Spur seeks credit facilities for an uncertain future

DURBAN – Restaurant franchisor Spur Corporation is engaging with financial institutions to secure credit facilities should the lockdown period extend beyond the current year as it saw a 46.7percent decline in restaurant sales for March compared to the corresponding period in 2019. Spur’s portfolio of restaurants include Spur Steak Ranches, Panarottis Pizza Pasta, RocoMamas and John Dory’s Fish Grill Sushi.

However, Spur said its financial priorities were cash preservation and tight cost management. Based on the group’s cash resources, the directors did not anticipate needing to access external funding for at least the next six months. Spur had taken measures to ensure liquidity and to provide it with greater balance sheet flexibility during the period of uncertainty.

“The group’s balance sheet is ungeared and there is capacity to introduce formalised borrowings. As a precautionary measure management is engaging with financial institutions to secure credit facilities should the lockdown extend beyond the current year or should the economic impact of Covid-19 be more severe than currently expected,” Spur said.

JSE-listed Spur said sales for the period between March 16 to March 31 declined by 75.7percent following the declaration of the state of disaster in the country, with trading stopping completely from March 26.

In March, it announced that the payment of the interim dividend for the period to December 31, 2019, had been deferred for six months until October 5, subject to compliance with the South African Companies Act and JSE Listings Requirements. Looking ahead, Spur would implement a reduced work week going forward.