His comments come as Nando's opened another 19 of the planned 50 new stores around the world, shifting the majority to stores outside SA. Prime focus remains Australia and the UK, but Nando's also has a showing in Malaysia, Canada, Israel and throughout Africa.

Releasing the interim results to August, Brozin said the UK performed well in a highly competitive market.

However, the Australian contribution dropped due to the slowing momentum of franchise store fee receipts.

The group also extended its cautionary notice, advising shareholders of a potential offer to minorities of 65c a share. Three months ago the consortium that controls the chicken fast-food franchise group announced it was considering a buyout offer to minorities.

Brozent Holding, a consortium of the Brozin and Enthoven family interests, hold 69% of the Nando's shares, and only about 3% of the issued shares trades on average during the year.

Nando's financial director, Les Perlman, said yesterday that Brimstone Investment Corporation, the second-largest shareholder with 11,5%, was looking to dispose of its holding by selling it back to the consortium.

The Western Cape empowerment group has previously signalled that its future strategy will focus on financial services and private equity investments.

However, this decision would lower the share free float below the JSE Securities Exchange SA regulations of 10%, and the consortium was considering the delisting. In August, Perlman said a formal offer would be on the table within four weeks, but this has been pushed out and now expected in 'due course'.

During the period under review, Nando's lifted revenue 12% to R248,8m, while gross margins grew 16% to R150,1m. Attributable income was R17m (2001: R11,6m), translating into headline earnings a share of 2,63c (1,8c). The dividend was again waived in favour of lowering interest-bearing debt.

Business Day