Our opinion on the current state of PSG

PSG Konsult (KST) is a well-established financial services group which grew out of PSG's stockbroking business and which now offers a wide range of financial services including financial planning, unit trusts, healthcare, short-term insurance and estate planning. PSG still holds 60% of the company. In its results for the year to 28th February 2023 the company reported core income up 8% and recurring headline earnings per share (HEPS) up 5%. Gross written premiums increased 9% and assets under management (AUM) increased by 13%. The company said, "...our Insure division was adversely impacted by the KZN floods during April 2022, but Western National’s comprehensive reinsurance programme cushioned the effect on underwriting results. Compared to the prior year, our technology and infrastructure spend increased by 13% (these costs continue to be fully expensed), while our fixed remuneration cost grew by 10%". The share trades on an earnings multiple (P:E) of 16,75 - so it is not cheap, but it is a high-quality company that has demonstrated its ability to produce good returns even in an adverse economic climate. Technically, the share has been in an upward trend since March 2020 and is looking like good value. On 1st March 2022 PSG announced that it will be unbundling its holding of PSG Konsult (60,8%) into the hands of PSG shareholders to release value.