GPI CEO resigns to run Burger King et al

Cape Town - Grand Parade Investments on Friday announced that Alan Keet is resigning as chief executive officer and director of the Western-Cape based holding company.

Keet, who was in the position for close on four years, will now take over as CEO of GPI’s foods division with effect from March 20 2017.

The food division includes international brands Burger King, Dunkin’ Donuts and Baskin-Robbins.

According to Grand Parade Investments, Keet was already assigned operational responsibility for the foods division in March last year to help steer the Burger King franchise towards profitability.

"In the past twelve months Mr Keet has achieved the objectives that were set for him and has made significant progress in the establishment of a substantial Foods division.

"Given the relative size of the Foods division in the GPI investment portfolio, the GPI board believes it appropriate that Mr Keet focus entirely on the Foods division going forward."

Earlier this week, GPI said in a trade update it expects basic earnings per share for the six months to end-December 2016 to be between 6.80 cents and 7.37c per share, which equates to an increase of between 20% and 30% compared to the previous comparable period.

However, the company expects headline earnings per share to be between 0.72c and 0.92c/share, which equates to a decrease of between 55% and 65% compared to the previous period.

The increase in basic earnings per share is mostly as a result of a R48.5m profit, net of capital gains tax, on the disposal of 19.9% of GPI Slots, which was concluded during the period.

The decrease in headline earnings per share can be attributed to two main factors: GPI's disposal of 10% of SunWest International, which was concluded on June 30 2016 and has resulted in a reduced contribution of R20.5m (when compared to December 31 2015) and the initial investment of R13.7m in the launch of Dunkin' Donuts and Baskin-Robbins.

GPI said the decrease in headline earnings per share must be viewed in conjunction with the effect that the disposal has had on the balance sheet.

During the review period, GPI received proceeds of R547.5m from the disposal and utilised R281.2m to repay debt and reduce its gearing to 16.5% at December 31 2016.

In addition, R112m of the proceeds was utilised to pay a 25c/share dividend on December 28 2016, GPI said.

GPI shares were trading 0.83% firmer at R3.65 by 09:50 on the JSE.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
18.00
-0.9%
Rand - Pound
19.92
-2.5%
Rand - Euro
17.62
-1.4%
Rand - Aus dollar
11.67
-0.3%
Rand - Yen
0.12
-0.7%
Gold
1,662.28
+0.1%
Silver
18.77
-0.7%
Palladium
2,221.00
+3.3%
Platinum
870.50
+0.5%
Brent Crude
89.32
+3.4%
Top 40
56,921
-0.9%
All Share
63,264
-0.9%
Resource 10
59,793
+3.3%
Industrial 25
76,769
-2.2%
Financial 15
13,707
-2.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders