Earnings per share (EPS) were beefed up 30% to 22.44 cents from 17.21 cents and headline EPS 35% to 21.97 cents from 16.28 cents.

Turnover fattened by 7% to R89.2 million (2002: R83.2 million) despite the lower inflationary environment.

A 13% growth in operating profit to R28.3 million (2002: R25.1 million) highlighted operating efficiency, Group MD Pierre van Tonder said. Pre-tax profit grew 28% to R29.8 million (2002: R23,3 million).

Net interest received escalated 49% to R2.7 million (2002: R1.8 million) due to growing cash reserves now topping R58 million (2002: R33 million).

The distribution per share increased by 27% to 14 cents (2002: 11 cents) while earnings attributable to ordinary shareholders grew 29% to R21.1 million (2002: R16,3 million).

Exceptional items comprised a forex loss of R1.6 million - substantially lower than R4.5 million in 2002 - and a R439,000 profit on sales of company stores (2002: R883,000).

Van Tonder attributed the robust results to Spurcorp's tried-and-tested recipe of opening new stores in prime areas, revamping existing outlets and delivering high quality, value for money meals, together with effective marketing campaigns and continuous training.

In the last six months Spur has brought its taste for life to Mitchell's Plain, Port Alfred, Brooklyn (Pretoria), Pietermaritzburg, Cresta (Johannesburg), Kimberley and Alberton. Spur turnover in Germiston and Newcastle was boosted through relocations to freestanding sites and a further 15 outlets were revamped countrywide.

With strong brand acceptance on the international front the UK and Australian restaurants are trading well, said van Tonder. In Africa the recently opened Dar es Salaam Spur is operating strongly and the recently refurbished Windhoek outlet has boosted its turnover. Spur is on track to open in Maputo this year.

Four new Panarottis pizza/pasta outlets had opened in SA and the East London outlet had been relocated to the popular casino development site.

"Panarottis is on track for improved contribution to group turnover and profits," said van Tonder. "We are focusing on opening more family restaurants in prime retail centres this year."

Falling interest and inflation rates coupled with new contacts and improved purchasing opportunities enabled Spur to maintain November 2002 price levels to date. The prices of family favourites such as ribs were reduced. A 400g rib portion has been reduced by R5 and now only costs customers R44.95, while a 600g rib portion has been reduced by R7 to R59.95.

Both Spur and Panarottis have received Proudly South African accreditation, added executive chairman Allen Ambor, and this was being leveraged in all communication. Spur will lift investment in outdoor branding for both Spur and Panarottis and the "Take me there" Spur campaign has been integrated into all communication channels. Investment in Supa Strikas is building awareness in the emerging market.

Sauces have continued to do well and distribution has been expanded to major Western Cape retailers after a pilot launch period.

I-Net Bridge 05 March 2004