THE SPAR GROUP LIMITED - Update to the group dividend policy

Update to the group dividend policy

The SPAR Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1967/001572/06
Share Code: SPP
ISIN: ZAE000058517
(“SPAR” or the “Group”)
_________________________________________________________________________
UPDATE TO THE GROUP DIVIDEND POLICY
_________________________________________________________________________

Shareholders are referred to the preliminary reviewed results for the year ended 30 September
2021 published on SENS on Wednesday, 17 November 2021, wherein the Board of Directors
(the “Board”) advised shareholders that it was investigating various financing alternatives,
which may include a possible adjustment to the current dividend policy, to fund the strategic
SAP implementation and the Polish business.

Having assessed the alternatives, the Board has determined that it would not be appropriate
to expose the Group to higher levels of debt and is comfortable with the existing levels of
gearing and related risk profile.

Accordingly, the Board hereby announces that it has approved a change in the dividend policy
from dividends covered 1.45 times by headline earnings to 2.90 times. This will become
effective in respect of dividends declared for the next two financial years ending 30 September
2022 and 30 September 2023.

The Board believes that this decision will provide sufficient flexibility for the Group to manage
its medium-term capital requirements and to pursue growth initiatives, while continuing to
return dividends to shareholders.


By order of the Board

Pinetown
16 February 2022


Sponsor: One Capital


Corporate Broker: Rand Merchant Bank, a division of FirstRand Bank Ltd

Date: 16-02-2022 05:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.