PSG Group CEO: How to look at the results
The PSG Group has reported a headline loss per share of R14.14 against earnings of R5.68 in the previous comparable period. This is due to challenging trading conditions, brought on by COVID-19. The investment holding company has declared an ad hoc interim gross dividend of R1.64 per share. The group was reporting for the first time, after significant corporate action was undertaken with Capitec Bank. PSG Group CEO, Piet Mouton joins CNBC Africa for more.
Thu, 15 Oct 2020 15:50:27 GMT
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AI Generated Summary
- PSG Group reported a headline loss per share of R14.14, attributing the decline to tough market conditions amid the COVID-19 pandemic.
- The company shifted to investment entity accounting, marking a departure from previous consolidation methods, which affected the financial figures.
- CEO Piet Mouton outlined strategic moves, such as asset sales and capital investment, aimed at positioning PSG Group for sustainable growth amidst economic uncertainties.
PSG Group, an investment holding company, recently reported a headline loss per share of R14.14, a significant downturn from earnings of R5.68 in the previous comparable period. The CEO of PSG Group, Piet Mouton, joined CNBC Africa to discuss the results and shed light on the company's performance amidst challenging trading conditions induced by the COVID-19 pandemic. The group declared an ad hoc interim gross dividend of R1.64 per share, marking a critical moment after significant corporate action was undertaken with Capitec Bank. This was the first financial reporting period that reflected the changes in accounting principles. The company now employs investment entity accounting, which includes marking to market all of the investments in the portfolio. The CEO emphasized that the headline loss figure might be misleading due to these adjustments. Mouton suggested that the focus should be on growing the individual parts of the company rather than fixating on the headline loss. He highlighted a non-headline profit made during the same period, signaling a more nuanced financial picture. Amidst a series of strategic moves, including selling off assets, unbundling Capitec, and conducting a substantial rights issue, PSG Group is positioning itself for future growth. The CEO expressed optimism about the group's prospects, particularly after the transformation brought about by the exit of Capitec from the portfolio. Mouton detailed the allocation of proceeds from recent transactions, emphasizing debt settlement and capitalization of underlying investments. Despite the challenging economic landscape and uncertainty surrounding COVID-19's impact on various industries, Mouton commended the management teams for their resilience. While acknowledging the government's efforts to stimulate economic recovery and job creation, Mouton stressed the crucial role of the private sector in driving sustainable growth. He highlighted the importance of combating corruption, implementing structural reforms, and enhancing productivity to restore confidence and boost investment. Mouton's call for decisive actions and collaborative efforts underscored the imperative of fostering a conducive business environment in South Africa.