A year of two halves: good, then moderate

The group also reported a 25% rise in trading profit for the year ended September.

In announcing the results, chief executive Wayne Hook confirmed that the company was continuing to co-operate with the Competition Commission in its price-fixing probe.

The commission launched the investigation against Spar and fellow retailers Pick n Pay, Shoprite/Checkers and Woolworths in June. The four enjoy a market share of 60%.

The probe covers collusion relating to the abuse of buying power, imposition of long-term exclusive leases and category management and the exchange of information.

All four have distanced themselves from any wrongdoing. Said Hook yesterday: "The group has undertaken to fully co-operate ... and is of the opinion that no contraventions of the Competition Act have taken place."

In terms of the company's results, he said: "The year was one of two halves. During the first six months food inflation ran at an average of 16% and group turnover during this period increased by 24.5%.

"The second six months saw food inflation decline significantly to an average of 9%, which, with increased pressure on consumer spending, resulted in a sharply reduced turnover increase of 14.9%."