SILVER CHEF SERVES UP STRONG RESULT

Written on the 23 February 2016 by Brisbane Business News

SILVER CHEF SERVES UP STRONG RESULT

SILVER Chef (ASX: SIV) has served up a feast on the ASX today, with the equipment hire and financier's net profit after tax up 45 per cent.

The Brisbane business that operates commercial restaurant and kitchen equipment outfit Silver Chef, and transport and construction equipment arm GoGetta, has cooked a net profit after tax of $10.3 million from a revenue of $100.7 million, up 21.3 per cent from the year previous. 

The last half year delivered another record phase of asset growth for the 'Rent-Try-Buy' financier which delivers a flexible funding service for commercial restaurant and kitchen equipment across all industries.

Silver Chef founder and executive chairman Allan English (pictured) says the company's recent success is largely due to developing deeper relationships in transport and construction sectors, which boils down to GoGetta.

English says the overall outlook for the equipment hire sector 'remains buoyant'.

"The business has again delivered outstanding period on period growth in its rental asset base [at 21 per cent]," says English.

"Growth in the GoGetta business has exceeded our own expectations and reflects the success we have had in developing deep relationships with equipment finance brokers in both the transport and construction sectors.

"Notwithstanding the huge volume of business we wrote under the GoGetta brand."

GoGetta delivered a record-breaking result where acquisitions totalled to $75 million for the half. Its 'Rent-Grow-Own' model attracts small businesses by being a less risky alternative to the banks, offering short-term contracts, the ability to return equipment and a rental rebate of 75 per cent if equipment is purchased.

GoGetta plans to replicate Silver Chef's success in Canada and create an offshore presence in New Zealand within 12 months.

On the hospitality front, English says equipment financing by pubs, clubs and franchise delivered the biggest boost to Silver Chef's bottom line.

The Canadian hospitality business is also performing well, with acquisitions in line with expectations.

Silver Chef's $300 million syndicated banking facility launched in August 2015 is also reported to be tracking well.

Designed to streamline financial exchange and debt arrangements throughout Australia, New Zealand and Canada, the facility improves key terms and conditions in borrowing arrangements and is expected to herald future financial growth for the company by

Silver Chef will pay a fully franked interim dividend of 17c per share on April 22, up 1c on the prior corresponding period.

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