Abridged Audited Financial Statements for the year ended 30 June 2022 Cash Dividend Lead Independent Director
SPUR CORPORATION LIMITED
(Incorporated in the Republic of South Africa
Registration number 1998/000828/06
Share code: SUR
ISIN: ZAE 000022653
(“Spur”, “the group” or “the Company”)
SHORT-FORM ANNOUNCEMENT ABRIDGED CONSOLIDATED AUDITED ANNUAL FINANCIAL
STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022 (“ABRIDGED RESULTS”), PAYMENT OF
CASH DIVIDEND AND CHANGE IN LEAD INDEPENDENT DIRECTOR
Shareholders of Spur (“Shareholders”) are advised that the group’s abridged results and consolidated
audited annual financial statements for the year ended 30 June 2022, were published on the websites
of the JSE Limited (“JSE”) and the group, today, 19 August 2022.
KEY FEATURES
Franchised restaurant turnovers up 28.2% to R7.7 billion
Group revenue up 32.5% to R2.4 billion
Profit before income tax increased by 41.9% to R209.7 million
Final 2022 dividend of R70.954 million (78 cents per share)
Headline earnings per share increased by 31.0% to 144.22 cents
Diluted headline earnings per share 30.9% higher at 143.68 cents
Unrestricted cash and cash equivalents up R29.8 million to R290.7 million
Group in an ungeared financial position at year-end
TRADING PERFORMANCE
The group delivered a strong trading performance for the year, following a recovery from the impact
of the global COVID-19 pandemic over the past two years. Increased customer foot traffic is evident
in the group’s restaurants, although new trading patterns are emerging, and these levels are erratic.
Franchised restaurant sales for the year ended 30 June 2022 (“the period”) increased by 28.2% over
the prior financial year, and are pleasingly slightly ahead of the 2019 financial year pre-pandemic
levels.
Although economic conditions remain challenging in the face of higher inflation and severe pressure
on consumer disposable income, the group’s business model continues to demonstrate its resilience.
The group embarked on robust and aggressive marketing campaigns to increase brand awareness,
everyday value and consumer convenience, including takeaways, click and collect services and third-
party deliveries.
Following the relaxation of lockdown restrictions, trading conditions improved from August 2021 with
franchised restaurant sales in the first half of the period growing by 28.3% over the prior comparable
period to December 2020.
This strong growth trend continued into the second half of the period, with a 28.5% increase in local
restaurant sales and a 24.7% increase in international restaurant sales over the second half of the
2021 financial year.
At year-end, the group trades through 631 restaurants and in 15 countries. In South Africa, 23
restaurants were opened during the year and fifteen restaurants closed. Eight restaurants opened
internationally.
FINANCIAL PERFORMANCE
The improved trading performance together with a focus on expanding margins, and to a lesser extent
the reduced level of financial support in discounted franchise and marketing fund fees required by
franchisees post pandemic, led to a strong recovery in both group revenue and profit.
The improved revenue was supported by higher sales in retail company stores (+52.0%), increased
sales from the manufacturing and distribution division (+30.5%) and improved restaurant turnovers.
The improved trading volumes contributed to an increase in marketing revenue from R168.5 million
to R204.5 million. Group revenue is thus reported at R2.4 billion, an increase of 32.5% (2021: R1.8
billion).
Group profit before income tax increased by 41.9% to R209.7 million (2021: R147.8 million).
Headline earnings increased by 31.0% to R121.1 million, with diluted headline earnings per share
30.9% higher at 143.68 cents.
PAYMENT OF CASH DIVIDEND
Shareholders are advised that the board of directors of the company has, on Thursday, 18 August
2022, resolved to declare a final gross cash dividend for the year ended 30 June 2022 of R70.954
million, which equates to 78.0 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 62.4 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, 13 September 2022
Shares commence trading “ex dividend” Wednesday, 14 September 2022
Record date Friday, 16 September 2022
Payment date Monday, 19 September 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, 14 September
2022 and Friday, 16 September 2022, both days inclusive.
OUTLOOK
South Africa is facing a range of macroeconomic issues, including political instability, an ongoing
electricity crisis, rising inflation driven by higher fuel, food and electricity prices, and the impact of the
Russia-Ukraine war on supply chain costs.
These issues are likely to continue to challenge the local restaurant market by impacting the
operating environment as well as consumer disposable income. Should current market conditions
remain stable, the group remains optimistic for growth.
The group plans to open 32 new restaurants in South Africa and nine internationally in the new
financial year.
CHANGE OF LEAD INDEPENDENT DIRECTOR
At its meeting on 18 August 2022, the board of directors of the company appointed Dr Shirley Zinn to
succeed Ms Cora Fernandez as lead independent director with effect from 18 August 2022. Ms
Fernandez served as lead independent director for two years. Dr Zinn’s appointment as lead
independent director is for a period of one year (subject to reappointment) in terms of the company’s
lead independent director charter.
For and on behalf of the board
Mike Bosman Val Nichas
Chairman Group chief executive officer
Cape Town
19 August 2022
DIRECTORS
Independent non-executive:
M 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:
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
Sponsor:
Questco Corporate Advisory Proprietary Limited
This short-form announcement is a summary of the information contained in the detailed annual
abridged results announcement, which is available at
https://senspdf.jse.co.za/documents/2022/jse/isse/SUR/YE2022.pdf and on the company’s website
at https://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 the company’s
sponsor, Questco Corporate Advisory Proprietary Limited (1st Floor, The Barracks, 50 Bree Street,
Cape Town City Centre), and electronic copies can be requested from the company secretary at
companysecretary@spurcorp.com and from the sponsor, at sponsor@questco.co.za during business
hours. 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).
The consolidated annual financial statements have been audited by the group's auditors,
PricewaterhouseCoopers Inc., who expressed an unmodified audit opinion thereon. The auditor’s
report includes two Key Audit Matters relating to the assessment of the carrying value of intangible
assets and goodwill due to the magnitude of the aggregate carrying amounts of these assets, and the
accounting for sales of franchisee supplies by the group’s outsourced distributor. This auditor's report,
along with the consolidated annual financial statements for the year ended 30 June 2022, can be
downloaded from www.spurcorporation.com/investors/results-centre/. The integrated annual report
and notice of annual general meeting is expected to be published on or before 31 October 2022.
19 August 2022
Sponsor
Questco Corporate Advisory Proprietary Limited
Date: 19-08-2022 09:00:00
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