SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
January 30, 2017
Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)
Spur Corporation increased total franchised restaurant sales from continuing operations* by 10.4% to R3.8 billion in the six months to December 2016 (“the period”), following the closure of the group’s UK operations in the previous financial year.
Franchised restaurant sales in South Africa grew by 10.2%, with sales from international restaurants (excluding the UK) increasing by 12.0% in Rand terms. International restaurant sales (excluding the UK) increased by 9.3% on a constant exchange rate basis.
A net 13 new outlets were opened locally during the period. Internationally, six new outlets were opened, including the group’s first restaurants in New Zealand (Spur), Ethiopia (Spur) and Oman (RocoMamas).Chief executive, Pierre van Tonder, said the group had delivered a satisfactory trading performance in the context of declining consumer confidence and disposable income locally, and deteriorating economic conditions in the rest of Africa.
“Despite the slowing economy, RocoMamas continues to show strong growth while the robust results from The Hussar Grill highlights the resilience of the higher income consumer. Our focus in the second half of the year will continue to be driving growth through value promotions, aggressive marketing and expanding our local and international restaurant base.”
At 31 December 2016, the group’s restaurant base comprised 590 (June 2016: 575) outlets, including 60 (June 2016: 58) operating outside of South Africa. The financial information in this sales update has not been reviewed or reported on by the group’s independent auditor. Spur Corporation’s interim results for the six months ended 31 December 2016 will be released on SENS on 23 February 2017.*As previously advised to shareholders, all the group’s operations in the UK and Ireland (which comprised a separate operating segment), had ceased trading by 30 June 2016.
26 January 2017
Sponsor: Sasfin Capital
A division of Sasfin Bank Limited
Read the Bizcommunity article ‘RocoMamas bolsters Spur’s interim results’ here.