Spur Corporation Ltd


Spur Corporation Ltd operates the Spur Steak Ranches, Panarottis Pizza Pasta, John Dory’s Fish Grill Sushi, Captain DoRegos, The Hussar Grill and RocoMamas restaurant franchises. The Group also operates its own central kitchens facility which manufactures certain of the Group’s unique sauces and has a recently acquired minority interest in a rib processing plant.

The group’s main brands of Spur, Panarottis and John Dory’s focus largely on the middle-class family sit-down dining market, with The Hussar Grill, an upmarket steakhouse offering, targeting higher-income levels, and Captain DoRegos and targeting the lower-income market. RocoMamas, the Group’s most recent acquisition, has a broad appeal across target markets in the casual dining sector.

ownership structure


effective ownership (as at 30 June 2015)
(R5.9 million)
contribution to GPI headline earnings for the period


managing executive

Pierre van Tonder

GPI directors at Spur Corporation Ltd board level

Alan Keet

BBBEE rating

Level 5


Total head office employee complement: 395 (South Africa only)

Historically disadvantaged individuals (HDIs) represent 61.8% of the total employee complement

Females represent 52.4% of the total employee complement

Head office

Cape Town

Operational footprint

464 local stores
58 international stores as follows:

  • Eight in United Kingdom and Ireland
  • Nine in Australia
  • 41 in Africa and Mauritius

Key financial performance indicators (R’000s)

2015 2014 2013
Revenue 760 059 732 636 671 552
EBITDA 194 825 208 772 203 317
Net profit after tax 205 421 201 871 196 539
GPI shareholder loan
Total debt excluding shareholder loans 250 623 218 351 223 687

Operating context, performance and prospects

Spur Corporation Ltd delivered a competitive performance and continued to gain market share with worldwide restaurant sales increasing by 12.1% to 6.2 billion. Restaurant sales in South Africa proved resilient and grew by 11.3% in an environment of continued slowdown in middle-income spending and consumer confidence sinking to its lowest levels in over a decade. Trading conditions were compounded by load shedding which reduced local restaurant turnover by an estimated 3%.

Local Spur Steak Ranch restaurant sales increased by 9.0% for the year as promotional activity proved successful in attracting value-conscious customers and the Spur Family Card loyalty programme continued to attract customers and promote loyalty. Panarottis Pizza Pasta sustained its strong growth trend of recent years with local restaurant sales increasing by 25.4% aided by new store openings, refurbishing of existing stores, upgrading kids’ play areas as well as marketing campaigns to promote the brand’s authentic Italian offering. Sales at the local John Dory’s Fish Grill Sushi increased by 12.0% benefitting from the addition of six new restaurants. The Hussar Grill performed well in its first full financial year in the Group as its higher income target customer proved more resilient in the current climate.

International restaurant sales increased by 18.6%. Applying a constant exchange rate, international restaurant sales grew by 12.1%, benefitting from eight new stores.

Following the opening of 15 Spur, 12 Panarottis, seven John Dory’s, 12 Captain DoRegos, two The Hussar Grill outlets and four RocoMamas during the past year, the Group’s restaurant base increased to 522.

Revenue generated by South Africa increased by 3.7%, impacted by the closure of the Captain DoRegos depot in November 2013. While franchise-related revenue from Spur, Panarottis and John Dory’s grew in line with restaurant sales, revenue from Captain DoRegos declined by 25.8%. As a result of increased pressure on the disposable income of the Captain DoRegos target market, and the resultant under-performance of the division, the Group recognised an impairment loss on the trademark of R13.9 million. The Group has implemented measures to reverse the fortunes of Captain DoRegos and to focus on profitability and franchisee sustainability. Revenue from the Group’s manufacturing and distribution division declined 1.5% due to the closure of the Captain DoRegos distribution centre in the prior year; comparable revenue for the division increased by 13.0%.

International revenue, comprising franchise revenue and company-owned restaurant turnover, declined 11.5%, in part due to the closure of a company-owned outlet in the United Kingdom and the disposal of all three company-owned outlets in Australia during the year. The performance in the United Kingdom and Ireland was disappointing with revenue 6.3% lower than the previous year and losses growing further owing mainly to high levels of competition in the quick-service restaurant market and escalating labour, occupancy and food costs. This resulted in the recognition of an impairment loss of R1.1 million relating to a retail outlet in the region. The Group has shifted its strategy in the UK to focus on a smaller format Spur brand, known as RBW (Ribs Burgers Wings). The first Spur RBW company-owned outlet opened shortly before year-end and initial customer response has been encouraging. The RBW concept requires a lower investment by franchisees than a regular Spur restaurant and is considered a more sustainable formula in the current climate. The Australian operations experienced a more positive trading period and returned to profitability. The Group has sold its remaining interests in company-owned stores to franchisees and the Australian business is now a fully franchised operation. The franchise operation in Africa delivered strong growth in revenue and profitability, boosted by the opening of six new outlets during the year. The Group’s footprint in the region has been expanded to 41 outlets.

The Group’s performance has been impacted by a share-based payment expense of R33.0 million relating to the broad-based black economic empowerment transaction with GPI effected on 30 October 2014 (“the GPI transaction”). The transaction resulted in the issue of 10.848 million new ordinary shares which increased the weighted average number of shares in issue from 85.633 million in the prior year to 92.636 million shares.

Profit before income tax includes a net charge of R4.9 million (2014: R10.2 million) related to the Group’s long-term share-linked retention scheme, R15.0 million (2014: R6.0 million) impairments and related losses, a foreign exchange gain of R1.9 million (2014: loss of R0.8 million) and other one-off and exceptional items in the current and previous comparable periods. Comparable profit before tax, excluding exceptional and one-off items (including those listed above) and the impact of the GPI transaction, increased by 10.8%. Headline earnings increased by 4.7% to R141.5 million with diluted headline earnings per share 3.2% lower at 152.8 cents per share. Excluding the impact of the GPI transaction and other exceptional and one-off items listed above, comparable HEPS increased by 14.3%.

The economic and trading headwinds facing the food and restaurant sector are not expected to abate in the year ahead, including the impact of the depreciating currency, continued load shedding and rising operating costs. Similarly, consumers are likely to remain under financial pressure.

In the year ahead the Group plans to open 38 restaurants across its brands in South Africa. This includes doubling the existing restaurant base of the newly acquired RocoMamas chain.

International expansion will focus mainly on Africa where 12 new franchised outlets will be opened. These include additional restaurants in Nigeria, Zambia, Kenya and Namibia and the first outlets in Ethiopia. In Australia, two new restaurants will be opened in Perth. The Group intends to expand the RBW pilot project to three further sites in the UK – a number of viable sites are being investigated.

The Group reconfirms its target to grow comparable operating profit by 15% for the year ahead.