Message from the CEO
Unaudited results for
the six months ended
30 September 2017
Annuity income and growing income from outside South Africa made a significant contribution to a pleasing set of results for the six months to September 2017.
Despite challenging market conditions, the Group managed to deliver yet another solid set of results thanks to its strong base of profitable, cash generative and diversified operating businesses. The Group continues to focus on growing its subsidiaries organically and through acquisition as well as driving cross business revenue synergies and remains well positioned to capitalise on further growth opportunities. In addition, measures are being put in place to ensure that all the group entities, particularly Peregrine Securities, are sufficiently capitalised to take advantage of the continuously changing environment.
Normalised headline earnings and normalised headline earnings per share both increased by 6% to R272 million and 126.0 cents respectively.
Annuity earnings from the operating businesses grew by 20% to R163 million and accounted for 79% (2016: 73%) of the aggregate earnings. Variable and performance fee earnings decreased by 13% to R44 million in the main due to lower variable type earnings in Peregrine Securities, partly offset by higher performance fees earned by other Group subsidiaries. The contribution from offshore operations continues to play a meaningful role in diversifying Group income with 33% of the aggregate earnings of the operating entities being generated from outside of South Africa.
The restructuring of the Group, as announced with the full year results published in June this year, has progressed very well. All surplus non-operating net assets held by the Group (including excess cash, investment in hedge funds and other proprietary investments), were transferred to Sandown Capital Limited (SDC), a wholly owned subsidiary of Peregrine, with effect from 2 October 2017. The restructure and subsequent unbundling will result in SDC being separately listed on the JSE on Wednesday, 29 November 2017 with the shares in SDC being unbundled to Peregrine shareholders on Monday, 4 December 2017. The Peregrine unbundling circular and the SDC pre-listing statement are available on the Peregrine website (www.peregrine.co.za). As a result of the restructure, the interim results for the six months ended September 2017 and the results for the year ending 31 March 2018 will be the last sets of results which will include returns on proprietary investments.
Having regard to market conditions, all subsidiaries overall reported satisfactory results with the majority exceeding expectation. Despite the factors driving local market sentiment, we believe the Group is well poised to deliver growth for the remainder of the year.
Group CEO & CFO
Click here to view the Unaudited results for the six months ended 30 September 2017.