Equites to develop huge R90m warehouse for Famous Brands
PSG KONSULT reported double digit growth in the six months to end August, with its division PSG Asset Management the star performer hiking recurring headline earnings by 53 percent.
The group reported 18 percent growth in recurring headline earnings to R283.15 million, up from R239.28m compared to last year.
The group said return on equity came in at a healthy 22 percent.
Chief executive Francois Gouws said yesterday that the continued upward trajectory of their key operating and financial metrics demonstrated the resilience of their business model and ability to gain market share even during periods where the company experienced economic headwinds.
“All of our businesses contributed from this growth under challenging economic environment. We were able to gain new customers and it speaks volumes of our business,” Gouws said.
The group’s income during the period increased by 10 percent to R2.28 billion, up from R2.06bn while recurring headline earnings per share increased by 18 percent to 21.5 cents a share, up from 18.2c.
The group declared a gross dividend of 7c a share from income reserves, up by 23 percent from last year’s 5.7c.
“Given our continued confidence in business prospects, the board decided to declare an interim gross dividend of 7c a share,” Gouws said.
The group added that its total assets under management increased by 19 percent to R230bn, comprising assets managed by PSG Wealth of R182bn and PSG Asset Management of R48bn.
PSG Insure’s gross written premium increased by 25 percent to R2bn.
In the PSG Asset Management division, Gouws said the 53 percent increase in recurring headline earnings was achieved as a result of an excellent long-term track record of delivering top-quartile risk-adjusted investment returns for our clients
PSG Konsult shares closed 0.62 percent lower at R9.64 on the JSE yesterday. LISTED specialist industrial property developer and landlord Equites Property Fund plans to develop a 7 000m² warehouse in Cape Town for Famous Brands at a cost of about R90 million.
Equites chief executive Andrea Taverna-Turisan said yesterday that construction of the warehouse just off the R300 on the Stellenbosch arterial was expected to start in the next two to three weeks after final signings.
Taverna-Turisan said Equites was developing the warehouse for Famous Brands on a 10-year lease.
He added that it was now a great time to develop in South Africa because construction companies were under massive pressure as a result of there being little work, which meant pricing levels were good.
Taverna-Turisan said they were engaging with their clients and trying to convince some of the bigger operators in South Africa to commit to designing and developing new facilities that would take them forward for the next 10 to 15 years.
“We are discussing with multiple potential tenants at the moment the development of some pretty substantial and meaningful campuses.
“We are quietly confident that there might be some positive activity coming through in the next year,” he said.
Taverna-Turisan added that there was a realisation among users that had multiple units all over the place that there was a more efficient way of working that involved fewer, bigger units.
He said this was a trend both in South Africa and the UK.
Taverna-Turisan said Equites development pipeline in South Africa, including projects it would be completing this month, was about R500 million while its £55m (R1.06 billion) development pipeline in the UK comprised three buildings that would be completed in about April next year.
Shares in Equites rose 1.62 percent on the JSE yesterday to close at R20.65.
PSG HAS reported double-digit growth. /