Well-positioned PSG eyes new opportunities

LISTED investment holding company PSG Group yesterday said it planned to increase its investments in South Africa as consumer and investor confidence continue to improve.

The group said it would consolidate its investments in Capitec Bank and PSG Konsult and other investments in Evergreen and Stadio to shore up its performance against the low economic growth.

Stadio was spun off from private education group Curro and listed separately on the JSE last year.

The company said Capitec increased its headline earnings per share (Heps) 18 percent growth for the year ending on February, while PSG Konsult recorded a 16 percent increase in Heps during the period.

PSG holds 30.7 percent stake in Capitec and 61.5 percent in PSG Konsult.

The group has a diverse range of underlying investments in banking, education, financial services and food and related business, as well as early-stage investments in selected growth sectors.

Chief executive Piet Mouton said the group’s investee companies were well capitalised with conservative gearing.

Mouton said the group’s portfolio remained well positioned to continue yielding above-average returns.

“This bodes well for future growth, particularly for when there is an uptick in the economy,” Mouton.

“The group’s existing core businesses are all well positioned for further growth.”

PSG owns a 55.4 percent in private education group Curro.

The group also acquired a 50 percent stake in retirement village developer Evergreen Lifestyle through its subsidiary PSG Alpha for R657 million.

“We are satisfied with the investments we have made so far and we have no intention to make any in the next year or so. We want to consolidate Stadio and Evergreen to the existing portfolio.

“However, we continue to be on the lookout if something comes up,” Mouton said.

Capitec remains PSG Group’s largest investment, comprising 51 percent of the total sum-of-the-parts assets.

The bank remains the major contributor to the company’s recurring earnings.

PSG Group reported a 7 percent increase in recurring earnings per share to R9.94 a share, up from R9.27 recorded during the corresponding period last year.

“The results are satisfactory, considering that Zeder Investments had a tough year following a drought in the Western Cape,” he said.

The group’s SOTP value, of which more than 90 percent is calculated using JSE-listed share prices, while other investments are included at market-related valuations, amounted to R255.17 per PSG Group share as at the end of February, representing a 6 percent increase, compared with last year.

The group declared a final dividend of 277 cents a share, up from 250c to take a total dividend to 415c, which represents an 11 percent increase on the year earlier.

PSG Group declined 0.67 percent on the JSE yesterday to close at R222.89.