Spur Corporation operates a franchise restaurant business with six brands in South Africa and internationally. The group also owns, and runs, a small number of company-owned (referred to as “retail”) restaurants in South Africa, the United Kingdom and Ireland (“UK”).
This report was prepared to provide stakeholders of Spur Corporation Ltd (“Spur Corporation” or “the group”) with a clear understanding of the group’s business model, past performance and future prospects. It covers the activities of the group for the financial year 1 July 2014 to 30 June 2015 and addresses the material financial and non-financial risks and opportunities that impact value creation and strategy development.
This report includes information relating to local and international franchise, retail and ancillary operations. Environmental information relates only to the South African head office and corporate offices and excludes international operations and franchise restaurants. The consolidated broad-based black economic empowerment (“B-BBEE”) information referred to in the transformation section uses the latest available externally verified information and relates to the South African operations for the period 1 July 2013 to 30 June 2014 (with the exception of ownership and management control, which were measured at February 2015).
Spur Corporation has opted to reduce the amount of information provided in the printed integrated report and indicates where more detail can be accessed online.
The group acquired 51% of RocoMamas, a new fast-casual dining restaurant brand offering hand-made “smash-style” burgers, ribs and wings in Gauteng, with effect from 1 March 2015.
In addition, the group disposed of its three remaining retail restaurants in Australia during the year, resulting in the Australian business being fully franchised as from 1 April 2015, and ceased trading one of its retail restaurants in the UK. Apart from these transactions, there have been no significant changes to the business that would affect the comparability of information.
The group applied the principle of materiality as described by the International Integrated Reporting Council’s (“IIRC”) <IR> Framework. Content selection took place through an extensive process, with contributions from and oversight by key executive and management. The group considered the interests of all stakeholders throughout the content development process, with emphasis on providers of financial capital as the primary audience.
In developing this report, the group considered the recommendations of the IIRC and in particular, the six capitals, to ensure that the report communicates a holistic and balanced message. This report has made significant progress in terms of materiality, conciseness and strategic emphasis.
KING REPORT ON GOVERNANCE FOR SOUTH AFRICA, 2009 (“KING III”)
The group is governed according to the recommendations of King III, as required by the Johannesburg Stock Exchange (or JSE Limited (“JSE”)). Spur Corporation views King III as a critical framework to ensure that financial and non-financial aspects are integrated in the group’s decision-making structures and that the interests of stakeholders are considered at all times.
Sustainability information is presented in alignment with the GRI’s recommendations to communicate the emphasis which the group places on non-financial matters as part of its strategy development. Historically, the group produced an annual index according to G3, which is no longer applicable. Spur Corporation has opted not to produce a G4 index until the group is sufficiently familiar with its approach, so that the ultimate outcome of adopting G4 will be a comprehensive and meaningful communication.
The board acknowledges its responsibility to ensure the integrity of this report. The directors confirm that they have collectively assessed the report’s contents and believe it addresses the material challenges and opportunities the group faces, and is a fair representation of the group’s performance for the financial year. The board consequently approves the 2015 report for publication.
For further information about this report, or to provide feedback,
please contact the chief financial officer, Ronel van Dijk at
email@example.com or +27 21 555 5100.