Spur faces R129.5 million hit in rib-processing dispute

Spur Corporation has set aside R129.5 million in anticipation of a recent arbitration ruling against it. The corporation was ordered to pay GPS Food Group R74.6 million in damages following a long-standing dispute over a rib-processing joint venture. The disagreement began in 2019 when GPS served notice on Spur Corporation, alleging the parties had agreed to collaborate on a rib-processing facility.

The case reached arbitration, and Spur intends to appeal the decision in full. The appeal is set for February 2027, with an expected panel of three senior independent arbitrators. Spur's Senior Counsel anticipates a favorable outcome. The provision covers the R74.6 million damages award, 10% interest from the summons date, and estimated legal costs, totaling R129.5 million.

This includes the capital sum of R74.6 million, interest at 10% from the summons date, and estimated legal expenses. Despite the provision, Spur expects no impact on liquidity or dividends, as it has sufficient cash reserves from its solid trading performance over the past five years.