SPUR CORPORATION LIMITED - INTERIM RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003
Spur Corporation Limited
(Registration number 1998/000828/06)
JSE Share code: SUR
ISIN: ZAE000022653
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2003
KEY PERFORMANCE INDICATORS
Operating profit +13%
Headline earnings +34%
Distribution per share +27%
INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended % ended ended
R"000 Note 31/12/03 change 31/12/02 30.6.03
Turnover 89 213 7 83 244 156 139
Profit from operations 28 290 13 25 097 45 826
Net interest received 2 696 49 1 813 4 688
Profit before exceptional
items 30 986 15 26 910 50 514
Exceptional items 1 (1 187) (3 614) (9 371)
Profit before taxation 29 799 28 23 296 41 143
Taxation (8 747) (6 975) (13 482)
Earnings attributable to
ordinary shareholders 21 052 29 16 321 27 661
RECONCILIATION OF HEADLINE
EARNINGS
Earnings attributable to
ordinary shareholders 21 052 16 321 27 661
Headline earnings adjustment:
- Profit on sale of company
stores (439) (883) (261)
Headline earnings 20 613 34 15 438 27 400
Foreign exchange loss 1 626 4 497 7 562
Core earnings 22 239 12 19 935 34 962
Statistics
Shares in issue (000"s) 2 93 688 94 616 93 929
Weighted average number
of shares in issue (000"s) 93 823 94 836 94 643
Earnings per share (cents) 22.44 30 17.21 29.23
Headline earnings per
share (cents) 21.97 35 16.28 28.95
Core earnings per share
(cents) 23.70 13 21.02 36.94
Distribution per share
(cents) 14.00 27 11.00 23.50
NOTES
Note 1
Exceptional items comprise:
Foreign exchange loss (1 626) (4 497) (7 562)
Loans written off - - (2 070)
Profit on sale of company stores 439 883 261
(1 187) (3 614) (9 371)
Note 2
Shares in issue less shares repurchased by a wholly-owned subsidiary company.
BALANCE SHEET
Unaudited Unaudited Audited
R"000 31/12/03 31/12/02 30/6/03
NON-CURRENT ASSETS 71 106 80 047 76 025
- Tangible assets 6 521 7 113 6 769
- Investments and loans 21 901 24 592 23 988
- Deferred tax 42 684 48 342 45 268
CURRENT ASSETS 92 790 77 965 75 157
- Inventory 5 833 6 788 4 020
- Trade and other receivables 25 637 31 944 17 720
- Cash resources 61 320 39 233 53 417
TOTAL ASSETS 163 896 158 012 151 182
EQUITY AND LIABILITIES
CAPITAL AND RESERVES 136 666 129 381 128 184
- Ordinary share capital 1 1 1
- Share premium 197 479 222 586 210 049
- Accumulated deficit (60 814) (93 206) (81 866)
CURRENT LIABILITIES 27 230 28 631 22 998
- Trade and other payables 18 098 18 583 12 622
- Bank overdraft 3 271 6 046 3 073
- Taxation 5 586 3 745 7 111
- Shareholders for distribution 275 257 192
TOTAL EQUITY AND LIABILITIES 163 896 158 012 151 182
CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
R"000 31.12.03 31.12.02 30.6.03
Cash generated from operations 29 560 26 895 47 623
Net interest received 2 696 1 813 4 688
Taxation paid (7 688) (1 869) (4 006)
Distributions paid (12 121) (10 495) (21 300)
Working capital changes (4 666) (11 092) 2 020
Cash flow from operating activities 7 781 5 252 29 025
Cash flow from investing activities 506 5 013 2 197
Cash flow from financing activities - - (2 353)
Net movement in cash and cash equivalents 8 287 10 265 28 869
Adjustment for foreign exchange
fluctuations (582) (1 610) (3 057)
Net cash and cash equivalents
at beginning of period 50 344 24 532 24 532
Net cash and cash equivalents
at end of period 58 049 33 187 50 344
STATEMENT OF CHANGES IN EQUITY
Shares
Share Share repurchased Accumulated
R"000 capital premium by subsidiary deficit Total
Balance at July 1,
2003 1 218 802 (8 753) (81 866) 128 184
Profit for the period 21 052 21 052
Distributions (12 204) (12 204)
Shares repurchased (366) (366)
Balance at
December 31, 2003 1 206 598 (9 119) (60 814) 136 666
BASIS OF ACCOUNTING
These unaudited 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 2003.
FINANCIAL AND OPERATING REVIEW
The period under review has been characterised by extremely low inflation and
interest rates. Despite the fact that we have not increased the Spur menu
prices since November 2002, the stringent controls and disciplines in place in
all areas of our business have enabled us to deliver satisfactory profitability.
Turnover advanced by 7% whilst operating profit was 13% ahead of last year.
Although interest rates declined during the reporting period, net interest
income of R2.7 million (2002: R1.8 million) was 49% higher, due to the Group"s
growing cash reserves, which now stand at R58 million (2002: R33 million).
The strengthening of the Rand resulted in the Group incurring substantially
lower foreign exchange losses than in the comparable period last year, which had
the effect of boosting headline earnings by 34%. The distribution to
shareholders has been increased by 27% to 14 cents per share.
During the past six months we opened seven new Spur outlets, completed a further
15 revamps and re-located two stores to free-standing sites. In addition, our
Panarottis brand opened four new stores.
On the international front our United Kingdom and Australian operations are
trading well and we look forward to further growth in these markets. In Africa
our recently opened outlet in Dar-es-Salaam, Tanzania, is trading strongly and
we are on track to open in Maputo, Mozambique, before the end of the financial
year.
PROSPECTS
We believe that, with the benefits of a low interest rate environment,
aggressive group marketing campaigns and planned store openings, we are in a
position to deliver solid results for the second half of the financial year.
CAPITAL DISTRIBUTION
In accordance with a general authority given to the directors at the annual
general meeting held on 26 November 2003, shareholders are advised that the
board of directors of the company has proposed a capital distribution of R13.1
million payable to the company"s shareholders in lieu of dividends to be written
off against the share premium account, which amount equates to 14 cents per
ordinary share ("the distribution").
The distribution will be paid on Monday, 5 April 2004 to those shareholders of
the company who are recorded in the company"s register on Friday, 2 April 2004
("the record date").
The last day to trade (cum the distribution) in the company"s shares for
purposes of entitlement to the distribution will be Friday, 26 March 2004. The
shares will commence trading ex the distribution on Monday, 29 March 2004.
Share certificates may not be dematerialised or rematerialised between Monday,
29 March 2004 and Friday, 2 April 2004, both days inclusive.
For and on behalf of the Board
A.J. Ambor (Executive Chairman)
P.G. van Tonder (Managing Director)
Cape Town
4 March 2004
Share code: SUR
ISIN: ZAE000022653
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Registered Office
1 Waterford Mews, Century City Blvd, Century City, 7441
Transfer Secretaries
Computershare Limited, 70 Marshall Street, Johannesburg, 2001
Spur Corporation Limited (Registration number 1998/000828/06)
www.spur.co.za
Date: 04/03/2004 04:00:06 PM Produced by the JSE SENS Department
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