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