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SILVER Chef (ASX:SIV) increased net profit after tax to $7.1 million for the first half of FY15, the company reported today.
Additional highlights of the results include an increase in revenue by 23 per cent to $83 million, rental asset growth of 19 per cent to $335 million and fully franked interim dividend of 16 cents per share, up 14 per cent.
Operating two brands - Silver Chef Hospitality Financing and GoGetta, which focuses on transport and construction financing - the company is hopeful this result will provide for an improved full year.
"This half year result reflects a strong overall performance, particularly from the GoGetta division and positions the company to deliver an improved full year result," says SIV chief executive chairman Allan English.
SIV says the hospitality division in Australia performed in line with expectations, with acquisitions of $50 million.
In Canada, the business reported a cash profit breakeven for the six month period and an accounting loss of $400,000 while the New Zealand office which was launched last year is meeting expectations.
The company says GoGetta has delivered record growth in its asset acquisition volume, being 72 per cent up from the previous corresponding period and 51 per cent on the second half of FY14.
This growth has been attributed to the initiatives implemented by English's return to an executive position.
"Increasing our focus on the light commercial vehicle and construction sectors has delivered strong growth during the first half and resulted in solid performance in industry sectors where we can lend against business critical assets and are comfortable in managing residual asset risk," says English.
"Our relationships with equipment dealers and brokers are operating effectively once again and we are optimistic about the future growth prospects of the GoGetta brand.
"Due to internal sales commission and third party finance broker commissions payable upfront on these acquisitions, significant revenue improvement is expected in the second half of the financial year."
The company ends the six months to 31 December 2014 with $250.3 million of gross assets and net assets of $71.3 million.
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