PGR: PEREGRINE HOLDINGS LIMITED - Condensed consolidated unaudited results for the six months ended 30 September 2018
Condensed consolidated unaudited results for the six months ended 30 September 2018

Peregrine Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/006026/06)
Share code: PGR ISIN: ZAE000078127
("Peregrine" or "the Group" or "the Company")

CONDENSED CONSOLIDATED UNAUDITED RESULTS FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2018

HIGHLIGHTS

-   SEGMENTAL HEADLINE EARNINGS UP 4% TO R283 MILLION
-   ANNUITY EARNINGS FROM CONTINUING OPERATIONS UP 15%
-   FIRST INTERIM DIVIDEND OF 85.0 CENTS PER SHARE

Introduction
The six months ended 30 September 2018 could best be summarised as an emerging
market risk-off sell-off with safe haven assets and geographies having outperformed riskier
assets with growth potential. On the international front, there was accelerated growth in the
US on the back of fiscal stimulus as well as reduced commodity demand from China, which
resulted in currency depreciation against the US Dollar in many emerging markets and
developing economies with Argentina, Turkey, Brazil and South Africa being amongst the
worst affected. Likewise, the US Dollar was stronger against the Euro, Sterling and Yen.

Locally, the South African economy slipped into a technical recession during the second
quarter of 2018. The possibility of credit-rating downgrades will continue to hang over the
economy well into next year with fiscal slippage and a slow-moving reform agenda likely to
constrain growth over the medium-term. The recent appointment of Tito Mboweni as the new
Minister of Finance represents a step forward in President Ramaphosa's administration's
fight against corruption.

Notwithstanding the difficult trading environment, the operating businesses in the Group
increased Segmental earnings to R283 million with the continuing operations (those
businesses excluding the Broking & Structuring business, which is in the process of being
sold), delivering growth of 31% to R206 million.

Across the continuing operations, on a Segmental basis, annuity earnings grew by 15% 
and accounted for 91% (2017: 75%) of the aggregate earnings. Variable and
performance fee earnings decreased by 67% to R13 million mainly due to lower
performance fees earned by Peregrine Capital. The contribution from offshore operations
continues to play a meaningful role in diversifying Group income with 56% (2017: 38%) of
the aggregate earnings from continuing operations being generated from outside of South
Africa. The abovementioned annuity earnings and contribution from offshore operations
relate to Segmental earnings and excludes a one-time performance fee on exit amounting to
GBP3 million (R58 million) received by Stenham during the period arising out of the disposal of
a property which formed part of the property portfolio sold to Stenprop in 2014 ("the ad hoc
performance fee").

Financial results
IFRS basic earnings and headline earnings attributable to ordinary shareholders amounted
to R272 million (2017: R257 million) (+6%) with basic earnings and headline earnings per
ordinary share amounting to 128.7 cents per share (2017: 122.0 cents per share) (+5%).

Consistent with the prior year, in addition to providing the above IFRS earnings, Segmental
earnings (referred to in the Introduction) are disclosed in more detail below.

Continuing operations - Segmental

Total operating revenue, which includes the ad hoc performance fee, grew by 2% to 
R789 million (2017: R775 million). Whilst core operating revenue grew by 5% to R704 million,
performance fee related income decreased by 75% to R27 million. Investment and other
income decreased by 95% due to the unbundling of the Group's proprietary assets at the
beginning of the second half of the 2018 financial year.

Discontinued operation - Segmental

Shareholders are referred to previous SENS announcements informing them of the disposal
of the Broking & Structuring business, which disposal is subject to approval by the
Competition Commission, which approval is expected to be received before the end of the
2018 calendar year.

Due to the imminent disposal of the Broking & Structuring business, the Group's interest in
the after tax profit has been separately presented on the face of the statement of
comprehensive income for both IFRS as well as Segmental purposes as "Profit from
discontinued operation (net of income tax)".

As a result primarily of increased net funding revenue as well as significant foreign exchange
gains on US Dollar denominated working capital, the after tax profit from the discontinued
operation increased by 50% to R112 million (2017: R75 million). At a headline earnings
level, this translated into an increase of 54% to R77 million (2017: R50 million), of which 
R21 million (2017: R11 million) relates to the notional cost of capital, which, but for the 
disposal of the Broking & Structuring business, would have been included as earnings in the 
Group Segment.

Total earnings and headline earnings - Segmental

Earnings and headline earnings increased by 4% to R283 million (2017: R272 million), with
earnings and headline earnings per share increasing by 4% to 131.4 cents (2017: 126.0 cents). 
Excluding the discontinued operation, earnings and headline earnings from continuing operations 
increased by 31% to R206 million (2017: R157 million). Stripping out the impact of the ad hoc 
performance fee in the current period and the income contribution of the Group's investment in 
proprietary assets in the prior period, earnings and headlineearnings from continuing operations 
decreased by 6% to R148 million.

Annexures disclosing IFRS and Segmental earnings, and the reconciliation between them,
as well as a Segmental statement of comprehensive income disclosing Segmental earnings
between continuing operations and the discontinued operation are available on the Group's
website http://www.peregrine.co.za.

Segmental results
Substantial non-controlling interests exist in Peregrine Capital and Peregrine Securities and
as such management believes that headline earnings per reportable Segment (which is the
basis for the commentary below) best reflects the facts recording each Segment's specific
economic benefit to the shareholders of the Group. In addition, reference to operating results
are presented before tax and before non-controlling interests in the financial commentary
below. Management believes that this further aids in the understanding of each Segment's
profitability.

Wealth Management
Despite the ongoing difficult investment environment, Citadel continued to capitalise on its
position as a leading private client wealth manager in South Africa, growing core revenue by
8% to R461 million. Assets under management as at 30 September 2018 grew to R50.8 billion 
(March 2018: R43.9 billion) with gross inflows for the current reported six months
amounting to R2.2 billion (September 2017: R2.1 billion). The business remains geared
toward the Rand/US Dollar rate with assets under management positively impacted by the
currency weakness experienced during the latter part of the period under review. The client
retention rate in the business remains strong at 97%. Headline earnings for the current
reported six months increased by 21% to R114 million (2017: R94 million) with strong
annuity earnings growth, effective cost controls, healthy inflows and significantly increased
performance fees earned off the back of improved fund performance.

Asset Management
The Group's Asset Management division comprises a number of fund management
businesses. The largest contributor to the division is the Group's flagship hedge fund
manager, Peregrine Capital. Headline earnings for the division decreased to R13 million
(2017: R42 million) primarily as a result of Peregrine Capital's reduced management fees
earned off the back of a reduced asset base as well as lower performance fees earned as a
result of performance deficits brought forward from the final quarter of the previous financial
year. Peregrine Capital's asset base reduced to R6.7 billion at 30 September 2018
(March 2018: R7.4 billion) largely as a result of industry wide redemptions out of hedge
funds.

Stenham
With effect from 4 July 2017, Peregrine's shareholding in Stenham Limited increased from
90.5% to 100%. In Rand terms, headline earnings increased by over 100% to R92 million
(2017: R46 million). Excluding the ad hoc performance fee in the current period as well as
the contribution of the division's investment in proprietary assets in the prior period, headline
earnings from operating businesses increased by 26% to R34 million (2017: R27 million).

Stenham Asset Management continued to perform well with headline earnings increasing by
23% to R26 million (2017: R21 million). Total assets under management and advice have
increased to $4.1 billion (March 2018: $3.7 billion), with net subscriptions materialising
during the current period. Operating costs have remained well contained due to ongoing cost
savings initiatives.

Stenham Trustees managed to grow revenue in Sterling terms as a result of increased time
charges despite closing a number of inefficient structures. In an environment of ever 
increasing regulatory costs, operating costs have increased. Headline earnings increased 
by 8% to R18 million (2017: R16 million).

Advisory
Java Capital's earnings were significantly impacted by the continued weak equity capital
markets that have manifested from the beginning of the calendar year. As a result of the
benign activity in the property sector in particular, Java Capital's headline earnings
contribution decreased by 41% to R11 million (2017: R18 million).

Group
Earnings at a head office level decreased to negative R3 million (2018: R33 million), such amount
comprising R21 million (2017: R11 million) in respect of the notional cost of capital income
(see "Discontinued operation - Segmental" above), negative R24 million (2017: negative
R24 million) in respect of unrecovered Group costs and Rnil (2017: R46 million) in respect of
the Group's investment in proprietary assets.

Issued share capital
Shares in issue at 30 September 2018 amount to 226.066 million and net of 16.181 million
treasury shares amounted to 209.885 million. The weighted average number of shares in
issue amounted to 211.120 million.

The modification to the Peregrine Holdings Limited long-term executive remuneration
incentive scheme shortly before the end of the 2018 financial year from a cash-settled to an
equity-settled scheme, resulted in the share buyback of 0.702 million Peregrine shares. 
In addition, during the period under review, in terms of Peregrine's general authority to 
repurchase shares, 0.557 million shares were repurchased with excess cash available and 
have been cancelled with effect from 10 October 2018.

Dividend
The directors have resolved to declare a maiden interim cash dividend of 85.0 cents per
share for the six months ended 30 September 2018. 

The salient dates applicable to the interim cash dividend:
Last date to trade cum dividend                       Tuesday, 5 February 2019
Trading ex dividend commences                         Wednesday, 6 February 2019
Record date                                           Friday, 8 February 2019
Payment date                                          Monday, 11 February 2019

In terms of the JSE Listings Requirements the following additional information is disclosed:
1. The ordinary cash dividend has been declared out of income reserves;
2. The local dividend tax rate is 20%;
3. The gross local dividend amount for the interim ordinary cash dividend is 85.0 cents per
   share for shareholders exempt from paying dividends tax;
4. The net local dividend amount for the ordinary cash dividend is 68.0 cents per share for
   shareholders liable to pay dividends tax;
5. The issued share capital of Peregrine is 225 508 948 shares of 0.1 cent each as at the
   date of this announcement; and
6. Peregrine's tax reference number is 9181924847.

Shares may not be dematerialised or rematerialised between Wednesday, 6 February
2019 and Friday, 8 February 2019, both dates inclusive.

Payment of the dividend will be made to shareholders on Monday, 11 February 2019. 
In respect of dematerialised shares, the dividend will be transferred to the CSDP/broker
accounts on Monday, 11 February 2019. Certificated shareholders' dividend payments will
be deposited on or about Monday, 11 February 2019.

Directorate
At the annual general meeting of shareholders held on 6 September 2018, the ordinary
resolutions to re-elect SA Melnick and P Goetsch as directors of Peregrine were passed by
the requisite majority. In addition, the appointment of C Coward and B Tlhabanelo as
directors of Peregrine were both approved by the requisite majority of votes exercised.

Conclusion
The Group has delivered a pleasing set of results in a challenging economic environment
which we anticipate will continue for at least the remainder of the Group's financial year.
Despite the tough environment we are delighted to announce that for the first time in our
listed history, and in line with the direction given to shareholders at the time of the
restructure and the unbundling of Sandown Capital Limited in the latter part of 2017, we will
be paying an interim cash dividend.

A significant focus is being placed on driving cross-business revenue and cost synergies
throughout the Group which is already starting to reap benefits. In addition, appetite remains
for potential acquisitions that are consistent with the cash generative nature of the
businesses within the Peregrine Group.

Rob Katz                                                 Sean Melnick
Chief Executive Officer                                  Non-executive Chairman

Sandton
20 November 2018

Directors: SA Melnick^ (Chairman); RE Katz (CEO); C Coward (CFO); M Yachad; BC
Beaver*; P Goetsch^; LN Harris#; S Sithole*; SI Stein*; B Thlabanelo*
^ Non-executive *Independent non-executive #Lead independent non-executive
Company secretary and registered office: Peregrine Management Services Proprietary
Limited, 6A Sandown Valley Crescent, Sandown, Sandton, 2196 (PO Box 650361,
Benmore, 2010), Telephone: +27 11 722 7400 Fax: +27 11 722 7410
Transfer Secretaries: Computershare Investor Services Proprietary Limited, Rosebank
Towers, 15 Biermann Avenue, Rosebank, 2196 (PO Box 61051, Marshalltown, 2107)
Joint Sponsors: Deloitte, Java Capital

Condensed consolidated statement of comprehensive income
                                                                                                Results for the  Results for the six    Results for the
                                                                                    % change   six months ended      months ended 30      year ended 31
                                                                                     2017 to       30 September       September 2017         March 2018
                                                                                        2018               2018         Re-presented       Re-presented
                                                                                                          R'000                R'000              R'000
Continuing operations                   
Operating revenue                                                                         -5            788 987              828 603          1 749 797
Investment and other income                                                              -87              8 047               62 027             60 999
Total revenue                                                                            -11            797 034              890 630          1 810 796
Operating expenses                                                                        -3          (561 212)            (580 308)        (1 279 914)
Profit from operations                                                                   -24            235 822              310 322            530 882
Net interest received                                                                                     2 125                  671              2 963
  Interest received                                                                                      11 762                9 073             24 075
  Interest paid                                                                                         (9 637)              (8 402)           (21 112)
Share of profits from equity accounted investees                                         -37             29 367               46 650             97 099
Profit before taxation                                                                                  267 314              357 643            630 944
Taxation                                                                                               (37 758)             (69 059)          (112 924)
Profit for the period from continuing operations                                         -20            229 556              288 584            518 020
Discontinued operation                  
Profit from discontinued operation (net of income tax)(1)                                 50            112 422               75 094            166 313
Profit for the period                                                                    -6             341 978              363 678            684 333
                  
Other comprehensive income for the period net of taxation                  
 Items that may be reclassified subsequently to profit or loss:                  
 Currency translation differences                                                                        79 904               84 359             24 898
                  
Total comprehensive income for the period                                                               421 882              448 037            709 231
                  
Profit for the period attributable to :                  
Equity holders of the company                                                              6            277 461              261 187            513 176
Non-controlling interests                                                                -37             64 517              102 491            171 157
                   
                                                                                          -6            341 978              363 678            684 333
Total comprehensive income for the period attributable to :                   
Equity holders of the company                                                                           353 720              342 557            536 783
Non-controlling interests                                                                                68 162              105 480            172 448
                   
                                                                                                        421 882              448 037            709 231
                   
Basic earnings per ordinary share (cents)(2)                                               5              128.7                122.0              238.5
 Continuing Operations                                                                                     93.1                 98.7              184.8
 Discontinued Operation                                                                                    35.6                 23.3               53.7

Reconciliation of headline earnings 
                                                                                                 Results for the  Results for the six   Results for the
                                                                                     % change   six months ended      months ended 30     year ended 31
                                                                                      2017 to       30 September       September 2017        March 2018
                                                                                         2018               2018         Re-presented      Re-presented
                                                                                                           R'000                R'000             R'000

Profit for the period attributable to equity holders                                        6            277 461              261 187           513 176
Adjustment relating to earnings attributable to participating treasury shares(2)                         (5 746)              (4 141)           (9 252)
Basic earnings attributable to ordinary shareholders                                        6            271 715              257 046           503 924
Headline earnings adjustments                                                                                  -                    -                 -
Headline earnings(3)                                                                        6            271 715              257 046           503 924
Adjustment for discontinued operation(1)                                                                (75 109)             (49 091)         (113 560)
Headline earnings from continuing operations(3)                                                          196 606              207 955           390 364
           
Headline earnings per ordinary share (cents)                                                5              128.7                122.0             238.5
  Continuing operations                                                                                     93.1                 98.7             184.8
  Discontinued operations                                                                                   35.6                 23.3              53.7
Final cash dividend paid per ordinary share in respect of the previous year (cents)         -              155.0                155.0             155.0
Final cash dividend per ordinary share declared subsequent to 31 March (cents)             10              170.0                155.0             170.0
Interim cash dividend per ordinary share declared subsequent to 30 September (cents)                        85.0                   -                -
Number of ordinary shares in issue ('000)                                                                226 066              226 066           226 066
Treasury shares held ('000)                                                                               16 181               13 902            14 715
Weighted average number of ordinary shares in issue ('000)                                               211 120              210 658           211 293
 
1 Refer to Notes & Compliance section for additional information relating to the discontinued operation.
2 The participating treasury shares held at reporting date could potentially have a dilutive effect on conversion to ordinary shares. 
Diluted earnings per share has not been disclosed as the participating treasury shares have an anti-dilutive effect.
3 Annexure A, disclosing the reconciliation of IFRS and Segmental headline earnings, is available on the Group's website.

Condensed consolidated statement of financial position
                                                                                                                             As at 30    As at 31 March
                                                                                                                       September 2018              2018
                                                                                                                                               Restated
                                                                                                                                R'000             R'000
Assets                                                          
                                                          
Non-current assets                                                                                                          7 219 395         6 991 182
                                                          
Property, plant and equipment                                                                                                 106 994           121 677
Intangible assets                                                                                                             645 713           658 055
Investment in equity accounted investees                                                                                      281 295           373 594
Investments linked to policyholder investment contracts                                                                     6 057 602         5 670 093
Deferred taxation                                                                                                              64 087            89 661
Financial investments                                                                                                          56 718            46 334
Loans and receivables                                                                                                           6 986            31 768
                                                          
Current assets                                                                                                                776 138        18 679 074
                                                             
Financial investments                                                                                                          56 063            87 174
Loans and receivables                                                                                                           8 160           163 863
Trade and other receivables                                                                                                   274 588           441 329
Amounts receivable in respect of stockbroking activities                                                                            -        15 301 667
Taxation                                                                                                                        9 321            18 318
Cash and cash equivalents                                                                                                     428 006         2 666 723
                                                          
Assets held for resale(1)                                                                                                  17 841 122                 -
                                                          
Total assets                                                                                                               25 836 655        25 670 256
                                                            
Equity and liabilities                                                            
                                                            
Equity                                                                                                                      2 482 056         2 517 853
                                                            
Equity attributable to equity holders of the company                                                                        2 081 062         2 106 366
Non-controlling interests                                                                                                     400 994           411 487
                                                            
Non-current liabilities                                                                                                     6 214 557         5 879 230
                                                          
Policyholder investment contract liabilities                                                                                6 057 602         5 670 093
Interest-bearing borrowings(2)                                                                                                119 403           170 428
Deferred taxation                                                                                                               9 628             9 324
Loans and other payables                                                                                                       27 924            29 385
                                                            
Current liabilities                                                                                                           589 618        17 273 173
                                                          
Interest-bearing borrowings(2)                                                                                                245 249           305 298
Financial instrument liabilities                                                                                                    -            31 339
Trade and other payables                                                                                                      312 919           777 952
Amounts payable in respect of stockbroking activities                                                                               -        16 114 151
Taxation                                                                                                                       31 450            44 433
                                                            
Liabilities held for resale(1)                                                                                             16 550 424                 -
                                                           
Total equity and liabilities                                                                                               25 836 655        25 670 256

1 Refer to Notes & Compliance section for additional information relating to the discontinued operation.
2 In the prior period, R253 million of the revolving credit facility with Investec Bank Limited has been reclassified from non-current to current. This
reclassification had no other effect on the reported results of the Group as at 31 March 2018.

Condensed consolidated statement of changes in equity
                                                                                                     Total capital and   Non-controlling
                                                                                                              reserves         interests   Total equity
                                                                                                                 R'000             R'000          R'000
2018            
Balance at 31 March 2018                                                                                     2 106 366           411 487      2 517 853
Profit for the period                                                                                          277 461            64 517        341 978
Other comprehensive income for the period                                                                       76 259             3 645         79 904
Transactions with owners recorded directly in equity:                                                        (379 024)          (78 655)      (457 679)
  Dividends paid(1)                                                                                          (358 699)          (78 655)      (437 354)
  Share-based payments                                                                                           8 810                 -          8 810
  Acquisition of participating treasury shares(2)                                                             (11 870)                 -       (11 870)
  Repurchase of treasury shares(3)                                                                            (19 470)                 -       (19 470)
  Disposal of Sandown Capital Limited shares (adjustment to prior year taxation effect)(4)                       2 205                 -          2 205
            
Balance at 30 September 2018                                                                                 2 081 062           400 994      2 482 056
            
2017            
Balance at 31 March 2017                                                                                     3 063 188           474 851      3 538 039
Profit for the period                                                                                          261 187           102 491        363 678
Other comprehensive income for the period                                                                       81 370             2 989         84 359
Transactions with owners recorded directly in equity:                                                        (331 051)         (190 873)      (521 924)
  Dividends paid                                                                                             (326 207)          (85 801)      (412 008)
  Share-based payments                                                                                          36 165                 -         36 165
  Disposal of participating treasury shares                                                                    117 273                 -        117 273
  2015 deferred remuneration scheme 2 settlement                                                              (80 136)                 -       (80 136)
  Acquisition of participating treasury shares                                                                (97 470)                 -       (97 470)
  Repurchase and cancellation of shares of subsidiary                                                           19 324         (111 832)       (92 508)
  Subscription of shares in new subsidiary                                                                           -             6 342          6 342
  Additional subscription of shares in subsidiary                                                                    -               418            418
            
Balance at 30 September 2017                                                                                 3 074 694           389 458      3 464 152
Profit for the period                                                                                          251 989            68 666        320 655
Other comprehensive income for the period                                                                     (57 763)           (1 698)       (59 461)
Transactions with owners recorded directly in equity:                                                      (1 162 554)          (44 939)    (1 207 493)
  Dividends paid                                                                                                     -         (162 090)      (162 090)
  Distribution in specie                                                                                   (1 198 780)          (32 902)    (1 231 682)
  Disposal of Sandown Capital Limited shares (net of taxation)                                                  27 463                 -         27 463
  Share-based payments                                                                                          16 709                 -         16 709
  Disposal of participating treasury shares                                                                          -                 -              -
  2015 deferred remuneration scheme 2 settlement                                                                     -                 -              -
  Acquisition of participating treasury shares                                                                       -                 -              -
  Repurchase of treasury shares                                                                                (7 955)                 -        (7 955)
  Repurchase and cancellation of shares of subsidiary                                                                9               (9)              -
  Disposal of investment in subsidiary company                                                                       -             (708)          (708)
  Subscription of shares in new subsidiary                                                                           -            17 766         17 766
  Additional subscription of shares in subsidiary                                                                    -           133 004        133 004
            
Balance at 31 March 2018                                                                                     2 106 366           411 487      2 517 853

1 Dividends paid to equity holders of the Company relate to the 170 cents per share which was paid on Monday, 6 August 2018.
2 The Citadel 2017 deferred remuneration scheme 3 was initiated during the month of September 2017, with an effective date of 1 October 2017 and a maturity 
  date of 31 March 2022, the terms of which provided the participants with the right to participate in an asset pool, which is settled through an attribution 
  of profits over the service period. In this regard, 557 603 Peregrine shares, which carry participating rights, were acquired during the course of 
  September 2018.
3 The Peregrine Holdings long-term executive remuneration incentive scheme was modified shortly before the end of the 2018 financial year from cash-settled 
  (IAS 19) to equity-settled (IFRS 2). The modification resulted in the share buyback of 701 500 Peregrine shares, of which 351 500 shares were acquired 
  during the course of the current period. In addition, by utilising excess cash reserves, the Company repurchased 556 748 of its shares during the course 
  of September 2018, which shares were cancelled effective 10 October 2018.
4 As referred to in the March 2018 financial statements as well in the circular to Peregrine shareholders issued on Tuesday, 14 November 2017, following on 
  the restructure and unbundling the Group received 10 484 314 Sandown Capital Limited shares as a result of 10 484 314 Peregrine shares (which shares were 
  held as treasury shares) held by the Group at the unbundling record date. On 29 March 2018, the Group entered into an off-market transaction whereby it 
  sold 10 484 314 Sandown Capital shares at R3.40 per share. The estimated tax effect thereof amounted to R8 million and was accounted for through equity. 
  In the current period an adjustment of R2 million relating to an overprovision of taxation has been accounted for through equity.

Condensed consolidated statement of cash flow
                                                                                                                        For the six          For the six
                                                                                                                    months ended 30      months ended 30
                                                                                                                     September 2018       September 2017
                                           
                                                                                                                              R'000                R'000
                                           
Cash flow from operating activities                                                                                       (733 165)            (282 973)
 Cash flow from operating activities excluding stockbroking activities                                                      207 532              305 421
 Cash flow from stockbroking activities                                                                                   (581 331)            (235 795)
 Net interest and dividends received                                                                                        125 458              123 675
 Cash dividends paid                                                                                                      (420 371)            (412 008)
 Taxation paid                                                                                                             (64 453)             (64 266)
                                           
Cash flow from investing activities                                                                                          20 823               22 206
 Net disposal of financial investments and other assets                                                                      35 324               47 365
 Net purchase of property, plant and equipment                                                                              (9 501)              (6 708)
 Net acquisitions of subsidiaries                                                                                                 -             (18 451)
 Net acquisition of interest in equity accounted investee companies                                                         (5 000)                    -
                                           
Cash flow from financing activities                                                                                           7 056            (420 060)
 Net (acquisition)/disposal of treasury shares                                                                             (31 340)               19 803
 Settlement of Citadel deferred remuneration scheme                                                                               -             (80 136)
 Net cash flow from equity transactions with non-controlling interest                                                             -             (85 748)
 Loans and receivables settled/(advanced)                                                                                   167 247             (61 988)
 Net settlement of financial liabilities                                                                                  (128 851)            (211 991)
                                           
Net decrease in cash and cash equivalents                                                                                 (705 286)            (680 827)
Cash and cash equivalents at beginning of the year                                                                        2 666 723            2 751 480
Effects of exchange rate changes on cash and cash equivalents                                                                44 534               16 814
                                           
Cash and cash equivalents at end of the period                                                                            2 005 971            2 087 467
                                           
Presented and disclosed in the Statement of Financial Position under:                                           
Current assets                                                                                                              428 006              600 679
Assets held for resale (Discontinued Operation)(1)                                                                        1 577 965            1 211 685
Assets held for resale (Proprietary Assets)                                                                                       -              275 103
                                           
                                                                                                                          2 005 971            2 087 467
1 Refer to the Notes & Compliance section for additional information relating to the discontinued operation.

Segmental analysis
                                                                       Interest and share
                                                                          of profits from
                                                                         equity accounted  Profit from ordinary                     % change in headline
                                                         Total revenue          investees         activities(1)   Headline earnings             earnings
                                                                 R'000              R'000                 R'000               R'000         2017 to 2018
For the six months ended 30 September 2018 * 
 
Wealth and Asset Management                                    545 254              8 666               192 155             127 182                   -7
  Wealth Management                                            490 404              4 084               157 424             113 859                   21
  Asset Management                                              54 850              4 582                34 731              13 323                  -68
Broking and Structuring                                        346 400             57 391               113 797              55 599                   44
Stenham                                                        246 966              9 587                94 605              92 357                 >100
Advisory                                                             -             12 315             12 315(2)              10 591                  -41
Subtotal from reportable segments                            1 138 620             87 959               412 872             285 729                   20
Group                                                            1 873             38 702                10 839             (3 058)                 >100

Total from reportable segments                               1 140 493            126 661               423 711             282 671                    4

Operating Businesses Continuing Operations                     794 093             35 195               275 839             205 973                   31
Operating Businesses Discontinued Operation                    346 400             91 466               147 872              76 698                   54
  Broking and Structuring                                      346 400             57 391               113 797              55 599                   44
  Group(3)                                                           -             34 075                34 075              21 099                   89
Proprietary Assets                                                   -                  -                     -                   -                 -100

Total from reportable segments                               1 140 493            126 661               423 711             282 671                    4

Non-reportable segment and reconciling items(4)                  3 024            (3 703)               (8 525)            (10 956)

Total per Consolidated statement of comprehensive income     1 143 517            122 958               415 186             271 715                    6

For the six months ended 30 September 2017 (re-presented)*

Wealth and Asset Management                                    596 248             14 280               259 488             136 360
  Wealth Management                                            438 719             10 192               129 504              94 324
  Asset Management                                             157 529              4 088               129 984              42 036
Broking and Structuring                                        329 528             24 255                82 209              38 715
Stenham                                                        214 448             10 552                56 511              45 713
Advisory                                                             -             20 997             20 997(2)              18 057
Subtotal from reportable segments                            1 140 224             70 084               419 205             238 845
Group                                                           69 445             19 755                55 848              32 834
                          
Total from reportable segments                               1 209 669             89 839               475 053             271 679
                          
Operating Businesses Continuing Operations                     778 068             47 165               282 749             156 939
Operating Businesses Discontinued Operation                    329 528             42 289               100 243              49 882
  Broking and Structuring                                      329 528             24 255                82 209              38 715
  Group(3)                                                           -             18 034                18 034              11 167
Proprietary Assets                                             102 073                385                92 061              64 858
  Stenham                                                       33 461                364                25 496              18 642
  Group                                                         68 612                 21                66 565              46 216
                          
Total from reportable segments                               1 209 669             89 839               475 053             271 679
                          
Non-reportable segment and reconciling items(3)                 10 818              (229)              (17 167)            (14 633)
                          
Total per Consolidated statement of comprehensive income     1 220 487             89 610               457 886             257 046

1 Profit from ordinary activities is synonymous with profit before taxation and capital items per the condensed consolidated 
  statement of comprehensive income.
2 Represents 50% of profit after taxation of the equity accounted investment.
3 Due to the imminent disposal of the Broking and Structuring division the Group's cost of capital recovery has been presented 
  as part of Profit from discontinued operation (net of income tax) on the face  of the IFRS Statement of Comprehensive Income as 
  well as part of the Segmental analysis above.
4 The reconciling items relate primarily to the difference in classification of Citadel's long term 2015 deferred remuneration 
  scheme 2 for IFRS purposes and that applied for purposes of providing information to the Chief Operating Decision Makers. 
  The Citadel 2015 deferred remuneration scheme 2 was initiated during the 2016 financial year, the terms of which provide the 
  participants with the right to participate in an asset pool, partly comprising of Peregrine Holdings Limited shares, which is 
  settled through an attribution of profits over the service period (with the first application thereof being in the March 2017 
  financial year). The IFRS effects arise from the obligation being initially measured using the projected unit method in the year 
  of inception.

The non-reportable segment refers to the Group's seed investment, through Peregrine Securities, into the natural selection hedge 
fund platform which is required to be consolidated in terms of IFRS 10 but which does not meet the quantitative thresholds for 
determining reportable segments. There has been no impact on equity, or profit or loss.

* Annexure C, disclosing the Segment statement of comprehensive income split between the continuing operations and the discontinued 
operation as well as the Group's proprietary assets in the prior period, is available on the Group's website.

Notes & Compliance

The condensed consolidated unaudited interim financial statements of the Group as at and for the six months ended 30 September 2018 
comprise the company and its subsidiaries ("the Group") results and the Group's interests in equity accounted investees.

Basis of preparation

The condensed consolidated unaudited interim financial statements are prepared in accordance with the JSE Listings Requirements for 
provisional reports and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require provisional 
reports to be prepared on a consolidated basis in accordance with the framework concepts and the measurement and recognition 
requirements of International Financial Reporting Standards ("IFRS") and the SAICA Financial Reporting Guides as issued by the 
Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and 
to also, as a minimum, contain the information required by IAS 34 - Interim Financial Reporting.

The accounting policies applied in the preparation of the condensed consolidated provisional financial statements are in terms of 
IFRS and are consistent with those applied in the previous consolidated annual financial statements as at and for the year then 
ended 31 March 2018. IFRS 9 - Financial Instruments and IFRS 15 - Revenue from Contracts with Customers new and revised Standards 
and Interpretations have been adopted in these provisional financial statements. Their adoption has not had any significant impact 
on the amounts reported or disclosed in these provisional financial statements.

In preparing these condensed consolidated unaudited interim financial statements management made judgements, estimates and 
assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and 
expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group's 
accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated 
financial statements as at and for the year ended 31 March 2018.

The Group's results were prepared under the supervision of C Coward CA(SA), the Group Chief Financial Officer.

These financial statements and any forward looking statements have not been reviewed or reported on by the Company's auditors, 
Deloitte & Touche.

Discontinued operation

Shareholders are referred to the announcement released on SENS on 13 June 2018 indicating that the Group had received a non-binding 
proposal from Legae Holdings Proprietary Limited, an entity representing certain management of Legae Securities and Peregrine 
Securities and a Black Economic Empowerment consortium ("the Consortium") to acquire, as one indivisible transaction, with effect 
from 1 October 2018:
- from Peregrine SA Holdings Proprietary Limited ("Peregrine SA") its 65% shareholding in both Peregrine Securities Proprietary 
  Limited and in Peregrine Fund Platform Proprietary Limited (collectively "Peregrine Securities"); and
- from Peregrine International Holdings Limited ("PIH") its 65% shareholding in Peresec International Limited ("Peregrine 
  Securities International"), (collectively, the "Transaction").

On 26 September 2018, shareholders were further advised that the agreements to dispose of Peregrine Securities and Peregrine 
Securities International to Nkholi Consolidated Investments Proprietary Limited and Peresec Holdings Limited (collectively, the 
"Purchasers") respectively had been executed on 26 September 2018. The disposal is subject to the fulfilment of certain suspensive 
conditions, set out in more detail in the announcement released on 26 September 2018, and it is anticipated that the Transaction 
will be implemented during the course of November 2018.

The aggregate purchase price payable by the Purchasers is a minimum of R910 million comprising:
- in respect of Peregrine Securities, R760 million plus 65% of the after tax profits of Peregrine Securities for the six-month period 
from 1 April 2018 to 30 September 2018, payable to Peregrine SA; and
- in respect of Peregrine Securities International, R150 million plus 65% of the after tax profits of Peregrine Securities International 
for the six-month period from 1 April 2018 to 30 September 2018, payable to PIH.

At 30 September 2018, the Broking and Structuring business meets the definition of a discontinued operation in terms of IFRS 5 - Non-current 
Assets Held For Sale and Discontinued Operations and has been presented as such in these results.