Slide 1: Annual results 2005
Annual results 2005 September 2005
Slide 2: Presentation overview
Presentation overview • Highlights of the year • Brand performance & operations • Financial performance • Outlook for 2006 • Questions
Slide 3: Brand performance & operations
Brand performance & operations Pierre van Tonder
Slide 4: Highlights of the year
Highlights of the year • Buoyant trading conditions – increased consumer disposable income • Acquisition of 60% of John Dory’s Fish & Grill • Opened 20 new outlets in South Africa • International expansion continues • Group stores now total 287 • Continually increasing brand awareness • Sound financ
Slide 5: Spur Steak Ranches
Spur Steak Ranches • Capitalised on growing middle class to increase market share, particularly in Gauteng • Turnover growth – 18% - all stores – 13% - same stores (increase in market share) – menu price increase of only 4.5%
Slide 6: Spur Steak Ranches continued
Spur Steak Ranches continued • Opened 13 new stores – 11 in SA & 2 International • Relocated 4 stores – all showing turnover growth > 40% • 19 stores revamped – 167 since revamp programme started in 1999 • Total stores now 224 – 19 black franchisees
Slide 7: Spur Steak Ranches continued
Spur Steak Ranches continued • Retail sauce range in national supermarkets • Heart Foundation endorsement • Piloted Spur ‘Kerbside Fone & Fetch’ • Spur customer care call centre launched • Growth of 22% in Secret Tribe Kids Club – 51% new members under 6 • Edu-tainment facilities in stores
Slide 8: Spur Steak Ranches continued
Spur Steak Ranches continued • Expanding range of retail sauce & marinades • At least 15 new stores planned for 2006 • Further 20 stores to be revamped • 11 relocations planned for 2006
Slide 9: Panarottis Pizza Pasta
Panarottis Pizza Pasta • Turnover growth – 16% - all stores – 15% - same stores – menu price increase of only 7% • Menu improved – value offering remains strong • Kids facilities enhanced to boost family offering
Slide 10: Panarottis Pizza Pasta continued
Panarottis Pizza Pasta continued • Opened 10 new stores – 9 in SA & 1 International • Relocated 2 stores • Total stores now 56 – 7 black franchisees • New ad agency & marketing drive to strengthen brand positioning – new pay-off line “Big on Family, Big on Pizza” • Expect to open 12 new stores in 20
Slide 11: John Dory's Fish & Grill
John Dory’s Fish & Grill • 60% stake acquired wef 1 November 2004 – founders retained 40% interest • Opened 2 new stores • Total of 7 stores at June 2005 • Launched John Dory’s range of sauces • 10 new stores planned for 2006 – opened first store in Western Cape on 20 July 2005
Slide 12: John Dory's Fish & Grill continued
John Dory’s Fish & Grill continued • Sauces in central kitchens • Effective marketing • Incorporated into Spur Corporation franchise philosophy – Operations – Marketing – Development – Information technology – Human resources – Finance & administration
Slide 13: International
International • Opened 2 new Spur stores – Wandsworth, United Kingdom (Mohawk Spur) – Maputo, Mozambique (Utah Spur) • New Panarottis store – Parramatta, Australia • Total stores now 32 – 24 Spur (16 Africa (incl. Mauritius) & 8 International) – 8 Panarottis (5 Africa (incl. Mauritius) & 3 Internati
Slide 14: International continued
International continued • China – 3 Spur Steak Ranches scheduled – Shanghai – September 2005 – Fuzhou – November 2005 – Nanking – January 2006 – appointed master franchisee – sub-franchise stores • Australia – 3 stores scheduled – Spur Steak Ranch & Panarottis in Campbelltown – Panarottis in Blackto
Slide 15: Operations
Operations • Outsourcing of distribution of central kitchen products • Gauteng kitchen/office facility opened – aiming for HACCP compliance at central kitchens • Continued IT investment – roll-out of POS, Balanced Scorecard, call centre, server upgrade • Investment in training & skills development –
Slide 16: Financial performance
Financial performance Ronel van Dijk
Slide 17: Key financial indicators
Key financial indicators 2005 2004 % change Headline earnings (R’000) 51 084 37 233 37 Headline EPS (cents) 56.27 39.72 42 Diluted headline EPS (cents) 56.12 39.72 41 Distribution per share (cents) 40 30 33 Distribution cover (times) 1.4 1.3
Slide 18: Turnover
Turnover R’000 2005 2004 % change Wholesale & distribution* 107 449 101 354 6 Franchise – Spur 83 501 72 705 15 Franchise – Panarottis 8 054 6 985 15 Franchise – John Dory’s** 1 628 - Total 200 632 181 044 11 * Comparable turnover impacted by outsourcing of distribution ** 60% interest acquired wef
Slide 19: Turnover – geographic split
Turnover – geographic split R’000 2005 2004 % change South Africa 195 306 173 352 13 Africa & Mauritius 2 550 3 124 (18) UK & Australia 2 776 4 568 (39) Total 200 632 181 044 11
Slide 20: Operating profit – operating income
Operating profit – operating income R’000 % of total 2005 2004 % change Wholesale & distribution 30% 19 698 18 136 9 Franchise – Spur 63% 42 262 35 256 20 Franchise – Panarottis 7% 4 375 3 897 12 Franchise – John Dory’s* - 296 - - Operating margin 33.2% 31.6% * 60% interest acquired wef 1 November 2
Slide 21: Balance sheet – assets
Balance sheet – assets R’000 2005 2004 % change Property, plant & equipment 26 231 9 086 189 Intangibles 8 465 - Investments & loans 18 569 16 050 16 Deferred tax 33 115 39 683 (17) Inventory 5 024 4 213 19 Trade & other receivables 28 084 23 220 21 Cash 41 637 76 672 (46) Taxation 2 587 1 979 31 To
Slide 22: Balance sheet – equity & liabilities
Balance sheet – equity & liabilities R’000 2005 2004 % change Capital & reserves 124 825 138 607 (10) Minority shareholders’ interest 4 124 - Trade & other payables 20 561 20 545 - Taxation 12 055 8 885 36 Bank overdraft 1 934 2 622 (26) Shareholders for distribution 213 244 (13) Total equity & liab
Slide 23: Cash utilisation
Cash utilisation R‘000 Cash from operations 67 461 Interest received 4 823 72 284 Share buy-back programme (28 881) Distributions paid (35 179) Taxation paid & working capital changes (16 643) Investment in Gauteng building (14 027) Investment in John Dory’s (4 500) Information technology (2 412) Ce
Slide 24: Capital management
Capital management • Investment in buildings • Share buy-back programme • Distribution policy – based on headline earnings divided by total number of shares in issue
Slide 25: Share buy-back programme
Share buy-back programme Number of Cost Average shares (‘000) (R’000) price (R) Balance at June 2004 4 167 11 705 2.81 Bought back on open market 120 679 5.66 Bought from related party 4 850 28 646 5.91 Balance at December 2004 9 137 41 030 4.49 Bought back on open market 340 2 051 6.03 Balance at J
Slide 26: Outlook for 2006
Outlook for 2006 Pierre van Tonder
Slide 27: Outlook for 2006
Outlook for 2006 • Continued aggressive store growth in SA • Sustained international expansion – entering new, unchartered markets • Black empowerment strategy a priority – franchisee level – corporate level • Increased focus on cash management • Favourable trading environment likely to continue • E
Slide 28: Questions? Thank you
Questions? Thank you