Trading update to September 2020 and postponement of release of annual results
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”)
TRADING UPDATE TO SEPTEMBER 2020 AND
POSTPONEMENT OF RELEASE OF ANNUAL RESULTS
Spur Corporation’s restaurants have reported a steady month-by-month recovery
in turnover since Covid-19 lockdown restrictions were relaxed to allow sit-down
restaurant service at the end of June 2020.
The South African restaurants traded at 73.8% of the prior year’s turnover for the
month of September, improving from 36.5% for July and 56.7% for August.
Spur Steak Ranches achieved restaurant turnover of 72.1% of the prior year for
September. The strongest performing brands were The Hussar Grill at 93.7% of
prior year turnover and RocoMamas at 86.5%. Pizza and Pasta is showing a
slower recovery at 63.2% of turnover.
International restaurants traded at 83.9% of the prior year in September.
Restaurant turnover as a percentage of prior year
Brand May June July Aug Sept
Spur Steak Ranches 8.8 12.8 34.6 56.2 72.1
Pizza and Pasta 11.1 17.2 31.7 49.6 63.2
John Dory’s 4.3 11.0 24.8 45.1 66.5
The Hussar Grill 0.2 2.5 22.6 45.6 93.7
RocoMamas 47.1 46.8 66.5 78.6 86.5
Nikos Coalgrill Greek 15.2 26.9 41.7 61.3 85.3
Total South Africa 12.8 16.4 36.5 56.7 73.8
International 26.8 60.6 76.0 69.0 83.9
Total group 14.3 21.0 40.9 58.2 74.8
After all South African restaurants closed from the start of the national lockdown
on 27 March 2020, restaurants were permitted to trade on a delivery-only basis
from 1 May 2020. This was extended to allow collections at restaurants from 1
June 2020 and the sit-down service resumed from 29 June 2020. Franchisees
have been allowed to reopen restaurants at their discretion.
The number of restaurants trading has grown consistently since June and by the
end of September 2020, 600 of the group’s 631 restaurants had reopened.
Number of restaurants trading post lockdown (month end)
Total
Brand June July Aug Sept restaurants
Spur Steak Ranches 210 263 277 288 298
Pizza and Pasta 56 74 79 80 91
John Dory’s 36 44 46 47 52
The Hussar Grill 5 17 19 20 22
RocoMamas 61 69 74 75 75
Nikos Coalgrill Greek 6 7 7 7 9
Total South Africa 374 474 502 517 547
International 80 81 81 83 84
Total restaurants
trading 454 555 583 600 631
Chief executive officer Pierre van Tonder said: “The recovery in restaurant
turnover post lockdown has exceeded management’s expectations. The
improving monthly growth trend is particularly encouraging in the tight consumer
environment where spending is under intense pressure.
“After several months of lockdown and limited social engagement, our customers
are wanting a safe and entertaining family dining experience. We believe that the
resilience and appeal of our brands, together with our value offering, is driving
this stronger than expected turnaround in turnover.”
The group continues to show its commitment to supporting franchisees, including
discounting franchise and marketing fees and granting extended payment terms
on certain debts. After waiving fees from mid-March until end April, the Spur
Steak Ranches franchise fee was discounted to 3% of restaurant turnover (from
5%) and the marketing fee to 1% (from 4%) from May to August. Fees were
increased to 4% and 2% respectively for September as franchisees started to
experience stronger turnover levels. Similar discounts were applied to the other
brands, and the fee rates have similarly been increased for September. Gradual
increases in the fee rates are anticipated as restaurant turnovers continue to
recover.
The group is currently finalising its year end audit and the preparation of its
financial statements. Management plans to issue a trading statement on SENS
once the directors have reasonable certainty on the financial performance for the
year and the impact of Covid-19 on the group’s earnings.
The information in this trading update has not been reviewed or reported on by
the group’s independent auditor.
FURTHER POSTPONEMENT OF THE RELEASE OF FINANCIAL RESULTS
FOR THE YEAR ENDED 30 JUNE 2020
As advised to shareholders on 3 September 2020, the group is utilising the
extension period granted by the Financial Sector Conduct Authority relating to
the impact of the Covid-19 pandemic and national lockdown on financial
reporting and auditing processes. The audited financial results for the year ended
30 June 2020, the audited annual financial statements and the integrated annual
report are now scheduled to be released on or about 20 November 2020.
Cape Town
8 October 2020
Sponsor
Sasfin Capital
A member of the Sasfin Group
Date: 08-10-2020 12:00:00
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