Consolidated Audited Annual Financial Statements for the Year Ended 30 June 2024 and Payment of Cash Dividend
SPUR CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share Code: SUR
ISIN: ZAE000022653
("Spur Corporation", "the company" or "the group")
SHORT-FORM ANNOUNCEMENT
CONSOLIDATED AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30
JUNE 2024 ("ANNUAL FINANCIAL STATEMENTS") AND PAYMENT OF CASH DIVIDEND
Shareholders of Spur Corporation are advised that the group's Annual Financial Statements and a
summary thereof ("Summary Financial Statements"), were published on the websites of the JSE
Limited and the group, today, 21 August 2024.
KEY FEATURES
Franchised restaurant turnovers up 11.5% to R10.62 billion
Revenue up 14.1% to R3.47 billion
Earnings per share up 10.7% to 287.92 cents
Diluted earnings per share up 8.7% to 281.31 cents
Diluted headline earnings per share up 9.4% to 284.34 cents
Dividend per share increased by 10.9% to 213 cents (2023: 192 cents)
Profit before income tax up 7.3% to R341.7 million
Headline earnings per share up 11.4% to 291.02 cents
Unrestricted cash and cash equivalents at 30 June 2024 is R365.7 million
Return on equity 29.6%
TRADING PERFORMANCE
At 30 June 2024, the group traded out of 701 restaurants in 15 countries (2023: 639). In South Africa,
27 new restaurants were opened during the period and 9 closed. 11 new restaurants opened
internationally and 4 closed. 37 restaurants were added to the group's restaurant profile with the
acquisition of a 60% share in the Doppio Collection, as previously reported, effective from 1 December
2023.
Trading patterns have been volatile over the past year owing to pressure on consumer spending in the
difficult macroeconomic climate.
The first quarter of the reporting period delivered a strong performance off a high base. While the
second quarter was marked by slower trading patterns, restaurant turnovers were boosted by robust
trading in December 2023. The second half of the financial year continued with slower trading
volumes. A positive upturn in trade was experienced in June during the mid-year school holidays.
Despite the mounting pressure on disposable income, the group continued to attract customers into
restaurants with its distinct and differentiated value proposition. Significant brand innovation
initiatives permeated across the group which included the rebranding of the 57-year-old Spur Steak
Ranches brand that has created a new interest among both consumers and franchisees. In addition,
the increased marketing investment in a Family Club advertising campaign attracted 1.1 million new
loyalty club members resulting in a record high 3.1 million active Family Club members in the financial
year. The Spur brand's voucher redemption rate of 78% is evidence that consumers are seeking value
and rewards for their strained disposable income. Customer count numbers remain unchanged on the
previous year but pleasingly average-spend-per-head grew above menu price inflation.
FINANCIAL PERFORMANCE
The trading performance led to a continued strong growth in both group revenue and profit.
The revenue growth was supported by improved franchised restaurant turnovers and increased sales
from the manufacturing and distribution division which grew by 9.9% (8.7% excluding Doppio
Collection). Growth in sales in the retail company stores was a pleasing 119.5% positively impacted by
the contribution from the Doppio Collection restaurants. Excluding these restaurants, revenue from
retail company stores reports a decline of 4.7% as a result of two less stores trading in F2024. On a
like-for-like basis, The Hussar Grill retail company stores report a 5.1% growth in revenue.
Group profit before income tax increased by 7.3% to R341.7 million (F2023: R318.4 million).
Group headline earnings increased by 10.8% to R236.1 million (F2023: R213.1 million), with diluted
headline earnings per share 9.4% higher at 284.34 cents (F2023: 260.01 cents).
The company's unrestricted cash balance was R365.7 million at 30 June 2024 (31 December 2023:
R288.0 million).
The cash generation and the allocation of the group's capital remains a key focus area of the executive
directors and the board.
PAYMENT OF CASH DIVIDEND
Shareholders are advised that the board of directors of the company has, on 20 August 2024, resolved
to declare a final gross cash dividend for the year ended 30 June 2024 of R107.4 million, which equates
to 118.0 cents per share and the full-year dividend increasing by 10.9% to 213.0 cents per share, for
each of the 90 996 932 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 94.4 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 90 996 932 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, 10 September 2024
Shares commence trading "ex dividend" Wednesday, 11 September 2024
Record date Friday, 13 September 2024
Payment date Monday, 16 September 2024
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, 11 September
2024, and Friday, 13 September 2024, both days inclusive.
OUTLOOK
While South Africa's economic growth is forecast to accelerate in the year ahead, this is unlikely to
translate into improved trading conditions in the short term.
Supported by a portfolio of ten distinctive restaurant brands, Spur Corporation is well positioned to
gain market share in various categories, regions and countries.
The group continues to secure key trading sites and plans to open 47 new restaurants in South Africa
and 13 internationally in the 2025 financial year.
For and on behalf of the board
Mike Bosman Val Nichas
Independent non-executive chairman Group chief executive officer
21 August 2024
This short-form announcement is a summary of the information contained in the Annual Financial
Statements and the Summary Financial Statements, which are available as follows:
Annual financial statements at https://senspdf.jse.co.za/documents/2024/jse/isse/SUR/YE2024.pdf
and on the company's website at https://spurcorporation.com/investor-hub/financial-results/ ; and
Summary Financial Statements on the company's website at https://spurcorporation.com/investor-
hub/financial-results/
The Annual Financial Statements are 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 (Ground Floor, Block C, Investment Place, 10th Road, Hyde Park, Johannesburg), and electronic
copies may be requested from the company secretary at companysecretary@spur.co.za 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
Annual Financial Statements. This short-form announcement is the responsibility of the board of
directors and has been prepared under the supervision of the group chief financial officer, Cristina
Teixeira CA (SA).
The Annual Financial Statements have been audited by the group's auditors, PricewaterhouseCoopers
Inc., who expressed an unmodified audit opinion thereon. This auditor's report, along with the Annual
Financial Statements for the year ended 30 June 2024, can be downloaded from
https://spurcorporation.com/investor-hub/financial-results/. The integrated annual report and notice
of annual general meeting is expected to be published on or before 31 October 2024.
WEBCAST AND INVESTOR PRESENTATION
The results presentation webcast will be broadcast live at 11:00 today via a live video feed at the
following link: https://www.corpcam.com/SPUR21082024
A recording of the webcast will be available shortly afterwards on the company's website:
https://spurcorporation.com/investor-hub/presentations/
The results investor presentation slide deck will be available from 11:00 today at the following
link: https://spurcorporation.com/investor-hub/presentations/
Directors
Independent non-executive:
M Bosman (chairman), Dr S Zinn (lead independent), C Fernandez, J Boggenpoel, L Molebatsi, A Parker
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
Date: 21-08-2024 09:00:00
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