SILVER CHEF COOKS UP HALF YEAR PROFIT

Written on the 21 February 2014

SILVER CHEF COOKS UP HALF YEAR PROFIT

SILVER Chef (ASX:SIV) increased net profit after tax by 9.5 per cent to $6.5 million (from $5.9 million) for the first half of FY14, the company reported today.

Revenue is up 25.9 per cent to $67.4 million and net operating cash flows up 10.9 per cent to $40.7 million.

The hospitality infrastructure provider says the rise in NPAT is largely due to the write-back of long-term incentive accruals and an accounting change “in recognition of long term contracts as finance leases”.

Underlying Net Profit After Tax was down 1.4 per cent to $5.8 million.

“The underlying result reflects the impact of slower than expected asset acquisitions in the GoGetta business and the costs of investing for longer term growth in Canada,” says the company in a statement.

The hospitality division increased acquisitions to $47 million, up 26.9 per cent since June 30 and hospitality rental assets grew 9.3 per cent to $189.6 million.

GoGetta’s asset acquisition rate slowed to 3.9% from 31.6% in FY13 and 53.3% in FY12 with $23.6 million in acquisitions for the first half. Rental assets (at cost) increased 1.1% to $84.9 million (30 June 2013: $84.0 million).

“GoGetta suffered from internal issues around recruitment, training and support of sales staff. Resolution of these issues is well underway,” says the company.

The Canada investment accounted for $0.6 million from the profit.

SIV will distribute a 14 cent fully franked dividend. Net profit after tax for FY14 is expected to be between $12.3 million and $12.7 million.

“This reflects the positive impact of the classification of long term rental contracts as finance leases offset by the slower than expected GoGetta asset acquisitions in the first half which will have an impact on
GoGetta rental revenue in the second half of FY14.”

SIV is trading up 4.53 per cent at $5.540.


Latest News

GROUPTOGETHER A GIFT FOR TIME-POOR PARENTS

JULIE Tylman and Ali Linz have taken the stress out of gift giving by creating GroupTogether, an online platform whic...

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter