FAMOUS BRANDS LIMITED - Further cautionary announcement

Further cautionary announcement

Famous Brands Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1969/004875/06)
JSE share code: FBR    ISIN: ZAE000053328
(“Famous Brands” or “the Group” or “the Company”)

Renewal of Cautionary Announcement

Shareholders are referred to the Renewal of Cautionary Announcement
(“Announcement”) published on the JSE Stock Exchange News Service
(“SENS”) on 1 July 2020 relating to the Board of Directors’ (“Board”)
decision to not provide any further financial assistance to GBK
Restaurants Limited (“GBK”).

In light of the Board’s decision, the Board of GBK is reviewing the
options available to the business, and while deliberations in respect
of this matter are still underway, the Board wishes to apprise
shareholders as follows:

Operational update

  •   Continuing to curb the spread of the COVID-19 virus remains our
      priority and stringent operating protocols are in place across
      the business to ensure the safety of our staff and customers.
      These disciplines have enabled the business to deliver
      responsible, safe, uninterrupted service to our customers.
  •   Of the 62 GBK stores in the UK, 37 are open and offering full
      service (being delivery, collect and dine-in). The balance of
      the 25 stores remain closed.
  •   Of the five stores in Ireland, one is open for full service, the
      other four remain closed.
  •   Under the current prescribed trading restrictions, management is
      pleased to report that our customers have responded positively
      to the reopening of our restaurants within the Government
      guidelines, and the Board of GBK is satisfied with the
      operational performance of the stores which are currently
      trading.
  •   In the voluntary market update issued on SENS on 24 July 2020,
      management noted that 27 GBK restaurants in the UK were open for
      delivery and collect in July, of which nine were trialling the
      viability of seated dining. On this basis, it was forecast that
      for the month of July, under trading restrictions in effect at
      that time, GBK would generate 49% of the revenue earned in the
      prior comparable period, being July 2019. It is pleasing to
      report that this was accomplished; this creditable performance
      is a tribute to the resilience and resourcefulness of our teams.

Strategy

  •   The business remains singularly focused on navigating its
      recovery from the impact of the COVID-19 pandemic on the economy
      and the industry. This includes flexing the model to capitalise
      on opportunities to gain market share, and leveraging GBK’s
      equity as the leading burger brand in the UK’s premium burger
      category.

  •   The Board of GBK will continue to explore all options to ensure
      the long-term sustainability of the business in the wake of the
      severe impact of continued trading restrictions and the slow
      phased restart of the economy.

Shareholders are advised to continue exercising caution when dealing
in the Company’s securities until a further announcement is made in
this regard.

The financial information on which this announcement is based has not
been reviewed or reported on by the Group’s external auditors.


Midrand
13 August 2020

Sponsor
The Standard Bank of South Africa Limited

Date: 13-08-2020 08:00:00
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