Turnover for the interim period increased by 40.7% to R36.0 billion (2014: R25.6 billion). Gross profit was higher at R3.1 billion (2014: R2.1 billion), trading profit rose to R1.2 billion (2014: R895.5 million), while profit for the period attributable to ordinary shareholders climbed by 21.9% to R783.6 million (2014: R642.9 million). Furthermore, headline earnings per share grew by 22.4% to 455.5cps (2014: 372cps).

Dividend
Notice is hereby given that an interim gross cash dividend of 239 cents per share has been declared by the board in respect of the six months ended 31 March 2015.

Prospects
For the remainder of the financial year, continued pressure on consumer spending in South Africa is anticipated with subdued economic growth and a resultant lack of job creation. The impact of the current drought on maize pricing is likely to increase pressure on food inflation. Further, the risk of increased load-shedding by power utility, Eskom, in the winter months could pose additional pressure on retail sales. While the strong performance of Spar"s brands in South Africa in the first half place it on a solid footing, the competitive retail trading environment is unlikely to ease.

The Irish retail market continues to show encouraging signs of recovery, as the economic recovery has been confirmed. Although increased consumer spending has yet to materialise, imminent tax reductions, increased levels of employment and reduced mortgage costs are expected to buoy consumer demand going forward. The timing of the BWG acquisition in the prior period will also impact on the revenue growth performance in the second half as it enters the comparative base.

Spar"s trading performance for the first seven weeks after March 2015 has remained strong while being influenced by the timing of the Easter holidays. Spar remains confident that it is well positioned to maintain this growth in the second half of the year.

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