SPUR CORP. LIMITED INTERIM RESULTS 2015

Condensed Consolidated Operating

Segment Report

R’000  Unaudited 
six months 
ended 
31 December 
2014 
Unaudited 
six months 
ended 
31 December 
2013 

change 
Audited 
year ended 
30 June 
 2014 
External revenue         
Manufacturing and distribution (refer note a) 93 035  102 270  (9.0) 176 576 
Franchise – Spur  112 668  100 737  11.8  198 498 
Franchise – Panarottis  13 476  10 826  24.5  20 932 
Franchise – John Dory’s  8 126  7 192  13.0  14 271 
Franchise – Captain DoRegos  3 262  4 690  (30.4) 8 185 
Franchise – The Hussar Grill (refer note b) 1 226  –    700 
Retail – The Hussar Grill (refer note b) 14 579  –    14 988 
Other South Africa (refer note c) 33 461  22 592  48.1  44 958 
Total South African segments  279 833  248 307  12.7  479 108 
Unallocated – South Africa  835  38  2 097.4  1 595 
Total South Africa  280 668  248 345  13.0  480 703 
         
United Kingdom  80 107  77 795  3.0  157 565 
Australia (refer note f) 37 932  42 754  (11.3) 79 366 
Other International (refer note g) 9 974  7 094  40.6  15 002 
Total International  128 013  127 643  0.3  251 933 
         
TOTAL EXTERNAL REVENUE  408 681  375 988  8.7  732 636 
         
Profit/(loss) before income tax         
Manufacturing and distribution (refer note a) 36 391  30 708  18.5  58 520 
Franchise – Spur  100 856  89 919  12.2  176 552 
Franchise – Panarottis  9 144  6 754  35.4  13 117 
Franchise – John Dory’s  4 672  4 225  10.6  7 736 
Franchise – Captain DoRegos  973  1 903  (48.9) 2 158 
Franchise – The Hussar Grill (refer note b) 759  –    471 
Retail – The Hussar Grill (refer note b) 1 985  –    2 354 
Other South Africa (refer note c) 400  167  139.5  (160)
Total South African segments  155 180  133 676  16.1  260 748 
Unallocated – South Africa (refer note d) (68 311) (29 597) (130.8) (60 020)
Total South Africa  86 869  104 079  (16.5) 200 728 
         
United Kingdom (refer note e) (2 418) 2 206  (209.6) (2 232)
Australia (refer note f) 4 252  825  415.4  (157)
Other International (refer note g) 5 966  4 151  43.7  8 829 
Total International segments  7 800  7 182  8.6  6 440 
Unallocated – International (refer note h) (2 176) (6 495) 66.5  (4 918)
Total International  5 624  687  718.6  1 522 
         
PROFIT BEFORE INCOME TAX AND SHARE OF LOSS OF EQUITY-ACCOUNTED INVESTEE  92 493  104 766  (11.7) 202 250 
         
Share of loss of equity-accounted investee (net of income tax) (354) –    (379)
         
PROFIT BEFORE INCOME TAX  92 139  104 766  (12.1) 201 871 

Notes:
a) Manufacturing and distribution – Includes revenue of Rnil (2013: R22.696 million; year ended 30 June 2014: R22.724 million) and loss before income tax of Rnil (2013: R0.967 million; year ended 30 June 2014: R1.361 million) relating to the Captain DoRegos warehouse and distribution centre (refer note 9). Included in the prior period to 31 December 2013 are costs of R1.224 million (R1.326 million for the year to 30 June 2014) associated with the closure of the distribution centre, including retrenchment costs, losses on sales of property, plant and equipment and the impact of the increased cost of working during the process of closing down the facility.
b) The Hussar Grill – The Hussar Grill franchise division and three company-owned retail restaurants were acquired with effect from 1 January 2014. Refer note 6 for more details.
c) Other South Africa – Other local segments include the group’s training division, export business, décor manufacturing business, call centre and radio station, which are each individually not material.
d) Unallocated – South Africa – Includes net finance income of R8.362 million (2013: R3.461 million; year ended 30 June 2014: R7.118 million), which includes interest and preference dividends relating to the GPI equity transaction (refer also note 2). Includes a charge in respect of cash-settled share-based payments of R4.366 million (2013: R16.547 million; year ended 30 June 2014: R28.117 million) and a fair value loss in respect of a related economic hedge of R7.469 million (2013: R11.729 million gain; year ended 30 June 2014: R17.922 million gain) (refer also note 5). The current year includes a share-based payment charge of R32.957 million relating to the GPI equity transaction (refer note 2), as well as related professional and advisory costs of R0.301 million. The prior year to 30 June 2014 includes transaction costs for the acquisition of The Hussar Grill of R1.620 million (refer also note 6) and costs of R0.495 million relating to the international group restructure undertaken during the prior year (refer also note 10).
e) United Kingdom – The prior year to 30 June 2014 includes an impairment of franchise rights (intangible asset) amounting to R1.866 million and the accelerated amortisation of leasing rights amounting to R1.612 million relating to Mohawk Spur Limited (refer also note 11).
f) Australia – The current year includes a profit of R1.506 million on the disposal of the Panarottis outlet in Blacktown (Australia) (refer also note 4). The prior year to 30 June 2014 includes an impairment loss of R2.496 million relating to the impairment of assets of the Panarottis in Blacktown (Australia) (refer also note 12) as well as a profit of R2.154 million on the disposal of the Panarottis in Tuggerah (Australia) (refer also note 8).
g) Other International – Other international segments comprise the group’s franchise operations in Africa (outside of South Africa), Mauritius and the United Arab Emirates.
h) Unallocated – International – Includes a foreign exchange gain of R0.485 million (2013: R3.075 million loss; year ended 30 June 2014: R2.699 million net gain). The prior year to 30 June 2014 includes costs of R1.674 million relating to the group restructure undertaken during the prior year (refer also note 10).