PSG GROUP said yesterday its investee companies produced a resilient performance as they weathered the Covid-19 storm in the year to the end of February.
The group’s sum-of-the-parts (SOTP) a share marginally declined by 0.2 percent to R94.24 a share, and net asset value per share increased by 4.9 percent to R91.76 during the period.
However, by April 16 and after the reporting period, its SOTP had risen to R102.39.
PSG Group is an investment holding company that consists of underlying investments in industries such as financial services, banking, education, food and related business, as well as early-stage investments in select growth sectors.
Its shareholders approved the unbundling of 30.5 million shares, or 26.4 percent, in Capitec Bank, which unlocked more than R12 billion in value for its shareholders in July last year.
The group later sold a further 2.9 percent stake in Capitec for R2.9bn, leaving the group with a 1.4 percent holding in the retail bank.
Chief executive Piet Mouton said their investee companies showed resilience amid trying Covid-19-induced economic conditions despite many of the companies having to find new ways to operate, and good performances were achieved during demanding times.
“Given the circumstances in which investee companies had to operate, companies like PSG Konsult, Zeder and Stadio showed resilience and produced solid performances during the year. In particular, PSG Konsult’s 10 percent increase in recurring headline earnings per share for the year under review should be commended,” Mouton said.
PSG Group holds a 61.2 percent stake in PSG Konsult. The financial services company, which focuses on providing wealth management, asset management and insurance solutions to clients, reported a 10 percent increase in recurring headline earnings per share to 52.7 cents and a return on equity of 20 percent, boosted by a strong performance by the wealth and insure divisions.
Curro Holdings reported a 24 percent decline in recurring headline earnings per share as the largest provider of private school education grappled with the Covid-19 outbreak.
The group holds a 60 percent stake in Curro.
The group holds a 48.6 percent stake in Zeder Investments and a 98.3 percent stake in PSG Alpha.
Looking ahead, Mouton said the country had to confront difficult economic conditions before some form of normality materialised in the future.
“Despite these challenges, PSG Group believes its investment portfolio is suitably positioned to capitalise on an improvement in trading conditions,” he said.
He said although the group continued to trade at a sizeable discount to its SOTP value per share, they remain focused on their objective to create wealth for shareholders on a per share basis by growing the underlying investments and pursuing value-unlocking initiatives to the extent possible.
BUSINESS REPORT ONLINE