PSG Konsult revenue up 8%

Financial services group, PSG Konsult, has reported a positive business growth trajectory despite facing challenges in headline earnings per share due to increased cost pressures. The company's recurring headline earnings per share saw a modest increase of 1% to 31 cents per share, while the top-line revenue surged by 8%. Francois Gouws, the CEO of PSG Konsult, provided insights into the company's divisional performance during the operating period, highlighting the varying performance across different sectors. The wealth division showcased resilience with a notable 8% increase in net inflows, while both the asset management and insurer divisions experienced declines of 16% and 17%, respectively. Gouws attributed these challenges to declining markets, both internationally and in South Africa, amid weak economic growth. As the markets face broad-based sell-offs, Gouws shared his outlook on current market valuations, emphasizing the impact of expected rising US interest rates well into the third quarter of the following year. He noted that while market valuations appear more attractive, the anticipation of increased rates could lead to continued volatility and economic uncertainties. Despite the earnings pressure, PSG Konsult has maintained its focus on strategic investments in technology, innovation, and human capital. The company's commitment to long-term growth is evident through a 14% increase in technology costs and a nearly 7% rise in headcount. Gouws expressed optimism about the future, highlighting PSG Konsult's track record of compounding earnings at 20% over the past decade. He underlined the importance of taking a long-term view and remaining confident in the company's growth prospects. PSG Konsult's growth momentum remains strong, with significant net inflows in the wealth management business and robust top-line growth in the insurance segment despite challenging market conditions. Looking ahead, Gouws emphasized the company's strategic focus on its core businesses to drive operational leverage and deliver sustainable returns. PSG Konsult's disciplined approach to growth includes leveraging market opportunities, building scale, and avoiding distractions from potential acquisitions or mergers. By maintaining a steadfast focus on core operations, PSG Konsult aims to enhance shareholder value and capitalize on its long runway for growth.