Silver Chef reported a 37% increase in revenues for the first half of 2013 from the prior year’s first half on the back of a similar increase in assets under rental agreements. The growth in rental revenues came from both the Silver Chef (food service) and GoGetta (non-food service) brands with GoGetta now providing 32% of the Group’s revenues, up from 27% of Group revenue in 1H12.
The Group also continue to see its diversification strategy continue to grow with New Zealand and the franchise sectors both showing strong potential. The improved asset utilisation rates for the Group over the half resulted in a 40% increase in Net Profit After Tax.
The growth of the business was largely underpinned by internally generated cash flows with 74% of the $65.5m in first half asset acquisitions funded internally; the remaining 26% was funded by a mix of debt and equity.
Despite a slightly softer economy in the half compared to the prior year bad debts, as a percentage of revenue, the group bad debts figure improved to 0.5% for 1H13 compared to 0.7% for 1H12.
The company noted that it was tracking ahead of profit guidance however chose to maintain its previous forecast FY result (NPAT) at $11.2m to $11.7m.
On the same day as Silver Chef released its results it noted that a $5m equity private placement was undertaken at a 5.8% discount to the closing price on 22 February. A further $2m will be offered to existing shareholders on the same terms. The equity raising is earmarked to fund the ongoing growth of the business in the coming year.