SPUR CORPORATION LIMITED - Unaudited interim financial statements and cash dividend declaration
22 February 2018 9:00
SUR 201802220018A
Unaudited interim financial statements and cash dividend declaration

SPUR CORPORATION LIMITED
(registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE000022653
("Spur Corporation")

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND
CASH DIVIDEND DECLARATION
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

RESULTS COMMENTARY

TRADING PERFORMANCE

Spur Corporation’s performance for the six months to December 2017 reflects the difficult economic and trading conditions during the period in most major markets in which 
the group operates. Total franchised restaurant sales from continuing operations across the local and international operations declined by 2.6% to R3.7 billion.

Franchised restaurant sales in South Africa were 3.0% lower as ongoing political instability and higher living costs negatively impacted consumer sentiment and 
discretionary spending. This contributed to a sharp decline in restaurant and shopping centre foot traffic.

Having declined by 6.2% in the first quarter of the financial year, local restaurant sales showed a marked improvement in the second quarter with sales declining by only 0.2%.

This trend was particularly evident in the performance of the flagship Spur Steak Ranches chain which reported a 5.3% decline in second quarter sales compared to 14.0% in the 
first quarter. Total sales for the six months decreased by 9.3%. While restaurant turnovers in the first quarter were impacted in the aftermath of the social media fallout 
following a customer incident in a Spur outlet in March 2017, the stronger second quarter suggests a positive outlook for the Spur brand for the remainder of the financial year.

Management continues to take decisive action to ensure the profitability of its franchisees in the current trading environment. This includes a shift in the 
promotional strategy away from discounting to protect franchisee margins. While this has had the expected negative impact on restaurant turnovers in the short term, 
the move has buoyed franchisee profitability which is critical to the sustainability of the franchise model.

Pizza and Pasta, incorporating Panarottis and Casa Bella, grew sales by 6.6%. This is a pleasing performance in the highly competitive pizza market where several chains 
have launched aggressive discounting campaigns to attract customers.

RocoMamas continued its strong growth trajectory and increased sales by 37.5% as eight new restaurants were opened in South Africa. John Dory’s opened a net two new outlets 
and increased sales by 1.8%.

The Hussar Grill again showed the resilience of its higher income customer base as sales grew by 24.1%. Three new restaurants were opened as the chain expanded its 
presence nationally to 17.

The financial stress of Captain DoRegos’ lower income market contributed to sales declining by 12.2%.

International restaurant sales increased by 1.3% in rand terms and by 3.2% on a constant exchange rate basis. Sales in Mauritius (11 outlets) increased by 15.7%, 
Africa (39 outlets) declined by 0.9% while sales in Australasia (11 outlets) were 12.0% lower.

RESTAURANT EXPANSION

The group continued its measured expansion programme despite the tough trading conditions and opened a net 22 outlets across all brands in South Africa, bringing the local 
restaurant base to 550. A further six outlets were revamped and six relocated to better trading locations.

Five new international outlets were opened and five closed. The new outlets are in Nigeria (Spur and Panarottis), Mauritius (Spur Grill & Go), Kenya (RocoMamas) 
and Namibia (John Dory’s).

RESTAURANT FOOTPRINT AT 31 DECEMBER 2017

Franchise brand                                                                                                        South Africa  International      Total
Spur Steak Ranches                                                                                                              292             41        333
Panarottis Pizza Pasta                                                                                                           83             11         94
Casa Bella                                                                                                                        7              –          7
John Dory’s Fish Grill Sushi                                                                                                     51              3         54
Captain DoRegos                                                                                                                  42              2         44
The Hussar Grill                                                                                                                 17              1         18
RocoMamas                                                                                                                        58              5         63
Total                                                                                                                           550             63        613

FINANCIAL PERFORMANCE

The group ceased trading in the United Kingdom and Ireland by the end of the 2016 financial year. These operations were reported as a separate operating segment and 
are accordingly disclosed separately to continuing operations.

Revenue from continuing operations declined by 0.9% to R344.6 million. Revenue was impacted by reduced franchise fee income as a result of the lower restaurant sales 
and fee concessions being granted to assist numerous franchisees to ensure their businesses remained viable during the current economic downturn.

Franchise revenue in Spur Steak Ranches declined by 12.9% and increased in Pizza and Pasta by 1.6%, John Dory’s 3.9%, The Hussar Grill by 33.0%, RocoMamas by 45.0%, 
and Captain DoRegos by 2.8%.

Local retail revenue, representing the group’s interests in four The Hussar Grill restaurants and one RocoMamas outlet, increased by 14.6%.

The manufacturing and distribution division grew revenue by 3.0%, negatively impacted by the lower restaurant foot traffic and slower sales from the sauce factory. 
Margins continued to be under pressure from higher raw material input costs which have not all been passed on as management seeks to balance franchisee and franchisor 
margins to ensure the group’s brands remain competitive.

While the operating margin expanded in RocoMamas and the retail division, the margin in all the other brands as well as the manufacturing division contracted as expenses 
grew ahead of revenue.

Profit before income tax from continuing operations declined by 15.5% to R134.3 million. This includes  a profit on the disposal of the Braviz rib processing facility 
of R17.5 million (following an impairment loss of R44.2 million recognised in the second half of the 2017 financial year), a net charge of R3.4 million 
(2016: gain of R0.6 million) related to the long-term share-linked employee retention and incentive schemes, a fair value loss of R10.6 million (2016: R2.8 million) 
relating to the RocoMamas contingent consideration liability, and other one-off and exceptional items in the current and previous comparable periods.

Comparable profit before income tax from continuing operations, excluding exceptional and one-off items (including those listed above), declined by 18.6%.

Headline earnings declined by 10.5% to R96.6 million and headline earnings from continuing operations decreased by 11.8% to R96.6 million. Headline earnings on a 
comparable basis declined by 19.7%.

Diluted headline earnings per share from continuing operations was 11.7% lower at 100.87 cents. An interim dividend of 63 cents per share (2016: 71 cents) has been declared.

PROSPECTS

The group’s focus in the months ahead will be on food quality, value, competitive pricing and driving customer loyalty across all brands. The improving performance in 
the second quarter augurs well for a stronger result in the second half of the year, particularly for the Spur Steak Ranches chain which encountered major headwinds 
in the first half.

The water crisis in the Western Cape poses a risk in the months ahead and remedial strategies are being implemented to minimise the impact on trading.

The restaurant footprint in South Africa will be expanded with the opening of 21 restaurants across Spur Steak Ranches (3), Panarottis (1), RocoMamas (10), 
Captain DoRegos (5), The Hussar Grill (1) and Casa Bella (1) in the remainder of the financial year. Management continues to seek opportunities to acquire brands with 
good growth prospects.

The group aims to open at least 10 international restaurants to June 2018, with the focus mainly on Africa where new outlets will be opened in Namibia (three), Zambia, 
Zimbabwe and Swaziland. A further two outlets will be opening in Saudi Arabia, one in Mauritius and the first RocoMamas in Australia.

While the stabilising political environment in South Africa is expected to boost consumer confidence in the short term, the directors believe that any marked improvement 
in spending is only likely to follow an economic recovery in the medium to longer term.

CASH DIVIDEND

Shareholders are advised that the board of directors of the company has, on Wednesday, 21 February 2018, resolved to declare an interim gross cash dividend for the 
six-month period to 31 December 2017 of R68.343 million, which equates to 63.0 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 20%.

The dividend has been declared from income reserves. The net dividend is 50.4 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 Limited, the relevant dates for the dividend are as follows:

Event                                                      Date
Last day to trade ‘cum dividend’          Monday, 26 March 2018
Shares commence trading ‘ex dividend’    Tuesday, 27 March 2018
Record date                             Thursday, 29 March 2018
Payment date                              Tuesday, 3 April 2018

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 Tuesday, 27 March 2018 and Thursday, 29 March 2018, both days inclusive.

For and on behalf of the board

A Ambor                     P van Tonder
Executive Chairman          Group Chief Executive Officer
22 February 2018

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

                                                                                                            Unaudited     Unaudited         
                                                                                                           six months    six months                   Audited
                                                                                                                ended         ended                year ended    
                                                                                                          31 December   31 December            %      30 June         
R'000                                                                                                            2017          2016       change         2017
Continuing operations
Revenue                                                                                                       344 553       347 619         (0.9)     648 016
Gross profit                                                                                                  244 874       254 732         (3.9)     469 336
Operating profit before finance income                                                                        118 938       138 339        (14.0)     174 145
Net finance income                                                                                             15 395        19 197                    36 522
Share of profit of equity-accounted investee (net of income tax)                                                    -         1 485                        24
Profit before income tax                                                                                      134 333       159 021        (15.5)     210 691
Income tax expense                                                                                            (34 501)      (47 058)                  (76 676)
Profit from continuing operations                                                                              99 832       111 963        (10.8)     134 015
Discontinued operation
Profit from discontinued operation, net of tax (refer note 2)                                                       -         3 456                     4 084
Profit                                                                                                         99 832       115 419        (13.5)     138 099

Other comprehensive income#:                                                                                   (1 233)       (5 763)                   (4 462)
Foreign currency translation differences for foreign operations                                                (1 132)       (5 844)                   (4 473)
Foreign exchange (loss)/gain on net investments in foreign operations                                            (101)           81                        11

Total comprehensive income                                                                                     98 599       109 656        (10.1)     133 637

Profit attributable to:
 Owners of the company                                                                                         96 689       113 320        (14.7)     134 143
 Non-controlling interests                                                                                      3 143         2 099         49.7        3 956
Profit                                                                                                         99 832       115 419        (13.5)     138 099

Total comprehensive income attributable to:
 Owners of the company                                                                                         95 456       107 557        (11.3)     129 681
 Non-controlling interests                                                                                      3 143         2 099         49.7        3 956
Total comprehensive income                                                                                     98 599       109 656        (10.1)     133 637

# 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                                                                                                101.11        118.25        (14.5)      139.98
 Diluted earnings                                                                                              100.94        118.15        (14.6)      139.82

Earnings per share (cents) - continuing operations
 Basic earnings                                                                                                101.11        114.35        (11.6)      135.60
 Diluted earnings                                                                                              100.94        114.26        (11.7)      135.44

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                                                                          Unaudited    Unaudited      Audited
                                                                                                                              as at        as at        as at
                                                                                                                        31 December  31 December      30 June
                                                                                                                               2017         2016         2017
R'000
ASSETS
Non-current assets                                                                                                          609 899      622 990      579 085
Property, plant and equipment                                                                                                98 315       99 520      100 319
Intangible assets and goodwill                                                                                              361 870      368 298      362 101
Loans receivable                                                                                                            144 032      149 223      110 730
Deferred tax                                                                                                                  1 472        1 190        1 450
Leasing rights                                                                                                                4 210        4 759        4 485

Current assets                                                                                                              439 799      474 883      412 084
Inventories                                                                                                                  16 485       17 058       12 731
Tax receivable                                                                                                               42 686       33 917       41 479
Trade and other receivables                                                                                                 150 078      117 557       72 836
Loans receivable                                                                                                             17 098       19 944       19 085
Cash and cash equivalents                                                                                                   213 452      286 407      265 953

TOTAL ASSETS                                                                                                              1 049 698    1 097 873      991 169

EQUITY
Total equity                                                                                                                872 419      904 179      837 176
Ordinary share capital                                                                                                            1            1            1
Share premium                                                                                                               294 663      294 663      294 663
Shares repurchased by subsidiaries                                                                                         (106 412)     (97 963)    (102 956)
Foreign currency translation reserve                                                                                         25 016       24 948       26 249
Share-based payments reserve                                                                                                  2 950        2 498        1 812
Retained earnings                                                                                                           643 769      665 523      605 388
Total equity attributable to owners of the company                                                                          859 987      889 670      825 157
Non-controlling interests                                                                                                    12 432       14 509       12 019

LIABILITIES
Non-current liabilities                                                                                                      65 520       76 556       63 600
Contingent consideration liability (refer note 5)                                                                                 -       12 323            -
Operating lease liability                                                                                                     2 969        2 479        2 676
Deferred tax                                                                                                                 62 551       61 754       60 924

Current liabilities                                                                                                         111 759      117 138       90 393
Bank overdrafts                                                                                                               3 484        4 017        4 491
Tax payable                                                                                                                   1 318        1 793          880
Trade and other payables                                                                                                     67 670       64 561       60 313
Loans payable                                                                                                                22 297       25 209        6 912
Contingent consideration liability (refer note 5)                                                                            16 404       13 784        5 797
Employee benefits (refer note 6)                                                                                                  -        4 072          885
Derivative financial liability (refer note 6)                                                                                     -        3 191       10 572
Shareholders for dividend                                                                                                       586          511          543

TOTAL EQUITY AND LIABILITIES                                                                                              1 049 698    1 097 873      991 169

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                                                             Ordinary      
                                                                                                        share capital     
                                                                                                            and share       
                                                                                                              premium      Retained                 
                                                                                                              (net of      earnings         Non-
                                                                                                             treasury     and other  controlling
                                                                                                               shares)     reserves    interests        Total 
R'000 
Balance at 1 July 2016 (audited)                                                                              196 701       653 592       14 370      864 663

Total comprehensive income for the year                                                                             -       129 681        3 956      133 637
Profit for the year                                                                                                 -       134 143        3 956      138 099
Other comprehensive income                                                                                          -        (4 462)           -       (4 462)

Transactions with owners, recorded directly  in equity
Contributions by and distributions to owners                                                                   (4 993)     (137 693)      (3 880)    (146 566)
Equity-settled share-based payment (refer note 6)                                                                   -         1 168            -        1 168
Indirect costs arising on intra-group sale of shares related to equity-settled 
 share-based payment (refer note 6)                                                                                 -          (860)           -         (860)
Own shares acquired                                                                                            (4 993)            -            -       (4 993)
Dividends                                                                                                           -      (138 001)      (3 880)    (141 881)

Changes in ownership interests in subsidiaries                                                                      -       (12 131)      (2 427)     (14 558)
Acquisition of non-controlling interest in subsidiary without a change in control (refer notes 5 and 9)             -       (12 131)      (2 427)     (14 558)

Total transactions with owners                                                                                 (4 993)     (149 824)      (6 307)    (161 124)

Balance at 30 June 2017 (audited)                                                                             191 708       633 449       12 019      837 176

Total comprehensive income for the period                                                                           -        95 456        3 143       98 599
Profit for the period                                                                                               -        96 689        3 143       99 832
Other comprehensive income                                                                                          -        (1 233)           -       (1 233)

Transactions with owners recorded directly in equity
Contributions by and distributions to owners                                                                   (3 456)      (57 170)      (2 730)     (63 356)
Equity-settled share-based payment (refer note 6)                                                                   -         1 379            -        1 379
Own shares acquired                                                                                            (3 456)            -            -       (3 456)
Dividends                                                                                                           -       (58 549)      (2 730)     (61 279)

Balance at 31 December 2017 (unaudited)                                                                       188 252       671 735       12 432      872 419


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                                                                          Unaudited    Unaudited    
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended      
                                                                                                                        31 December  31 December      30 June     
R'000                                                                                                                          2017         2016         2017
Operating profit before working capital changes (refer note a)                                                              122 623      139 427      236 229
Working capital changes                                                                                                     (36 512)     (21 341)      (1 515)
Cash generated from operations                                                                                               86 111      118 086      234 714
Interest income received                                                                                                     10 208       12 984       25 201
Interest expense paid                                                                                                           (17)         (45)         (84)
Tax paid                                                                                                                    (33 513)     (43 649)     (85 303)
Dividends paid                                                                                                              (61 236)     (71 879)    (141 809)

Net cash flow from operating activities                                                                                       1 553       15 497       32 719

Cash flow from investing activities
Additions of intangible assets                                                                                                 (675)      (3 443)      (3 760)
Additions of property, plant and equipment                                                                                   (2 772)      (8 313)     (13 692)
Cash outflow from share-based payment hedge (refer note 6)                                                                  (13 740)      (7 359)      (7 405)
Disposals of subsidiaries (refer note 2)                                                                                          -       (1 525)      (1 358)
Loan advanced to Spur Steak Ranches Marketing Fund (refer note 7)                                                           (29 000)           -            -
Loans advanced to franchisees                                                                                                (8 499)      (5 541)      (7 318)
Loan repaid by associate company                                                                                                  -            -        3 000
Proceeds from disposal of property, plant and equipment                                                                         142          252          347
Repayment of loans receivable                                                                                                 5 080        7 674       11 409
Net cash flow from investing activities                                                                                     (49 464)     (18 255)     (18 777)

Cash flow from financing activities
Acquisition of non-controlling interest without a change in control (refer note 5)                                                -            -      (14 035)
Acquisition of treasury shares                                                                                               (3 456)           -       (4 993)
Loan repaid to non-controlling shareholders                                                                                       -         (380)        (380)
Settlement of contingent consideration (refer note 5)                                                                             -            -      (18 271)
Net cash flow from financing activities                                                                                      (3 456)        (380)     (37 679)

Net movement in cash and cash equivalents                                                                                   (51 367)      (3 138)     (23 737)
Effect of foreign exchange fluctuations                                                                                        (127)         101         (228)
Net cash and cash equivalents at beginning of period                                                                        261 462      285 427      285 427
Net cash and cash equivalents at end of period                                                                              209 968      282 390      261 462

Refer note 2 for cash flows attributable to discontinued operation.

Notes
a) Operating profit before working capital changes - Includes a gross cash outflow of Rnil (six months ended 31 December 2016: R3.129 million; year ended 
   30 June 2017: R3.130 million) in respect of the settlement of the cash-settled share appreciation rights granted in terms of the group's long-term share-linked 
   employee retention scheme (also refer note 6).

Total depreciation and amortisation included in profit before income tax for the period is R5.620 million (six months ended 31 December 2016: R4.662 million; 
year ended 30 June 2017: R10.538 million).

RECONCILIATION OF HEADLINE EARNINGS
                                                                                                            Unaudited     Unaudited           
                                                                                                           six months    six months                   Audited
                                                                                                                ended         ended                year ended     
                                                                                                          31 December   31 December            %      30 June       
                                                                                                                 2017          2016       change         2017
R'000 
Total group
Profit attributable to owners of the company                                                                   96 689       113 320        (14.7)     134 143
Headline earnings adjustments:
 Impairment of intangible assets (refer note 4)                                                                     -             -                     6 778
 Loss on disposal of property, plant and equipment                                                                  -             5                         5
 Loss on disposal of subsidiary (refer note 2)                                                                      -            12                        12
 Profit on disposal of property, plant and equipment                                                              (64)          (95)                     (167)
 Profit on disposal of subsidiaries (refer note 2)                                                                  -        (5 268)                   (5 435)
 Income tax impact of above adjustments                                                                             -            26                    (1 472)
 Amount of above adjustments attributable to non-controlling interests                                              -            (1)                       (1)

Headline earnings                                                                                              96 625       107 999        (10.5)     133 863

Continuing operations
Profit attributable to owners of the company                                                                   96 689       113 320        (14.7)     134 143
 Exclude: Profit from discontinued operation (refer note 2)                                                         -        (3 731)                   (4 205)
Profit attributable to owners of the company - continuing operations                                           96 689       109 589        (11.8)     129 938
Headline earnings adjustments:
 Impairment of intangible assets (refer note 4)                                                                     -             -                     6 778
 Loss on disposal of property, plant and equipment                                                                  -             5                         5
 Profit on disposal of property, plant and equipment                                                              (64)          (95)                     (167)
 Income tax impact of above adjustments                                                                             -            26                    (1 472)
 Amount of above adjustments attributable to non-controlling interests                                              -            (1)                       (1)

Headline earnings - continuing operations                                                                      96 625       109 524        (11.8)     135 081

OPERATING SEGMENT INFORMATION
                                                                                                            Unaudited     Unaudited            
                                                                                                           six months    six months                   Audited
                                                                                                                ended         ended                year ended 
                                                                                                          31 December   31 December            %      30 June            
                                                                                                                 2017          2016       change         2017
R'000 
External revenue
Manufacturing and distribution                                                                                101 340        98 356          3.0      181 834
Franchise - Spur                                                                                              107 170       123 013        (12.9)     217 918
Franchise - Pizza and Pasta                                                                                    18 780        18 488          1.6       35 471
Franchise - John Dory's                                                                                        10 718        10 319          3.9       19 699
Franchise - Captain DoRegos                                                                                     1 633         1 589          2.8        2 812
Franchise - The Hussar Grill                                                                                    3 264         2 454         33.0        4 733
Franchise - RocoMamas                                                                                          16 942        11 683         45.0       23 809
Retail (refer note b)                                                                                          35 144        30 677         14.6       63 569
Other South Africa (refer note c)                                                                              31 568        32 876         (4.0)      62 851
Total South African segments                                                                                  326 559       329 455         (0.9)     612 696
Unallocated - South Africa                                                                                        736           918        (19.8)       3 269
Total South Africa                                                                                            327 295       330 373         (0.9)     615 965

United Kingdom (refer note 2) (discontinued)                                                                        -             -                         -
Australasia                                                                                                     3 813         5 614        (32.1)       9 870
Other International (refer note e)                                                                             13 445        11 632         15.6       22 181
Total International                                                                                            17 258        17 246          0.1       32 051

TOTAL EXTERNAL REVENUE                                                                                        344 553       347 619         (0.9)     648 016

Profit/(loss) before income tax
Manufacturing and distribution                                                                                 33 523        37 041         (9.5)      66 243
Franchise - Spur                                                                                               90 184       108 823        (17.1)     188 047
Franchise - Pizza and Pasta                                                                                    11 595        12 372         (6.3)      22 967
Franchise - John Dory's                                                                                         5 133         5 657         (9.3)       9 715
Franchise - Captain DoRegos (refer note a)                                                                         38           110        (65.5)      (8 040)
Franchise - The Hussar Grill                                                                                    2 487         2 323          7.1        4 092
Franchise - RocoMamas                                                                                          12 726         8 224         54.7       16 457
Retail (refer note b)                                                                                           3 571         2 312         54.5        4 633
Other South Africa (refer note c)                                                                              (2 311)       (1 050)      (120.1)      (3 188)
Total South African segments                                                                                  156 946       175 812        (10.7)     300 926
Unallocated - South Africa (refer note d)                                                                     (25 934)      (21 090)       (23.0)     (93 794)
Total South Africa                                                                                            131 012       154 722        (15.3)     207 132

United Kingdom (refer note 2)(discontinued)                                                                         -         3 456         (100)       4 084
Australasia                                                                                                      (462)          533       (186.7)        (111)
Other International (refer note e)                                                                              6 974         5 272         32.3        8 991
Total International segments                                                                                    6 512         9 261        (29.7)      12 964
Unallocated - International (refer note f)                                                                     (3 191)       (2 991)        (6.7)      (5 345)
Total International                                                                                             3 321         6 270        (47.0)       7 619

PROFIT BEFORE INCOME TAX AND SHARE OF PROFIT OF EQUITY-ACCOUNTED INVESTEE                                     134 333       160 992        (16.6)     214 751

Share of profit of equity-accounted investee (net of income tax)                                                    -         1 485         (100)          24

PROFIT BEFORE INCOME TAX                                                                                      134 333       162 477        (17.3)     214 775

Notes

a) Captain DoRegos - The prior year ended 30 June 2017 includes an impairment loss of R6.778 million relating to intangible assets as well as a bad debt of
   R0.986 million in respect of a loan to the Captain DoRegos Marketing Fund that was forgiven during the year (refer note 4).

b) Retail - This segment comprises the group's interests in local restaurants consisting of four The Hussar Grill restaurants and one RocoMamas outlet.

c) 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.

d) Unallocated - South Africa - Includes net finance income of R15.044 million (six months ended 31 December 2016: R18.821 million; year ended 30 June 2017:
   R35.788 million), which includes interest income on the loans receivable from Braviz (also refer note 3) for the period of Rnil (six months ended 31 December 2016:
   R3.014 million; year ended 30 June 2017: R4.283 million). The prior year ended 30 June 2017 includes an impairment loss relating to the funding of Braviz of R44.192
   million, while the current period includes a profit on the disposal of these funding instruments of R17.500 million (also refer note 3). Includes a credit in respect
   of cash-settled share-based payments of R0.885 million (six months ended 31 December 2016: R0.609 million; year ended 30 June 2017: R3.795 million) and a fair value
   loss in respect of a related economic hedge of R3.168 million (six months ended 31 December 2016: gain of R1.637 million; year ended 30 June 2017: loss of R5.791
   million) (also refer note 6). Includes an equity-settled share-based payment charge of R1.138 million (six months ended 31 December 2016: R1.671 million; year ended
   30 June 2017: R0.985 million) (also refer note 6). Includes a fair value loss relating to the RocoMamas contingent consideration liability of R10.607 million 
  (six months ended 31 December 2016: R2.816 million; year ended 30 June 2017: R0.777 million) (also refer note 5). Includes a profit of R0.079 million (six months ended 
   31 December 2016: loss of R0.877 million; year ended 30 June 2017: loss of R1.206 million) arising from The Spur Foundation Trust, a consolidated structured entity, all
   of which is attributable to non-controlling interests.

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

f) Unallocated - International - Includes a foreign exchange loss of R0.174 million (six months ended 31 December 2016: R0.164 million; year ended 30 June 2017: 
   R0.716 million).

SHARE INFORMATION
                                                                                                            Unaudited     Unaudited          
                                                                                                           six months    six months                   Audited
                                                                                                                ended         ended                year ended   
                                                                                                          31 December   31 December            %      30 June       
                                                                                                                 2017          2016       change         2017

Total shares in issue (000's)                                                                                 108 481       108 481                   108 481
Net shares in issue (000's)*                                                                                   95 539        95 834                    95 669
Weighted average number of shares in issue (000's)                                                             95 632        95 834                    95 828
Diluted weighted average number of shares in issue (000's)                                                     95 789        95 916                    95 938
Headline earnings per share (cents)                                                                            101.04        112.69        (10.3)      139.69
Diluted headline earnings per share (cents)                                                                    100.87        112.60        (10.4)      139.53
Headline earnings per share (cents) - continuing operations                                                    101.04        114.29        (11.6)      140.96
Diluted headline earnings per share (cents) - continuing operations                                            100.87        114.19        (11.7)      140.80
Net asset value per share (cents)                                                                              913.15        943.48         (3.2)      875.08
Dividend per share (cents)#                                                                                     63.00         71.00        (11.3)      132.00
Reconciliation of weighted average number of shares in issue ('000)
Gross shares in issue at beginning of period                                                                  108 481       108 481            -      108 481
Shares repurchased at beginning of period                                                                     (12 812)      (12 647)                  (12 647)
Shares repurchased during the period weighted for period held by the group                                        (37)            -                        (6)
Weighted average number of shares in issue for the period                                                      95 632        95 834                    95 828
Dilutive potential ordinary shares weighted for period outstanding (refer note 6)                                 157            82                       110
Diluted weighted average number of shares in issue for the period                                              95 789        95 916         (0.1)      95 938

* 108 480 926 total shares in issue less 6 166 901 (as at 31 December 2016: 5 812 901; as at 30 June 2017: 6 136 901) shares repurchased by wholly owned
  subsidiary companies, 6 374 698 (as at 31 December 2016: 6 533 698; as at 30 June 2017: 6 374 698) shares held by The Spur Management Share Trust (consolidated
  structured entity) and 400 000 (as at 31 December 2016 and 30 June 2017: 300 000) shares held by The Spur Foundation Trust (consolidated structured entity).
# Refers to interim and final dividend declared for the respective year.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 Basis of preparation

  The unaudited interim condensed consolidated financial statements for the six months ended 31 December 2017 have been prepared in accordance with the JSE Limited
  Listings Requirements for provisional reports and the requirements of the Companies Act (No. 71 of 2008), as amended. 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 applied in the
  preparation of the condensed consolidated financial statements are in terms of IFRS and are consistent with those applied in the preparation of the group's
  consolidated financial statements for the year ended 30 June 2017.

2 Discontinued operation (United Kingdom)

  By 30 June 2016, all operations in the UK and Ireland, representing a separate major line of business (and comprising a separate operating segment) of the group, had
  ceased trading. The results of the segment are reported separately to continuing operations.

  During the prior year, the group disposed of, or commenced with voluntary liquidation proceedings of, its remaining UK subsidiaries, with the exception of Spur
  Corporation UK Ltd, effectively disposing of all remaining liabilities and cash balances for no consideration. The board has obtained legal opinion that the
  likelihood of there being any recourse by creditors or the liquidator against the group to settle any creditors' claims arising from the liquidation, is remote. The
  impact of the above disposals is as follows:

                                                                                                                  Unaudited six months ended 31 December 2016
                                                                                                                          Profit on      Loss on     
                                                                                                                        disposal of  disposal of
                                                                                                                       subsidiaries   subsidiary        Total
  R'000
  Net (liabilities)/assets disposed of                                                                                       (5 268)          12       (5 256)
   Cash and cash equivalents                                                                                                  1 506           19        1 525
   Trade and other payables                                                                                                  (6 774)          (7)      (6 781)

  Profit/(loss) on disposal                                                                                                   5 268          (12)       5 256
  Proceeds on disposal                                                                                                            -            -            -

                                                                                                                              Audited year ended 30 June 2017
                                                                                                                          Profit on      Loss on      
                                                                                                                        disposal of  disposal of
                                                                                                                       subsidiaries   subsidiary        Total
  Net (liabilities)/assets disposed of                                                                                       (5 435)          12       (5 423)
   Cash and cash equivalents                                                                                                  1 339           19        1 358
   Trade and other payables                                                                                                  (6 774)          (7)      (6 781)

  Profit/(loss) on disposal                                                                                                   5 435          (12)       5 423
  Proceeds on disposal                                                                                                            -            -            -

  The results of the discontinued operation are illustrated below:
                                                                                                                          Unaudited    Unaudited    
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended  
                                                                                                                        31 December  31 December      30 June 
                                                                                                                               2017         2016         2017
  R'000 
  Revenue                                                                                                                         -            -            -
  Gross profit                                                                                                                    -            -            -

  Operating profit before finance income                                                                                          -        3 456        4 084
  Profit before income tax                                                                                                        -        3 456        4 084
  Profit for the period                                                                                                           -        3 456        4 084

  Profit attributable to owners of the company                                                                                    -        3 731        4 205
  Non-controlling interests                                                                                                       -         (275)        (121)
  Profit for the period                                                                                                           -        3 456        4 084

  The cash flows of the discontinued operation are listed below:

  Net cash flow from operating activities                                                                                         -       (2 758)      (3 135)
  Net cash flow from investing activities                                                                                         -       (1 525)      (1 525)
  Net cash flow from financing activities                                                                                         -         (380)        (380)
  Net movement in cash and cash equivalents for the period                                                                        -       (4 663)      (5 040)

3 Investment in associate: Braviz Fine Foods

  In March 2014, the group acquired a 30% interest in Braviz Fine Foods (Pty) Ltd ("Braviz"), a start-up operation which established a rib processing plant in
  Johannesburg. 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. In addition, a further short-term bridging finance loan of R10.000 million 
  was advanced to the associate during the 2016 financial year. The bridging finance loan was repayable by 30 June 2017, but the counterparty failed to repay the loan.

  Following various breaches of the terms of the respective loan agreements referred to above by the associate, and taking cognisance of the associate's financial
  performance, which had been impacted by reduced demand following a decline in the local economy, increased competition and aggressive pricing, the board considered
  the full extent of the receivables, amounting to R44.192 million at 30 June 2017, to be impaired. An impairment loss of this amount was consequently recognised in
  profit before income tax for the prior year ended 30 June 2017. The group's share of equity-accounted profit after income tax of the associate amounted to R1.485
  million and R0.024 million for the prior six months to 31 December 2016 and prior year ended 30 June 2017 respectively. No equity-accounted profits or losses of the
  associate have been recognised subsequent to 30 June 2017 as a result of the impairment referred to above.

  With effect from 6 November 2017, the group concluded an agreement to sell its equity interest and loan claims with Braviz to the existing Braviz shareholders for the
  sum of R17.500 million. The sale consideration is payable in four equal monthly instalments from the end of November 2017 to the end of February 2018, such
  instalments being held in escrow by the group's attorneys pending payment of the final instalment. The terms of the sale agreement have been substantially complied
  with to date. Accordingly, a receivable in the amount of R17.500 million has been recognised at the reporting date and a profit of 17.500 million on the disposal of
  the loan claims has been recognised in profit before income tax for the period. The transaction results in an income tax credit of R3.257 million which is included in
  the income tax expense for the period.

  An analysis of the receivables as at the prior period reporting dates is detailed as follows:
                                                                                                                                       Unaudited      Audited
                                                                                                                                           as at        as at
                                                                                                                                     31 December      30 June
                                                                                                                                            2016         2017
  R'000
  Gross carrying value of receivable (included in loans receivable in statement of financial position) 
   considered part of net investment in equity-accounted investee
   for the purposes of recognising losses in excess of the carrying value of the investment in associate                                  47 453       47 745
  Cumulative share of losses of equity-accounted investee previously recognised                                                           (8 728)     (10 189)
  Net receivable considered part of the net investment in equity-accounted investee                                                       38 725       37 556
  Impairment recognised in terms of IAS 39                                                                                                     -      (37 556)
  Carrying value at reporting date                                                                                                        38 725            -

  Gross carrying value of further short-term loan advanced to equity-accounted investee                                                    6 500        6 636
  Impairment recognised in terms of IAS 39                                                                                                     -       (6 636)
  Carrying value at reporting date                                                                                                         6 500            -

4 Impairment of Captain DoRegos

  The Captain DoRegos brand is a value-oriented takeaway chain offering a combination of chicken, seafood and burgers to consumers, operating through 42 franchised
  outlets locally and two 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.

  Following an impairment test conducted at 30 June 2017, the directors determined that the recoverable amount of the cash-generating unit (comprising predominantly the
  trademark and related intellectual property intangible assets with indefinite useful lives) was estimated to be negligible. The full carrying amount of the assets
  attributable to the cash-generating unit at 30 June 2017 were therefore impaired, resulting in a loss of R6.778 million (attributable to the intangible assets) being
  included in profit before income tax for the prior year to 30 June 2017. A corresponding deferred tax credit of R1.518 million was recognised in profit in the year to
  30 June 2017, resulting in a net loss included in profit attributable to ordinary shareholders of R5.260 million for that period.

  In addition, the group had previously advanced a loan to the Captain DoRegos Marketing Fund to finance the purchase of new signage at selected stores. In the
  interests of making available sufficient funds for marketing activities to ensure the sustainability of the brand, the group forgave the loan as at 30 June 2017.
  Consequently, a bad debt of R0.986 million was recognised in profit before income tax for the prior year ended 30 June 2017. Refer also note 10.

5 RocoMamas contingent consideration

  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.

  The purchase consideration is determined as five times RocoMamas' profit before income tax of the third year following the date of acquisition, which ends on 
  28 February 2018. Following an initial payment of R2.0 million on the effective date, annual payments 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. Payments of R20.369 million and R18.271 million were made on the first and second anniversaries of the acquisition date respectively.

  The total purchase consideration over the three-year period was estimated at R57.541 million at the reporting date (at 31 December 2016: R52.800 million; at 
  30 June 2017: R47.215 million). The increase in the estimated consideration at the reporting date relative to 30 June 2017 arose principally from restaurant turnovers 
  and related franchise income exceeding budget: the impact of a subdued economy and political instability on restaurant turnovers was less than previously anticipated.
  Furthermore, a greater number of new restaurants were opened in the period to December 2017 than was previously anticipated.

  The movement in the contingent consideration liability is detailed as follows:

                                                                                                                          Unaudited    Unaudited    
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended
                                                                                                                        31 December  31 December      30 June     
                                                                                                                               2017         2016         2017
  R'000 
  Balance at beginning of period                                                                                              5 797       23 291       23 291
  Fair value adjustment recognised in profit before income tax                                                               10 607        2 816          777
  Payment made                                                                                                                    -            -      (18 271)
  Balance at end of period                                                                                                   16 404       26 107        5 797

   Current portion included in current liabilities                                                                           16 404       13 784        5 797
   Non-current portion included in non-current liabilities                                                                        -       12 323            -

  During the prior year, with effect from 1 April 2017, the group acquired a further 19% interest in RocoMamas, increasing the group's equity interest in the entity to 
  70%. The purchase consideration of R14.035 million was settled in cash on the effective date. The net assets of RocoMamas at 1 April 2017 included in the consolidated
  financial statements of the group amounted to R16.433 million, of which R8.052 million was attributable to non-controlling interests. The purchase consideration was
  debited directly to retained earnings in the prior year and the non-controlling interest's share in the net assets of the subsidiary of R3.122 million was similarly
  reallocated within equity to retained earnings in the prior year.

6 Share Incentive Schemes
  - Existing cash-settled share appreciation rights scheme

  In December 2017, the fifth (and final) tranche (December 2016: fourth tranche) of share appreciation rights granted in terms of the group's long-term share-linked
  employee retention scheme vested. Details of the financial impact of the scheme are listed below:

                                                                                                                          Unaudited    Unaudited    
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended
                                                                                                                        31 December  31 December      30 June   
                                                                                                                               2017         2016         2017
  R'000 
  Gross cash outflow on vesting of cash-settled rights                                                                            -       (3 129)      (3 130)
  Gross cash outflow from economic hedging instrument                                                                       (13 410)      (7 599)      (7 600)
  (Payment)/refund of difference in guaranteed dividend from hedge counterparty                                                (330)         240          195
  Net cash flow effect                                                                                                      (13 740)     (10 488)     (10 535)

  Share-based payment credit                                                                                                    885          609        3 795
  Fair value (loss)/gain on economic hedging instrument                                                                      (3 168)       1 637       (5 791)
  Net (expense)/gain included in profit before income tax                                                                    (2 283)       2 246       (1 996)

  Further details of the share appreciation rights and related hedges are detailed in notes 24 and 25 respectively on pages 130 and 132 respectively of the annual
  integrated report for the year ended 30 June 2017. Refer also note 12.

  - New equity-settled share incentive scheme
  Following the approval by shareholders at the annual general meeting on 4 December 2015 of the Spur Group Forfeitable Share Plan and Spur Group Share Appreciation
  Rights Scheme, certain awards were granted to certain senior managers and directors during previous financial years, details of which are included in note 21.4 on
  page 126 of the annual integrated report for the year ended 30 June 2017. No further grants were awarded during the current period.

  The financial impact of the incentive schemes is summarised below:
                                                                                                                          Unaudited    Unaudited  
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended
                                                                                                                        31 December  31 December      30 June   
                                                                                                                               2017         2016         2017
  R'000
  Share-based payment expense included in profit before income tax                                                            1 138        1 671          985
  Income tax credit included in profit                                                                                          225          268          320
  Income tax credit included in equity (retained earnings)                                                                      241          108          183
  Capital gains tax arising on intra-group sale of shares charged to equity (retained earnings)                                   -            -          795
  Transaction costs arising on intra-group sale of shares charged to equity (retained earnings)                                   -            -           65

  The forfeitable shares granted resulted in 156 607 (six months ended 31 December 2017: 82 208; year ended 30 June 2017: 110 351) dilutive potential ordinary shares
  for the period. As the performance conditions of the share appreciation rights, as assessed at the reporting date, had not been met to result in any vesting of the
  rights, no adjustment has been made to the diluted weighted average number of shares in issue in respect of these contingently issuable shares for all periods
  reported.

7 Loan to Spur Steak Ranches Marketing Fund

  The Spur Steak Ranches Marketing Fund, which is managed by the group for and on behalf of the body of Spur Steak Ranches franchisees, is established in terms of the
  franchise agreements concluded between the group and franchisees, as more fully described in notes 2.1 and 39 on pages 95 and 148 respectively of the annual
  integrated report for the year ended 30 June 2017.

  The Marketing Fund's main source of income is the marketing contributions received from franchised restaurants which are determined as a percentage of the franchised
  restaurants' sales. As a consequence of the decline in franchised restaurant sales since March 2017, exacerbated by temporary reductions in the percentage marketing
  fee charged to certain restaurants in an effort to support the sustainability of these restaurants during the tough trading conditions, the fee income received by the
  Marketing Fund has reduced significantly. This has resulted in the Marketing Fund not being able to settle its financial obligations in the ordinary course of
  business.

  During the period, the board approved a loan facility to be made available to the Marketing Fund in the amount of R35 million. This was necessary in order to ensure
  the liquidity and solvency of the wholly owned subsidiary that manages the Marketing Fund. The facility bears interest at the prime rate of interest and is repayable
  in 60 equal monthly instalments commencing July 2018. As at the reporting date, the carrying amount of the loan was R29.557 million (comprising R29.000 million
  capital and R0.557 million in interest), and is included in loans receivable in the consolidated statement of financial position.

  The board, management of the Marketing Fund and franchisees are critically reassessing the priorities of the Marketing Fund to ensure that expenditure is curtailed in
  a responsible manner, such that the loan can be repaid with the least negative impact for the brand and franchisees. The board has undertaken to review the terms of
  the loan facility on a regular basis, and amend these as necessary, to ensure that no creditor is prejudiced.

8 Tax rate reconciliation

  Material items that have an impact on the effective rate of income tax are listed below:

                                                                                                                          Unaudited    Unaudited     
                                                                                                                         six months   six months      Audited
                                                                                                                              ended        ended   year ended  
                                                                                                                        31 December  31 December      30 June 
  %                                                                                                                            2017         2016         2017
  South African normal tax rate                                                                                                28.0         28.0         28.0
 (Non-taxable profit on disposal of Braviz loans)/Non-deductible impairment of Braviz loans (refer note 3)                     (6.7)           -          5.8
  Non-taxable dividend income                                                                                                  (0.9)        (0.7)        (1.1)
  Non-deductible fair value adjustment on RocoMamas contingent consideration liability (refer note 5)                           2.2          0.5          0.1
  Non-deductible other expenditure (capital items and items not in the production of income)                                    1.0          0.7          1.3
  Withholding taxes not recoverable                                                                                             1.4          1.2          1.8
  Other                                                                                                                         0.7         (0.7)        (0.2)
  Effective rate of tax - group                                                                                                25.7         29.0         35.7
  Effective rate of tax - continuing operations                                                                                25.7         29.6         36.4

9 Changes in local retail operations

  - RocoMamas Green Point (prior year) - During the prior year, with effect from 1 June 2017, a subsidiary, Opilor (Pty) Ltd (in which the group has a 68% equity
    interest) sold the business of RocoMamas Green Point to a newly established entity, Green Point Burger Joint (Pty) Ltd, two-thirds of which is owned by wholly owned
    subsidiary, Spur Group (Pty) Ltd, and the remaining third by 70%-owned subsidiary, RocoMamas Franchise Co (Pty) Ltd. This resulted in an effective increase in the
    group's ownership interest in the outlet from 68% to 90% in the prior year. The profit before income tax attributable to the non-controlling shareholder of Opilor
    (Pty) Ltd, arising from the transaction, of R0.695 million was allocated to non-controlling interests in the prior year, and the tax of R0.523 million arising from
    the transaction was charged directly to equity (retained earnings) in the prior year.

10 Subsequent events

   - Dividend – Subsequent to the reporting date, a dividend of 63 cents per ordinary share in issue, amounting to R68.343 million, was declared by the board on 
     21 February 2018 and is payable on 3 April 2018.

   - Disposal of Captain DoRegos – Subsequent to the reporting date, on 20 February 2018, the group concluded an agreement to dispose of the business of Captain DoRegos 
     with effect from 1 March 2018, for a consideration of R5 million. Of the total consideration, R1 million is payable on the effective date, and the balance of 
     R4 million is payable in equal monthly instalments over 48 months. The receivable relating to the consideration due is secured by mortgages over immovable property 
     of the purchaser. The assets disposed of comprise largely trademarks and related intellectual property, which were impaired in prior years (refer note 4). 
     The transaction is anticipated to result in a profit on disposal of R5 million included in profit before income tax. 
   
   No other material events have occurred between the reporting date and the date of this report.

11 Contingent liabilities

   - Tax on 2004 share incentive scheme - As reported in note 44.1 on page 159 of the annual integrated report for the year ended 30 June 2017, SARS had previously
     issued additional assessments to wholly owned subsidiary, Spur Group (Pty) Ltd, in respect of the 2005 to 2012 years of assessment totalling R22.034 million
     (comprising R13.996 million in additional income tax and R8.038 million in interest). The additional assessments were issued following the disallowance of a deduction
     claimed in respect of the 2004 share incentive scheme. The total of the additional assessments was paid in previous financial years. Following failed alternative
     dispute resolution proceedings, the matter has been referred to the income tax court, and is expected to be heard in the week commencing 26 February 2018. 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. Consequently, no liability
     has been raised in respect of the assessments issued to date and the payments made to date are accounted for as prepayments of income tax.

   - Other contingent liabilities - There have been no further changes to the status of other contingent liabilities referred to in note 44 on page 159 of the
     annual integrated report for the year ended 30 June 2017.

12 Fair value of financial instruments

   - Forward purchase derivative financial instruments - The forward purchase derivative financial liabilities (disclosed as derivative financial liabilities on
     the face of the consolidated statement of financial position), previously utilised by the group to economically hedge the impact of the cash-settled share
     appreciation rights granted in terms of its long-term share-linked employee retention scheme, were measured at fair value at each reporting date (refer note 6). All
     these instruments had matured and were settled during the current period. Full details of the terms of the instruments and the fair values thereof were disclosed in
     note 25 on page 132 of the annual integrated report for the year ended 30 June 2017.

   - Contingent consideration liability - The liability for the contingent consideration referred to in note 5 (as disclosed on the face of the consolidated
     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 21.4% (at 31
     December 2016: 26.5%; at 30 June 2017: 21.6%), being the weighted average cost of capital of the subsidiary. The reduction in the discount rate relative to the prior
     year is attributable to reduced forecasting risk as the group now has sufficient historic information to be able to forecast the business's future profits more
     accurately. 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 R10.607 million (six months ended 31 December 2016: R2.816 million; year ended 30 June 2017: R0.777 million) and relates to
     the adjustment for the time value of money (including the impact of the reduced discount rate), as well as changes to the forecast profit before income tax as
     referred to in note 5. The estimated fair value of the contingent consideration liability at the reporting date would change if the forecast profit before income tax
     for the risk-adjusted discount rate were to change as follows:

                                                                                                                         Increase/(decrease) in fair value of 
                                                                                                                             liability and decrease/(increase) 
                                                                                                                                  in profit before income tax
   R'000
   Change in variable:
   Projected profit before income tax
   - Increased by 5%                                                                                                                                    2 792
   - Decreased by 5%                                                                                                                                   (2 792)
   Discount rate
   - Increased by 2%                                                                                                                                      (38)
   - Decreased by 2%                                                                                                                                       39

   - Other financial instruments - The group has not disclosed the fair values of loans receivable, financial assets included in trade and other receivables, cash
     and cash equivalents, loans payable, bank overdrafts, financial liabilities included in trade and other payables and shareholders for dividend as their carrying
     amounts are a reasonable approximation of their fair values. In the case of loans receivable and loans payable, the directors consider the terms of the loans
    (including in particular, the interest rates applicable) to be commensurate with similar financial instruments between unrelated market participants and the carrying
     values are therefore assumed to approximate their fair values. In the case of financial assets included in trade and other receivables, cash and cash equivalents,
     bank overdrafts, financial liabilities included in trade and other payables and shareholders for dividend, the durations of the financial instruments are short and it
     is therefore assumed that the carrying values approximate their fair values.

13 Related parties

   There have been no material changes in the nature or value of the related party transactions reported in note 42 on page 153 of the annual integrated report for the
   year ended 30 June 2017.

14 Standards issued but not yet effective

   A number of new standards and amendments to standards are effective for the group's financial reporting period beginning after 1 July 2018. These are detailed in note
   46 on page 167 of the annual integrated report for the year ended 30 June 2017. None of these standards or amendments have been early adopted in the preparation of
   these interim condensed consolidated financial statements. The key standards that are expected to have a potential or actual impact on the group's consolidated
   financial statements include IFRS 9 - Financial instruments, IFRS 15 - Revenue from contracts with customers, and IFRS 16 - Leases. No further progress has been made
   on the transition to these standards, subsequent to the preparation of the consolidated financial statements for the year end 30 June 2017 referred to above.

15 Change in director

   Shareholders were advised on 27 November 2017 that the company's financial director, Ms Ronel van Dijk, tendered her resignation from the board and the company on 
   24 November 2017 with effect from 31 March 2018. Shareholders were further advised on 26 January 2018 that Mr Phillip Matthee will be appointed as financial director and
   an executive director of the company with effect from 1 April 2018.

ADMINISTRATION

DIRECTORS
Executive Chairman: Allen Ambor
Chief Executive Officer: Pierre van Tonder
Chief Operating Officer: Mark Farrelly
Chief Financial Officer: Ronel van Dijk (refer note 15)
Non-executive Directors: Keith Getz; Keith Madders; Tasneem Karriem
Independent Non-executive Directors: Dean Hyde; Muzi Kuzwayo; Dineo Molefe; Mntungwa Morojele

COMPANY INFORMATION

Spur Corporation Ltd (registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE000022653
Company Secretary: Nazrana Hawa
Registered Office: 14 Edison Way, Century Gate Business Park, Century City, 7441
Transfer Secretaries: Computershare Investor Services (Pty) Ltd, Rosebank Towers,   15 Biermann Avenue, Rosebank, 2196
Sponsor: Sasfin Capital (A division of Sasfin Bank Ltd)
Website: www.spurcorporation.com

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