PSG GROUP LIMITED - Reviewed Financial Results And Final Dividend Declaration For The Year Ended 29 February 2020

Reviewed Financial Results And Final Dividend Declaration For The Year Ended 29 February 2020

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 AND FINAL DIVIDEND DECLARATION FOR THE
YEAR ENDED 29 FEBRUARY 2020

1.   FINANCIAL RESULTS – SALIENT FEATURES

     Recurring earnings per share increased by 18% to R12.81 (2019: R10.86).

     Headline earnings per share increased by 17% to R11.84 (2019: R10.11).

     Attributable earnings per share increased by 27% to R11.29 (2019: R8.88).

     As a result of Capitec not declaring a final dividend for the year ended 29 February 2020,
     in line with the SA Reserve Bank’s guidance to banks, the PSG Group dividend per share
     for the year under review decreased by 48% to R2.39 (2019: R4.56).

     At 29 February 2020, the sum-of-the-parts value per share was R276.43
     (28 February 2019: R311.45), whilst at 17 April 2020 it was R211.18.

2.   DIVIDEND DECLARATION

     PSG Group’s dividend policy
     PSG Group’s policy remains to pay up to 100% of available free cash flow as an ordinary
     dividend, of which approximately one third is payable as an interim and the balance as a
     final dividend at year-end.

     Capitec Bank Holdings Limited (“Capitec”) dividend
     Capitec’s ordinary dividend policy is to pay 40% of headline earnings. However, the SA
     Reserve Bank published Guidance Note 4/2020 on 6 April 2020 directing banks to act
     prudently in preserving capital in the absence of appropriate factual information to
     determine the full impact of the COVID-19 pandemic on the SA economy. The Guidance
     Note communicated a clear expectation that banks should not declare ordinary dividends
     for the time being. Although Capitec’s capital base and liquidity ratios remain strong, the
     Capitec board in support of the SA Reserve Bank’s guidance decided against the
     declaration of a final ordinary dividend for the financial year ended 29 February 2020. This
     preserved in excess of R1.5bn capital for Capitec.

     PSG Group dividend
     In the absence of aforementioned Capitec dividend, PSG Group’s available free cash flow
     to pay as an ordinary dividend for the financial year under review is much lower than
     originally anticipated.

     The directors have consequently resolved to declare a final gross dividend of 75 cents
     (2019: 304 cents) per share from income reserves for a total gross dividend of 239 cents
     (2019: 456 cents) per share in respect of the year ended 29 February 2020.
     The final dividend amount, net of South African dividend tax of 20%, is 60 cents per share
     for those shareholders that are not exempt from dividend tax or are not entitled to a
     reduced rate in terms of the applicable double-tax agreement. The number of ordinary
     shares in issue at the declaration date is 232 163 254, and the income tax number of the
     company is 9950080714.

     The salient dates for this dividend distribution are:

        Last day to trade cum dividend                 Tuesday, 12 May 2020
        Trading ex-dividend commences                  Wednesday, 13 May 2020
        Record date                                    Friday, 15 May 2020
        Payment date                                   Monday, 18 May 2020

     Share certificates may not be dematerialised or rematerialised between Wednesday,
     13 May 2020, and Friday, 15 May 2020, both days inclusive.

3.   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/2020/JSE/ISSE/PSG/PSGFY20.pdf

     The full announcement is also available for viewing on the company’s website at
     http://www.psggroup.co.za/ReviewedResultsFeb2020.pdf. In addition, electronic copies
     of the full announcement may be requested and obtained, at no charge, from the company
     at cosec@psggroup.co.za or from the company’s sponsor, PSG Capital.

     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 29 February 2020, which have been reviewed by the company’s auditor,
     PricewaterhouseCoopers Inc., who expressed an unmodified review conclusion thereon.

4.   RESULTS PRESENTATION

     Shareholders are invited to view PSG Group’s year-end results presentation to be
     broadcasted on Youtube at 09:00 am SAST on Thursday, 23 April 2020.

     Presentation details:
        - View and listen mode;
        - Link: https://www.youtube.com/watch?v=XHl0C-tMyGI;
        - Presentation slides will be made available on PSG Group’s website shortly before
           the live broadcast of the presentation.

     Questions and Answers facility:
       - Q&A facility will be available during the presentation;
       - Questions may be e-mailed during the presentation to:
         questions@psggroup.co.za.

Stellenbosch
23 April 2020

Sponsor
PSG Capital

Date: 23-04-2020 07:05:00
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