SILVER CHEF SERVES UP STRONG PERFORMANCE
Written on the 25 August 2016 by Jess Lamb
SILVER Chef (ASX: SIV) dished out a net profit after tax of $22.4 million for the financial year, delivering a new CEO with the news.
The result includes a one-off after tax break cost of $1 million arising from the early redemption of $30 million of loan notes on 14 September 2015.
The Brisbane-based equipment funding company delivered another record phase of asset growth for the year, reporting 45 per cent growth in its rental asset base at cost.
Hospitality, through the Silver Chef business, was up 50 per cent and construction, through GoGetta, was up 84 per cent. Record originations hit $160.1 million for FY16.
Canada's aggressive growth strategy paid off, writing $12 million of new originations and doubling its rental asset base.
Executive chairman Allan English highlights Silver Chef delivering outstanding period on period growth in its rental asset base and in earnings per share.
"The Company has delivered 18 per cent compound annual earnings per share growth since listing in 2005," English says.
"Consistent with the first half of the year, 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 channels.
"Our New Zealand and Canadian businesses delivered on aggressive origination targets for the year and are growing in line with plan."
From the Company's Annual General Meeting on November 3, Damien Guivarra will replace founder Allan English as CEO with English assuming a non-executive chairman role to focus on The English Family Foundation's activities.
Adding the role of Chief Operating Officer to his resume in October last year, Guivarra has been with the company for over ten years - the last three spent managing the Northern Region business across both the Silver Chef and GoGetta brands.
Despite the selloff in shares and resulting price crash in July, the update appeared largely positive with management advising FY17 guidance of net profit after tax between $23 million to $25 million, meaning a growth of 19 per cent to 23 per cent year on year.
Strong compound annual growth in underlying earnings per share continues, with the board declaring a fully franked final dividend of 25 cents per share, taking total FY16 dividends to 42c per share, up 6c on last year.
The record date for the dividend will be 5 September 2016 and the payment date will be 16 September 2016.
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Author: Jess Lamb