SPUR CORPORATION LIMITED - Unaudited Group Interim Results for the six months ended 31 December 2021 and Cash Dividend
24 February 2022 9:00
Unaudited Group Interim Results for the six months ended 31 December 2021 and Cash Dividend

(Incorporated in the Republic of South Africa)
Registration number 1998/000828/06
Share code: SUR
ISIN: ZAE 000022653
(“the company” or “the group”)



Total franchised restaurant sales up 28.3% to R3.7 billion

Group revenue increased by 40.3% to R440.7 million

Profit before income tax increased by 139.6% to R103.4 million

Comparable profit before income tax increased by 96.3%

Interim 2022 dividend of 49 cents per share declared

Headline earnings per share increased by 119.3% to 70.10 cents

Diluted headline earnings per share 119.1% higher at 69.84 cents

Cash generated from operations R103.8 million (H1 2021: R29.5 million)

Net asset value per share up 22.7% to R8.26

Group in an ungeared financial position at period end

Franchised restaurant sales grew by 28.3% during the period compared to the six months to December
2020 (“previous comparable period”), when significant restrictions on sit-down trade were in place, and by
18.0% over the preceding six-month period ended 30 June 2021.

Trading conditions were in some months impacted by varying levels of COVID-19 restaurant trading
restrictions. These challenging conditions were exacerbated by widespread civil unrest in specifically
KwaZulu-Natal in the second week of July 2021.

Following the reduction in lockdown levels and easing of trading restrictions, customer counts in restaurants
improved from August to December 2021, with strong trading in the fourth quarter of calendar 2021. As a
result, the group’s performance continued to recover in the first half of F2022.
In South Africa, growth in volume was driven mainly by the Spur brand, which increased restaurant sales
by 32.6%. Panarottis, John Dory’s and RocoMamas all increased restaurant sales by a third and The Hussar
Grill in the speciality portfolio increased by 45.0%. RocoMamas, with its fast casual hospitality and distinctive
Smashburger range, remains poised to attract a high proportion of takeaway and delivery sales.

The group’s core offering is casual dining and fast casual restaurants, with takeaways during the period
representing 20% of the group’s South African turnover. The top two contributing brands in terms of
percentage of takeaways to total sales are RocoMamas (53%) and Panarottis (40%).

International franchised restaurant sales declined by 1.8%. Based on a constant exchange rate,
international restaurant sales were 4.7% higher. Sales in Australasia declined by 52.7%* as the group
reduces its focus on the region, while sales from the rest of the international restaurants increased by
16.8%*. Mauritius experienced lengthy severe lockdowns and was impacted by global travel bans which
resulted in a 9.0%* decline in turnover.

While the group reported a pleasing recovery for the period, group franchised restaurant turnovers for the
period remain 9.5%^ behind pre-COVID 19 levels.

Following the opening of a net three outlets, the group’s restaurant base increased to 627, of which 82 are
located outside of South Africa.

* Based on a constant exchange rate
^ Six months ended 31 December 2021 versus six months ended 31 December 2019

Higher sales in the five company-owned restaurants (+40.5%), increased sales from the manufacturing and
distribution division (+14.0%) and improved restaurant turnovers combined with reduced discounting of
franchise and marketing fee structures, contributed to group revenue increasing by 40.3% to R440.7 million
(H1 2021: R314.2 million).

Profit before income tax increased by 139.6% to R103.4 million (H1 2021: R43.1 million).

Profit before tax in the South African operations was also impacted with the consolidation of net marketing
contributions of R26.2 million (H1 2021: R7.7 million). Excluding the marketing fund surplus, profit before
income tax in the South African operations increased by 124.7%.

Comparable group profit before income tax, excluding once-off and unusual items, as well as the impact of
marketing funds, increased by 96.3%.

Headline earnings increased by 119.4% to R58.9 million, with diluted headline earnings per share 119.1%
higher at 69.84 cents. Earnings increased by 119.7% to R59.0 million, with diluted earnings per share
119.3% higher at 69.92 cents.

The allocation of the group’s available capital remains a key focus area of, and requires the approval of, the
board. Allocations are aligned to the company’s strategy and strategic priorities. The balance sheet remains
ungeared with unrestricted cash of R259.1 million as at 31 December 2021.
Prohibitions on sit-down trade, restrictions on alcohol sales, limited trading hours and restaurant capacity
restrictions, to varying degrees during the pandemic, have had marked consequences for the South African
restaurant industry. The widespread changes in the trading environment and the shifting consumer trends
provide opportunities for innovation for the group, including new meal solutions, expansion of restaurant
formats and alternative trading channels.

The group is currently rolling out a new network development strategy, the R8 model, that focuses on
restaurant revamps, relocations and revival strategies to evolve the brand networks into leading
experiences for customers. This will continue in the second half of the financial year across all brands in
South Africa and internationally. The group is on track to achieve its previously reported plans to open 32
new restaurants in South Africa and seven internationally for the current financial year.


Shareholders are advised that the board of directors of the company has, on Tuesday, 22 February 2022,
resolved to declare a gross interim cash dividend for the six months ended 31 December 2021 of
R44.588 million, which equates to 49.0 cents per share for each of the 90 966 932 shares in issue, subject
to the applicable tax levied in terms of the Income Tax Act (Act No. 58 of 1962), as amended (“dividend
withholding tax”).

The dividend has been declared from income reserves. The dividend withholding tax is 20% and a net
dividend of 39.2 cents per share will be paid to those shareholders who are not exempt from dividend
withholding tax.

The company’s income tax reference number is 9695015033. The company has 90 966 932 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”                    Tuesday, 15 March 2022
Shares commence trading “ex dividend”               Wednesday, 16 March 2022
Record date                                         Friday, 18 March 2022
Payment date                                        Tuesday, 22 March 2022

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
Wednesday, 16 March 2022 and Friday, 18 March 2022, both days inclusive.

For and on behalf of the board

Mike Bosman                                         Val Nichas
Chairman                                            Group chief executive officer

Cape Town
24 February 2022


Independent non-executive: MJ Bosman (chairman), C Fernandez, J Boggenpoel, L Molebatsi, A
Parker, S Phillip, S Zinn

Executive: V Nichas (CEO), C Teixeira (CFO), K Robertson (COO)

Company secretary
Mr D Meyer

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

Questco Corporate Advisory Proprietary Limited

This short-form announcement is a summary of the information contained in the detailed interim results
announcement which is available at https://senspdf.jse.co.za/documents/2022/jse/isse/SUR/H12022.pdf
and on the website at www.spurcorporation.com/investors/results-centre. The full announcement is
available for inspection, at no charge, at the company’s registered office and at the offices of Questco
Corporate Advisory (and copies may be requested from the company’s registered office during business
hours at companysecretary@spur.co.za). Any investment decision in relation to the company’s shares
should be based on consideration of the full announcement.

This short-form announcement is the responsibility of the board of directors and has been prepared under
the supervision of the chief financial officer, Cristina Teixeira CA (SA).

Date: 24-02-2022 09:00:00
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