PSG focused on optimising existing portfolio - CNBC Africa

PSG focused on optimising existing portfolio


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PSG recently implemented its internal focus strategy. PHOTO: Getty Images

The investment holding company, which has strategic interests in Capitec Bank, Curro Holdings, Zeder Investments and PSG Konsult, has reformulated the business strategy of each investment in the group as well as compiled a revised strategic plan for the next few years.

“In April last year, PSG introduced its latest strategy, Project Internal Focus, to the market. PSG’s investment portfolio contains a healthy balance between established and start-up businesses, all of which offer attractive growth potential,” said [DATA PSG:PSG Group].

“The majority of PSG’s most significant successes have been businesses that were either started by, or in conjunction with, PSG. Capitec, PSG Konsult and Zeder are all examples of same. In order to extract maximum value, we formalised Project Internal Focus. The drive to revisit and, if necessary, reformulate the business strategy of each investment throughout the group, is showing promise.”

(READ MORE: PSG Konsult's FY results boosts profile ahead of its JSE listing)

PSG also reported that PSG Konsult, which recently reported its first set of full year financial results under its refocused business model, was one of the drivers of the group’s recurring headline earnings in 2014 with an increase of 37 per cent.

“Each of the three divisions, namely Wealth, Asset Management and Insure, produced commendable results.Funds under management increased by 38 per cent to 112 billion rand, while funds under administration increased by 31 per cent to 235 billion rand during the year under review,” PSG said.


“PSG Konsult’s strategic focus for the year ahead is top line revenue growth, which will enable it to unlock operational leverage scale benefits now that it has successfully bedded down its repositioning. PSG Konsult intends listing on the JSE during June 2014.”

Group income increased to 4.34 billion rand for the year ending 28 February 2014 from 3.05 billion rand for the same period in 2013.

Profit before taxation was up from 1.76 billion rand in 2013 to 1.79 billion rand in 2014 while investment income increased to 507 million rand from 418 million rand.

Diluted headline earnings per share rose 14.8 per cent to 546.8 cents in 2014 from 476.3 cents in 2013.

(READ MORE: PSG acquires 50% interest in IT School Innovation)

“PSG operates in a number of diverse industries, the performance of which is not always correlated. Although it is difficult to predict the future, we remain optimistic and believe our strategy will continue to deliver superior returns for shareholders,” it said.