GoGetta puts the brakes on Silver Chef
Small business rental company Silver Chef managed double-digit growth in earnings for the year to June, despite a fall in the pre-tax profit of its equipment rental division, GoGetta.The company reported a net profit of A$12.7 million for the 12 months to June - an increase of 11 per cent over the previous corresponding period.Revenue increased by 24 per cent to $141.3 million.The company acquired $50.9 million of rental assets in the GoGetta division and $86.8 million in the hospitality division, taking total rental assets to $299 million.GoGetta's pre-tax profit fell 14.7 per cent from $10.9 million to $9.3 million. Management undertook an extensive review of the business and there were some management changes and more focus on staff training. The hospitality division's pre-tax profit rose 17 per cent to $29.7 million.Silver Chef has been a high-growth company, with profits growing 27 per cent and 34 per cent in the preceding two years.The company started operations in Vancouver, Canada, last October. The business incurred $1.3 million of losses in start-up expenses.During the year the company increased its debt facility limit with Commonwealth Bank from $110 million to $120 million. The company's total debt facility, including unsecured notes, is $150 million.There was a big increase in the bad debt expense, which rose from $652,000 to $1.6 million.