Capitec and Curro boost PSG Group’s earnings

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The group says it grew earnings by 9% in the year ended February 2019

PSG Group, which holds large stakes in Capitec, PSG Konsult and Curro, says it grew earnings by 9% in the year ended February 2019 thanks to “commendable” performances from its main investments.

Recurring earnings per share rose 9% to R10.86 as strong performances by financial services firms Capitec and PSG Konsult, and by private schools group Curro, offset weaker showings from start-up investor PSG Alpha and agricultural group Zeder.PSG, the group founded by Jannie Mouton and headed by his son, Piet, raised its dividend for the year by 10% to R4.56 a share. Its sum-of-the-parts valuation of R329.73 per share, as of April 18, implies that it is trading at a discount of nearly 20%.

In late March, Capitec said its headline earnings in the year ended February 2019 rose 19% to R5.3bn as its client base grew by 1.5-million to 11.4-million.

 

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