Spur Corporation Limited - Reviewed Results For The Year Ended 30 June 2005
Spur Corporation Limited
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE000022653
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2005
KEY PERFORMANCE INDICATORS
Operating profit +37%
Headline earnings +37%
Headline earnings per share +42%
ABRIDGED INCOME STATEMENT
Reviewed Audited
12 months 12 months
ended % ended
R`000 Note 30/06/05 Increase 30/06/04
Turnover 200 632 11% 181 044
Profit from operations 1 68 531 37% 50 201
Net interest received 4 823 1% 4 778
Profit before taxation 73 354 33% 54 979
Taxation (21 348) (17 801)
Profit after taxation 52 006 40% 37 178
Earnings attributable to
outside shareholders (84) -
Earnings attributable to
ordinary shareholders 51 922 40% 37 178
RECONCILIATION OF HEADLINE
EARNINGS
Earnings attributable to
ordinary shareholders 51 922 40% 37 178
Headline earnings adjustments:
- Loss on sale of associate
companies - 499
- Profit on sale of company
stores - (444)
- Profit on sale of fixed
assets (838) -
Headline earnings 51 084 37% 37 233
STATISTICS
Shares in issue (000`s) 2 88 156 93 466
Weighted average number
of shares in issue (000`s) 90 783 93 729
Earnings per share (cents) 57.19 44% 39.67
Headline earnings per share
(cents) 56.27 42% 39.72
Diluted earnings per share
(cents) 57.04 44% 39.67
Diluted headline earnings per
share (cents) 56.12 41% 39.72
Distribution per share (cents) 40.00 33% 30.00
NOTES
1 - Profit from operations includes a foreign exchange gain of R2.5 million
(2004: loss R3.9 million).
2 - Shares in issue less shares repurchased by a wholly owned subsidiary
company 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 1 July 2003 1 218 802 (8 753)
Profit for the year
Distributions (25 873)
Shares repurchased (882)
Balance at 30 June 2004 1 192 929 (9 635)
Profit for the year
Taxation movements
Distributions (35 148)
Shares repurchased (28 881)
Balance at 30 June 2005 1 157 781 (38 516)
Accumulated
R`000 profit/(deficit) Total
Balance at 1 July 2003 (81 866) 128 184
Profit for the year 37 178 37 178
Distributions (25 873)
Shares repurchased (882)
Balance at 30 June 2004 (44 688) 138 607
Profit for the year 51 922 51 922
Taxation movements (1 675) (1 675)
Distributions (35 148)
Shares repurchased (28 881)
Balance at 30 June 2005 5 559 124 825
ABRIDGED BALANCE SHEET
Reviewed Audited
R`000 30/06/05 30/06/04
NON-CURRENT ASSETS 86 380 64 819
- Property, plant and equipment 26 231 9 086
- Intangibles 8 465 -
- Investments and loans 18 569 16 050
- Deferred tax 33 115 39 683
CURRENT ASSETS 77 332 106 084
- Inventory 5 024 4 213
- Trade and other receivables 28 084 23 220
- Cash resources 41 637 76 672
- Taxation 2 587 1 979
TOTAL ASSETS 163 712 170 903
EQUITY AND LIABILITIES
CAPITAL AND RESERVES 124 825 138 607
- Ordinary share capital 1 1
- Share premium 119 265 183 294
- Accumulated profit/(deficit) 5 559 (44 688)
Minority interests 4 124 -
CURRENT LIABILITIES 34 763 32 296
- Trade and other payables 20 561 20 545
- Shareholders for distribution 213 244
- Bank overdraft 1 934 2 622
- Taxation 12 055 8 885
TOTAL EQUITY AND LIABILITIES 163 712 170 903
ABRIDGED CASH FLOW STATEMENT
Reviewed Audited
12 months 12 months
ended ended
R`000 30/06/05 30/06/04
Cash generated from operations 67 461 56 937
Net interest received 4 823 4 778
Taxation paid (13 892) (12 421)
Distributions paid (35 179) (25 821)
Working capital changes (5 929) 3 446
Cash flow from operating activities 17 284 26 919
Cash effects of investing
activities (23 126) (948)
Cash effects of financing
activities (28 881) (882)
Net movement in cash and cash
equivalents (34 723) 25 089
Adjustment for foreign exchange
fluctuations 376 (1 383)
Net cash and cash equivalents at
beginning of year 74 050 50 344
Net cash and cash equivalents at
end of year 39 703 74 050
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 2004, with the exception of the adoption of IFRS 3 - Business
Combinations. 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 we again experienced buoyant trading conditions.
While the first six months, which includes the festive season, is traditionally
our stronger trading period, we are particularly pleased with our performance
in the latter half of the year under review.
Spur prides itself on being a South African restaurant chain, which has becomean
icon for all South Africans. The growth of the country`s middle class, with
its increased spending power, has been a positive development for our economy,
and the group`s value-based offering is finding increasing support from this
rapidly growing sector of the consumer market.
Turnover for the year advanced by 11% to R200.6 million (2004: R181.0 million).
This includes the impact of the decreased wholesale and distribution sales that
resulted from the decision taken during the year to outsource the national
distribution of our central kitchen products. The outsourcing of this function
will ensure consistency and quality of delivery to our outlets nationally.
It is significant to note that our core franchise royalty income advanced by
19%. As we benchmark our performance on the growth in turnover of our existing
stores, it is encouraging that same store turnover was 13% ahead of last year,
which is substantially higher than menu inflation of 4.5%.
Operating profit, boosted by unrealised foreign exchange gains of R2.5 million,
increased by 37% to R68.5 million. Headline earnings of R51.1 million (2004:
R37.2 million) increased by 37%, while headline earnings per share of 56.3
cents were 42% ahead of 2004 (2004: 39.7 cents), in line with the trading
statement issued on 24 August 2005.
The group has grown its store base to 287 across its three brands locally and
internationally:
Franchise brand South Africa International Total
Spur Steak Ranches 200 24 224
Panarottis Pizza Pasta 48 8 56
John Dory`s Fish & Grill 7 - 7
Total 255 32 287
PROSPECTS
Indications are that the Consumer Price Index and interest rates are likely to
remain steady for the year ahead. These factors are expected to provide a
favourable trading environment for the year ahead and the board and management
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 25 November 2004, shareholders are advised that the
board of directors of the company has declared a capital distribution of R17,6
million payable to the company`s shareholders in lieu of dividends, to be
written off against the share premium account, which equates to 20 cents per
ordinary share (`the distribution`)
The distribution will be paid on Monday, 10 October 2005, to those shareholders
of the company who are recorded in the company`s register on Friday, 7 October
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, 30 September 2005.
The shares will commence trading ex the distribution on Monday, 3 October 2005.
Share certificates may not be dematerialised or rematerialised between Monday,
3 October 2005 and Friday, 7 October 2005, both days inclusive.
Cape Town
On behalf of the Board 15 September 2005
A Ambor (Executive Chairman)
P van Tonder (Managing Director)
Directors: A Ambor (Executive Chairman), P van Tonder (Managing Director),
M Farrelly, K Getz*, D Hyde*, P Joffe, K Madders* (British), J Rabb*,
K Robertson Company secretary : R van Dijk (* non-executive)
www.spur.co.za
Spur Corporation Limited (Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE000022653
Registered Office
1 Waterford Mews, Century Blvd, Century City, 7441
Transfer Secretaries
Computershare Limited, 70 Marshall Street, Johannesburg, 2001
Sponsor : Sasfin Corporate Finance (A division of Sasfin Bank Ltd)
Date: 15/09/2005 12:00:11 PM
Produced by the JSE SENS Department
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