SPUR CORPORATION LIMITED - Sales update for the year ended 30 June 2019
25 July 2019 10:00
SUR 201907250022A
Sales update for the year ended 30 June 2019

Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
("Spur Corporation" or "the group")


Spur Corporation increased total franchised restaurant sales by 7.2% to R7.6
billion in the year to 30 June 2019.

Franchised restaurant sales in South Africa grew by 6.2%, with sales from
international restaurants increasing by 16.2% in Rand terms. International
restaurant sales increased by 12.3% on a constant exchange rate basis.

These results include the Nikos Coalgrill Greek chain which was acquired with
effect from 1 August 2018. The chain comprised six outlets at the date of
acquisition, while a further three outlets have been opened subsequently. The
chain contributed franchised restaurant sales of R65.9 million for the 11 months
since acquisition.

The results exclude the Captain DoRegos chain which was sold with effect from 1
March 2018. At the date of disposal, the brand comprised 43 South African
restaurants with local franchised turnover for the eight months to the date of
disposal amounting to R71.8 million and R4.5 million for the three international

Franchised restaurant sales for the year ended 30 June 2019
                                          Total restaurant          Existing
                                                     sales       restaurant sales
                                                (% change)           % change)
 Spur Steak Ranches                                    5.4                4.2
 Pizza and Pasta (Panarottis & Casa                    0.9              (1.4)
 John Dory's Fish Grill Sushi                          4.6              (4.0)
 The Hussar Grill                                     13.4                7.5
 RocoMamas                                             7.5                0.8
 Total South African operations*                       6.2                2.7
 Total international operations*                      16.2                4.1
 Total group*                                          7.2                2.9

*excluding Captain DoRegos; including Nikos Coalgrill Greek

In South Africa, 39 restaurants were opened (in addition to the six Nikos
restaurants acquired) and 15 closed during the year, while 20 restaurants were
opened and 5 closed internationally. The group opened its first restaurants in India
and Cyprus, both RocoMamas outlets, during the year. At 30 June 2019, the
group's restaurant base comprised 620 (June 2018: 575) outlets, including 77
(June 2018: 62) operating outside of South Africa.

Chief executive, Pierre van Tonder, commented on the performance for the period:
"Following increases of 11.3% and 1.3% in local restaurant sales in the first and
second quarters of the financial year, the group reported growth of 7.5% for the
third quarter and 6.0% for the fourth quarter. The growth in the second half was
supported by a recovery in the John Dory's brand following the re-opening of
restaurants temporarily closed in the first half, a turnaround in RocoMamas as a
result of investment in marketing in the second half which saw a return to positive
existing business growth, and the continued resilience of customers in the upper
income market in which The Hussar Grill operates.

"The group's main middle income target market remains under financial pressure
due to the sombre state of the economy. Restaurant turnover for the Panarottis
chain was impacted by aggressive discounting by competitors in the takeaway
pizza market, while the brand's strategy has been a deliberate shift away from
discounting to focusing on product quality and value, which has had a negative
impact on turnover in the short term."

"Restaurant trading conditions continued to deteriorate in Australia and New
Zealand where turnover declined by 14.2% following the closure of three
restaurants. Africa and Mauritius, which accounts for 71.8% of international
restaurant turnover, performed well and benefited from the opening of new
restaurants. This included 8 new Panarottis restaurants in Zambia, increasing the
number of outlets in that country to 13."

The financial information in this sales update has not been reviewed or reported
on by the group's independent auditor. Spur Corporation's annual results for the
year ended 30 June 2019 will be released on SENS on 12 September 2019.

Cape Town
25 July 2019

Sasfin Capital
A member of the Sasfin Group

Date: 25/07/2019 10:00:00
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