Expects challenging 2010, but positive about opportunities
Spar annual profits up, sees challenging 2010
Financial year turnover up 19.5 pct to R31.96 billion
November 11, 2009
Grocery chain Spar Group reported a 19.5 percent rise in full-year headline earnings per share, excluding its black economic empowerment deal, and said it expects 2010 to be tough.
The group said headline EPS for the year to end-September increased by 19.5 percent to 484.8 cents, when excluding its black economic empowerment transaction in which it transferred 10 percent of its equity to two trusts to benefit employees.
Diluted headline EPS stood at 392.1 cents, up from 389.8 cents the previous year.
Spar declared a final dividend of 200 cents per share, up 29 percent on the previous year, while turnover rose 19.5 percent to R31.96 billion.
The company said it expects 2010 to be another challenging yet, but is positive about the opportunities for the business.
"It is anticipated that the current relatively low levels of trading activity will continue for at least the first half of the 2010 financial year, whereafter it is likely that volumes will increase," it said in a statement.
Spar said it would focus on driving new business opportunities, to grow organically and to cut costs.
"Cash generation is forecast to improve as capital expenditure reduces and the dividend cover is maintained," it said, adding that where appropriate, surplus cash would be utilised to buy back shares.
South African retailers have faced tough trading conditions as consumers rein in spending due to a recession in Africa's biggest economy. - Reuters
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