REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
13 September 2004 14:47
SPUR CORPORATION LIMITED- REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
SPUR CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
JSE Share code: SUR
ISIN: ZAE000022653
(`Spur` or `the company`)
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
Key performance indicators
- Operating profit +38%
- Headline earnings +36%
- Distribution per share +28%
ABRIDGED INCOME STATEMENT
Reviewed Audited
12 months 12 months
ended % ended
R`000 Note 30/06/04 increase 30/06/03
Turnover 181 044 16% 156 139
Profit from operations 1 50 201 38% 36 455
Net interest received 4 778 2% 4 688
Profit before taxation 54 979 34% 41 143
Taxation (17 801) (13 482)
Earnings attributable to
ordinary shareholders 37 178 34% 27 661
RECONCILIATION OF HEADLINE
EARNINGS
Earnings attributable to
ordinary shareholders 37 178 27 661
Headline earnings adjustments:
- Loss on sale of associate
companies 499 -
- Profit on sale of company
stores (444) (261)
Headline earnings 37 233 36% 27 400
STATISTICS
Shares in issue (000`s) 2 93 466 93 929
Weighted average number of
shares in issue (000`s) 93 729 94 643
Earnings per share (cents) 39.67 36% 29.23
Headline earnings per share
(cents) 39.72 37% 28.95
Distribution per share (cents) 30.0 28% 23.5
NOTES
1 - Profit from operations includes an unrealised foreign exchange loss of R3.9
million (2003: R7.6 million).
2 - 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 1 July 2002 1 239 793 (6 400)
Profit for the period
Distributions (20 991)
Shares repurchased (2 353)
Balance at 30 June 2003 1 218 802 (8 753)
Profit for the period
Distributions (25 873)
Shares repurchased (882)
Balance at 30 June 2004 1 192 929 (9 635)
Accumulated
R`000 deficit Total
Balance at 1 July 2002 (109 527) 123 867
Profit for the period 27 661 27 661
Distributions (20 991)
Shares repurchased (2 353)
Balance at 30 June 2003 (81 866) 128 184
Profit for the period 37 178 37 178
Distributions (25 873)
Shares repurchased (882)
Balance at 30 June 2004 (44 688) 138 607
ABRIDGED BALANCE SHEET
Reviewed Audited
R`000 30/06/04 30/06/03
NON-CURRENT ASSETS 64 819 76 025
- Property, plant and equipment 9 086 6 769
- Investments and loans 16 050 23 988
- Deferred tax 39 683 45 268
CURRENT ASSETS 104 105 75 157
- Inventory 4 213 4 020
- Trade and other receivables 23 220 17 720
- Cash resources 76 672 53 417
TOTAL ASSETS 168 924 151 182
EQUITY AND LIABILITIES
CAPITAL AND 138 607 128 184
- Ordinary share capital 1 1
- Share premium 183 294 210 049
- Accumulated deficit (44 688) (81 866)
CURRENT LIABILITIES 30 317 22 998
- Trade and other payables 20 545 12 622
- Shareholders for distribution 244 192
- Bank overdraft 2 622 3 073
- Taxation 6 906 7 111
TOTAL EQUITY AND LIABILITIES 168 924 151 182
ABRIDGED CASH FLOW STATEMENT
Reviewed 12 months Audited 12 months
R`000 ended 30/06/04 ended 30/06/03
Cash generated from operations 56 937 47 623
Net interest received 4 778 4 688
Taxation paid (12 421) (4 006)
Distributions paid (25 821) (21 300)
Working capital changes 3 446 2 020
Cash flow from operating activities 26 919 29 025
Cash flow from investing activities (948) 2 197
Cash flow from financing activities (882) (2 353)
Net movement in cash and cash
equivalents 25 089 28 869
Adjustment for foreign exchange
fluctuations (1 383) (3 057)
Net cash and cash equivalents at
beginning of period 50 344 24 532
Net cash and cash equivalents at
end of period 74 050 50 344
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 2003.
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
Whereas the first half of the financial year saw the Group produce satisfactory
results under difficult trading conditions, the second half of the year was
characterised by buoyant market conditions and a strong acceleration in
performance. We are pleased to report that, having maximised our opportunities
with regard to new store openings, marketing and operations, the Group has once
again shown solid growth for the past fiscal year.
Turnover advanced by 16%, whilst operating profit was 38% ahead of last year,
reflecting improved efficiencies as well as the benefit of lower foreign
exchange losses. Headline earnings of R37.2 million were 36% ahead of 2003
(R27.4 million).
Although interest rates declined substantially during the year, net interest
received increased to R4.8 million, due to the Group`s growing cash reserves,
which now stand at R74 million (2003: R50 million). The strong cash flow has
facilitated a 28% increase in distributions to shareholders to 30.0 cents per
share (2003: 23.5 cents per share).
During the past financial year we opened ten new Spur outlets, relocated three
stores and completed 33 revamps. There are now 195 Spurs in South Africa and 23
overseas. Our Panarottis brand grew by five outlets, bringing the total to 52
stores, of which seven are located abroad.
PROSPECTS
We believe that the ongoing enhancement of our intellectual property and
franchisee base as well as continuous training at store level will consolidate
the favourable position of our brands in the minds of our consumers. Our
international expansion program, facilitated by the development of existing, as
well as the formation of new, strategic partnerships, is expected to deliver the
necessary results in terms of new store openings in the year ahead.
We remain focused on our core operations as a mechanism to increase market share
and are confident of continued, solid growth.
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 declared a final capital distribution of
R15 million payable to the company`s shareholders in lieu of dividends, to be
written off against the share premium account, which amount equates to 16 cents
per ordinary share (`the distribution`).
The distribution will be paid on Monday, 11 October 2004 to those shareholders
of the company who are recorded in the company`s register on Friday, 8 October
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, 1 October 2004. The
shares will commence trading ex the distribution on Monday, 4 October 2004.
Share certificates may not be dematerialised or rematerialised between Monday, 4
October 2004 and Friday, 8 October 2004, both days inclusive.
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
Registered Office
1 Waterford Mews, Century City Blvd, Century City, 7441
www.spur.co.za
Transfer Secretaries
Computershare Investor Services 2004 (Proprietary) Limited, 70 Marshall Street,
Johannesburg, 2001
Date: 13/09/2004 02:30:14 PM Produced by the JSE SENS Department