After completing the repositioning of its business, financial services firm PSG Konsult is hoping to finalise a decision to list on the JSE in the second half of next year.
The company, which from March divided its business into the three focus areas of wealth, asset management and insurance, says its repositioning process is complete. But it wants to produce its first full-year results since the restructuring to see if it is working as expected before listing. PSG Konsult’s financial year ends in February and it expects to publish results around April next year.
PSG Konsult is 65 percent owned by the JSE-listed PSG Group.
Chief executive Francois Gouws said PSG Konsult’s shareholders preferred its management team to “play in front of the stadium, not behind. It has always been a philosophy that the management team be visible to shareholders, perform and meet the expectations of a listed company.”
In the interim, the company would be implementing strategic initiatives to invest in new growth areas. Its three divisions, which have separate balance sheets, would also pursue their own new businesses.
The wealth business, which has been acquiring new financial advisers, is looking to recruit more and grow its pre-existing business, such as stock broking. Asset management, which in the year to August experienced strong fund inflows and delivered commendable investment returns, will focus on institutional investors. “We are in a good position to challenge larger asset managers out there and offer institutional investors an alternative,” Gouws said.
The insurance business hopes to attract more clients by offering less complex documentation.
At the end of August, PSG Konsult’s business network consisted of 220 offices. In the next few months, the group wants to implement three-year strategic plans for each of its underlying businesses and grow its business network further.
In the first half to August, the firm posted recurring headline earnings of R108.7 million, up 50 percent from last year. Its recurring headline earnings a share increased by 31 percent to 8.9c.
Funds under management increased by 35 percent to R93 billion. Funds under administration grew by 32 percent to R107bn, and the group’s total assets rose by 33 percent to R200bn. The company declared an interim dividend of 4c a share, increasing from 3.5c last year.
PSG Group closed yesterday at R78.60, 0.51 percent lower than the previous day.