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Furnishings & DecorFAMOUS BRANDS APPOINTS HEDDERWICK AS CEO IN MILESTONE YEAR
Johannesburg, Thursday, 03 June 2010: 2010 is a significant year for Famous Brands. The Group recently published another excellent set of annual results and announced the restructuring of the Board of Directors to reflect long-term succession planning. Simultaneously, the company celebrated the milestone 50th anniversary of the Group’s flagship Steers brand.
Kevin Hedderwick, who has served as Chief Operating Officer of Famous Brands for the past nine years, was appointed as Chief Executive Officer (CEO) of the Group with effect from 11 May 2010. Mr Theofanis Halamandaris, outgoing CEO, will take over as Executive Deputy Chairman.
Mr Panagiotos Halamandaris, Non-Executive Chairman of Famous Brands, comments, “We have full confidence in Kevin’s ability to continue to strategically lead the Group in the outstanding manner that he has done to date.”
Hedderwick says: “I value the continued trust that the Board has bestowed on me with this appointment. I am delighted also that the Halamandaris family remain committed shareholders as the Group embarks on the next stage of its development.”
Strategic growth path
From its origins in the 1960s the Group has undergone a dramatic metamorphosis. Credited with the introduction of the fast food concept in SA and later the establishment of a franchising model for the industry, Famous Brands today holds the broadest product and concept portfolio in the South African foodservice industry. Following a series of audacious acquisitions over the past decade under Hedderwick’s leadership, the Group’s footprint now extends across South Africa, 17 other African countries, and the UK, with representation via a total network of 1795 franchised restaurants. In addition, Famous Brands’ extensive franchise network is complemented by a well-established and vertically integrated business model which provides a complete one stop shop service to its franchise partners.
Hedderwick says, “Future strategy in the short term will be to continue to unlock value via our existing brands and business whilst remaining acquisitive as and when best in their class brands might present themselves. We have a strong balance sheet, our business is hugely cash generative and our current gearing levels are on the low side.”
In the immediate short term, extensive preparations have been undertaken to benefit from the 2010 FIFA World Cup, ranging from national marketing and promotional activities to ensuring the uninterrupted supply of product to franchisees. Famous Brands’ strong presence at national airports, transient motorway sites, shopping centres and coastal resorts positions the group well to benefit from this major sporting event.
Over the longer term the Group has deliberately expanded its strategic intent to include leisure, whilst still staying true to its core competency of food service. Hedderwick says, “We intend expanding our competitive landscape but very specifically doing so within the realms of food service.”
“The Group has a vision to double its size by 2013,” concludes Hedderwick.
Financial Review: highlights for the year ended 28 February 2010 (published 11 May 2010):
Group revenue rose 8% to R1.7 billion, lifting operating profit to R305 million, up 17% from R262 million achieved in 2009. This translated into a 1.3% increase in the operating profit margin to an impressive 18.2% (2009: 16.9%). Headline earnings per share rose 29% to 206 cents per share and earnings per share by 27% to 202 cents per share.
Cash generated from operations remained exceptionally strong, increasing 25% to R346 million. The total dividend distribution to shareholders for the year was 114 cents per share, equating to a 50% increase.
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Brand Portfolio
The Group’s brand portfolio includes Steers (519] , Wimpy including UK (677), Debonairs Pizza (297), FishAways (106), Mugg & Bean (99), tashas (4), House of Coffees (33), Brazilian Café (44) and Blacksteer (16 ). The Group also manufactures and supplies its franchisees and the retail trade with a wide range of meat, sauce, bakery, ice cream, fruit juice and mineral water products.
ABRIDGED CURRICULUM VITAE
KEVIN HEDDERWICK
CHIEF EXECUTIVE OFFICER, FAMOUS BRANDS
Kevin Hedderwick has extensive business experience in the food, beverage and franchising sectors. He has held senior executive positions in a number of blue chip companies including SAB, Distell and FoodCorp. Prior to joining the Group Hedderwick was a partner and Managing Director of Keg Franchising. Together with his partners the start up business was grown to a national chain of 65 pubs and restaurants and in 1997 sold to JSE listed King Consolidated Holdings.
Hedderwick joined Famous Brands (then Steers Holdings) in 2000 as Managing Director of the Steers brand. In March 2001 he was appointed Chief Operating Officer, accountable for overall strategic direction of the Group.
Following a series of audacious acquisitions over the past decade under Hedderwick’s leadership (including Wimpy SA and UK and Mugg & Bean), Famous Brands today holds the broadest product and concept portfolio in the South African foodservice industry. The Group’s footprint now extends across South Africa, 17 other African countries, and the UK, with representation via a total network of 1795 franchised restaurants. In addition, Famous Brands’ extensive franchise network is complemented by a well-established and vertically integrated business model which provides a complete one stop shop service to its franchise partners.
Hedderwick’s appointment as Chief Executive Officer of Famous Brands is effective May 2010.
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Famous Brands’ website: www.famousbrands.co.za
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