Steak calm and carry on: Spur assumes the recovery position
Casual dining operator cuts costs and bounces back (everywhere but Australia) after much disappointment
After a series of disappointing results, Spur Corporation (https://www.sharenet.co.za/v3/quickshare.php?scode=SUR)’s latest posting for the year to end-June 2019 was a welcome relief. Much is attributable to a resurgent Spur chain, coupled with cost containment. While not shooting the lights out, Spur looks like it has come back from the dead.
CEO Pierre van Tonder says he is comfortable with performance, considering the poor consumer market. The second half was slightly weaker than the first half, but overall revenue rose by 6%, profit before tax was up by 14%, and dividend per share rose by 11%. Cash generation was healthy.
“We invested a lot in lifting franchisee margins”, says van Tonder. “That is starting to pay off and we are no longer having to award [franchisee] concessions.”..