PSG Group CEO on COVID-19 impact on business & post COVID-19 outlook
Investment holding company, PSG Group has reported a 17 per cent headline earnings per share increase for its full year results ended February. But the company has noted that it is bracing itself for the future of a post COVID-19 crisis. The company has declared a final dividend of 239 cents per share which is a 48 per cent decrease from the previous year. This decrease was due to Capitec, the group’s largest investment and contributor not declaring a final dividend in line with the South African Reserve Bank’s guidance to banks. PSG Group CEO, Piet Mouton joins CNBC Africa for more.
Thu, 23 Apr 2020 11:07:41 GMT
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AI Generated Summary
- The interconnectedness of businesses and the economy underscores the need for a balanced approach to revive economic activity while ensuring public health.
- Capitec's robust financial position and proactive management provide resilience amidst economic uncertainties.
- PSG Group emphasizes internal stability and support for existing subsidiaries during the crisis, temporarily redirecting acquisition focus.
PSG Group, an investment holding company, has reported a 17% increase in headline earnings per share for its full-year results ending in February. Despite this positive performance, the company is preparing for the challenges of a post-COVID-19 world. The declaration of a final dividend at 239 cents per share represents a 48% decrease from the previous year, largely influenced by Capitec, the group's largest investment, not declaring a dividend in line with the South African Reserve Bank guidelines. In an interview with CNBC Africa, PSG Group CEO Piet Mouton shed light on the company's strategies and concerns amidst the ongoing crisis. Amidst uncertainties surrounding the potential extension of lockdown measures, Mouton emphasized the interconnectedness of businesses and the economy at large. He urged for a balance between protecting the vulnerable and reigniting economic activity to prevent widespread job losses and revenue decline. With PSG Group employing over 20,000 people, Mouton acknowledged the challenges in predicting the magnitude of job losses but underscored the company's commitment to supporting its subsidiaries. Mouton expressed confidence in Capitec's resilience, attributing its well-managed operations and healthy financial position to withstand the economic downturn. In addressing the prolonged economic recovery, Mouton acknowledged the arduous task of rebuilding a devastated economy post-COVID-19. The CEO called for swift government action in gradually lifting restrictions to kickstart economic activity while preserving public health. Highlighting the plight of disadvantaged students due to school closures, Mouton stressed the importance of education and advocated for the reopening of schools to prevent long-term setbacks. Regarding potential acquisitions in a market downturn, Mouton remained cautious and prioritized internal stability, emphasizing the company's focus on supporting existing businesses during the crisis.