020
 
Record date Friday, 6 November 2020
 
Payment date Monday, 9 November 2020
 
 
Share certificates may not be dematerialised or rematerialised between Wednesday,
 
4 November 2020 and Friday, 6 November 2020, both days inclusive.
 
 
4. SHORT-FORM ANNOUNCEMENT
 
 
This short-form announcement is the responsibility of the directors of the Company. It
 
contains only a summary of the information in the full announcement and does not contain
 
full or complete details. The full announcement can be found at:
 
 
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/PSG/PSGHY21.pdf
 
 
The full announcement is also available for viewing on the Company’s website at
 
https://www.psggroup.co.za/UnauditedResultsAug2020.pdf or may be requested and
 
obtained in person, at no charge, at the registered office of the Company or the
 
Company’s sponsor during office hours.
 
 
Any investment decisions should be based on consideration of the full announcement.
 
 
5. RESULTS PRESENTATION
 
 
Shareholders are invited to view PSG Group’s interim results presentation to be
 
broadcast live on YouTube at 09h00 SAST on Thursday, 15 October 2020.
 
 
Presentation details:
 
- View and listen mode;
 
- Link: https://youtu.be/Krnz2Gty_6g;
 
- Presentation slides will be made available on PSG Group’s website shortly before
 
the live broadcast of the presentation;
 
- Questions may be e-mailed prior to and during the presentation to:
 
questions@psggroup.co.za.
 
 
Stellenbosch
 
15 October 2020
 
 
Sponsor
 
PSG Capital (Pty) Ltd
 
 
Independent joint sponsor
 
UBS South Africa (Pty) Ltd
 
 
Date: 15-10-2020 07:05:00
 
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
 
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,
 
information disseminated through SENS.