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Financial performance

Franchise revenue showed impressive growth, with Spur growing 15.5% to R179.5 million, Panarottis increasing 28.9% to R16.7 million and John Dory’s rising 5.6% to R11.7 million. Franchise revenue in Captain DoRegos amounted to R9.2 million.

Manufacturing and distribution revenue increased 49.6% to R213.7 million. This increase was supported by the inclusion of the Captain DoRegos distribution centre for the full year, which generated revenue of R72.6 million compared to the prior year’s R23.5 million for the four months from acquisition. Product volumes in the group’s sauce manufacturing facility also grew well. The upgrading of the central kitchen facility has been completed and a new sauce bottling plant was commissioned during the year.

International revenue, comprising franchise revenue and company-owned restaurant turnover, increased 32.8% to R191.4 million. Revenue benefitted from the conversion of the two Spur outlets in England and Ireland to companyowned restaurants during the year. The board has taken a prudent decision to impair the assets of the Panarottis outlet in Tuggerah (Australia) owing to the challenging trading performance.

Profit before income tax increased by 11.4% to R195.1 million. This includes a net gain of R10.7 million (2012: R3.5 million) related to the group’s share appreciation rights incentive scheme and a foreign exchange currency loss of R6.5 million compared to a gain of R2.3 million in 2012.

Comparable profit before income tax, excluding the impact of the group’s long-term incentive scheme, the R2.2 million impairment of Panarottis Tuggerah, start-up costs in international company-owned outlets, as well as foreign exchange gains/losses and other one-off items in the current and comparable periods, but including the impact of the Captain DoRegos business, increased by 15.8%.

Headline earnings increased 20.6% to R134.8 million, with diluted headline earnings per share growing 22.4% to 156.6 cents. This performance is in line with the earnings guidance provided in the group’s trading statement issued on SENS on 4 September 2013.

The board has declared a final cash dividend of 56.0 cents per share, bringing the total dividend for the year to 111.0 cents, an increase of 27.6% on the previous year.