The firm‚ which has a market capitalisation of R10.9bn‚ reported a 20% increase in headline earnings per share to 406c per share.
Group CE Kevin Hedderwick said Darren Hele had been appointed as CEO of the food service business‚ "deliberately" leaving room for Hedderwick to "step back" from day-to-day operations to focus on the group's long-term future‚ strategies and acquisitions.
"We sit right now with a strong balance sheet that has no debt ... in fact we sit with cash (R26m) at the moment. This strong position facilitates further growth‚ whether by acquisition or organically.
"There is still some work to be done in the food service runway‚ to really make a step-change and unlock value for shareholders‚" he said.
For the year ended 28 February‚ revenue rose 12% to R2.83bn‚ and operating profit 21% to R566m. The operating margin attained a record high of 20%‚ up from 18.5%‚ a year ahead of plan. This was achieved in spite of higher input costs‚ and reflected increased sales‚ cost containment and improved efficiencies.
In South Africa‚ revenue rose 13% to R538m‚ and operating profit rose in line with turnover growth to R325m. Overall sales rose 11.4%.
Like-on-like sales grew 5.8%. "We did feel some stress in the second half of the year and normally we do the bulk of our businesses in the second half given the fact that we have the benefit of December and the school holidays‚ and we never saw that come through so the first half did help us‚" Hedderwick said.
South African consumers‚ who have less disposable income due to debt and rising costs‚ are spending cautiously. The rest-of-Africa division saw robust growth‚ with system-wide sales up 32.5%. Like-on-like sales grew 17.9%.
It planned to open 41 new restaurants across the brand this year and to enter Angola and Ghana with brands such as Debonairs‚ Steers and Mugg&Bean. The group has traded outside South Africa for almost 20 years‚ with a presence in 16 countries.
The region accounts for 8.5% of total sales‚ and could become increasingly significant‚ the group said. It added that the region would remain an appealing expansion prospect for South African and international players‚ and that the race to be first-to-market would intensify.
At its UK operations‚ revenue in sterling fell 6%‚ while revenue in rand terms improved 11% to R92m.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
