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The Group concluded the agreement to dispose of up to 70% of GPI Slots in 2014, it signalled the Group's move away from holding controlling interests in its Gaming & Leisure investments. The Group will continue to receive the monthly instalments of R37.5 million per month from Tsogo for the part disposal of SunWest and Worcester Casino, and will receive a total of R450.0 million during the course of the 2017 financial year. The Group will utilize the proceeds to repay its R225.0 million revolving loan facility which is expected to reduce its debt equity ratio to 17.6%.
SunWest's revenue for the year increased by 4% from R2 404.2 million last year to R2 488.0 million this year. Grand West Casino's operations were negatively affected by the weak local economy and as a result only realised a 1.2% increase in its revenue to R2 178.0 million (2015: R2 152.0 million). Table Bay Hotel increased their revenue by 23% to R310.3 million (2015: R252.5 million)
Burger King continued its network expansion across South Africa during the year and added 24 new restaurants to the network, taking the total number of restaurants to 62 at 30 June 2016. The average monthly store revenues (ARS) reduced by 20% from R1.0 million last year to R0.8 million this year, largely as a result of a weak economy and rising prices.
Burger King, launched both Dunkin' Donuts and Baskin-Robbins which saw a loss of R5.6 million to the Group headline earnings due to their respective master franchise licenses and to setup costs.
Grand Foods Meat Plant is a burger patty production plant that was established to cater for all of Burger King’s burger patty requirements. As a result of Burger Kings's 56% increase in revenue, Grand Foods Meat Plant's revenue increased by 120% from R31.4 million last year to R69.1 million this year.
Mac Brothers increased their revenue by 15% to R267.7 million (2015: R233.9 million) as a result of a 28% increase in local catering
equipment sales (excluding Burger King) which increased from R103.1 million last year to R131.7 million this year, and a 47% increase in cold room and extraction sales which increased from R17.2 million last year to R25.3 million this year.
The Group will continue investing in Food businesses via premium restaurant brands, supply chain services and products to support the restaurant brands.
Share price continues to trade lower finding short term support at 375c, with the bias remaining towards the downside.