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Silver Chef full year results

by Gavin Madson | Aug 27, 2013

Organic revenue growth across both the Silver Chef and Go Getta segments was impressive with 33% and 53% yoy gains respectively from increased penetration into new sectors and markets (see Figure 1). The revenue growth and disciplined cost management translated into excellent earnings results for SIV:

  • EBITDA increased 36% to $72.1m. Margins improved slightly on lower bad debt expense
  • EBIT increased 26% to $22.9m. Margins impacted by the strong growth of the asset pool and faster rate of depreciation
  • NPAT increased 27% to $11.5m
  • Operating cashflows were up 34% to $75.3m  
  • Bad debt expense improved to 0.56% of revenue (from 0.73% revenue in 2012)


Total rental assets (at cost) increased 39% to $257.4m.  SIV acquired $125m worth of new rental assets during the year, of which $92m (73%) was funded from internally generated cashflows. Utilisation rates also remained very high.

Silver Chef growth path

Source: Company reports

Figure 1


From a funding perspective, the existing CBA facility extended and increased $110m, however only drawn at $60.6m at year end, providing SIV with adequate liquidity. Coupled with the $30m senior note issue, total debt was $91m. The resultant credit statistics are in line with those at issue in 2012.  SIV has very strong coverage ratios and continues to maintain relatively low levels of leverage. The table below details the key credit stats based on SIV’s 2013 financial performance.

SIV also accessed the equity markets for $8m through an institutional placement and share purchase plan. We expect SIV to continue to access equity markets each year as the company balances the mix of funding sources.

Overall, this was a very good result from SIV. We will release a full Research update for 2013 over the next few weeks.