Interim Results For The Six Months Ended 31 Decemb
3 March 2005 15:33
Spur Corporation Limited - Interim Results For The Six Months Ended 31 December 
2004                                                                            
SPUR CORPORATION LIMITED                                                        
(Registration number 1998/000828/06)                                            
Share code: SUR                                                                 
ISIN: ZAE000022653                                                              
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004                       
Key PERFORMANCE Indicators                                                      
* Turnover +18%                                                                 
* Headline earnings per share +32%                                              
* Distribution per share +43%                                                   
ABRIDGED INCOME STATEMENT                                                       
                                                       Unaudited                
                                                        6 months                
                                                           ended          %     
R`000                                         Note      31/12/04     Change     
Turnover                                                 105 619         18     
Profit from operations                           1        36 150         33     
Net interest received                                      3 870         44     
Profit before taxation                                    40 020         34     
Taxation                                                (12 981)                
Profit after taxation                                     27 039         28     
Minority Interest                                           (50)                
Earnings attributable to                                                        
ordinary shareholders                                     26 989         28     
RECONCILIATION OF HEADLINE EARNINGS                                             
Earnings attributable to ordinary                                               
shareholders                                              26 989                
Headline earnings                                         26 989         31     
Statistics                                                                      
Shares in issue (000`s)                          2        88 496                
Weighted average number                                                         
of shares in issue (000`s)                                93 158                
Earnings per share (cents)                                 28.97         29     
Headline earnings per share (cents)                        28.97         32     
Diluted earnings per share (cents)                         28.93         29     
Diluted headline earnings per                                                   
share (cents)                                              28.93         32     
Distribution per share (cents)                             20.00         43     
Unaudited       Audited     
                                                     6 months     12 months     
                                                        ended         ended     
R`000                                                31/12/03      30/06/04     
Turnover                                               89 213       181 044     
Profit from operations                                 27 103        50 201     
Net interest received                                   2 696         4 778     
Profit before taxation                                 29 799        54 979     
Taxation                                              (8 747)      (17 801)     
Profit after taxation                                  21 052        37 178     
Earnings attributable to                                                        
ordinary shareholders                                  21 052        37 178     
RECONCILIATION OF HEADLINE EARNINGS                                             
Earnings attributable to ordinary                                               
shareholders                                           21 052        37 178     
Headline earnings adjustments:                                                  
- Loss on sale of associate                                                     
companies                                                   -           499     
- Profit on sale of company stores                      (439)         (444)     
Headline earnings                                      20 613        37 233     
Statistics                                                                      
Shares in issue (000`s)                                93 688        93 466     
Weighted average number                                                         
of shares in issue (000`s)                             93 823        93 729     
Earnings per share (cents)                              22.44         39.67     
Headline earnings per share (cents)                     21.97         39.72     
Diluted earnings per share (cents)                      22.44         39.67     
Diluted headline earnings per                                                   
share (cents)                                           21.97         39.72     
Distribution per share (cents)                          14.00         30.00     
Note 1                                                                          
Profit from operations includes a foreign exchange profit of R118 000 (2003:    
loss of R1 626 000).                                                            
Note 2                                                                          
Shares in issue less shares repurchased by a wholly-owned subsidiary and share  
incentive trust.                                                                
STATEMENT OF CHANGES IN EQUITY                                                  
                                                                     Shares     
                                                             repurchased by     
                                                                 subsidiary     
Share        Share           and share     
R`000                              capital      premium     incentive trust     
Balance at July 1, 2003                 1      218 802              (8 753)     
Profit for the period                                                           
Distributions                                  (25 873)                         
Shares repurchased                                                    (882)     
Balance at July 1, 2004                 1      192 929              (9 635)     
Profit for the period                                                           
Distributions                                  (15 621)                         
Shares repurchased                                                 (30 476)     
Balance at December 31, 2004            1      177 308             (40 111)     
                                                   Accumulated                  
R`000                                                  deficit        Total     
Balance at July 1, 2003                               (81 866)      128 184     
Profit for the period                                   37 178       37 178     
Distributions                                                      (25 873)     
Shares repurchased                                                    (882)     
Balance at July 1, 2004                               (44 688)      138 607     
Profit for the period                                   26 989       26 989     
Distributions                                                      (15 621)     
Shares repurchased                                                 (30 476)     
Balance at December 31, 2004                          (17 699)      119 499     
ABRIDGED BALANCE SHEET                                                          
                                      Unaudited     Unaudited       Audited     
R`000                                  31/12/04      31/12/03      30/06/04     
NON-CURRENT ASSETS                       86 119        71 106        64 819     
-   Property, plant and equipment        23 360         6 521         9 086     
-   Goodwill                              7 465             -             -     
-   Investments and loans                17 429        21 901        16 050     
-   Deferred tax                         37 865        42 684        39 683     
CURRENT ASSETS                           71 878        92 790       104 105     
- Inventory                               5 457         5 833         4 213     
- Trade and other receivables            34 021        25 637        23 220     
- Cash resources                         32 400        61 320        76 672     
TOTAL ASSETS                            157 997       163 896       168 924     
EQUITY AND LIABILITIES                                                          
CAPITAL AND RESERVES                    119 499       136 666       138 607     
- Ordinary share capital                      1             1             1     
- Share premium                         137 197       197 479       183 294     
- Accumulated deficit                  (17 699)      (60 814)      (44 688)     
MINORITY INTEREST                         3 090             -             -     
CURRENT LIABILITIES                      35 408        27 230        30 317     
-   Trade and other payables             25 985        18 098        20 545     
-   Shareholders for distribution           244           275           244     
-   Taxation                              6 809         5 586         6 906     
-   Bank overdraft                        2 370         3 271         2 622     
TOTAL EQUITY AND LIABILITIES            157 997       163 896       168 924     
ABRIDGED CASH FLOW STATEMENT                                                    
Unaudited     Unaudited       Audited     
                                       6 months      6 months     12 months     
                                          ended         ended         ended     
R`000                                  31/12/04      31/12/03      30/06/04     
Cash generated from operations           35 465        29 560        56 937     
Net interest received                     3 870         2 696         4 778     
Taxation paid                          (11 335)       (7 688)      (12 421)     
Distributions paid                     (15 621)      (12 121)      (25 821)     
Working capital changes                 (6 936)       (4 666)         3 446     
Cash flow from operating activities       5 443         7 781        26 919     
Cash flow from investing activities    (52 661)           506         (948)     
Cash flow from financing activities       3 040             -         (882)     
Net movement in cash and cash                                                   
equivalents                            (44 178)         8 287        25 089     
Adjustment for foreign exchange                                                 
fluctuations                                158        (582)       (1 383)      
Net cash and cash equivalents                                                   
at beginning of period                   74 050        50 344        50 344     
Net cash and cash equivalents                                                   
at end of period                         30 030        58 049        74 050     
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 those     
applied for the year ended 30 June 2004, with the exception of the adoption of  
IFRS 3 in terms of which goodwill is no longer amortised.                       
FINANCIAL AND OPERATING REVIEW                                                  
During the period under review the Group continued to experience buoyant retail 
trading conditions. Market factors such as low interest rates, the strong       
Rand, low inflation and increased consumer disposable income have provided the  
platform for the Group to produce a solid set of results.                       
Turnover advanced by 18%, whilst operating profit was 33% ahead of last year.   
Headline earnings grew by 31%, with headline earnings per share up 32% compared 
to last year. The Group`s strong cash flow and reserves have enabled us to      
increase the distribution to shareholders by 43%.                               
Highlights of the past six months included the completion of our new building   
in Gauteng. This facility incorporates our training centre, regional office     
and central kitchen manufacturing plant, which is now fully HACCP compliant.    
In addition, we acquired a 60% share in the John Dory`s Fish and Grill          
Franchise with effect from 1 November 2004. John Dory`s comprises 7 outlets     
in Kwazulu-Natal and it is our intention to roll out franchised stores on a     
national basis.                                                                 
During the first half of the financial year we opened 9 Spur and 7 Panarottis   
outlets in South Africa. Internationally, Spur outlets were opened in Maputo,   
Mozambique and Wandsworth in the United Kingdom. There are now 201 Spurs,       
48 Panarottis and 7 John Dory`s in South Africa, with 24 Spurs and 7 Panarottis 
internationally.                                                                
PROSPECTS                                                                       
We are confident that, with the expected continuation of favourable market      
conditions, we are well placed to deliver continued strong earnings growth in   
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 25 November 2004, shareholders are advised that the     
board of directors of the company has declared a capital distribution of        
R17.7 million payable to the company`s shareholders in lieu of dividends to be  
written off against the share premium account, which amount equates to          
20 cents per ordinary share (`the distribution`).                               
The distribution will be paid on Monday 11 April 2005, to those shareholders of 
the company who are recorded in the company`s register on Friday 8 April 2005   
(`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 April 2005. The    
shares will commence trading ex the distribution on Monday 4 April 2005.        
Share certificates may not be dematerialised or rematerialised between Monday   
4 April 2005 and Friday 8 April 2005 both days inclusive.                       
For and on behalf of the Board                                                  
A.J. Ambor (Executive Chairman)                                                 
P.G. van Tonder (Managing Director)                                             
Cape Town                                                                       
3 March 2005                                                                    
Sponsor: Sasfin Corporate Finance (A Division of Sasfin Bank Ltd)               
www.spur.co.za                                                                  
Registered Office                                                               
1 Waterford Mews, Century City Blvd, Century City, 7441                         
Transfer Secretaries                                                            
Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street,             
Johannesburg, 2001                                                              
Date: 03/03/2005 03:00:31 PM                 
Produced by the JSE SENS Department
 

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