PSG Konsult consolidates

Johannesburg - PSG Konsult, the financial services arm of JSE-listed PSG Group, on Tuesday announced an 11% increase in headline earnings to R96.8m as the group continues to consolidate the industry through buying businesses.

PSG Konsult, which is 74% owned by PSG, has been active in the acquisition market in the last few years. It recently bought the private client stockbroking division of T-Sec, its fifth major acquisition in four years.

Turnover at Konsult rose 12% to R755.8m, with headline earnings per share growing accordingly by 10% to 13.2c.

In a telephonic interview with Fin24.com on Tuesday, CEO Willem Theron said: "We are very proud of the results."

Asked for forward guidance in terms of earnings and dividend, Theron said that the market "remained volatile" but that the group would like to at least maintain current levels.

"We're a cash-generative business," he added, but warned that there had been a slowdown in the company's stockbroking and portfolio management businesses.

Konsult increased its final dividend slightly from 5.5c to 6c, which - together with the interim dividend of 2.8 cents per share - brought the final dividend for the year to 8.8c up from 7.9c the previous year.

At year-end the number of stockbrokers, financial planners and short-term insurance brokers in the group had grown from 491 to 506, while PSG Konsult's national network of offices have increased from 189 to 197.

Asked how much cash Konsult had available for future acquisitions, Theron said his primary focus was to bed down the 10 000 clients it would take over as part of the T-Sec transaction, but if opportunities presented themselves Konsult could approach its parent if necessary.

In Tuesday late afternoon trade, PSG Group was down 0.1% at 1 550c on 13 000 shares traded.

* Ashton holds shares in PSG.

- Fin24.com