Val Nichas will be tested at Spur
• Business strategist Val Nichas will become the first woman to the lead the company
Spur CEO designate Val Nichas, who will join the restaurant next year, is moving into a company in the midst of serious leadership changes and a plummeting share price. Nichas, who will become the first woman to lead the company, was formerly the managing executive of quick service restaurant brands at Famous Brands, where she was responsible for a portfolio of franchised brands with more than 600 restaurants across Steers, Fishaways and Giramundo.
New Spur CEO Val Nichas, who will join the restaurant chain in 2021, is moving into a company that is in the midst of serious leadership changes and a plummeting share price.
Nichas, who will become the first woman to the lead the company, used to be the managing executive of Quick Service Restaurant Brands at Famous Brands, where she was responsible for a portfolio of franchised brands with more than 600 restaurants across Steers, Fishaways and Giramundo.
Nichas has run her own consulting business for the past eight years, specialising in business strategy and planning, Spur said, and her clients have included companies in the restaurant and food sectors. Famous Brands, Spur s chief
’ competitor, which owns brands Mugg & Bean, Wimpy and House of Coffees, has lost more than R2bn abroad in its Gourmet Burger King investment, but
Nichas was head of its local brands, which have been performing well.
Nichas steps into the leadership hot seat only a month after Spur COO Mark Farrelly resigned for personal reasons and after CFO Phillip Matthee was recently asked to step down from his current position to a different one for personal reasons, the group said.
In July, long-standing CEO Pierre van Tonder announced he was stepping down, citing personal reasons as well.
In September, long-serving director of Spur Corporation, Dineo Molefe, stepped down to take up a new role as CFO of MTN SA.
Mntungwa Morojele, a nonexecutive director, has also resigned to pursue career opportunities.
Spur s share price is down
’
46% so far in 2020, lagging a 37% fall in Famous Brands. The JSE all share is down 4.8%.
Both groups have been hard hit by Covid-19 restrictions on restaurant trade and opening hours as well as two bans on liquor trade at restaurants during the early stages of the coronavirus pandemic.
Small caps analyst Anthony Clark, who has been following Spur for years, said the share price has taken a knock due to leadership changes.
It appears the board wants outsiders in charge, he said. With the CEO stepping down,
“
the COO gone, the CFO taking a back seat, perhaps the board has a realignment of Spur strategy
”
in mind. He would not be surprised if Matthee left the company soon, he said.
Spur s share price weakened
’
slightly by 0.21%, dropping to R14.14 when news of the CEOelect broke.
Clark said this was unusual. Normally, when new talent
“
is announced, particularly when it is new talent which is known to market, it could rise.
It either means the market
“
has not got much regard for the person coming in from Famous Brands because of their difficulties or there was sceptism about the upheaval at Spur.”
He said there may be market concern over Nichas as
—
Famous Brands has done poorly abroad but defended her, say
—
ing she has been in charge of local operations at the company that have performed well. Perhaps they are wary of a
“
competitor coming in, which has also had a torrid reporting and business period.”
Cristina Teixeira, a former CFO of Group Five and of Consolidated Infrastructure, will replace Matthee with effect from the beginning of February.
Clark said she ccomes from a totally different industry but is well regarded as an excellent finance chief.
WITH THE CEO STEPPING DOWN, THE COO GONE, THE CFO TAKING A BACK SEAT, PERHAPS THE BOARD HAS A REALIGNMENT OF STRATEGY IN MIND