Spur Corporation Limited - Spur Corporation Limited (Incorporated in the Republic of South Africa) (Registration number 1998/000828/06) Share code : SUR ISIN : ZAE000022653 ("Spur" or "the company") REVIEWED RESULTS FOR THE TWELVE MONTHS ENDED 30 JUNE 2003 KEY PERFORMANCE INDICATORS - Turnover +13.1% - Operating profit +21.5% - Core earnings +22.7% INCOME STATEMENT Reviewed 12 Audited Months ended 12 months 30/06/03 % ended R"000 Note increase 30/06/02 Turnover 156 139 13.1 138 024 Profit from operations 45 826 21.5 37 727 Net interest received 4 688 73.2 2 707 Profit before exceptional items 50 514 24.9 40 434 Exceptional items 1 (9 371) 6 648 Profit before taxation 41 143 47 082 Taxation (13 482) (10 271) Earnings attributable to ordinary shareholders 27 661 -24.9 36 811 RECONCILIATION OF HEADLINE EARNINGS Earnings attributable to ordinary shareholders 27 661 36 811 Headline earnings adjustments: - Profit on sale of company stores (261) - Headline earnings 27 400 -25.6 36 811 Foreign exchange loss/(gain) 7 562 (8 327) Core earnings 34 962 22.7 28 484 Statistics Shares in issue (000"s) 2 93 929 94 884 Weighted average number of shares in issue (000"s) 94 643 93 822 Earnings per share (cents) 29.23 39.23 Headline earnings per share (cents) 28.95 -26.2 39.23 Core earnings per share (cents) 36.94 21.7 30.36 Cash flow earnings per share (cents) 51.04 39.0 36.73 Distributions per share (cents) 23.50 14.6 20.50 Note 1: Exceptional items comprise: Foreign exchange (loss)/gain (7 562) 8 327 Loans written off (2 070) (1 679) Profit on sale of company stores 261 - (9 371) 6 648 Note 2: Shares in issue: Shares in issue less shares repurchased by a wholly owned subsidiary company. STATEMENT OF CHANGES IN EQUITY Shares Share Share repurchased R"000 capital premium by subsidiary Balance at July 1, 2001 1 245 880 (1 886) Profit for the year Distributions (17 487) Shares repurchased (4 514) Shares issued 11 400 (7 360) Balance at June 30, 2002 1 239 793 (6 400) Profit for the year Distributions (20 991) Shares repurchased (2 353) Balance at June 30, 2003 1 218 802 (8 753) Unissued Accumulated R"000 shares deficit Total Balance at July 1, 2001 7 360 (145 181) 106 174 Profit for the year 36 811 36 811 Distributions (17 487) Shares repurchased (4 514) Shares issued (7 360) (1 157) 2 883 Balance at June 30, 2002 - (109 527) 123 867 Profit for the year 27 661 27 661 Distributions (20 991) Shares repurchased (2 353) Balance at June 30, 2003 - (81 866) 128 184 BALANCE SHEET Reviewed Audited R"000 30/06/03 30/06/02 Non-current assets 76 025 89 127 - Tangible assets 6 769 7 253 - Investments and loans 23 988 30 721 - Deferred tax 45 268 51 149 CURRENT ASSETS 75 157 64 394 - Inventory 4 020 4 234 - Trade and other receivables 17 720 26 480 - Cash resources 53 417 33 680 TOTAL ASSETS 151 182 153 517 EQUITY AND LIABILITIES CAPITAL AND RESERVES 128 184 123 867 - Ordinary share capital 1 1 - Share premium 210 049 233 393 - Accumulated deficit (81 866) (109 527) CURRENT LIABILITIES 22 998 29 650 - Trade and other payables 12 622 18 555 - Bank overdraft 3 073 9 148 - Taxation 7 111 1 446 - Shareholders for distribution 192 501 TOTAL EQUITY AND LIABILITIES 151 182 153 517 CASH FLOW STATEMENT Reviewed Audited 12 months 12 months ended ended R"000 30/06/03 30/06/02 Cash generated from operations 47 623 39 471 Net interest received 4 688 2 707 Taxation paid (4 006) (6 038) Distributions paid (21 300) (17 708) Working capital changes 2 020 6 735 Cash flow from operating activities 29 025 25 167 Cash flow from investing activities 2 197 (14 642) Cash flow from financing activities (2 353) (4 992) Net movement in cash and cash equivalents 28 869 5 533 Adjustments for foreign exchange fluctuations (3 057) 2 190 Net cash and cash equivalents at beginning of period 24 532 16 809 Net cash and cash equivalents at end of period 50 344 24 532 BASIS OF ACCOUNTING These reviewed financial results have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice and the accounting policies used in the preparation of these results are consistent with the year ended 30 June 2002. These results have been reviewed by KPMG Inc. and their unqualified review report is available for inspection at the Company"s registered office. FINANCIAL AND OPERATING REVIEW During the past financial year the Group continued to experience favourable trading conditions at store level, which enabled us to deliver an encouraging set of results. The strategies, disciplines and initiatives applied in all divisions have borne the necessary fruit and whilst turnover grew by 13,1%, operating profit advanced by a solid 21.5%. Net interest income of R4.7million (2002: R2.7million) was 73,2% higher and cash reserves grew to a healthy R50.3million (2002: R24.5 million). Notwithstanding the fact that headline earnings were adversely affected by unrealised exchange losses due to the strengthening of the rand, distributions to shareholders were increased by 14,6% to 23.5 cents per share. The year under review saw the opening of seven new Spur outlets, five stores were relocated and a further 33 revamped to Spur"s current specifications. In addition three new Panarottis were opened and the revamp programme has progressed to the point where there are only six Panarottis revamps outstanding. On the international front, further Spur and Panarottis outlets are planned in the United Kingdom, Australia and Africa. The Group"s marketing resource has continued to provide invaluable input to ensure that our brand message is communicated through all retail and promotional avenues so as to optimally leverage all revenue generating opportunities. Our recently launched "Take me There" brand advert, in conjunction with our value added retail campaign, has contributed significantly towards ensuring ongoing awareness and support from our consumers. PROSPECTS We remain confident that, with the high levels of motivation and dedication throughout the Group, favourable economic factors, and the anticipated number of store openings, continued growth can be expected in the year ahead. CAPITAL DISTRIBUTION Notice is hereby given that, subject to JSE and shareholder approval, the Board has declared a capital distribution in lieu of dividends, of 12,5 cents per share. The last date to trade in the shares for purposes of entitlement to the distribution is Friday 31 October 2003. The shares will commence trading ex- distribution on Monday 3 November 2003 and the record date is Friday 7 November 2003. The distribution will be paid on Monday 10 November 2003. Share certificates may not be dematerialised or rematerialised between Monday 3 November 2003 and Friday 7 November 2003, both days inclusive. A circular will be posted to shareholders on or about 6 October 2003 and a general meeting of shareholders is to be held on or about 22 October 2003. The above dates are subject to amendment and any amendment will be published in the press and on SENS. For and on behalf of the Board A.J. Ambor (Executive Chairman) P.G. van Tonder (Managing Director) Cape Town 12 September 2003 Transfer Secretaries Computershare Limited, 70 Marshall Street, Johannesburg, 2001 Registered Office 1 Waterford Mews, Century City Blvd, Century City, 7441 Share code: SUR ISIN: ZAE000022653 Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd Website: www.spur.co.za Spur Corporation Limited (Registration number 1995/0000828/06) Date: 11/09/2003 05:00:06 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department