SPUR CORPORATION LIMITED - Unaudited condensed consolidated interim results and dividend declaration
25 February 2016 8:00
SUR 201602250008A
Unaudited condensed consolidated interim results and dividend declaration

Spur Corporation Ltd 
(registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE000022653


UNAUDITED CONDENSED CONSOLIDATED RESULTS AND CASH DIVIDEND DECLARATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2015
Prepared under the supervision of the Chief Financial Officer, Ronel van Dijk CA(SA)


RESTAURANT SALES UP 12.6%

COMPARABLE HEADLINE EARNINGS PER SHARE UP 1.4%

COMPARABLE PROFIT BEFORE TAX UP 5.8%

INTERIM DIVIDEND PER SHARE UP 8.1% to 67 cents





RESULTS COMMENTARY

Trading performance

Spur Corporation delivered a resilient performance in the six months ended December 2015 as total restaurant sales increased by 12.6% to R3.5 billion. The strength of
the group's brands and loyal customer base proved crucial as trading conditions became increasingly difficult in the latter stages of the 2015 calendar year.

Restaurant sales in South Africa grew by 13.2% with Panarottis Pizza Pasta producing another strong performance and growing sales by 21.6%. The Hussar Grill, which
targets higher income customers, increased sales by 36.9%. John Dory's grew by 20.2% and Spur Steak Ranches by 6.8%. A smaller format Spur Grill & Go concept was
launched and three outlets were opened in the past six months.

The RocoMamas chain has exceeded expectations since being acquired by the group in March 2015. The trendy brand image and quality product offering of hand-made
"smash-style" burgers, ribs and wings have resonated with customers and franchisees alike. In the past six months, 23 restaurants have been opened, including a
company-owned outlet in Cape Town and the first international outlet in Namibia, bringing the restaurant base to 32.

The Captain DoRegos business has stabilised following the post-acquisition consolidation of the brand, and sales growth of 0.6% reflects the tough trading conditions
in the lower income market.

International restaurant sales increased by 8.3% in rand terms and by 3.9% calculated at a constant exchange rate. Six restaurants were opened across the Africa and
Mauritius region, with additional franchised Spur Steak Ranches in Zambia and Kenya, a further Panarottis in Mauritius, the first Captain DoRegos in Botswana, the
first international outlet for The Hussar Grill in Zambia and the first international outlet for RocoMamas in Namibia.

The group has continued to expand its presence across all brands despite the slowing economy in South Africa. The worldwide restaurant base was increased to 572
following the above international restaurant openings and the opening of 12 Spur, six Panarottis, three John Dory's, five Captain DoRegos, three The Hussar Grill and
22 RocoMamas outlets locally during the past six months.


Restaurant footprint at 31 December 2015

Franchise brand                           South Africa  International    Total
Spur Steak Ranches                                 288             43      331
Panarottis Pizza Pasta                              81             13       94
John Dory's Fish Grill Sushi                        40              1       41
Captain DoRegos                                     59              3       62
The Hussar Grill                                    11              1       12
RocoMamas                                           31              1       32
Total                                              510             62      572
  

Financial performance

Revenue from the South African operations increased by 9.8% while international revenue declined by 38.6%. The decline in international revenue is mainly due to the
closure of two retail (company-owned) restaurants in the United Kingdom ("UK") during the period and one during the previous financial year, as well as the disposal of
the remaining three retail outlets in Australia in the previous financial year. Group revenue for the period was 5.4% lower at R386.6 million.

Franchise revenue in Spur increased by 6.0%, Panarottis 23.2%, John Dory's 14.8% and The Hussar Grill 33.8%. Captain DoRegos revenue declined by 17.3%. Revenue from
RocoMamas for the six month period totalled R7.9 million.

Local retail revenue increased by 29.6%, benefitting from the opening of the company-owned The Hussar Grill in Morningside and the RocoMamas in Green Point during 
the period.

The manufacturing and distribution division grew revenue by 3.4%. Profit increased by 1.8%, impacted by the weakening exchange rate on US dollar-based imports used in
the sauce manufacturing facility as well as higher transport costs. Management is committed to remaining price competitive in the current economic climate and the full
extent of higher imported food prices is therefore not being passed on to franchisees.

The group continued to rationalise its operations in the UK, closing the company-owned restaurants in Lakeside and Aberdeen during the period, in addition to the
closure of the Wandsworth restaurant in the second half of the 2015 financial year. The sale of leases from the two closures in the past six months resulted in a gain
of R16.3 million for the period. Together with the associated asset write-offs and the realisation of previously unrealised foreign exchange differences relating to
the two outlets, a net gain of R6.1 million was recognised for the period. Management continues to evaluate options to dispose of underperforming operations in the UK.

Trading in most African markets remained buoyant, although the group faces the perennial challenges of operating with a US dollar-denominated cost base (while revenue
is generated in local currencies), as well as ongoing distribution and logistics hurdles.

The group's earnings have benefited from the accounting in the prior period for the broad-based black economic empowerment equity transaction with Grand Parade
Investments Ltd on 30 October 2014 ("the GPI transaction"). The transaction resulted in the issue of 10.848 million new ordinary shares and a share-based payment
expense of R32.96 million for the period ended 31 December 2014.

Profit before tax increased by 45.4% to R134.0 million. This includes the impact of the GPI transaction, the impact of the two UK restaurant closures, a net charge of
R15.9 million (2014: R11.8 million) related to the long-term share-linked employee retention scheme, foreign exchange gains and losses and other one-off and
exceptional items in the current and previous comparable periods.

Comparable profit before income tax, excluding exceptional and one-off items (including those listed above) increased by 5.8%.

Headline earnings increased by 79.6% to R97.9 million with headline earnings per share (HEPS) 66.7% higher at 101.96 cents. This is in line with the group's trading
statement released on SENS on 16 February 2016.

Comparable HEPS, excluding those items above, as well as the GPI transaction in its entirety, increased by 1.4%.

The interim dividend was increased by 8.1% to 67 cents per share.


Prospects

Against the backdrop of slowing economic growth, negative consumer sentiment and socio-political instability, consumer spending will come under further pressure in the
months ahead as South Africans face higher inflation and debt servicing costs.

In this environment, the group will remain competitive through aggressive, value-focused marketing campaigns to attract cash-strapped consumers.

The group plans to open 31 restaurants across its brands in South Africa in the remainder of the financial year ending June 2016, including 17 RocoMamas restaurants.
Six new franchised outlets will be opened internationally including additional restaurants in Kenya, Nigeria, Zimbabwe and Australia, and a first outlet in Ethiopia.





CASH DIVIDEND

Shareholders are advised that the board of directors of the company has, on Wednesday, 24 February 2016, resolved to declare an interim gross cash dividend for the 
six month period ended 31 December 2015 of R72.682 million, which equates to 67 cents per share for each of the 108 480 926 shares in issue, subject to the applicable 
tax levied in terms of the Income Tax Act (Act No. 58 of 1962 amended) ("dividend withholding tax") of 15%.

The dividend has been declared from income reserves. The net dividend is 56.95 cents per share for shareholders liable to pay dividend withholding tax. The company's
income tax reference number is 9695015033. The company has 108 480 926 shares in issue at the date of declaration.

In accordance with the provisions of Strate, the electronic settlement and custody system used by the JSE Ltd, the relevant dates for the dividend are as follows:

Event                                                      Date
Last day to trade "cum dividend"       Wednesday, 23 March 2016
Shares commence trading "ex dividend"   Thursday, 24 March 2016
Record date                               Friday,  1 April 2016
Payment date                              Monday,  4 April 2016

Those shareholders of the company who are recorded in the company's register as at the record date will be entitled to the dividend.

Share certificates may not be dematerialised or rematerialised between Thursday, 24 March 2016, and Friday, 1 April 2016, both days inclusive.

For and on behalf of the board

A Ambor                   P Van Tonder

Executive Chairman        Group Chief Executive Officer

25 February 2016





CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
       
                                                                                                 Unaudited    Unaudited               Audited
                                                                                                six months   six months                  year 
                                                                                                     ended        ended                 ended
                                                                                               31 December  31 December        %      30 June
R'000                                                                                                 2015         2014   change         2015

Revenue                                                                                            386 595      408 681     (5.4)     760 059
Gross profit                                                                                       281 325      291 987     (3.7)     549 591
Operating profit before finance income                                                             119 635       84 081     42.3      182 438
Net finance income                                                                                  16 891        8 412    100.8       24 616
Share of loss of equity-accounted investee (net of income tax)(refer note 15)                       (2 512)        (354)               (1 633)
Profit before income tax                                                                           134 014       92 139     45.4      205 421
Income tax expense                                                                                 (42 261)     (36 082)              (69 768)
Profit for the period                                                                               91 753       56 057     63.7      135 653

Other comprehensive income*:                                                                        12 322       (2 172)               (3 287)
Foreign currency translation differences for foreign operations                                     19 260       (1 411)              (11 756)
Reclassification of foreign currency (gain)/loss from other comprehensive income 
to profit on disposal/abandonment/deregistration of foreign operations                              (4 310)         345                 2 215
Foreign exchange (loss)/gain on net investments in foreign operations                               (3 504)      (1 475)                8 338
Tax on foreign exchange loss/(gain) on net investments in foreign operations                           876          369                (2 084)
Total comprehensive income for the period                                                          104 075       53 885     93.1      132 366

Profit attributable to:
 Owners of the company                                                                              89 920       54 937     63.7      127 555
 Non-controlling interest                                                                            1 833        1 120                 8 098
Profit for the period                                                                               91 753       56 057     63.7      135 653

Total comprehensive income attributable to:
 Owners of the company                                                                             102 329       52 748     94.0      124 634
 Non-controlling interest                                                                            1 746        1 137                 7 732
Total comprehensive income for the period                                                          104 075       53 885     93.1      132 366

* All items included in other comprehensive income are items that are, or may be, 
reclassified to profit or loss.

Earnings per share (cents)
 Basic earnings                                                                                      93.61         61.60    52.0       137.69
 Diluted earnings                                                                                    93.61         61.60    52.0       137.69





RECONCILIATION OF HEADLINE EARNINGS

                                                                                                         Unaudited    Unaudited               Audited
                                                                                                        six months   six months                  year 
                                                                                                             ended        ended                 ended
                                                                                                       31 December  31 December       %       30 June
R'000                                                                                                         2015         2014  change          2015

Profit attributable to ordinary shareholders                                                                89 920       54 937    63.7       127 555
Headline earnings adjustments:
 Disposal of goodwill (refer note 2)                                                                           444            -                     -
 Impairment of intangible assets (refer note 10)                                                                 -            -                11 309
 Impairment of property, plant and equipment (refer note 11)                                                     -            -                 1 054
 Loss/(profit) on disposal of property, plant and equipment (net of tax) (refer notes 2 and 3)              11 885          (32)                  (47)
 Loss on disposal of subsidiary (refer note 9)                                                                   -            -                 4 545 
 Profit on disposal of subsidiaries (refer notes 7  and 8)                                                       -         (372)               (5 120)
 Reclassification of foreign currency loss/(gain) from other comprehensive income to profit or  
 loss on abandonment/deregistration of foreign operations (refer notes 2, 3, 7, 8, 9, 12 and 13)            (4 310)           -                 2 215
Headline earnings                                                                                           97 939       54 533    79.6       141 511

None of the above items have any tax or non-controlling interest consequences with the exception of:
- Gross impairment of intangible assets for the year ended 30 June 2015 amounts to R13.905 million,
  with a deferred tax credit amount of R2.596 million.
- Loss/(profit) on disposal of property, plant and equipment for the period comprises a loss of
  R10.992 million, a tax charge (including an adjustment for a  further reversal of deferred 
  tax assets relating to unclaimed capital allowances on the assets) of R2.406 million, net of
  an allocation of R1.513 million to non-controlling interests. For the period ended 31 December 2014, 
  it comprises a profit of R0.045 million adjusted for tax of R0.013 million; and for the year ended 
  30 June 2015, it includes a profit of R0.065 million adjusted for tax of R0.018 million.
- Profit on disposal of subsidiaries for the period ended 31 December 2014 comprises a profit of
  R1.506 million adjusted for tax of R1.134 million.





CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                             Unaudited at  Unaudited at   Audited at
                                                              31 December   31 December      30 June
R'000                                                                2015          2014         2015

ASSETS
Non-current assets                                                643 035       582 730      632 409
Property, plant and equipment                                      97 272        83 077       86 481
Intangible assets and goodwill                                    384 165       359 169      384 610
Loans receivable                                                  147 584       130 689      142 996
Deferred tax                                                        2 963         5 926        4 446
Leasing rights                                                      8 505         3 149        2 855
Derivative financial asset                                          2 546           720       11 021

Current assets                                                    501 952       462 208      473 875
Inventories                                                        13 927        10 448       11 729
Tax receivable                                                     34 359        11 314       17 164
Trade and other receivables                                       131 676       110 148       97 828
Loans receivable                                                   28 636         7 808       25 143
Derivative financial asset                                              -         9 866       17 160
Cash and cash equivalents                                         293 354       312 624      304 851
TOTAL ASSETS                                                    1 144 987     1 044 938    1 106 284

EQUITY
Total equity                                                      887 521       834 153      854 095
Ordinary share capital                                                  1             1            1
Share premium                                                     294 663       294 663      294 663
Shares repurchased by subsidiaries                                (96 900)      (86 580)     (88 622)
Foreign currency translation reserve                               34 723        23 046       22 314
Retained earnings                                                 641 208       605 689      618 675
Total equity attributable to equity holders of the parent         873 695       836 819      847 031
Non-controlling interest                                           13 826        (2 666)       7 064

LIABILITIES
Non-current liabilities                                           102 567        77 759      108 440
Contingent consideration liability                                 34 339             -       31 409
Employee benefits                                                   3 788         2 598        8 826
Derivative financial liability                                          -         4 271            -
Operating lease liability                                           1 126         1 338        1 200
Deferred tax                                                       63 314        69 552       67 005
  
Current liabilities                                               154 899       133 026      143 749
Bank overdrafts                                                     2 779         2 833        3 557
Tax payable                                                         2 510         2 766        1 893
Trade and other payables                                          122 220       116 315      102 053
Contingent consideration liability                                 17 802             -       15 974
Employee benefits                                                   5 861        10 649       19 790
Derivative financial liability                                      3 306             -            -
Shareholders for dividend                                             421           463          482
TOTAL EQUITY AND LIABILITIES                                    1 144 987     1 044 938    1 106 284





CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                Unaudited     Unaudited      Audited
                                                               six months    six months         year 
                                                                    ended         ended        ended
                                                              31 December   31 December      30 June
R'000                                                                2015          2014         2015

Cash flow from operating activities
Operating profit before working capital changes (refer note a)    139 157       109 407      222 786
Working capital changes                                           (15 183)      (15 448)     (12 883)
Cash generated from operations                                    123 974        93 959      209 903
Interest income received                                           11 588         5 608       16 890
Interest expense paid                                                 (30)          (19)         (65)
Tax paid                                                          (57 289)      (38 635)     (83 666)
Dividends paid                                                    (67 933)      (54 732)    (114 345)
Net cash flow from operating activities                            10 310         6 181       28 717
Net cash flow from investing activities (refer note b)            (12 662)      (70 286)     (97 342)
Net cash flow from financing activities (refer note c)             (8 278)      282 277      278 051
Net movement in cash and cash equivalents                         (10 630)      218 172      209 426
Effect of foreign exchange fluctuations                               (89)          192          441
Net cash and cash equivalents at beginning of year                301 294        91 427       91 427
Net cash and cash equivalents at end of period                    290 575       309 791      301 294

Notes

a) Operating profit before working capital changes - Includes a gross cash outflow of R18.445 million (six months ended 
   31 December 2014 and year ended 30 June 2015: R24.045 million) in respect of the settlement of the share appreciation
   rights granted in terms of the group's long-term share-linked employee retention scheme (also refer note 14). 
   Also includes a gross cash inflow of R16.291 million relating to the disposal of the Silver Lake Spur and the 
   Apache Spur leases in the UK (also refer notes 2 and 3 respectively).

b) Cash flow from investing activities - Includes a gross cash inflow of R12.563 million (2014: R20.565 million; year 
   ended 30 June 2015: R20.961 million) arising from the economic hedging instrument utilised by the group for its long-term 
   share-linked employee retention scheme (also refer note 14). Additions to property, plant and equipment amount to 
   R23.346 million (2014: R15.356 million; year ended 30 June 2015: R30.785 million) - the increase relative to the comparative
   period relates primarily to the fit-out of the company-owned The Hussar Grills in Morningside and Mouille Point and the 
   RocoMamas in Green Point (also refer note 4). The prior periods ended 31 December 2014 and 30 June 2015 include a gross 
   outflow of R72.613 million relating to the subscription of preference shares (including directly attributable costs) in
   an unconsolidated structured entity to finance the broad-based black economic empowerment ("B-BBEE") equity transaction as
   more fully described in note 5 and an outflow of R1.992 million for the acquisition of the further 50% interest in 
   Panpen Pty Ltd as detailed in note 7. The prior year ended 30 June 2015 also includes gross outflows of R1.382 million for
   the acquisition of RocoMamas Franchise Co (Pty) Ltd as detailed in note 6, and R0.653 million in aggregate relating
   to the disposals of Panpen Pty Ltd, Panawest Pty Ltd and Silver Spur detailed in notes 7, 8 and 9 respectively.

c) Cash flow from financing activities - Includes an outflow of R8.278 million (2014: R9.345 million; year ended 
   30 June 2015: R11.387 million) for the purchase of treasury shares. The prior periods ended 31 December 2014 and 30 June 2015
   include a net inflow of R293.666 million relating to the issue of shares (net of directly attributable transaction costs) 
   pursuant to the B-BBEE transaction as detailed in note 5.
   




CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                                          Ordinary                
                                                                                                     share capital            
                                                                                                         and share  
                                                                                                      premium (net        Retained            
                                                                                                       of treasury    earnings and  Non-controlling 
R'000                                                                                                       shares) other reserves         interest      Total

Balance at 1 July 2014                                                                                     (77 228)        600 905           (4 057)   519 620
Total comprehensive income for the year                                                                          -         124 634            7 732    132 366
Profit for the year                                                                                              -         127 555            8 098    135 653
Other comprehensive income                                                                                       -          (2 921)            (366)    (3 287)
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners                                                               283 270         (82 450)               -    200 820
Issue of ordinary shares (refer note 5)                                                                    294 657            (991)               -    293 666
Equity-settled share-based payment (refer note 5)                                                                -          32 957                -     32 957
Own shares acquired                                                                                        (11 387)              -                -    (11 387)
Distributions to equity holders                                                                                  -        (114 416)               -   (114 416)
Changes in ownership interests in subsidiaries                                                                   -          (2 100)           3 389      1 289
Acquisition of subsidiary with non-controlling interests (refer note 6)                                          -               -            3 135      3 135
Acquisition of non-controlling interest in subsidiary without a change in control (refer note 7)                 -          (2 100)             108     (1 992)
Derecognition of non-controlling interest in subsidiary resulting in loss of control (refer note 8)              -               -              146        146
Total transactions with owners                                                                             283 270         (84 550)           3 389    202 109
Balance at 30 June 2015                                                                                    206 042         640 989            7 064    854 095

Total comprehensive income for the period                                                                        -         102 329            1 746    104 075
Profit for the period                                                                                            -          89 920            1 833     91 753
Other comprehensive income                                                                                       -          12 409              (87)    12 322
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners                                                                (8 278)        (67 284)            (588)   (76 150)
Own shares acquired                                                                                         (8 278)              -                -     (8 278)
Distributions to equity holders                                                                                  -         (67 284)            (588)   (67 872)
Changes in ownership interests in subsidiaries                                                                   -            (103)           5 604      5 501
Disposal of non-controlling interest in subsidiary without a change in control (refer note 4)                    -            (103)           5 604      5 501
Total transactions with owners                                                                              (8 278)        (67 387)           5 016    (70 649)
Balance at 31 December 2015                                                                                197 764         675 931           13 826    887 521





CONDENSED CONSOLIDATED OPERATING SEGMENT REPORT
    
                                                                        Unaudited    Unaudited              
                                                                       six months   six months               Audited
                                                                            ended        ended            year ended  
                                                                      31 December  31 December        %      30 June     
R'000                                                                        2015         2014   change         2015  

External revenue
Manufacturing and distribution                                             96 186       93 035      3.4      173 924
Franchise - Spur                                                          119 438      112 668      6.0      217 276
Franchise - Panarottis                                                     16 608       13 476     23.2       27 575
Franchise - John Dory's                                                     9 331        8 126     14.8       16 220
Franchise - Captain DoRegos                                                 2 698        3 262    (17.3)       6 077
Franchise - The Hussar Grill                                                1 641        1 226     33.8        2 417
Franchise - RocoMamas (refer note b)                                        7 916            -                 2 175
Retail (refer note c)                                                      18 890       14 579     29.6       30 760
Other South Africa (refer note d)                                          34 739       33 461      3.8       58 861
Total South African segments                                              307 447      279 833      9.9      535 285
Unallocated - South Africa                                                    596          835    (28.6)       1 720
Total South Africa                                                        308 043      280 668      9.8      537 005
UK (refer note f)                                                          63 972       80 107    (20.1)     147 657
Australia (refer note g)                                                    4 710       37 932    (87.6)      55 729
Other International (refer note h)                                          9 870        9 974     (1.0)      19 668
Total International                                                        78 552      128 013    (38.6)     223 054
TOTAL EXTERNAL REVENUE                                                    386 595      408 681     (5.4)     760 059

Profit/(loss) before income tax
Manufacturing and distribution                                             37 060       36 391      1.8       67 083
Franchise - Spur                                                          107 411      100 856      6.5      194 037
Franchise - Panarottis                                                     11 904        9 144     30.2       18 904
Franchise - John Dory's                                                     5 024        4 672      7.5        9 119
Franchise - Captain DoRegos (refer note a)                                  1 148          973     18.0      (11 821)
Franchise - The Hussar Grill                                                  848          759     11.7        1 298
Franchise - RocoMamas (refer note b)                                        5 069            -                 1 386
Retail (refer note c)                                                          67        1 985    (96.6)       4 645
Other South Africa (refer note d)                                           1 681          400    320.3          327
Total South African segments                                              170 212      155 180      9.7      284 978
Unallocated - South Africa (refer note e)                                 (36 627)     (68 311)    46.4      (81 818)
Total South Africa                                                        133 585       86 869     53.8      203 160
UK (refer note f)                                                           1 144       (2 418)   147.3       (4 714)
Australia (refer note g)                                                    1 269        4 252    (70.2)       4 488
Other International (refer note h)                                          4 723        5 966    (20.8)      10 616
Total International segments                                                7 136        7 800     (8.5)      10 390
Unallocated - International (refer note i)                                 (4 195)      (2 176)   (92.8)      (6 496)
Total International                                                         2 941        5 624    (47.7)       3 894

PROFIT BEFORE INCOME TAX AND SHARE OF LOSS OF EQUITY-ACCOUNTED INVESTEE   136 526       92 493     47.6      207 054
Share of loss of equity-accounted investee (net of income tax)             (2 512)        (354)  (609.6)      (1 633)
PROFIT BEFORE INCOME TAX                                                  134 014       92 139     45.4      205 421

Notes

a) Captain DoRegos - The prior year ended 30 June 2015 includes an impairment loss of R13.905 million relating to intangible assets (also refer note 10).

b) RocoMamas - The RocoMamas franchise division was acquired with effect from 1 March 2015. Also refer note 6 for more details.

c) Retail - This segment comprises the group's interests in local restaurants which, at 31 December 2015, comprised four The Hussar Grill restaurants and one
   RocoMamas outlet. As at 31 December 2014 and 30 June 2015, the group had an interest in three The Hussar Grill restaurants. The Hussar Grill in Morningside (Gauteng)
   commenced trading in September 2015 and the RocoMamas in Green Point (Western Cape) commenced trading in December 2015. The Hussar Grill in Green Point was relocated
   to Mouille Point during the period and did not trade for the month of November 2015. The profit for the period includes R2.070 million of costs and losses relating to
   the initial set-up of The Hussar Grill in Morningside and the RocoMamas in Green Point, as well as the relocation of The Hussar Grill in Green Point. Also refer note 4
   for more details.

d) Other South Africa - Other local segments include the group's training division, export business, decor manufacturing business, call centre and radio station
   which are each individually not material.

e) Unallocated - South Africa - Includes net finance income of R16.581 million (2014: R8.362 million; year ended 30 June 2015: R24.352 million), which includes
   interest and preference dividends relating to the GPI equity transaction (also refer note 5). Includes a credit in respect of cash-settled share-based payment of
   R0.521 million (2014: charge of R4.366 million; year ended 30 June 2015: charge of R19.735 million) and a fair value loss in respect of a related economic hedge of
   R16.378 million (2014: R7.469 million; year ended 30 June 2015: R14.794 million gain) (also refer note 14). Includes a fair value loss relating to the RocoMamas
   contingent consideration liability of R4.758 million (2014: Rnil; year ended 30 June 2015: R3.681 million) (also refer note 6). Includes a profit of R0.458 million
   (2014: R0.518 million; year ended 30 June 2015: R1.761 million) arising from The Spur Foundation Trust, a consolidated structured entity, all of which is attributable
   to non-controlling interests. The prior periods ended 31 December 2014 and 30 June 2015 include a share-based payment charge of R32.957 million relating to the GPI
   equity transaction (also refer note 5), as well as related professional and advisory costs of R0.301 million. The prior periods ended 31 December 2014 and 30 June 2015
   include professional advisory costs of R0.337 million and R0.481 million respectively relating to defending the tax queries detailed in note 16.

f) UK - The group ceased trading the Silver Lake Spur in Lakeside (England) (also refer note 2) and the Apache Spur in Aberdeen (England) (also refer note 3) on
   15 July 2015 and 22 September 2015 respectively. The Mohawk Spur in Wandsworth (England) ceased trading on 28 February 2015 (also refer note 12). The Silver Lake Spur
   lease was sold and the Apache Spur lease renounced, resulting in an aggregate R16.291 million gain included in the segment's profit. In terms of the agreements,
   ownership of the property, plant and equipment at the respective sites was relinquished to the lease transferee, resulting in an aggregate R10.927 million loss on
   disposal of property, plant and equipment. In addition, a loss of R0.444 million was recognised on the disposal of goodwill and foreign exchange gains of 
   R4.310 million relating to foreign currency translation differences previously recognised in other comprehensive income (foreign currency translation reserve (FCTR)) were
   reclassified to profit before income tax on abandonment of the foreign operations in question. The net impact of the above is a gain of R9.230 million for the period.
   The prior year ended 30 June 2015 includes a gain on the release of the non-controlling shareholder's loan in Larkspur Five Ltd of R5.173 million on the dissolution 
   of that entity (also refer note 13) and an impairment loss of R1.054 million relating to property, plant and equipment of the Cheyenne Spur in the O2 Dome 
   in London (England) (also refer note 11).

g) Australia - The Panarottis outlet in Blacktown was disposed of in November 2014 and the Silver Spur and Panarottis in Penrith were disposed of in March 2015,
   resulting in the group no longer having any interests in company-owned outlets in Australia. The prior periods ended 31 December 2014 and 30 June 2015 include a profit
   of R1.506 million on the disposal of the Panarottis outlet in Blacktown (also refer note 8). The prior year ended 30 June 2015 also includes a profit of R3.448 million
   on the disposal of the Panarottis outlet in Penrith (also refer note 7) and a loss of R4.674 million on the disposal of the Silver Spur in Penrith (also refer note 9).

h) Other International - Other international segments comprise the group's franchise operations in Africa (outside of South Africa) and Mauritius.

i) Unallocated - International - Includes a foreign exchange loss of R0.958 million (2014: gain of R0.485 million; year ended 30 June 2015: gain of R2.088 million).
   The prior year ended 30 June 2015 includes a loss of R1.920 million relating to the reclassification of foreign exchange differences arising on the
   translation of foreign operations previously recognised in other comprehensive income (FCTR), from other comprehensive income to profit, on abandonment/deregistration
   of foreign operations (also refer notes 12 and 13). The prior year ended 30 June 2015 also includes professional advisory costs of R0.829 million relating to the
   group's international tax structure.
   



 
SUPPLEMENTARY INFORMATION

                                                                                    Unaudited    Unaudited              
                                                                                   six months   six months               Audited
                                                                                        ended        ended            year ended
                                                                                  31 December  31 December         %     30 June        
                                                                                         2015         2014    change        2015

Total shares in issue (000's)                                                         108 481      108 481         -     108 481
Net shares in issue (000's)*                                                           95 871       96 181      (0.3)     96 120
Weighted average number of shares in issue (000's)                                     96 061       89 178       7.7      92 636
Diluted weighted average number of shares in issue (000's)                             96 061       89 178       7.7      92 636
Headline earnings per share (cents)                                                    101.96        61.15      66.7      152.76
Diluted headline earnings per share (cents)                                            101.96        61.15      66.7      152.76
Net asset value per share (cents)                                                      925.75       867.27       6.7      888.57
Dividend per share (cents)                                                              67.00        62.00       8.1      132.00

Reconciliation of weighted average number of shares in issue ('000)
Gross shares in issue at the beginning of the year                                    108 481       97 633                97 633
Shares repurchased at the beginning of the year                                       (12 361)     (12 000)              (12 000)
Shares repurchased during the period weighted for period not held by the group            (59)        (110)                 (219)
Shares issued during the period weighted for period in issue (refer note 5)                 -        3 655                 7 222
                                                                                       96 061       89 178                92 636

* 108 480 926 (as at 31 December 2014 and 30 June 2015: 108 480 926) total shares in issue less 5 720 901 (as at  31 December 2014: 5 511 401; and 30 June 2015: 5 572 401)
  shares repurchased by a wholly-owned subsidiary company, 6 688 698 (as at 31 December 2014 and 30 June 2015: 6 688 698) shares held by The Spur Management Share Trust
  (consolidated structured entity) and 200 000 (as at 31 December 2014 and 30 June 2015: 100 000) shares held by The Spur Foundation Trust (consolidated structured entity).

NOTES

1. Basis of preparation - The unaudited interim condensed consolidated financial statements for the six months ended 31 December 2015 have been prepared in
   accordance with the JSE Ltd Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa (No. 71 of 2008). The Listings
   Requirements require provisional reports to be prepared 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 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 and methods of computation applied in the preparation of these results are in accordance with IFRS and are consistent with those applied in the preparation of
   the group's annual financial statements for the year ended 30 June 2015.

2. Closure of the Silver Lake Spur (England) - On 15 July 2015, the group sold the lease of Larkspur Two Ltd, a wholly-owned UK subsidiary operating the Silver
   Lake Spur in Lakeside, for GBP412 500 (the equivalent of R7.900 million at the transaction date) in cash. As part of the agreement, the group relinquished ownership of
   the property, plant and equipment at the site which amounted to R4.425 million at the transaction date. A deferred tax asset previously recognised in respect of
   unclaimed capital allowances on the assets disposed of, amounting to R1.512 million, was charged to income tax expense. Goodwill amounting to R0.444 million was
   written off. In addition, foreign currency translation gains of R1.912 million previously recognised in other comprehensive income (FCTR) were reclassified to profit
   before income tax on abandonment of the entity. The aggregate impact of the above is a net gain included in profit before income tax of R4.943 million, and a net gain
   included in net profit of R3.431 million.

   For the period, the outlet contributed revenue of R0.746 million (2014: R11.964 million; year ended 30 June 2015: R21.893 million) and a loss before income tax (before
   the above items) of R0.858 million (2014: R0.785 million; year ended 30 June 2015: R1.910 million).

3. Closure of the Apache Spur (England) - On 22 September 2015, the group renounced the lease of Larkspur Three Ltd, an 80% held UK subsidiary operating the
   Apache Spur in Aberdeen, in favour of the landlord for GBP423 600 (the equivalent of R8.391 million at the transaction date) in cash. As part of the agreement, the
   group relinquished ownership of the property, plant and equipment at the site which amounted to R6.502 million at the transaction date. A deferred tax asset previously
   recognised in respect of unclaimed capital allowances on the assets disposed of, amounting to R0.880 million, was charged to income tax expense. Foreign currency
   translation gains of R2.398 million previously recognised in other comprehensive income (FCTR) were reclassified to profit before income tax on abandonment of the
   entity. The aggregate impact of the above is a net gain included in profit before income tax of R4.287 million, a net gain included in net profit of R3.407 million and
   a net gain attributable to ordinary shareholders of R3.205 million.

   For the period, the outlet contributed revenue of R3.665 million (2014: R10.931 million; year ended 30 June 2015: R19.739 million) and a loss before income tax (before
   the above items) of R2.317 million (2014: R0.107 million; year ended 30 June 2015: R1.536 million).

4. Changes in local retail operations - In September 2015, the group commenced trading a newly established The Hussar Grill in Morningside (Gauteng). Initial
   trading and startup losses for the period amount to R0.823 million, and capital expenditure amounted to R2.767 million.

   With effect from 15 November 2015, Opilor (Pty) Ltd ("Opilor"), a subsidiary of the group (previously wholly-owned), acquired the lease and assets of an existing
   restaurant site in Mouille Point Cape Town for R5.400 million and R0.101 million respectively. The subsidiary in question issued shares in that entity of the
   equivalent value to the seller in settlement of the purchase price of the transaction, such that the group's ownership interest in the entity reduced from 100% to 68%.
   The difference in the value of net assets attributed to non-controlling interest and the value of the shares issued to the non-controlling interest amounted to 
   R0.103 million which was charged directly to equity (retained earnings). The carrying value of the lease acquired is being amortised on a straight-line basis over the
   remaining lease term (of 118 months as at the transaction date).
   
   Prior to the transaction above, Opilor owned The Hussar Grill in Green Point Cape Town. Following the transaction, The Hussar Grill in Green Point was relocated to the
   newly acquired site in Mouille Point and consequently did not trade for the month of November 2015. In addition to the lost profit for this period, the company also
   incurred costs and losses of R0.411 million relating to the relocation, and capital expenditure of R2.298 million. The entity in question then established a new
   RocoMamas outlet at the Green Point site which commenced trading in December 2015. Initial trading and startup losses for the period amounted to R0.819 million, and
   capital expenditure amounted to R3.346 million.

5. B-BBEE deal with GPI (prior year) - As detailed in the circular to shareholders of 4 September 2014, and approved by shareholders at a general meeting on 
   3 October 2014, during the prior year, the company concluded various agreements to issue 10 848 093 new ordinary shares indirectly to Grand Parade 
   Investments Ltd ("GPI"), a strategic black empowerment partner, and separately donate 500 000 of the company's shares (100 000 shares per annum over five years), held 
   as treasury shares, to the Spur Foundation, a benevolent foundation that is a consolidated structured entity. Both transactions were executed on 30 October 2014. In 
   terms of the agreements, GPI is restricted from trading the shares in question without the express permission of the company for a period of five years from the 
   effective date of the transaction and is furthermore required to maintain its B-BBEE credentials for the same period.

   The shares were issued at a price of R27.16 per share, resulting in the aggregate proceeds from the issue of shares amounting to R294.657 million. This equated to an
   effective discount of R32.957 million which was recognised, in the prior year, as a share-based payment expense in accordance with IFRS 2 - Share-based Payment and
   included in profit before income tax for that period, with a corresponding credit to equity (retained earnings).

   The group partially funded GPI's share acquisition through a subscription of cumulative compulsorily redeemable five-year preference shares in an unconsolidated
   structured entity with a combined subscription value of R72.328 million (representing 24.5% of the total funding requirement for the transaction). The preference
   shares accrue dividends at a rate of 90% of the prevailing prime overdraft rate of interest and are subordinated in favour of the external funding provider.

   The transaction resulted in a net cash inflow of R222.328 million for the group during the prior year. Of the total transaction costs of R1.577 million: R0.285 million
   related directly to the subscription of the preference shares referred to above and are included in the carrying value of the preference shares; R0.991 million related
   directly to the issue of the company's ordinary shares and was been charged directly against equity (retained earnings); and the balance of R0.301 million was included
   in profit before income tax for the prior year.

6. Prior year acquisition of RocoMamas - During the prior year, and with effect from 1 March 2015, the group acquired a 51% interest in RocoMamas Franchise Co
   (Pty) Ltd ("RocoMamas"), an entity owning the trademarks and related intellectual property of the RocoMamas brand. RocoMamas offers affordable, gourmet, hand-made
   "smash-style" burgers, ribs and wings in the casual dining market within a nostalgic American rock ambience, giving the group exposure to a market that its existing
   brands did not cater for directly. The company had five franchised outlets based in Gauteng at the date of acquisition.

   The fair value of the net assets acquired amounted to R6.398 million as at the effective date, of which R3.135 million was attributable to non-controlling interest.

   The purchase consideration is determined as five times RocoMamas' profit before income tax of the third year following the date of acquisition. Following an initial
   payment of R2.0 million on the effective date, annual payments (or refunds as the case may be) are due on the first, second and third anniversaries of the acquisition
   date, calculated as five times the profit before income tax of the year immediately preceding the anniversary date, less any aggregate payments already made. The total
   purchase consideration over the three-year period is estimated at R70.764 million, the present value of which at the acquisition date amounted to R45.702 million,
   resulting in goodwill of R42.439 million.

   The net cash outflow arising from the acquisition amounted to R1.382 million in the prior year ended 30 June 2015.
   
   A financial liability measured at fair value at the reporting date of R52.141 million (2014: Rnil; 30 June 2015: R47.383 million) has been recognised in respect of the
   gross contingent consideration of R68.764 million. The change in fair value of the contingent consideration liability of R4.758 million (2014: Rnil; year ended 
   30 June 2015: R3.681 million) has been charged to profit before income tax.

7. Prior year acquisition of non-controlling interest in Panarottis Penrith (Australia) and subsequent disposal - During the prior year, and with effect from 
   1 August 2014, the group acquired the remaining 50% interest in subsidiary Panpen Pty Ltd ("Panpen"), an Australian company in which the group had an existing 50%
   interest and which operates the Panarottis outlet in Penrith (Australia). The purchase consideration of AU$200 000 (the equivalent of R1.992 million as at the
   effective date) was settled in cash on the effective date in the prior year. As part of the transaction, Panpen was required to settle the outstanding shareholder's
   loan with the non-controlling shareholder in the amount of AU$158 342 (the equivalent of R1.576 million as at the effective date) which amount was settled in cash on
   the effective date. The net liabilities of Panpen at 1 August 2014 included in the consolidated financial statements of the group amount to R0.217 million, of which
   R0.108 million was attributable to non-controlling interests. The purchase consideration was debited directly to retained earnings and the non-controlling interest's
   share in the net liabilities of the subsidiary was similarly reallocated within equity to retained earnings.

   During the prior year, and with effect from 31 March 2015, the group disposed of its 100% interest in Panpen for AU$880 000, the equivalent of R8.188 million at the
   date of disposal, on loan account. The carrying value of the net assets disposed of amounted to R4.919 million. The group consequently recognised a profit on the
   disposal of R3.269 million during the prior year ended 30 June 2015. In addition, foreign exchange gains of R0.179 million arising on the translation of the foreign
   operation previously recognised in other comprehensive income (FCTR), were reclassified to profit before income tax, resulting in a net profit before income tax on
   disposal of R3.448 million in the prior year ended 30 June 2015. The group recognised a net cash outflow on the disposal of R0.155 million in the prior
   year ended 30 June 2015.

   The sale consideration is being settled in 60 equal monthly instalments, which commenced on 1 October 2015, with the receivable being subject to interest at the
   Reserve Bank of Australia's cash rate plus 1.5%, which is considered by the board to be terms commensurate with similar transactions of this nature.
   
   Revenue for the period ended 31 December 2014 and year ended 30 June 2015 amounted to R12.284 million and R17.875 million respectively and profit before and after
   income tax amounted to R0.863 million and R1.052 million (excluding the profit on disposal) respectively, of which R0.095 million is attributable to non-controlling
   interests for both periods in question.

8. Prior year disposal of the Panarottis in Blacktown (Australia) - During the prior year, and with effect from 15 November 2014, the group disposed of its
   92.67% interest in Panawest Pty Ltd, the Australian subsidiary operating the Panarottis outlet in Blacktown, for AU$1. The carrying value of the net liabilities
   disposed of amounted to R1.997 million at the disposal date, of which R0.146 million was attributable to non-controlling interest. The disposal thus realised a 
   profit before income tax of R1.851 million in the prior period ended 31 December 2014 and year ended 30 June 2015. In addition, foreign exchange losses of 
   R0.345 million arising on the translation of the foreign operation previously recognised in other comprehensive income (FCTR), were reclassified to profit before income
   tax, resulting in a net profit before income tax on disposal of R1.506 million for the period ended 31 December 2014 and year ended 30 June 2015. The group recognised 
   a net cash outflow on the disposal of R0.206 million in the prior period ended 31 December 2014 and year ended 30 June 2015.

   As part of the transaction, the former subsidiary is continuing to repay the previous shareholder's loan with the group of AU$400,000 (the equivalent of R3.911 million
   on the date of the transaction), in equal instalments over 35 months to October 2017.

   Revenue for both the period ended 31 December 2014 and year ended 30 June 2015 amounted to R5.493 million, and loss before and after income tax amounted to 
   R0.067 million (excluding the profit on disposal), of which, profit of R0.263 million is attributable to non-controlling interests.

9. Prior year disposal of the Silver Spur in Penrith (Australia) - During the prior year, and with effect from 31 March 2015, the group disposed of the business
   of the Silver Spur in Penrith as a going concern for AU$320 000, the equivalent of R2.977 million at the date of disposal, on loan account. The carrying value of the
   net assets disposed of amounted to R7.522 million at the transaction date. A loss of R4.545 million was consequently realised on the disposal in the year ended 
   30 June 2015. In addition, foreign exchange losses of R0.129 million arising on the translation of the foreign operation previously recognised in other comprehensive
   income (FCTR), were reclassified to profit before income tax, resulting in a net loss before income tax on disposal of R4.674 million. The disposal resulted in a net
   cash outflow of R0.292 million in the year ended 30 June 2015.

   The sale consideration is being settled in 60 equal monthly instalments, which commenced on 1 October 2015, with the receivable being subject to interest at the
   Reserve Bank of Australia's cash rate plus 1.5%, which is considered by the board to be terms commensurate with similar transactions of this nature.

   Revenue for the period ended 31 December 2014 and year ended 30 June 2015 amounted to R17.443 million and R25.951 million respectively and profit before and after
   income tax amounted to R1.166 million and R0.894 million (excluding the profit on disposal) respectively.

10.Prior year impairment of Captain DoRegos intangible asset - The Captain DoRegos brand is a value oriented takeaway chain offering a combination of chicken,
   seafood and burgers to consumers operating through 59 franchised outlets locally and three internationally. The cash-generating unit has experienced a sustained period
   of profits being below expectations, due to the slowdown in the South African economy in recent years and its impact on the brand's target market. In addition, as the
   trademark and related intellectual property assets are indefinite useful life assets, a mandatory impairment test is conducted annually at 30 June each year.
   
   In performing the impairment test at the prior year reporting date of 30 June 2015, the board determined that the recoverable amount of the Captain DoRegos trademarks
   and other intangible assets amounted to R25.747 million based on their values-in-use. Consequently, an impairment loss of R13.905 million was included in profit before
   income tax for the year ended 30 June 2015. A corresponding deferred tax credit of R2.596 million was recognised in profit for the same period, resulting in a net loss
   included in profit attributable to ordinary shareholders for the year ended 30 June 2015 of R11.309 million.
  
   Management has implemented the necessary cost control measures to maintain and improve the division's operating margin. In addition, management is confident that its
   marketing strategy and focus on operating standards should result in its projections being achieved.

11.Prior year impairment of the Cheyenne Spur in the O2 Dome, London (England) - The Cheyenne Spur in the O2 Dome in London commenced trading in 2007. During
   the prior year, the increased costs of occupancy, labour and raw material inputs impacted negatively on the profitability of the outlet. Increased competition also kept
   revenue growth contained. As a consequence, the outlet incurred a cash flow loss in the prior year, indicating a possible impairment at the prior year reporting date
   of 30 June 2015. In performing the impairment test at that date, the board determined that the recoverable amount of the cash-generating unit was lower than its
   carrying value, based on its value-in-use. Consequently, the carrying value of property, plant and equipment was partially impaired by R1.054 million 
   as at 30 June 2015.

   The entity continues to incur cash flow losses and management continues to monitor the performance of the outlet closely in an effort to contain the losses. While the
   board considers no further impairment necessary at this time, the need for further impairments will be reassessed in due course.

12.Prior year closure of the Mohawk Spur in Wandsworth (England) - As a consequence of sustained trading losses incurred by the Mohawk Spur in Wandsworth
   (England), during the prior year, the group closed the outlet on 28 February 2015. The outlet contributed revenue of R6.481 million and R8.544 million for the period
   ended 31 December 2014 and the year ended 30 June 2015 respectively, and incurred a loss before income tax of R0.714 million and R0.925 million in the respective
   periods. As a consequence of ceasing to trade the outlet, R1.317 million of foreign exchange losses arising on the translation of the foreign operation previously
   recognised in other comprehensive income (FCTR) were reclassified to profit before income tax during the prior year ended 30 June 2015.

13.Prior year dissolution of Larkspur Five Ltd - Larkspur Five Ltd was a subsidiary in which the group owned a 70.6% equity interest and which previously
   operated the Golden Gate Spur in Gateshead (England). The restaurant in question ceased trading in October 2013. On 16 June 2015, the company was dissolved. The group
   had previously recognised a liability in respect of a shareholder's loan to the non-controlling shareholder. On dissolution of the company, the liability, amounting to
   R5.173 million at 15 June 2015, was released to profit before income tax in the prior year ended 30 June 2015. In addition, foreign exchange losses amounting to 
   R0.603 million arising from the translation of the foreign operation previously recognised in other comprehensive income (FCTR) were reclassified to profit before 
   income tax during the prior year. The winding up of the company resulted in a net profit attributable to non-controlling interests of R5.599 million during the prior 
   year ended 30 June 2015.

14.Long-term share-linked employee retention scheme - In December 2015, the third tranche (December 2014: second tranche) of share appreciation rights granted
   in terms of the group's long-term share-linked employee retention scheme was settled in cash. This resulted in a gross cash outflow of R18.445 million (2014 and year
   ended 30 June 2015: R24.045 million) to the scheme participants. Simultaneously, the economic hedging instrument utilised by the group matured which resulted in a
   gross cash inflow of R11.858 million (2014 and year ended 30 June 2015: R19.725 million). During the period, the share-based payment expense in respect of the scheme
   included in profit before income tax amounted to a credit of R0.521 million (2014: R4.366 million charge; year ended 30 June 2015: R19.735 million charge), while a
   loss of R16.378 million (2014: R7.469 million loss; year ended 30 June 2015: R14.794 million gain) on the related economic hedging instrument was recognised in profit
   before income tax. Further details of the share appreciation rights and related hedges are detailed in notes 23 and 17 respectively on pages 123 and 117 respectively
   of the annual integrated report for the year ended 30 June 2015. Also refer note 17.

15.Braviz Fine Foods - In March 2014, the group acquired a 30% interest in Braviz Fine Foods (Pty) Ltd, a startup operation which established a rib processing
   plant in Johannesburg. Formal production commenced in January 2015. As the group is able to exercise significant influence over the entity, but not control, it equity
   accounts the investment. The initial purchase consideration amounted to R0.4 million (comprising ordinary shares of R300 and initial transaction costs of R0.4 million).
   The group simultaneously advanced a loan in the amount of R36.250 million to the entity. The loan bears interest at the prevailing prime overdraft rate of interest and 
   has no formal repayment terms (although any repayment of shareholder loans is to be made on a pro rata basis between the respective shareholders) and is consequently 
   considered part of the net investment in the equity-accounted investee.

   The group's share of equity-accounted losses after income tax for the period amounts to R2.512 million (2014: R0.354 million; year ended 30 June 2015: R1.633 million),
   arising primarily from finance costs incurred by the entity on shareholder and other funding for the respective periods. As the cumulative losses from the investee
   exceeded the carrying value of the equity investment in the investee during the prior year, the equity-accounted losses are being adjusted to reduce the carrying value
   of the loan receivable from the investee referred to above.

16.Contingent liabilities:

   - International tax - As reported in note 45.1 on page 162 of the annual integrated report for the year ended 30 June 2015, the South African Revenue Services ("SARS") 
     had previously issued assessments to wholly-owned subsidiary, Spur Group (Pty) Ltd ("Spur Group"), for additional income from controlled foreign companies of the group 
     for the 2009, 2010 and 2011 years of assessment. Following the objection process during the 2014 financial year, reduced assessments were issued amounting in aggregate
     to R1.993 million (comprising R1.561 million in tax and R0.432 million in interest) which were settled in cash in that year. The board of the company in question 
     appealed SARS' decision to partially disallow the objection and alternate dispute resolution ("ADR") proceedings were initiated in November 2014 with SARS. On 
     8 October 2015, SARS informed the company that it concurred that the 2009 assessment had prescribed, but that the ADR had been unsuccessful for the 2010 and 2011 years
     of assessment. A reduced assessment and refund for the 2009 year of assessment of R1.349 million was received on 16 January 2016. The board has forwarded a settlement
     offer to SARS in respect of the remaining years of assessment and awaits a response. The board continues to be of the view that it is able to defend its position.
     Consequently, a liability has not been raised in respect of the assessments issued.

   - Tax on 2004 share incentive scheme - As reported in note 45.2 on page 162 of the annual integrated report for the year ended 30 June 2015, SARS had issued
     additional assessments to wholly-owned subsidiary, Spur Group, in respect of the 2010, 2011 and 2012 years of assessment totalling R6.589 million (comprising 
     R5.098 million in tax and R1.491 million in interest). The additional assessments were issued following the disallowance of a deduction claimed in respect of the 2004 share
     incentive scheme. The assessments were settled in cash on 30 January 2015. The board of the company in question objected to the additional assessments on 19 March 2015
     but the objections were disallowed by SARS on 11 June 2015. The board appealed the disallowance of the objections on 14 July 2015, requesting that the matter be
     referred to ADR proceedings. On 28 July 2015, SARS issued additional assessments regarding the same matter for the 2005 to 2009 years of assessment amounting to
     R15.445 million comprising R8.898 million in additional income tax and R6.547 million in interest. The board objected to these assessments on 13 August 2015. On 
     8 October 2015, SARS advised that it disallowed the objections and the board subsequently appealed the disallowance of the objections on 13 October 2015, requesting that
     the matter be referred to ADR. SARS agreed to refer the matter to ADR on 20 November 2015. The date for the ADR is set for 17 March 2016. The board, in consultation
     with its tax advisors, remains confident that it will be able to prove that SARS has erred in disallowing the deduction and consequently, no liability has been raised
     in respect of the assessments issued to date.

   - There have been no further changes to the status of other contingent liabilities referred to in note 45 on page 162 of the annual integrated report for the
     year ended 30 June 2015.

17.Fair value of financial instruments:

   - The hedge forward purchase derivative financial assets/(liabilities) (disclosed as derivative financial assets/liabilities on the face of the statement of
     financial position) utilised by the group to economically hedge the impact of the share appreciation rights granted in terms of its long-term share-linked employee
     retention scheme are measured at fair value at each reporting date (refer note 14). The fair values of the contracts are determined by an independent external
     professional financial instruments specialist using a Black-Scholes (risk neutral pricing) option pricing model in a manner that is consistent with prior reporting
     periods. The financial instruments in question are designated as level 2 financial instruments in terms of the fair value hierarchy specified in IFRS 13 - Fair Value
     Measurement, as the inputs into the valuation model are derived from observable inputs for the assets/liabilities in question, but are not quoted prices in active
     markets for identical assets/liabilities.

   - The liability for the contingent consideration referred to in note 6 (as disclosed on the face of the statement of financial position) was initially
     recognised at fair value and is subsequently recognised at fair value at each reporting date. The liability is designated as a level 3 financial instrument in terms 
     of the fair value hierarchy as inputs into the valuation model are not based on observable market data. The fair value is determined based on the expected aggregate 
     purchase consideration payments, discounted to present value using a risk-adjusted discount rate of 27.0% (30 June 2015: 25.27%), being the weighted average cost of 
     capital. The expected purchase consideration payments were determined by considering various possible scenarios, and the probability of each scenario. The significant
     unobservable inputs are the forecast profit before income tax and the risk-adjusted discount rate. The fair value adjustment included in profit before income tax for
     the period is a charge of R4.758 million (year ended 30 June 2015: R3.681 million), and relates largely to the adjustment for the time value of money from the initial
     acquisition date to the reporting date, as well as the increase in the discount rate applied as the risk-free rate of interest has increased during the period. The
     estimated fair value of the contingent consideration liability at the reporting date, would change if the forecast profit before income tax or the risk-adjusted
     discount rate were to change as follows:

     - if the projected profit before income tax increased by 5% or decreased by 5%, the fair value of the liability at the reporting date, as well as the charge to
       profit before income tax, would increase by R3.247 million or decrease by R2.214 million respectively; and

     - if the discount rate increased by 2% or decreased by 2%, the fair value of the liability at the reporting date, as well as the charge to profit before income
       tax, would decrease by R0.283 million or increase by R1.355 million respectively.

18.Related parties - There have been no material changes in the nature or value of the related party transactions reported in note 43 on page 155 of the annual
   integrated report for the year ended 30 June 2015.





DIRECTORS


Executive Chairman: Allen Ambor

Chief Executive Officer: Pierre van Tonder

Chief Operating Officer: Mark Farrelly

Chief Financial Officer: Ronel van Dijk

Non-executive Directors: Keith Getz; Keith Madders; Alan Keet

Independent Non-executive Directors: Dean Hyde; Muzi Kuzwayo; Dineo Molefe; Mntungwa Morojele



COMPANY INFORMATION


Registered Office: 14 Edison Way, Century Gate Business Park, Century City, 7441
Transfer Secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall Street, Johannesburg, 2001
Sponsor: Sasfin Capital (A division of Sasfin Bank Ltd)
Website: www.spurcorporation.com



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