SPUR CORPORATION LIMITED - Sales Update for the six months ended 31 December 2013

Sales Update for the six months ended 31 December 2013

Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)


SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2013

Spur Corporation increased total restaurant sales by 11.5% to R2.8 billion in the
six months to December 2013 (“the period”), with sales from existing restaurants
increasing by 7.6%.

Restaurant sales in South Africa increased by 11.0% for the period. Sales in the
international operations were 16.1% higher in Rand terms, bolstered by the
depreciation of the Rand during the period.

Spur Steak Ranches in South Africa increased sales by 10.0%, with turnover
from existing restaurants up 6.8%. The success of the Spur Family Card loyalty
programme, breakfast and weekday promotions and restaurant revamp
programme continue to support good sales growth.

Panarottis Pizza Pasta grew restaurant sales by 26.2% in South Africa, with
turnover from existing restaurants increasing 14.8%. Restaurant sales benefitted
from continued product innovation, restaurant upgrades and the success of the
brand’s on-going breakfast promotion.

Sales in John Dory’s Fish Grill Sushi restaurants grew by 19.3% and by 13.1% in
existing stores. Continued menu refinement, installation of kids’ play facilities
and marketing focused on weekday promotions have boosted sales.

In contrast to the other brands, restaurant sales for Captain DoRegos declined
9.2%, largely as a result of closing redundant outlets and the tight economy in
which Captain DoRegos operates. The brand accounts for 3.3% of total
restaurant sales. While progress has been made in integrating the brand into the
group, this has taken longer than originally anticipated. Four new outlets were
opened and six closed during the period. A new chief operating officer was
appointed with effect from July 2013 and management remains confident that the
brand will perform to expectations once fully integrated into the group’s
structures.
Restaurant sales for the six months ended 31 December 2013
                                        Total restaurant          Existing
                                                   sales  restaurant sales
                                            (% change)         (% change)
Spur Steak Ranches                                  10.0               6.8
Panarottis Pizza Pasta                              26.2              14.8
John Dory’s Fish Grill Sushi                        19.3              13.1
Captain DoRegos                                     (9.2)           (12.6)
Total South African operations                      11.0               6.9
Total international operations                      16.1              13.2
Total group                                         11.5               7.6

A net 13 new restaurants were opened during the period increasing the number
of restaurants at 31 December 2013 to 492, of which 49 operate outside of South
Africa.

Chief executive, Pierre van Tonder, said: “The slower retail sales growth in the
food and beverage sector in the second half of 2013 is a clear indication that
consumers in our target market are feeling the impact of a depressed economy
and increasing cost pressures, particularly in the lower LSM end of the market.
Despite these pressures on our customers, we have performed well for the
period. We will continue to reward our customers with great value, excellent food
and a satisfying dining experience to ensure that we maintain and grow our
market share.”

The financial information in this trading update has not been reviewed or reported
on by the group’s independent auditor. Spur Corporation’s interim results for the
six months to 31 December 2013 will be released on SENS on 27 February
2014.

Cape Town
24 January 2014


Sponsor
Sasfin Capital
A division of Sasfin Bank Limited

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