PSG Group strategy yield strong results
PSG Group, the JSE-listed investment holding company with underlying investments in financial services, banking, private equity, agriculture and education, achieved strong financial results for the six months to Augustus 2013. This was accomplished on the back of its latest strategy, Project Internal Focus, yielding a positive outcome, whereby management’s focus is primarily directed at the optimisation, refinement and growth of PSG’s existing investment portfolio. PSG Group’s sum-of-the-parts (SOTP) value increased from R72,67 per share at the end of February 2013 to R79,20 per share as at 31 August 2013, which equated to a 29% compound annual growth rate over the last three years.
Management uses the recurring headline earnings per share concept to evaluate PSG’s performance from an earnings perspective. Recurring headline earnings per share grew by 19,6% to 194,3 cents for the six months ended 31 August 2013.
The results were primarily due to strong performances by Capitec and PSG Konsult, while the majority of the group’s remaining investments also reported improved earnings. An interim dividend of 43,0 cents was declared in respect of the period under review.
Announcing the results, PSG Group CEO, Piet Mouton, said that with Project Internal Focus fully operational, the group is now optimally positioned with all the building blocks in place for further growth. "Project Internal Focus basically consists of proper management and a tailored strategy and plan for each of our investments, with Zeder and PSG Konsult being good examples.
The focus has now shifted from a large number of smaller investments in the past, to larger investments in a smaller number of companies going forward. "Our investment portfolio is now more balanced.... Read the full, comprehensive news article and discuss at Financial Advisors NewsSimilar Stories