Strategy, risks and key performance indicators (“KPIs”)



Spur Corporation is a proudly South African company and fully supports the principles of transformation and Broad-based Black Economic Empowerment (B-BBEE). Transformation and employment equity are driven by the group transformation executive.

Our main transformation focus this financial year has been on improving the group’s employment equity profile and finalising the strategic empowerment transaction that was announced at the end of July 2014.

We measure our progress against the Department of Trade and Industry’s Codes of Good Practice (”dti CoGP“). The group was externally verified by Empowerdex as a level 6 contributor, scoring 45.13 out of a possible 100 (2013: level 8 with a score of 36.35). While the group performed well in skills development and preferential procurement, enterprise development, ownership and management representation are areas for improvement. The group has put initiatives in place that will improve the overall rating over time.

The board continues to monitor the potential impact of the revised B-BBEE Codes of Good Practice (2012) on our transformation strategy.


– Score 2.07/20
The group scored 2.07 for the ownership component, based on the analysis of the group’s shareholding.

On 31 July 2014 – subsequent to the end of the 2014 financial year – the group announced a proposed deal with Grand Parade Investments Ltd (“GPI”) whereby GPI will acquire 10% of the issued share capital of Spur Corporation. The deal was approved by shareholders on 3 October 2014 and should be implemented by 31 October 2014. It introduces a strong empowerment partner to the group while facilitating a sustainable, mutually beneficial business partnership between two entrepreneurial groups with similar ambitions.

Management control

– Score 2.99/12
The board includes three black non-executive directors. The group’s nominations committee continues to evaluate suitable candidates who can bring additional experience, expertise and diversity to the board.

Employment equity

– Score 4.33/12
The group continues to implement various initiatives to address our employment equity profile and transformation is an important consideration during recruitment. A workplace employment equity forum was established during the year to support further transformation.

An operations management mentorship programme assigns black trainee operations managers to shadow qualified operations managers to build their skills and understanding of the business. While the year saw an increased intake in black operations managers, retention is challenging in the face of poaching of candidates by competitors, other industries and even by franchisees looking for strong equity partners.

Skills development

– Score 13.98/18
The group’s skills development score improved owing to the successful accreditation for our training courses.

Preferential procurement

– Score 17.99/20
B-BBEE status is an important factor in the group’s vendor selection process and this is reflected in our preferential procurement score. To improve from these levels, the group needs to increase procurement from black-owned and black women-owned businesses.

Enterprise development

– Score 0.26/10
While the group commits significant efforts to supporting suitable candidates to develop and grow the number of black franchisees, this does not qualify towards our score on the B-BBEE scorecard. Plans are in place to establish a preferential credit policy for B-BBEE suppliers which will improve this score.

Socio-economic development

– Score 3.51/10
The socio-economic development category recognises spending on the group’s CSI initiatives, which are discussed here.

Achieve level 7 accreditation Achieved level 6 accreditation Achieve level 5 accreditation (based on the previous dti CoGP). We have yet to determine the full impact of the revised CoGP on the group’s B-BBEE score.