SPUR NEEDS TO SEIZE OPPORTUNITIES
Spur results were not thrilling; diluted HEPS were 3.2% lower, a l beit t he company t r umpeted “comparable” HEPS as being up 14.3%. But comparable is not an official accounting term so I ignore it. What the company does have is a large cash pile of over R300m, mostly as the result of the sale of 10% of new shares to Grand Parade. While Spur fails to excite me, that cash pile and the Grand Parade deal certainly offer opportunities that management needs to grab. However, my concern with Spur has always been a management team that seems overly cautious; I would want to see evidence of a changed mindset before I become interested. It certainly lags behind the brand leader in the space, Famous Brands*, both in terms of share price performance and in dealmaking ability.