Earnings release
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SPUR CORPORATION LIMITED ( Incorporated in the Republic of South Africa ) Registration number 1998/000828/06 Share code : SUR ISIN : ZAE000022653 ( " Spur " or " the company " or " the group " ) MARKET UPDATE AND TRADING STATEMENT SPUR LEADING FOR THE GREATER GOOD MARKET UPDATE : ARBITRATION QUANTUM OUTCOME - LEGAL DISPUTE WITH GPS FOOD GROUP Background As previously reported , two companies within the group , ( " Spur Group and Spur Corp " ) ( " the defendants " ) were served with a summons in 2019 by GPS Food Group RSA ( Pty ) Ltd ( " GPS " ) . GPS alleged that an oral agreement was concluded between GPS and the two defendants in terms of which the parties would , inter alia , establish a joint venture to acquire , develop and manage a rib processing facility , with a damages claim ranging between R119.9 million and R167.0 million ( Claim A ) ; with an alternative delictual claim of approximately R95.8 million , comprising GPS's alleged accumulated losses to the date of the claim ( Claim B ) . The parties agreed to refer the matter to arbitration , which commenced on 23 October 2023 . Shareholders were further notified that the arbitrator issued a part award on 26 August 2025 in favour of GPS against Spur Group on the merits of Claim A. The claim against Spur Corp was dismissed . At that same date , the arbitrator had not determined the quantum of damages . The arbitrator dismissed the alternative Claim B. Arbitration outcome - quantum award Shareholders are advised that effective 3 August 2026 , the arbitrator has issued the quantum award of damages for Claim A. Spur Group intends to lodge an appeal against this award in its entirety . In terms of its automatic right of appeal in the arbitration agreement it has 30 days to do so . The appeal would be presided over by an appeal panel of three senior independent arbitrators and is scheduled for February 2027. An appeal award would be final and binding and there is no further right of appeal . The group's Senior Counsel , have advised that it is in their view likely that the group will succeed in its appeal against the Claim A award . Following the quantum award issued this week , the group will raise a provision in its financial results for the capital sum awarded of R74,6 million . This provision will also include interest at the prescribed rate of 10 % from the date of the original summons , together with estimated legal costs , resulting in a total provision of R129,5 million .
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Impact on liquidity The group’s solid trading performance over the past five years has enabled it to retain sufficient cash reserves to provide for this claim. The company's liquidity position and dividend declarations thus remain unaffected by this award. TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2026 Spur is currently finalising its annual financial results for the year ended 30 June 2026. As a result of this once-off provision, Spur shareholders are advised that the group expects with a reasonable degree of certainty, to report earnings per share (“EPS”) , headline earnings per share (“HEPS”) and adjusted headline earnings per share (“Adjusted HEPS”) for the current year within the following ranges: Year ended 30 June 2025 Reported Year ended 30 June 2026 Expected ranges EPS 337,51 cents per share -31% to -41% 199,13 cents per share to 232,88 cents per share HEPS 339,88 cents per share -34% to -43% 193,73 cents per share to 224,32 cents per share Adjusted HEPS 339,88 cents per share +5% to +13% 356,87 cents per share to 384,06 cents per share Adjusted HEPS is a key measure of sustainable earnings from trading operations. The calculation of adjusted HEPS for the year ended 30 June 2026 excludes the non-recurring GPS claim provision described earlier. The financial information on which this trading statement is based is the responsibility of the group’s directors and has not been reviewed or reported on by the group’s independent auditor. Spur’s financial results and audited annual financial statements will be released on SENS at 09:00 on 20 August 2026. Cape Town 7 August 2026 Sponsor Questco Corporate Advisory Proprietary Limited