Asset management ‘to boost PSG profit’
DIVERSIFIED financial services company PSG Konsult says its asset management division will continue to be its biggest profit driver over the next few years.
Headline earnings increased 15.3% to R174.4m for the period under review, while the recurring headline earnings per share increased 9.2% to 15.4c in the year to February.
“PSG Konsult, the independent financial services provider, posted positive results for the financial year ending February 2013 amidst a comprehensive restructuring process and a new focus for its underlying business units,” CEO Willem Theron said.
“We have been restructuring and it is clear now that our strongest profit driver is the advice that we offer to asset management clients,” he said.
To establish the company as a fully-fledged financial services group, PSG Konsult’s underlying business units were partitioned into three focus areas, effective from March this year. These were PSG Wealth, PSG Asset Management and PSG Insure.
As part of this process, PSG Konsult would in future do business as PSG.
Mr Theron said the results could be regarded as positive. “Growth in the group’s traditional financial advice business was maintained during the year. We believe that personal service supplemented by electronic platforms and trading will in future unlock more value. Further attention will be given to strengthen and enhance this process.
“Synergies are currently more evident in the asset management business, while the strategy to have a larger share in the value chain is bearing fruit,” he said.
A final dividend of 7.3c was declared, to bring the total for the year to 10.8c, slightly higher than last year’s 10.3c per share.
Deputy CEO Francois Gouws will take the reins as CEO from Mr Theron on July 1, and Mr Theron will assume the role of chairman. Current chairman, Jaap Du Toit, will stay on as a nonexecutive director. Mr Theron’s retirement as CEO coincides with PSG Konsult’s 15th anniversary.