Grand Parade Investments weathers ‘perfect storm’ for consumers
bdlive.co.za - Sep 13th 2016, 11:32
GRAND Parade Investments (GPI), the casino operator that is diversifying into the food sector with brands such as Burger King, reported headline earnings per share (HEPS) of 1.99c for the year to end-June, down from 10,53c a year ago.
HEPS from continuing operations, however, more than doubled, rising 120% to 1.99c, from a headline loss per share of 10.17c a year earlier.
GPI said its gaming and food investments "held their own" during a year in which the pressure on consumers ratcheted up. "The consumer has faced a perfect storm of headwinds with rising food prices, fuel prices, interest rates and a zero-growth economy," GPI said in Tuesday’s results statement.
The company did not declare a dividend for full-year 2016 but said it might still do so.
It declared no dividend when it reported interim results in March this year, which it said was because of a delay in selling the second tranche of GPI Slots, and because of plans to expand its food businesses.
In April it declared a dividend of 15c per share for the year to June 2015 and it said in Tuesday’s results statement that "the possibility of declaring a dividend relating to 2016 profits will be considered once future cash flows can be determined with more certainty".
On Tuesday it reiterated its intention to "remain a dividend-active company".
The Burger King franchise added 24 outlets in the review period, taking the total to 62 — below the reduced target of 75-80.
GPI CEO Alan Keet told Business Day after the release of the interims in March that GPI had scaled back its expansion plans for Burger King, to 75 or 80 outlets by the financial year-end, from an original target of 100, and lowered margin expectations, in acknowledgment of intensifying competition and rising cost pressures.From DFM Publishers (Pty) Ltd
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