Spur Corporation Ltd (SUR) Earnings Call Transcript & Summary

Good morning. Welcome to the fiscal '26 results, which will be present to you today. Good morning to all our guests that are here both in person and online, local and international. A warm welcome to all our franchisees, international franchise partners, investors, listeners, associates and shareholders. I would like to acknowledge our Board of Directors and our Spur Corp executives who have worked in unison to guide and inspire us to deliver the results you'll see today. I would like to personally thank Mike Bosman, our main Board Chair for his continued wisdom and direction. Thank you, Mike. It was Mike Bosman that in 2019 took the chair at the Spur Corporation Board to guide the transformation of this group with meticulous governance to ensure stability and growth, which has been delivered since. I also acknowledge all our Board members appointed by Mike. Some of them are present here today. Welcome to Dr. Shirley Zinn, awesome to have you with us, Shirley. In every audience, however, there's always a not normal type of guy. Well, it gives me great pleasure to welcome our innovative founder and partner of RocoMamas, Brian Altriche. Brian, welcome. Welcome Rockstar, I should say. Thank you for inspiring us to continue the e-sites of this unique and admired brand RocoMamas. And in fact, there are other not normals here today as well, but I won't mention them by name. I would like to express my gratitude to all my fellow executives here today as well as each and every member of the Spur Corp team who have really just demonstrated their commitment to our business through their passion and hard work and have worked closely with our network to deliver another year of results you are about to review. The alignment of the leadership team is truly remarkable. And finally, my acknowledgment goes to the customers, our loyalists and champions who vote for us by stepping into our restaurants daily, as our franchisees and their teams a way to offer them a great dining experience and memorable hospitality. I would also like to express my sincere condolences to families who have lost their loved ones this year. We remember and acknowledge our OpCo debt of 2023 that qualified and worked as an ops manager for 2 years. may your sole rest in peace, dear Kanya. We also express our condolences to the families of our franchisees who passed away during this year. Hannes Yaga from Tander Tower Spur, John Freegard from Al Sembrera and I remember many key sessions with him and Lizette Ferrera from Buffalo Creek in Saselburg. If we commenced with the year for glance and we look at Spur Corp's total restaurant sales achieved of ZAR 12.3 billion, and this increased by 6.9%. Group revenue increased by just over 8.5% and profit before tax increased by 12.8% Earnings per share increased by 11.6% and headline earnings increased by 8.9%. The Board has approved and declared a final dividend of ZAR 2.06 per share to shareholders. This represents a total dividend for the financial year of ZAR 3.26. The financial results have been impacted by a provision of ZAR 129 million for the GPS litigation claim was paid on the seventh of August pleasingly ZAR 488.6 million cash generated from operations and the return on equity at 22.6% has not been impacted. The group's solid performance over the past 6 fiscal has enabled us to retain sufficient cash reserves of unrestricted cash of ZAR 494 million as of the 30th of June '26. We -- if we look at the agenda for this day, it gives me great pleasure to officially open up the presentation for our fiscal '26 results for the period '25 to '26 in. Cristina, our CFO, joins me once again. I think it was our 11th presentation and to present the financial and segmental review after the business review Cristina, welcome. We will end the presentation today with an opportunity to engage with you on any further questions. The trading update will be presented in two parts. A brief overview of the 6-year journey since '21. And then the details of the fiscal '26 year performance will be revealed. Our business model and performance and purpose has guided us along the way. Our North Star, which ensured that every initiative, every action, every investment was done with the right intent to create impact to the customer, to the franchisee, to an employee so that we could deliver results to our shareholders. We continue to create a place at the table not only literally to sit and enjoy a dining experience, but our commitment to creating an opportunity with us from our enterprise development projects to our strategic partnerships with people like Vodacom, Ackermans and more recently, Sendam is evidence of how we want to create impact with other partners. If we look at the journey that we have traveled and you've been with us through this journey over the last 6 fiscals, and you know the numbers, for ease of reference, there are tables here and available and online pack to review. So I don't expect you to read the small font. The share price over the last past 6 years is also reflected on the top in the small circles. Big share price, more circles. I would like to briefly take you through some of the impact areas that demonstrate that by fixing the culture of an organization at guarantees to deliver performance by understanding in our industry that a strategic imperative is to build appealing and relevant brands that ensures that franchisees realize a return on investment. And if our franchisees succeed so do we. Let's look at some of these milestones. So leading with the greater good became our North Star if we look at one major shift was in the early years, our investment in leadership and development was about ZAR 300,000. This last year was ZAR 5.6 million. Every year, we increased it from ZAR 3 million to ZAR 4 million. And now that investment -- you'll remember the various programs that we ran, the rising leaders that OpCo did, more recently, we've invested in the data science UCT program for all our leaders so that we all become competent in AI, which has become a huge requirement in the business. If we look at how we shifted our living wage. This was around 2023 at head office, our entry-level employees and the central kitchens were earning a minimum wage of ZAR 7,000 per month. This is now ZAR 16,500. We not only add value to these individuals by the living wage, but also to give them food helpers along the year, take them for our teams. To give you an example, our central kitchen staff in fiscal '21, we found out that they hadn't even eaten at a Spur, and Robin and Ashton's team have been amazing to get these individuals into our brand, into our restaurants so they know what they're producing every day. If we look at the increased annual investment for groceries for our own employees, children's education. It started off at about ZAR 0.5 million and now ZAR 1.5 million. And there's a call for even more of an investment. So as we grow, hopefully, we can honor that. We also established many relationships with small, medium enterprises for annual supply and enterprise development investments. This was led by a transformation executive together with our COOs. You can see the very miniscule investment at the early start. This year, there was 5.1 million invested and these are places like [indiscernible] cookies, our recent oils, which is a business run by females only that collects used oil. So lots of lovely activities happening where we're really trying to add value to smaller and medium-sized enterprises. If we look at our compliance, we were noncompliant in fiscal '21. We eventually in fiscal '22, got Level 8, which was the start of the journey, and we're now in Level 4, are we waiting for the next outcome in October. What is important to note, all of what we've done over the last 6 years was not about getting this only. This was just the requirement. We know that we did -- we embarked on deliberate transformation, which means we care and are are committed to change an improvement in the business. And then above all, because our business is reliant on great franchisees. We went on the journey to transform franchisee pipeline by increasing females, which are now about 12.5% younger entrepreneurs and increase in our Black franchisees, which currently represents 32.7% of our network, which is really awesome to see. We had set a target, I think, of 35% for fiscal '27. And when I saw this final figure, I said to the team, 40% next year, so let's see. Then to look at these are some impact areas that we're probably more internal. But if we start seeing some of the impact on the performance level, and I'll give you a couple of highlights, fiscal '22 during on South Africa's annual turnover exceeded ZAR 7 billion, an amazing milestone after COVID and the difficulties that we went through in the market. Fiscal '23, we celebrated the group's achievement of ZAR 1 billion in one single month, and that was December, a very important month for us. We've managed to exceed that figure every month, every December. Fiscal '24, well done to our international team, our restaurant annual turnover exceeded ZAR 1 billion, the ZAR 1 billion club here. And in fiscal '25, we broke that record again in another month, which is obviously also our second biggest month which is school holidays, where the group exceeded ZAR 1 billion in July. And this year, we're celebrating RocoMamas who's reached ZAR 1 billion in restaurant sales, so really an ultimate achievement. And then above all in the last 6 years, what is important to note is that our CAGR restaurant turnover growth was 15.2%, if you compare it to the compound annual growth rate reported by Euromonitor for this category, the South African eating category is about 11.1%. So we're really pleased to highlight some of these amazing milestones. Two more impact areas I want to briefly talk about is all the incredible work happened by -- that's happening with our foundation and the impact we're creating on training teachers and introducing a code in future programs, it's a team of Sisters sanitary program. John Doles focusing on the survival of children for having survival swimming lessons. And then, of course, our target of feeding children have been exceeded. We're feeding 4,000 children now at early center development units. And this is all because of a ZAR 1 contribution that customers make and franchisees are willing to give up towards such an incredible project. And it's something that we've got to continue. We try and encourage franchisees to do more. We also acknowledge our franchisees who do so much in the local communities to help underprivileged facilities, old age, schools, orphans, et cetera, just incredible looking after that customer that 1 day might be the Spur customer of the future. And our endeavor to impact environmental sustainability continues. We've always been very responsible, focusing on our facilities, focusing on our company-owned stores. Monthly, our restaurants have go reports. We have the Green Further annual report, which recognizes franchisees who are committed to sustainability. We recently done a self-funding investment with the external party, where we've put in just over 400 solar panels in our company-owned day called warehouse facility. We already have a 53% reduction in usage, and are armed with an additional battery that we need to get off the grid very soon. So well done to the team that handled this project. I realize guy and the roof didn't have a safety -- and if we were in America, we would be in trouble. Okay, great. So let's go through the trading overview. And I'm going to take you through some detail, Cristina, then will top it up with the financials of the business per brand. So if we look at the year that's just passed in our supply chain officer called it the tale of two halves. and I thought that was true. It certainly was a year that was a tale of two halves, each shape by force is largely outside of our control. In half one, the foot and mouth outbreak hit free state cattle, strain in our red meat supply, which is spread to all line provinces. Even though the Ministry of Agriculture was just recently on the 16th of August, quote him to say it's under control with over 3.5 million vaccine doses imported and administered and 10 million more on the way. As the outbreak took hold, beef prices climbed sharply. 50% on beef products, some cuts jumped even up to 30%, and by December, urban net inflation hit 12.6%, the fastest rise since 2018. As reported at interim, the selling price and selective menu items were increased in July. Prices of beef currently remain approximately 15% to 20% above the 2024 levels. In addition, in half one, the economy barely moved, just 1.1% growth in 2025, the strongest in 3 years, but still below forecast, with a quarterly pace at a modest 0.4% growth in quarter 4 and nudging up to 0.5% in quarter 1. And in September, we will await the quarter 2 step. And of course, not to remember the booming online gambling industry with a record of 1.1 trillion wages in a single year, which they say represents about 17% of South Africa's GDP and that began competing for the same disposable rand our customers spend on dining out. And in H2, the pressures compounded, the escalating conflict in the U.S. and Iran and the closure of the Strait of Hormuz sent oil surging past ZAR 110 a barrel, fuel inflation impacted consumer spend as well as put pressure on our own supply chain. Our solid relationships with our suppliers allowed us to delay the impact for a few months, but by early July, we had to take a small increase on the distribution cost, which will be adjusted as fuel prices improve. Migration tensions raised labor and stability concerns. And at the end of the financial year, the threat on safety and security, leading up to the March and March of 30th of June did not end with the buoyancy we expected. We have had confirmation that another March and March is scheduled for the 30th of September. And amongst all this chaos, we also have reality dawning on us as scientists, warns of a super El Nino, threatening future crops and foods. So two halves essentially, but one theme, resilience. Our stringent risk mitigation controls, our solid supply chain capability a resilient network and a returning loyal customer will, by God's grace, enable us to get through such volatile periods of trading. Our portfolio of brands remain unchanged. As you can see, our casual and fast casual brands sit on the top line. In the middle, our specialty brand of portfolio. Obviously, the biggest contributors there are Hussar Grill and Doppio Zero, and we'll talk a little bit about each of them shortly. And then, of course, our virtual kitchen brands, of which we have 6 now I still believe this is a massive opportunity in the industry. We certainly have intentions to expand it, not in terms of number of brands, but in terms of number of reach. If we look at where we trade, we currently trade in 14 countries, essentially on the continent of the India, on the continent of Africa, and that's our main focus, 112 restaurants internationally and 639 in South Africa. If we look at the restaurant count in terms of per brand, really to see, obviously, the significance of the Spur brand continues 48% of our count, but you'll see a bit later, over 68% of our contribution. But interest in Paraottis is growing really phenomenally well, now 157 stores compared to the Spur 358. Also wonderful growth across RocoMamas, and of course, specialty at 81 now is looking good. And with a format that I'm going to be showing you shortly, we expect a quick expansion of one of those formats within the specialty portfolio, so ending the year with 751 restaurants. If we look at the number of restaurants in terms of new, closed, dispose, disclosed earlier in the year, we did disclose that in February. But you'll see 52 new restaurants. There were closures. Some of those were mediocre stores trading in areas that were not optimum, franchisees were under pressure. It reminds me many years ago, I used to use a Forbes article that spoke about why a restaurant failed, or why businesses fail. And number one, they were saying it's because there's not enough cash flow, and number two, I'll never forget, that you're not listening intently to the customer. So we had to close some of those restaurants. A lot of that is John Dorys. You can see seven closures. We expect to have more closures. We've budgeted for it. So we do know that we're going to have to go through a rationalization process. But more importantly, great to see that we managed to get into 52 new locations to be at arm's reach for our consumer. And then also a big investment by our franchisees for revamps and relocations plus an additional 12 kiddie play areas that were revamped in advance of a major revamp so we really do acknowledge our franchisees' investment of over 90 restaurants. The spend is about ZAR 200 million. We've become very responsible to ensure they get the return on investment. On the whole, when we look at some of the brands, the return is evident. It's double digit. There are some of them that are single digit, but we know that there's a huge and a much greater impact should you not decide to revamp. This is Copper Ridge Spur in Phalaborwa. You'll remember this was actually one of the first Pegasus stores almost 2 years ago. That sent a quarter light, our franchisee who's very committed and forward thinking, worked with Amanda the team and set up a container for about 13 months traded in the container. People commented that it has actually given us an idea of how we can trade as a container in certain sites. But she had relocated to a new shopping area, and this is the new store in Phalaborwa she runs an incredible team with great customer experience. I visited the first store. I haven't been back yet. Amanda has a few times, but really a huge commitment from the franchisee. Clearwater, a spur a beautiful store as well overlooking the beach also was in great need of a revamp, looking sunny, is also part of a multiple group. On the top right-hand corner, you can see an example of one of the smaller memory walls. What we've done to continue the legacy of Spur, we've captured the history of the brand in every single new Pegasus store, which is lovely for people to read how the logo transformed to read about the story of Spur and to look at some of the old memorabilia in some of the walls where it's bigger, they even have the old uniform, that's got some of the badges, it's got some of the old wooden menus, so really awesome to see. Coyote Canyon Spur, another new -- another revamp in Westville. This Spur [indiscernible] one of our bigger multiples just an incredible investment in the kids area, 3-story tower for kids to explore and the next games on the bottom right-hand corner. This store was also a very old looking, the Panarottis was revamp first, and this is alongside the Panarottis. So once again, a great destination to attract the mainstream South African consumer. If we look at Red Mountain Spur, this is an owner Tony Boerse. He owns two stores in Pal. If he were to see his memory wall in his other Pal store, he's got everyone menu he ever had on his well, which is really awesome. This center is struggling a little, but it's still under revamp, but at least it has a new look. Falcon Spur is actually Brian with his partner and dealer. Dealer is a franchise partner and also on our SFC Council. Many years ago when he was a young lad moving from restaurant to restaurant trying to sell empty bottles and collect money, Brian gave him the opportunity to come and work for the business. I think washing disehs initially, him and his brother help them get some education. And today, it's incredible to know that Andini is Brian's partner in several of his restaurants, so well done to Brian, a great example commitment to building the next frontier. Gray Aspen Centurion also was in dire need of a revamp but really looking great. This is also a multiple franchisee owns a store in Soreto. He's also identified as far in the East Amanda showed by some pre-products -- pre-launch concepts. It looks like he's going to commit to building another great stand-alone restaurant, so we look forward to that investment. And hopefully, we can show you that in February. And then just to end on the revamp because I'm going to cover the other brands revamp shortly. I just wanted to mention that in Liberty Mall just this last weekend, we revamped a very old, old looking John Dorys that was still the yellow and blue, a very tired looking store, it's been sold by the franchisee and a new multiple franchise we bought it, decide to invest. We had a phenomenal start to the weekend. I hope that trend continues, but well at the John Dorys team who have been taking quite a lot of strain recently. Let's pause for a moment before I go to some details for the group. If we look at the South African food service market in terms of different channels, and our focus goes on the eating. I must just caution you that the definitions often of the Euromonitor studies is not exactly aligned to ours. So for example, they will gather data from different brands, but some have got different fiscals. And so if we just look at this reported period where they spoke about the category being ZAR 76.4 billion. We estimate our shares around 15.6% could be a little higher because we did work on the 2025 figure. And then just to look at some projections when they define it by category, they're only projecting eating to be 4.2% up to 2030 in terms of the CAGR increase. Just to note that when I study the previous reports, Euromonitor are usually quite conservative, so I'm sure this category will beat that growth figure. And then when they look at it split by chain or limited service or independent restaurants, you can see the CAGR projection is about 7%. So I think that's quite useful, always to just check how we fare in compared to the industry. If we look at the turnover for South Africa, the restaurants, ZAR 11 billion was generated. You can see 5.8% change I looked at last year's growth, I think it was 4.8%. So it's really fantastic to see, ZAR 7 billion, we wanted more, so did Amanda, but that June month did impact us, unfortunately. This is a big brand, and if there are no customers in the malls just for 1 weekend, it impacts turnover. But still a very good result for a solid mature brand that's turning 60 next year. So well done. Panarottis just a phenomenal performance, sustaining this performance for now onto its third year well done to [indiscernible] and the team, ZAR 42 billion. John Dorys, not a good performance, and it will continue to decline for a period before it turns around. RocoMamas, as we said, it's specialty brands, now a prominent portfolio, second after Spurs. So overall, a 6.6% growth in South Africa that we'll talk about like-on-like shortly. I know you always like to see the turnover monthly trend. You can see the dynamic is fairly similar. We did have a better start to the fiscal, but that's all dependent on when the school or holidays fall. We have started seeing a gradual increase in customer count the group, and I'll talk about some individual brands just now. But that was also amplified by the strong promotional and market activity that our marketing teams developed. And then you can see that little decline in June. We only had six restaurants closed in some of the city centers and high streets, but footfall overall was subdued, not only on the 30th, probably about 10 days leading up to the March and March. And then of course, let's not forget the exit of the foreign nationals who are also people who consume food. Customer count, if we go on to RocoMamas in a bit more detail. Interesting RocoMamas has achieved 84% of Panarottis customer count. So it's a great benchmark, Roco, to set you a target for next year, but is starting to show how significant the RocoMamas brand is becoming to the industry. This is the Clearwater Mall in Roodepoort, a great site owned by multiple owner, that's one of our ops manages Sam, looking cool. Brian, forgive us for the exposed photo of the yellow sign. It is orange, so we do follow the brand. For a mall owned by two female franchisees, Mika and Toomie, I think this is their sixth store, but really doing really well that also with our support, we've branded which stands outside store in the shopping mall, which is an area where kids can run in and explore. So that was the brand at RocoMamas, we haven't shown you pick of it, but a great mall, really doing well, all our brands now have been revamping that mall and are performing phenomenally well, except John Dorys, hasn't been revamped yet. This site was actually a John Dorys that converted to RocoMamas. It's owned by our biggest multiple [indiscernible] And I think this is -- he's got about 18 restaurants now I should have mentioned on the impact area. I think when I met him in fiscal '21, I didn't even know we had a Black multiple owner, I bumped into him in the store with Amanda and I said, what, hello, and he owns 18 stores now phenomenal, and we've got to aim. I told him, as soon as you become the biggest multiple, I'll retire. Okay. And then in Linasia, a new RocoMamas, just incredible the results of the store, when you bring a wanted item close to the community, it's phenomenal the response you get so really awesome to see. And of course, the ZAR 1 billion restaurant sales wasn't achieved just like that. It was a lot of marketing activity, a more focused approach to brand building. RocoMamas, I think leads the way with innovation when it comes to smash burger. Every 3 months, they introduced a new range like you can see road trip legends. They've got some exciting sponsorships coming up that will expand on when we next meet. If you look at the 2-way treat and triple treat, these have become synonymous for them, almost like the [ streetwise with KFC ]. And then, of course, fire, the firings challenge has become a benchmark. Sometimes, we do get a bit of flack on social media, but overall, just a phenomenal response of people participating and just the social media exposure is phenomenal. Certainly has set it apart from other smash burger competitors. If we now move on to international. I mean we look at the ZAR 1.2 billion restaurant sales generated in 112 outlets. And Africa, the continent hasn't been easy. We've had lots of currency devaluations in markets like Zimbabwe, DRC and even Zambia. But if we look at the performance of 9.8% growth, Mauritius is one of our biggest areas. I don't want you to be aligned by the 0.9% drop, that was a 9-week downtime, absolutely no trading for Apache Spur which revamped in Mauritius, pleasingly by August, it's trading between 4.5% to 5% growth already, so that's a good sign of a turnaround, and I'll show you a picture of that phenomenal site shortly. And then if we look at our top 6 markets on the continent, in the rest of Africa, Mauritius has been the leading one, with 19 restaurants. Namibia is still very strong for us. Zimbabwe is starting to perform well but also underwent some challenges with the currency. Zambia pleasingly has recovered from its energy crisis. Our franchisee is very buoyant again, starting to revamp, is also the franchise partner that's going to reenter Spur in Tanzania for us, which is awesome. We have two Panarottis in terms of here with him. So look out for that, that's imminent. Nigeria, pleasingly, I remember in fiscal '21, we couldn't get our money out of Nigeria but a complete turnaround, and I thank our COO and the team for the incredible work done. With Cristina's support, we're now doing well in Nigeria. Turnover has increase and their willingness to expand continues. And then, of course, Kenya, also an important territory, and we believe a territory that still has a lot of opportunity for the group. This is the Apache Spur. It's in Bagatelle, just a prominent site. It's that entire corner that you see that's two levels. It's a magnificent site. This is a very popular destination, just further down the mall, if you walk inwards towards the mall you'll find the biggest Panarottis in the world, which does really well, owned by the same franchisees. This store was looking quite old. I remember having my first meeting with the whole family, our franchisees in this very old looking environment, so a huge commitment from them. You can see them in the photograph there. with our head of operations and our head of marketing. So well done to the team and our franchisee, I think this is going to be -- is being well received by the local market as well as the tourists. This is Mowana Gabarone, we've had a new partner there that was appointed just a couple of years ago with a strong development plan. We now have three Panarottis Pizza with the same partner, and then we also have other brands in in Botswana. And then Mazabuka in Zambia, this is a Panarottis Pizza that's relocated to a new area. One thing you'll find in Africa, the Panarottis branding and significance of the pizza format is fantastic. Obviously, we only sell pizza. And I think -- do we sell some pasta or none? No pasta? A little bit of pasta as well. So really looking awesome. And then hot off the press, in fact, one of our ops managers, international ops managers was there in Kenya on her birthday, sent us these photos. This was also a relocation from one of our multiple franchisees, he owned stores in South Africa as well as in Kenya, relocated to a new mall, Galleria mall. We're looking forward to improved results but really wonderful to see how this brand is expanding on the continent. If we look at the group total, the system myself, I showed you earlier, but I know we all like to focus on like on like which is always a representative of the health of the business in a market that is a bit deflated, if I look at competitive performance, I think ours is well above that, which is really pleasing. 13.8%. Our target was 4%. But I think June messed it up a bit. Panarottis fantastic double-digit like-on-like growth, which continues from a good year previously and for the group, 3.6 like-for-like growth. If we start looking at some specifics in terms of our regional growth and contribution, you can see Harting, obviously a very key area for us followed by the Western Cape. Harting showed a pleasing result this year. But remember, Western came off a very high increase the previous year, but a 6.6% growth in Western Cape is still good. And then if we look at certain categories, breakfast gains for the group, our breakfast sales are up by 8% for the group. This has also come because of a lot of the focus on breakfast, and of course, our specialty restaurants, let's not forget that Doppio Zero's daypart, half of that is breakfast, so there's an increase. We also, as a group, are on a big coffee innovation drive. So we're increasing coffee and breakfast touch points. We're increasing breakfast and snacking moments. We also have a barista academy that's in training. We've appointed a barista head. We're busy setting up an enterprise development barista academy where we're going to support a local talented individual. We've employed 10 unemployed youngsters that have been trained baristas. And we've got a big strategy across the brands to really amplify breakfast experience through becoming specialists in coffee. And we'll tell you more about that when it's in the public domain. If we continue with the daypart, we spoke about breakfast. You can see that dinner is a very prominent contributor, really because this is done by value. Lunch is also important to us. We know that diners have become a lot earlier since COVID, but pleasing results still at 6.7% for lunch and dinner. I think those were -- okay. And then breakfast for champions. This is a drive that our marketing teams put together with our prior sponsor of the spring box. A lot of you would have seen a campaign. I'm not going to play it for you. And you can see how regulars here enjoying the breakfast. We've had great success with the association with the spring box at every opportunity that we have given, we leverage it for our franchisees from live broadcast to events for children to mascot sponsorship. This was an event that happened in Enel Creek in Brinston where we hosted 80 spring box, it was a great evening of years with customers having photos with these sort of favorite players. If we move on to off-premise turnover, we know that all is going to be growing in the industry. We just know that we need to get a share of it so that when our own customers want their favorite Spur meal or Panarottis Pizza, they can get it through any channel that they'd like. Our prominent channel is obviously still sit down and our 12% off-premise represents Click Connect and Call, and obviously, that's for the two main third-party aggregators Mr D and Uber Eats. Pleasingly, our virtual kitchen brands have grown by 6.4% on previous year with a leading brand in Pizza Page. I was actually looking at the stats last night. I think of all the virtual kitchen brands, Panarottis is the 1 that has the highest number of participating restaurants, almost 89% of the Panarottis franchisees have bought into the concept of Virtual Kitchen brand, so that's amazing. So a big opportunity for us to grow that category. And then Panarottis celebrated 100th store this year, really awesome. I think we say the clip to you as everyone was arriving. Wonderful. We already have 102. And I think, as I talked the other one has been built and then 55 in the rest of Africa, so a huge milestone for the brand and I applaud our franchisees and our team and our leader at Panarottis. As you saw on the clip, the first 100 store was celebrated at the Principal Mall in Pagani, a beautiful restaurant owned by up and coming new multiple who really believes in building great stores. They've not scared to invest and is getting his return on investment. So really awesome, I haven't seen the store yet, but I look forward to the visit. And Panarottis has done a phenomenal job with its marketing, big on pizza, big on friendship. First time they went out with really a great billboard campaign really trying to capture the experience of ETP soda table versus our competitors who eat it out of a box. And it continues its growth. You saw the numbers there, that had a 12% growth in customer count, coming off a high base. Last year it was 16%, so really a phenomenal and continued success. Another important thing to mention, and we all believe that if you get behind a strategy that you believe in, we believe pasta is a big growth category. We focused on this year. The marketing teams came up with great campaigns to promote both pasta and pizza, and this brand has delivered a 22% growth in pasta. It's still relatively small to pizza, but just shows that consumers want a choice and pizzas such a high-margin category for franchisees, easy for anyone to eat, including the little ones. We now move on to Pegasus Spur, our mother brand, our hero brand, our cash cow, the one who pays our salaries. We celebrated 100 Pegasus new looks this year that included the 9 in international. We now have 104. If I look at two new ones and there were many more. And it was interesting, you saw the growth of the new stores, I think, 11, incredible that this brand being at a mature stage, we know when we look at our penetration model, it still has lots of legroom, but obviously is more mature in terms of its reach, have managed to open 11 stores this year. This is a new development, I think it's called Garden Walk in Hudson Link Creek Spur, a beautiful store. We visited it recently franchisees who owned -- full owned stores in last, they want to migrate, almost move to Hudson, most have moved already. They are amazing. We walked into the store, the franchisees were on the floor talking to customers, picking up paper, serving customers, clearing tables, just in an amazing duo. And we know that this brand in that region is in good hands, and we hope to expand with them as well. So awesome store, hope you can visit when you're on holiday. Midstream, you all know the Midstream, a lively space, a very popular in the Centurion area, sort of an upmarket sort of consumer. We took the wimpy site there, built a beautiful little store. It's not big, but it's got a lovely outside seating area. It's been phenomenal. It's been packed. People love it. They love the food. We're getting great feedback, and we're hoping to grow with this franchisee as well who just offer great customer experience. If you look to the back of that store, you can see another memory wall there, which is really awesome. And then, of course, the first highlight for us as a company this year and for the Spur brand was the development of what we called in our Pegasus prime site. This restaurant is an investment of a franchise family. The franchisee Jacques du Plessis, his mother and father were workers of the public sector who about 25 years ago, cashed in their provident fund to invest in a Spur in the Queenswood area. Ran the store really well with their two sons, one sadly passed away in an accident about 6 years ago, and the eldest son runs the business with them. They traded in the same location, about 25 years in an area that didn't have lots, enough parking space. They were always known for their good play areas. And his dream was to own a property himself and build a stand-alone restaurant. And this is what is done. The store opened on the 26th of June, it was a phenomenal success. I mean the first month was chaotic. We never realized this was going to happen. We weren't prepared for the lines that we saw. This is just an evening view of the restaurant itself. You can see the queue and some nights and some mornings, the queue was running on both ends. We subsequently have had to put up marquees. And we've added supply water because people were staying in the queue for 2.5 hours just to play. The parking area of about 160 to 180 parking space, obviously, with required security because it's a stand-alone. Just a phenomenal play area, which I'll take you through. You can see the electronic slides, the little junior play area, which is a wise design. They've got two smaller kids, so then exactly how to trial that. This is a unique modular -- it's a modular from China, the first one in the Southern Hemisphere. The entire investment for the kids area was about ZAR 3.1 million, the investment for itself was about ZAR 14 million. And obviously, you can imagine the property and the development itself, so this has really gained such attraction. It's got like two levels in it, so it's like a kaleidoscope and you climb in it. I've tried to go up, but then I decided to stop, I might break it. But my team went in it, they even saw the inside. This is a day view of the queue, it's a different day. You can see the queue goes further back. And then I'm going to say this very quickly. What is good to see is just the amount of consumer created content that went on social media for the store, it was phenomenal. This was the afternoon queue. You can see it's on the opposite side. And then this is a clip they... [Presentation]

I think our franchisee even brought in board with -- obviously, with the approval of the brand, 10,000 little spur socks, which the kids wear while they play. So the experience has been phenomenal. The bathrooms have got dedicated stand-alone bathrooms and basins and one can go in privately with their child, for women, for men, just all the facilities that you need for a great dining experience. And then the opposite side of the play area has got a dining area, which is more for adults, a patio area even a smoking area because Pretorians still smoke. So really awesome, well done to the Spur brand. We look forward to this store, which is now in the top 5 to continue to perform well. We're going to move on to what we've called the innovators of trading formats this year. We've had some trade in format trials. We've got something really smart up our sleeve for RocoMamas, which we'll talk about once we've rolled out the plan. But certainly, in the specialty category, our innovators of the trading format has been the Doppio Zero brand that introduced Doppio Cafe, Doppio Bistro and Doppio Roam, and I'll talk a little bit about it shortly. So we have 27 Doppio Zeros, which is the core of portfolio. They opened several new stores, the Irene Village in Centurion, Garden Wall in Hudson, the same place I showed you the Spur, and also East Main Mall and more even doing so well as a mall. So I hope that store does well. But you can see just wonderful ambience, beautifully crafted food as well as advertising. As we had mentioned to you before, Doppio in Mediclinic, this is the hospital format, so you can see it's got retail, you have the things that you normally see in a hospital little shop, and grab and go items phenomenally well. I know I shouldn't give you figures, but this 1 did close to ZAR 2 million last year -- last month. So just a phenomenal response. This is the Doppio Cafe in Marriott Sea Point. This is a hotel format. This one is doing well, not as well as we want, but obviously, it does have a captive audience being the hotel customers. The hotel guests to essentially have breakfats there, but also a beautiful restaurant with a beautiful deck that is lovely for cocktails or even in drinks. And then Doppio Bistro, we spoke to you about this is in a lifestyle development called Nine Yards in Rosebank, a beautiful restaurant doing phenomenally well. It's got a private dine-in, and I must say it's still trading without a liquor license, so really doing nicely and hopefully will increase even further. But a beautiful look in store and has really gained a lot of attraction. This is a company-owned store because we also own the two company stores in the same facility. So we don't want to cannibalize the business, we didn't want to franchise it yet, but perhaps in the future. So this is Doppio Roam. This is our new sort of food on the move grab-and-go concept and launched in July. So it's actually in the new financial year. It's launched in Irene, Village Mall in Centurion just opposite a brand-new checkers, it's a beautiful restaurant owned by an existing Doppio franchisee. These kind of stores will probably be satellite stores for franchisees that own stores. So then a lot of the production of bakery items will happen at the main store and then we brought to Doppio Roam. I think what this format is now representing is the opportunity we were looking for for many years is how do we develop formats that attract a younger investor, an investor that maybe only has 1.3 million or 1.8 million. The concept can work on a 50 square meters, so it can just be a counter that's serving coffee and it can have a little bit of seating, it can go up to 120 square meters. This particular store was a ZAR 1.3 million investment, serving based items, healthy meals and also lots of retail products. So we're going to see a scale in this format, and we believe it's going to be really popular for the business. If I move on, I want to end on probably what is our most innovative experience and portfolio that we have in the group, and that's our Hussar Grill, that has had 60 years of legacy and 60 years of manners, and it's something that we will maintain and continue. This team has really surpassed our expectations in terms of innovating the customer experience. I don't want to show you three clips. They did give me three clips, but just to show you the type of work they're doing to engage with customers who want to celebrate whether it's the anniversary or their birthday or a special milestone where the tables are decorated, as you would expect in a home. The service ambassadors are serving them with great customer touch points, customized menus and that's the innovation of the experience that we want to see across all our brands. Obviously, for specialty restaurants will be at this level, for a family dining, it will be of a different level. And this was just a great clip, which I do want you to watch. This was the millionth customer at Hussar Grill Willow Bridge. They had a look of who was doing the booking and for their millionth, decided to turn this into a big experience. So here, they are treating the millionth customer and welcoming -- you can see our franchisee personally welcoming. You saw it earlier, and inviting their friends to enjoy a meal from the restaurant, but just to celebrate success, and really something, greeting them personally and enjoying that celebration. So congratulations to our Hussar Grill team just for wonderful touch points and also showing that just ordinary people want to have that affordable, attainable experience, which has also come at quite a good price. So well done and congratulations. So leading to a close, I wanted to talk a little bit about our focus around the customer. As we know that we're all about leading the experience. When I talk about the overhead, we're going to tell you about what we're doing to innovate our experience and our key differentiators. But one thing we introduced at the time when Vuyo Henda joined was we introduced a consumer insights capability and team. This has ensured that our brand teams and our operational teams are constantly understanding the customer, the customer needs. What are the pain points, what are the highlights? What do we need to do? How do we segment it? We've got a lot of work happening around our CRM segmentation, and we're going to share more of that at the next results. But we also know that we have to embrace the next generation, the next generation of families. If we look at Gen Zs today that are aged 18 to 28, a lot of that older category of Gen Zs are really young and have young families. We know that, that makes up about 34% of South Africa's population, and they're important because they will choose a sit down for an experience. They talk about 68% will choose casual dining. We know that the older SKU will choose it even more. They will even attend fine dine in. So this is our future market. We know that there a place, there will be an annual spending power of ZAR 1.1 trillion plus. So very key to us. They're also our employees at the moment, at the corps, it's only 10%, and we've got a bigger cohort of millennials. But I think the important message I want to deliver to the investors this morning is our process and our thinking and our innovation is consumer-led and it will continue to be that. We need to understand our customer and build and develop our brands and our brand communication to meet their needs. Our customers themselves give us a lot of recognition. You can revisit your own time, but the usual accolades of the industry. We also have two more awards that are going to be given to us on the 26th of August. There is an embargo, so we look forward to hearing what those are. And then I wanted to close before I hand over to Cristina to tell you about an activity that happened at the World Retail Congress in Berlin. This is a global congress that happens annually. I think this year it's going to happen in Milan, and the universities around the world were given a challenge to come up with an innovative retail concept. We were approached by the Shopping Center Council of South Africa to say, could we help the students with a bit of information. And we thought they're going to pick another brand. They decided to pick Spur, and all we gave was our time. So we had a small team that gave time to engage with the students, we're not able to share the project with you. It's going to be revealed that the South African Council Shopping Center Conference in October. But our Chairman was very happy to be there, they got on to the stage. They were really clever to capture what everyone can relate to, and there was a booth celebration. They delivered an innovative proposal, which was AI-led and they won. So suddenly Spur was on the global platform being accepted by an audience that was filled with retail experts from everywhere in the world. So well done to the Spur team who dedicated time to give, thank you people. And well done to our students, we did entertain them for a special lunch at our Santa Ana store in the waterfront. And we hope we've built a relationship with them going forward. So now it's time for me to sit down and to kindly ask Cristina to join up here to take us through the financial and segmental review. Cristina, over to you.

Thank you, Val. Good morning, ladies and gentlemen. Let's start with the income statement. This first slide is our reported income statement. And I'll highlight only a few metrics, namely Val highlighted a 6.9% sales increase, which, as you can see on the top right, converted to a 8.5% revenue growth. I'll go all the way down, and I'll show you a bit more detail on the income statement on the next slide. Profit before income tax is actually a negative of 19.4%, and that's due to the inclusion of the GPS litigation plan provision. And then the result, that result be in a net profit of 54% down. And as you see on the bottom right, earnings per share, 36% down and earnings per share, 38% down over the prior year, respectively. On the following slide is our reported income statement but adjusted only to exclude the provision for the GPA mitigation plan. because we believe that this information is of shareholders in understanding the underlying financial performance of the group by providing a basis for comparison with the prior year unaffected by this run-off nontrading item. So the 8.5% revenue increase obviously remains unchanged, not impacted by that, and it's largely been driven by, as you see, the 10.6% increase from our sales to franchisees and external retail sales forces through our outsourced distributor as can be seen on the slide, complemented by a 6% increase in local franchise revenue and 9.2% increase in international franchise revenue. Pleasingly, the gross margin then is 50 -- or so the gross profit is reflected there at ZAR 1.3 billion, and it's 51% versus -- slightly lower than last year, 32% in the prior year. Other expenses, excluding the provision for the GDS, you can see it increased by 3.2% to ZAR 914 million. And are made up as follows: marketing is ZAR 362 million of that increase. It represents a 4% increase on the prior year. Retail company stores, the nonfuel cost related element is ZAR 133 million, representing a 7% increase. And then operating expenses are at ZAR 180 million and represents an 11% increase due to the change in operating model in managing our retail source business. And then administration expenses of [ ZAR 260 million ], which is what makes up the total [ ZAR 913 million ], it increased by 6.6% and that is unpacked a little bit later in the disclosure we have in the presentation. So the operating profit margin before finance income, so that ZAR 454 million that you see in the middle of the screen, that is now at a 10.4% margin to revenue, which is up from 9.7% in the prior year. So it enhanced operating margin for the year. Moving on to net interest. We see ZAR 18 million net finance income. It's decreased relative to the prior year due to lower prevailing interest period-on-period and lower cash on hand. We applied our cash that you'll see in the cash flow statement to share repurchases, and we've also increased dividends, the dividend payout ratio to our shareholders in the last period, as you know, so that resulted in the decreased cash on hand. The small equity accounts with investment is the profit on an associate, a Doppio Zero company that we own an associate. And then I think it gives us a better tax rate of 29.4%. And then [indiscernible] profit of ZAR 319 million, then actually represents an 11.5% increase year-on-year as opposed to the negative 9% you saw in the previous slide. And that then results in an earnings per share of 11.6% up, and our headline earnings per share would exclude profit on disposal of businesses in the market of 8.9%. So to stop and reflect, you said sales increased by 6.9%. Revenue on the top right, increased by 8.5%, and headline earnings increased by 8.9%. And if you want to sort of have a look at the understanding the underlying trading performance excluding any one. Okay. So we'll move on to our next slide, which I'll only spend a few minutes on. It's very busy, the segmental overview. So our next slide displays a consolidated view of the segmental reporting. First column on the left reflecting each segment's contribution to group revenue. The middle two columns reflect the increase in revenue and profit over F 2025. And then the two columns on the right reflect the margin percentage extraction for both F 2026 and F 2025. But what we'll do is what unpack this information per segment in more detail on the following slide. It's easy to note that as per the last row at the bottom, you'll see that revenue increased by 8.5% as we said, and the profit increase was actually 12.8% if you exclude GPS provisions and the margin for the year is reflected is actually 10.8%, that bottom line instead of the 7.7% that's reflected, so some healthy for double-digit margin extractions, as we said. Okay. If we look at the segmental slide, which shows on this side, you see the total South African sales, which has increased by -- sorry, total South African regional sales has increased by 6% on the prior year, and that translated into a local franchise revenue of 6% and the Spur brand remains our main contributor to franchise revenue and profit. So the increased sales are driven by Spur and translated into a revenue increase of 5.5% there on the top left and a profit increase on the right of 6%, delivering ZAR 306 million for the year. The brand continues to generate the best operating margin of all the brands, and you can see it there at 87.8%. It's also responsible for 51% of all of our local franchise stores within the group's house of brands and 66% of the South African franchise revenue. If we look at the next slide, which shows our remaining brands, excluding Spur, Panarottis depicted in the teal, a star performer, who's extending with a value proposition that's appealing and sustainable and delivering a beautiful 16% increase in revenue at ZAR 56 million at a 20% increase in profit at ZAR 43 million. RocoMamas depicted in orange, reported solid revenue and profit growth at 6% and near 8%, respectively. Both brands hold a robust net operating model at 75% and 79%, respectively. Panarottis and RocoMamas represent 11% and 10%, respectively, of the South African franchise revenue. John Dorys depicted in the blue, the bottom reported negative growth in sales and delivered a ZAR 7 million in revenue for the second half versus ZAR 9 million in the first half. However, it was able to convert this into a consistent ZAR 4 million profit per half, and growth in this brand category remains challenging. The Specialty Brands increased up by 8% with Hussar Grill and Doppio Zero being the key brands in the portfolio. This converted into a 9% increase in revenue and a 5% increase in profit. And that's really due to the loss of profit from [ NCO ] in the second half of the year and a slight increase in remuneration costs of Doppio connection. It will also align the issue more to the Spur remuneration policies. But as you know, again, effective from the 1st of March, the group disposed a 52% increase in the net brand. And so in the current year's number, you see a profit of ZAR 3.3 million included in earnings. And in F 2025 there was a similar number, ZAR 2 million instead of ZAR 3.3 million, which was the reversal of the net cost trademark impairment. So in short, excluding all the adjustments, the underlying brand performance was a 10.6% increase over the prior year comparable to the revenue increase of 9%. I think I'm going to move to the next slide. If we look at the company stores, the group has 13 company-owned stores. I know it's a trial at the bottom there, but that's because it;s three Hussar Grill, 10 in the Doppio selection. It's just like one of those Doppio selection is not included in this segment, it's included the associate income, the Gremelata entity. The retail company-owned stores reported a 4.1% decrease in revenue, but that was primarily due to the sale of one Doppio Zero restaurant end of the year and Piza e Vino restaurant in the year and as Modern Tailors in the year. So the top line was impacted by three stores out of revenue. There was also a close of the concept store in the second half of the previous financial year. So excluding the contribution from those stores that have exited, the revenue actually would be a positive 3.3% instead of a negative 4.1%. And that includes some loss trading days because our Hussar Grill was revamped during the period. If I take the lost revenue for the downturn, we would have moved that 3.3% to 3.9%. So again, it's not to keep telling you all about exclusions. It's all about just to give you a feel of what the underlying entries are when you do have these sort of one-off activities that take place. Profit interest at a 483% increase, but that's really difficult -- there's a profit on disposal of businesses, Hussar Grill, the Modern Tailors as I said, the Doppio and Piza e Vino, that's ZAR 3.9 million and in 2026. And in 2025, there was impairment of [ ZAR 6.9 million ], so the negative of last year and the positive this year is a material swing, which then results in a [ ZAR 482 million ] profit. If we exclude those adjustments on both sides, both F 2025 and F 2026, then profitability increased by 56%. So there was a result of efficiencies in the Doppio stores, specifically in Doppio selection company-owned stores and then also the removal of [indiscernible] that I've in F 2025, which did not repeat. So the actual underlying profitability is in actually a 12% increase in profit relative to a 3.3.% increase in revenue. The review of the company-owned stores or the portfolio is underway, and we will consider selling further company-owned restaurants stores to our franchisees preferably should that be of be interest. If we look at our manufacturing and distribution segment, the revenues up by 11.3%. And that follows the increase in sales to our franchisees and the external sales via our source distributor and profit is up by 25%. The most material contributors to profit remain the profit on precured items complemented where profit or manufacturing sources sell to restaurants. The in-sourcing of the management of the group's retail products which was implemented during the second half of the previous financial year has delivered strong results and amplified that profit contribution. So that has allowed a sort of a stronger rate and a margin expansion and a higher contribution to the division's possibility. If we look at our marketing plans, we see a 3.9% increase in revenue that was the prior year. It is lower than an increase in restaurant sales, but that's purely due to the accounting for the revenue over a period of time as opposed to a point in time, in line with our strategy as is required, adjusting for the deferred income movements in both years resulted in an increase in marketing revenue of ZAR 6.5 million, which is then more aligned to the increase in store turnover. And we see and additional ZAR 4 million as additional spend over that was selected was incurred in Spur brand and in John Dorys which will be recovered in the new year. A total of ZAR 15 million is reflected as contract liabilities being underspent marketing plans, mainly relating to the Panarottis, Hussar Grill and Doppio Collection funds. And this liability is then matched to the cash on hand on our balance sheet, which you show as restricted cash. As has enabled some further activation of customer-focused marketing activities. An activation for the small in size, but bigger in heart and soul customer is the introduction of our brain buddies for our Spur children. You see them on the right. So these are 6 new friends, Scout the fox, Diego the toucan, Zuko the wise, Rori the lion, Robby the robot, and Lulu the unicorn. Each with their own carrier and personality traits, embodying wholesome values, which are aligned to our brand and to our standing. If we then look at South Africa services. As you know, the tables disclosed the operating performance of the departments who are most closely linked to supporting our franchisees, namely the departments like decor, training, export and call center. Our decor and export team remain instrumental in the period, delivering total support for new store openings and rebrand, including the 98 stores that I mentioned a bit earlier, and which were the relocations and rebrands and the 52 new stores. Export department is slightly below the prior year in both revenue and profit, but that was offset by improvements in the decor division and training. Our training department is delivering good results. If that ever made a cost center to the group. On the right, we reflect costs associated with support departments, marketing and so on, we showed you the revenue and then we show the breakdown of the line items. We'll see marketing fund income in line 6.4% increase that we recovered. The rental income is slightly up. Then we have our net interest income that we covered in the income statement. And then the gain on recognition offset by the loss on disposal, so in essence, more relevant is the overhead shared and the overhead line, which is at the ZAR 347 million. It shows as a 73%, 74% increase in the prior year, which again includes the ZAR 129.5 million provision for GPS, which is unpacked further on the next slide. So understanding our comparable overheads in a bit of a better way, the ZAR 346 million, which we showed on the previous slide, which shows a 74% outflow includes a number of items. What we do share to enough of comparability, we adjust, for example, the foundation because that's not our cash as well as the legal expenditure in part of the GPS matter. And as well as you'll see that the financial instrument balances offset the actual credit loss adjustment and average adjustments. So therefore, the comparable overhead is actually the bottom line where they are ZAR 211 million and an increase of 8.8% over the prior year. We do have a breakdown of those comparable shared overheads in the appendix, which is listed by department. The increase is mainly due to us bolstering our information technology department with additional resources and investments to partner with our marketing department in developing customer-centric solutions. And is it slight increase in environmental sustainability and a slight increase in people with the people, leadership departments. If you look at international, the international business is performing well with a 9% increase in revenue and a 42% increase in profit. The international team worked very hard this year to support the 10 new openings in restaurants and revamped of 6. A highlight were the introduction of the Spur brand into the city as well as the launch of Panarottis Botswana, with now there's 4 restaurants, including 1 Doppio now trading at Botswana. And in Harari, a Doppio is currently involved. I'm going to move on to the next slide. which is our comparable profit analysis. So we started our profit before income tax of ZAR 323 million, which is a 19.4% decrease. We then, as we move along, we add back our marketing fund because those are not for us, and we add back the GPS legal costs as well as the GPS legal play. Noting that the financial instrument and actual credit losses net other off. There was an early termination of Johannes offices, which is a profit, so we back that up. There was a loss on a repair that is for a roof of [ ZAR 1.5 million ], so we add that back in. We take out the profit from sales of businesses of ZAR 7.2 million. We take our forex exchange gains and losses result in a comparable profit before tax of ZAR 454 million, which is an increase of 10.5%. Quick overview on the balance sheet. PPE increased by a net ZAR 9 million, with additiona of '24, reduced by depreciation of 12 disposals of ZAR 2 million and sold businesses of ZAR 2 million. The right of use assets offset against the right of us to lead liabilities in terms of IFRS 16, and that relates to these our company-owned stores and properties. The most material asset is the intangibles and goodwill largely unchanged, decrease of amortization charge on licenses other nontariff assets as per the note is made of our associates, ZAR 3 million deferred tax, which will all be differences. I'll start on working capital, I think, then the cash flow statement. Our contract liabilities, current and long term consists of ZAR 51 million or at least toatl ZAR 51 million. That consists of unspent marketing funds of ZAR 15 million as well as the balance of ZAR 36 million is the deferred licensees, which will amortize over the period of franchise agreements. Loans payable also remain large unchanged in value, but with ZAR 15 million moved to long-term nature as you've introduced funding and replacement of a shareholder loan in the first half of the year. The provision for litigation claim of ZAR 149.5 million is separately disclosed. And as note market, it is a capital sum of ZAR 74.6 million, plus 10% to reporting date and the estimated yield costs takes us to ZAR 129 million. As you know, as we disclosed, we've intend to launch an appeal against the award and the parties agree that, that appeal will be held on the 1st and 2nd of February. Second last slide, I think, on cash flow. The operating -- the reported profit before tax of ZAR 324 million increased by ZAR 25 million trading noncash movements, mainly the add back of depreciation of [ 31 ] and share-based payments [ 20 ], and then also the further add back of the GPS provision. To end with an operating profit before working capital changes of ZAR 478 million. Working capital is reflected as a ZAR 10 million profit. You see the -- the breakdown in terms of movements in trade and payables, trrading receivables and inventory. 2025, the numbers looked material. They were impacted by the change in operating structure relating to other sales sources. So this is a more normalized working capital movement. And this is results have been in, as I said, what we think is a healthy cash generation of ZAR 488 million. If we continue with the cash flow statement, net finance income, you see in the income statement. We then had ZAR 400 million to stakeholders, including the receivable revenue at ZAR 137 million and dividends to shareholders of ZAE 282 million. Our investing activities of a net ZAR 17 million is actually ZAR 24 million CapEx spend and then disposal of businesses of [ 7 ] that came in financing activities of ZAR 73 million is ZAR 61 million spent on the repurchase of shares. And in balance in about 16 million or so was settlement of lease liabilities. External debt was also raised of ZAR 21 million, as we said. So that then results in a closing balance of cash on hand of ZAR 545 million, of which ZAR 60 million is respected. And as usual, we remind shareholders the allocation of the cash and capital is a key focus area for the Board, and we obviously consider confusion liabilities, any capital for expansion and investment as well as any other activities, which we think are value increasing for shareholders. The company will also be distributing about ZAR 188 million of that cash to shareholders on the 14th of September. I'll now hand over back to Val.

Thank you, Cristina, well done. So just a few key messages around the way forward. We continue our value creation strategy going forward. And we've added, as I mentioned to it, saying that every new better or more value going to create will be done one with an intent that's aligned to our purpose. And we know that sustainable value creation blending performance purpose with performance. This is our Blueprint Blossom for fiscal '27. It's the element that's going to be driving our business model. Our entire business plan has been written around the blossom, which has seven strategic focus areas. The first one to be trailblazing experienced architects, this is going to be the new way that Spur is going to lead the organization so that we can really elevate our experiences, whether they're family dining, fast casual or specialty. We've always led with experience, and as competitors start emulating us, we'll lead the way with newness, innovation and surprise but always remembering to give the customer what they want with their dine-in experience or any experience through any channel. Our franchisees' profitability and sustainability is paramount. We know that if franchisees aren't making a profit, we don't. They've been under a lot of strain with a lot of operating expenses that have increased or areas that have increased not only in the recent year, but in years to come in years of past, so it's a big focus area for us. We recently ran a very productive workshop with our franchisees to look at how we need to refine business model so that we can ensure that the franchise, the runs a profitable investment and get the return on his investment. And so a big focus, supply chain is critical for us. I think when we look at the threats of the El Nino, when we look at the geopolitical volatility in the world, we have to ensure that the supply chain is a strategic competency. If we don't have any food, we don't have a business, quite simple. But we've got a very strong team led by our Chief Supply Chain Officer, Robin who's building a strong team alongside him. So we're absolutely confident that we can mitigate any risk that we will encounter by bringing better product alternative options to the market at the moment, only about 20% of our products implanted. So we do support a lot of local supply remains a big focus. We're going to be looking at how we've embraced it around our greater good framework, so you're going to see more of that happening. Again, not because we have to because we want to. And then, of course, our people, leadership and culture executive and officer plays a significant role in helping us build an agile team that can be future fit for the future and also build succession across all our brands, across all our disciplines to ensure that we're building not only for the short term but for the long term. We know that our strategic partnership and also the use of data and AI is going to become significant in innovation. I'm really pleased to say that we've embraced AI as an innovation. We do know, however, that nothing is going to remove the human intelligence. No one's going to ever replace the clinking of glasses, cutlery, the smell of food, the taste of food, but we know that AI will enhance our human experience at restaurant level. And then finally, a big driver around our market expansion beyond boundaries. We will start paving a way on what the future holds for the rest of the continent. We generally run South Africa over international with a relatively small team. As we prepare for the future, we know there's a lot of headroom in the rest of the continent where our brands are already accepted. So we're looking at not only market expansion through formats, channels but also the growth on the continent in the medium to long term. And all of this will be done through creating new value, which is around innovation doing more of what we do well and improving where we need to improve, but always tick in the box to say why are we doing it? Are we doing it because we want to joyfully serve? Are we doing it because we care about individuals, and we want to give them the opportunity. Are we doing things that are going to build the current and next generation of employees, our franchisees and of consumers. And in that, are we being environmentally responsive and resilient. So we're really excited about the future. Our plan is set out we're quite aggressive about what we want to do, but we want to do it with the right intent and deliver a return to our shareholders. So I thank you for the time. I'm now going to pass over to Graeme to take any questions that we may have. Thank you.

What was the evolution of trading throughout the second half, specifically after the full price hikes? And what has trading been like post period end?

Okay. So just to answer your question, trading, I think, was impacted first by the foot-and-mouth disease. So I think that was obviously where consumers were becoming aware of the price of beef. We are quite fortunate that in our brands like Spur we have in a range of proteins. So we were able to sustain it, but I think it's more the awareness that happens in the marketplace that subdues the customer spend. The petrol hike clearly has impacted household spend. because we know that consumers have to travel to get to their work, they have to travel to get to dine out. So we did see at the end of June, more, we saw a bit of a downturn but we managed to hold our own only because we believe that in economic difficulties, consumers are using dining out as an easy treat for the families. So we do have a strength in the family dining restaurants where people will still use us as the alternate for entertainment. You can take your family out, your kids can play for free. So I can't say there was a direct impact, except the reality, if you look at the network performance, there are certain markets that are more impacted, and we know that because the consumer just simply can't manage with the household spend and the increase in travel costs and food costs, performance post year-end has been relatively good. I can't say July didn't meet our expectations. It was a good month for us. And August seems to be trading fairly well as well. So it's interesting it is. It is difficult out there, and I say that only because we love to see all our restaurants performing well. But we probably have probably 30% to 20% in different brands that are as well as the rest of the business. I hope I've answered your question.

And then there's a follow-up from the comment asking the beef to chicken input price ratio went to extreme levels last year but seems to have retreated over the past several months. How are you thinking about this in your passing decisions? What do you make of the competition commission's franchise market inquiries?

Three questions. Okay. So the first one, I hope I can answer it as eloquently as our supply chain officer would. I think the first thing to recognize is when the foot-and-mouth disease was at its peak. It impacted the perception, obviously, of beef, but also fuel prices increased because of the demand. Chicken was less vulnerable for us. We have very good arrangements with the two big chicken suppliers. We were very blessed to be able to hold a lot of our chicken prices and then only later saw some minor increases. The way we're going to respond is the way we always respond when we look at the input prices: we look at what we can pass on, what we can contain. We try and many engineers so that we can accommodate any price increases we do know with the talk about difficult weather conditions. We are expecting that the main price will increase. So we're expecting some increase, let's say, from chicken. But that's the way we really mitigate pricing so that's what's really planned on the supply chain. Just on ComCom, I think we've already looked at the papers. We've met with our risk managers and Legal Officer to look at what the implications are. We understand that the first order will be in franchise in beauty and franchising fast food. But we are preparing, we've got -- we'll disclose what we've been doing. We're very pleased that we do run our business with good regulatory sort of discipline and also good commitment and ethos and commitment to transformation. So we think we're fine and we either because we think they probably will talk to some of the big players, so we wait on or it.