Reviewed Financial Results For The Year Ended 28 February 2021
 
 
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”)
 
 
 
REVIEWED FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2021
 
 
 
1. SALIENT FEATURES
 
 
• At 28 February 2021, the –
 
o Net asset value per share was R91,76, representing an increase of 4,9% when
 
compared to the R87,49 as at 29 February 2020; and
 
o Sum-of-the-parts (“SOTP”) value per share was R94,24, representing a
 
decrease of 0.2% 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.
 
 
• At 16 April 2021, the SOTP value per share was R102.39.
 
 
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 for the year ended 28 February 2021, prepared in accordance with
 
IFRS, are not comparable to prior years. For the year under review, PSG Group reported
 
earnings per share of R139,08 (2020: R11,29) and headline earnings per share of R4,81
 
(2020: R11,84).
 
 
3. REPURCHASE OF PSG FINANCIAL SERVICES LIMITED’S (“PSGFS”) JSE-LISTED
 
CUMULATIVE, NON-REDEEMABLE, NON-PARTICIPATING PREFERENCE SHARES
 
(“PREFERENCE SHARES”)
 
 
PSG Group shareholders are advised to take note of the announcement released on
 
SENS on Tuesday, 20 April 2021 (https://www.psggroup.co.za/PSLTA.pdf) whereby the
 
board of PSGFS has resolved to make an offer to repurchase and delist all the Preference
 
Shares in issue at a clean (i.e. excluding the accrued preference dividend) price of R81
 
per share, equating to a total cash consideration of R1.41bn, in terms of a scheme of
 
arrangement. Subject to shareholder and regulatory approval, it is envisaged that the
 
repurchase will be implemented in the next three months.
 
 
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/2021/JSE/ISSE/PSG/PSGFY21.pdf
 
 
The full announcement is also available for viewing on the Company’s website at
 
https://www.psggroup.co.za/ReviewedResultsFeb2021.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.
 
 
The Company has based this short-form announcement on the financial results for the
 
year ended 28 February 2021, which have been reviewed by the Company’s auditor,
 
PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon.
 
 
5. RESULTS PRESENTATION
 
 
Shareholders are invited to join the results presentation to be broadcast on YouTube at
 
10h00 SAST on Tuesday, 20 April 2021.
 
 
Presentation details:
 
• View and listen mode;
 
• Link: https://youtu.be/s7_kVDmcJhs;
 
• Presentation slides will be made available on PSG Group’s website shortly before the
 
live broadcast of the results presentation;
 
• Questions may be e-mailed prior to and during the presentation to:
 
questions@psggroup.co.za.
 
 
Stellenbosch
 
20 April 2021
 
 
Sponsor
 
PSG Capital
 
 
Independent joint sponsor
 
UBS South Africa
 
 
Date: 20-04-2021 08:30:00
 
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