Savor to commence dividend payments, trading update

Savor Limited (NZX: SVR) (“Savor”, “the Company”, or with its subsidiaries “the Group”), New Zealand’s premier hospitality group, today provides an update on trading and advises it has reached agreement with its banking partner on dividend payments. Highlights: • Savor has formal approval to commence dividend payments in the next financial year. ANZ has stress tested the Group’s target leverage forecast and has agreed this will be reached by the end of the 2026 calendar year. • When the Group’s gross leverage hits the expected ratio of 1.5 times, the bank has agreed Savor can pay a dividend of 2 cents per share in January 2027. • Savor’s bank borrowings will be $7.5m by the end of April 2026 (March 2025: $9m) down from a peak of $14.6m in 2021. • Savor’s net leverage is expected to hit an all time low of 0.65 times in the last quarter of this year. • Continued cost out initiatives and debt repayments will lead to improved cash flow throughout the year, which is expected to result in the Group not utilising its overdraft facilities. The Group will consider reducing this facility in the future. • Trading levels have recovered relative to the prior year as the year has progressed, with the peak summer period improving by 3% compared to the prior year. • Savor expects revenue for the financial year ending 31 March 2026 to be $55 - 56m, with operating earnings* of $7 - 8m. • Savor’s continued cost control and higher quality earnings trajectory will result in forecast annual operating earnings* of $9 – 10m in 2027. Capital Management Savor is pleased to announce that it has obtained approval from its banking partner, ANZ, to commence the payment of dividends this financial year. The Board and Management have continued their focus of a consistent reduction in debt over recent years, which, combined with the improvement in earnings performance and the transition to venues with higher quality earnings (both relative to revenue and capital investment requirements), has led to the improvement in leverage. The Group will repay $0.75m of borrowings by April 2026, after which term debt will be $7.5m. This is a significant reduction from peak debt levels of $14.6m in 2021. The Board consider the Group’s borrowing will then be at a sustainable level to maintain gross leverage of less than 1.5 times. With net leverage of approximately 0.65 times, the Group’s focus will now shift to maintaining a dividend return to its shareholders and building its cash position. This marks a substantial turning point in the Group’s capital management strategy, which the Board and Management are very pleased to be able to achieve and look forward to continuing this new phase for the Group. The Group will continue to seek out growth opportunities provided they present high value, low capital cost returns. Trading update The Group has seen revenue performance improve month to month compared to the prior year. This, combined with the hard earned cost reductions over the previous years, has led to significant improvements in the Group’s forecasted earnings. Savor expects operating earnings* for the 2027 financial year to be $9 - $10m. Year End Guidance The Group currently expects revenue for the year ending 31 March 2026 to be in the range of $55 - 56 million and operating earnings* for the same period to be in the range of $7.0 - $8.0m (2025: $7.2m). *Operating earnings means reported earnings before interest, tax, depreciation, impairment, amortisation, restructuring costs, and other one-off costs, as reported in the Group’s Statement of Comprehensive Income. -ENDS-