Johannesburg – Spur Corporation has seen early signs of a slow recovery in the second half of its year to June 2021.
Franchised restaurant sales increased by 1%, to R6 billion, over a period of erratic Covid-19-related trading restrictions. After declining 31% in the first half, franchised restaurant sales in South Africa grew 75% in the second half, ending the year 2% higher.
Spur restaurant grew sales 81% in the second half and by 3% for the year.
The first Spur Drive Thru opened in Pretoria in June this year and plans were afoot to expand this channel.
Group revenue fell 10.5% to R681 million. This was due to concessions granted on franchise and marketing fees to franchisees for the first eight months of the year, as well as lower sales in company-owned restaurants.
Revenue from South African operations accounted for 96% of group revenue. Pre-tax profit increase 16% to R148 million, benefiting from one-off and unusual items, as well as a year-on-year positive movement of R43 million in the marketing funds. Comparable profit before income tax decreased by 19%.
No dividend was declared for the 2021 financial year. the interim dividend for the 2020 year, which was later deferred following the outbreak of Covid-19, would be paid to shareholders on October 25.
The group remained in an ungeared position at year end and cash on hand increased by R96 million to R261 million.
