Peregrine pays maiden interim dividend. The financial services and wealth management group says the payout is in line

with the direction given to shareholders at the time of its restructuring.

Peregrine Holdings is paying a maiden interim dividend of 85c per share

following a restructuring of the group and the unbundling of private equity

and hedge fund business Sandown Capital a year ago.

Releasing results for the six months to end-September yesterday, the wealth

manager and financial services group said the payout was in line with the

direction given to shareholders at the time of its restructuring. Peregrine is

also in the process of selling its Broking & Structuring business, which has

been excluding from continuing operations for the period.

A significant focus is being placed on driving cross-business revenue and cost

synergies throughout the group which is already starting to reap benefits,"

Peregrine said. "In addition, appetite remains for potential acquisitions that

are consistent with the cash generative nature of the businesses within the

Peregrine Group."

It said its results came in the face of a challenging economic environment,

which it expects to continue for at least the remainder of its financial year.

Within its Wealth Management business, Citadel grew core revenue by 8% to 461 rand

million as assets under management swelled by 16% from March's levels to 50.8 rand

billion. It said the business benefited from rand weakness towards the end of

the reporting period. Headline earnings increased by 21% to 114 rand million.

Asset Management reported a 69% decrease in headline earnings 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 6.7 rand billion from

7.4 rand billion in March, largely as a result of industry-wide redemptions out of

hedge funds.

Offshore wealth manager Stenham more than doubled headline earnings to 92 rand

million in rand terms. Excluding an ad hoc performance fee and the

contribution of the division's investment in proprietary assets in the prior

period, headline earnings from operating businesses rose 26% to 34 rand million.

Advisory business Java Capital was affected by the continued weak equity

capital markets, with benign activity in the property sector in particular. It

reported a 41% drop in headline earnings to 11 rand million.

Total operating revenue rose 2% to 789 rand million in the six months to end-

September. Core operating revenue increased by 5% to 704 rand million but

performance fee-related income fell 75% to 27 rand million. Investment and other

income decreased by 95% due to the unbundling of its proprietary assets last

year.

Segmental headline earnings increased by 4% to 283 rand million, with earnings

from its continuing operations rising 31% to 206 rand million. These exclude its

Broking & Structuring business. Annuity earnings from continuing operations

increased by 15% and now make up 91% of aggregate earnings, up from 75% a year

ago. It also now generates 56% of aggregate earnings offshore. Variable and

performance fee earnings declined by 67% to 13 rand million, mainly due to the

lower performance fees earned by Peregrine Capital.

Peregrine's shares ended 2.4% up at 20.96 rand yesterday.

> Peregrine (PGR) remains one of our favorite shares. Trading at PE of around

8 and dividend yield of 8.3% with a strong balance

sheet.https://t.co/CLwgVmwHNz#jse #markets #shares #investing #investment #pgr

$jsepgr $pgr #peregrine pic.twitter.com/32DRpvImGn

>

> -- SAMI (@SouthAfrican_MI) November 21, 2018