PSG Group reveals satisfactory interim results

JSE-listed investment holding company PSG Group has revealed satisfactory interim results for the six months ending in August. The company reported a 16% increase in consolidated recurring headline earnings to 411.8 cents per share. Additionally, PSG Group announced an interim dividend of 125 cents per share, marking a 25% increase from the previous period. CEO Piet Mouton expressed satisfaction with the performance of the group's underlying investments, particularly highlighting the impressive results from companies like Capitec. Mouton acknowledged the challenging business environment but remained optimistic about the future. He emphasized the importance of making strategic investments during tough times to position the company for growth when market conditions improve. Despite the recent difficulties, PSG Group believes in the potential for expansion and is focused on seizing opportunities for market growth. One of the standout performers for PSG Group has been Capitec, which reported a 19% increase in earnings. Mouton praised Capitec's management team for their dedication to continuous improvement and customer-centric approach. He highlighted the bank's success in gaining market share and offering a simpler, more affordable banking product compared to its competitors. Looking ahead, PSG Group is optimistic about the prospects of its investments in companies like Zeeda, Caro, and PSG Consult. While Zeeda faced challenges due to drought conditions affecting South Africa, PSG Group remains confident in the long-term potential of the business. Despite the tough six-month period, PSG Group increased its stake in Zeeda, signaling its belief in the company's fundamentals. In response to concerns about Capitec's soaring share price, Mouton expressed confidence in the sustainability of the bank's performance. He praised Capitec's management for building a strong and innovative company that continues to attract customers with its straightforward banking offerings. Mouton believes that Capitec's competitive advantage will fuel its future growth and market share expansion. As PSG Group navigates the challenges of the current economic landscape, Mouton remains committed to seeking out opportunities for strategic investments and sustainable growth. The company's positive outlook and focus on delivering value to shareholders position it well for continued success in the months ahead.