SIV CAPITAL LIMITED — Interim / Quarterly Report 2012

Feb 21, 2012

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22 February 2012

Company Announcements Office Australian Securities Exchange Brisbane

APPENDIX 4D – HALF YEAR ENDED 31 DECEMBER 2011

We attach for release to the market:

• Appendix 4D (including the interim financial statements at 31 December 2011).

• Commentary on operational highlights for the half year ended 31 December 2011.

Don Mackenzie Company Secretary

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Silver Chef Limited ABN 28 011 045 828

Appendix 4D Half Year Announcement 31 December 2011

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Lodged with the ASX under Listing Rule 4.2A

Contents

RESULTS FOR ANNOUNCEMENT TO THE MARKET Appendix 4D………………………………………………………………………

HALF YEAR FINANCIAL STATEMENTS

Directors’ report…………………………………………………………………………………………………..	4
Lead auditor’s independence declaration……………………………………………………………	5
Condensed consolidated statement of comprehensive income ………………………..	6
Condensed consolidated statement of changes in equity…………………………………..	6
Condensed consolidated statement of financial position.…..……………………………..	8
Condensed consolidated cash flow statement……..…………………………………………….	9
Notes to the condensed consolidated financial statements…………………………………	10
Directors’ declaration…………………………………………………………………………………………..	15
Independent auditor’s review report…………………………………………………………………..	16

Silver Chef Limited ABN 28 011 045 828

Appendix 4D ASX Preliminary Half Year Announcement 31 December 2011

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Results for Announcement to the Market

	six months ended 31-Dec- 2011 $000’s	six months ended 31-Dec- 2010 $000’s	Movement $000’s	Movement %
2.1 Revenue from ordinary activities	39,234	30,155	9,079	30.11%
2.2/2.3 Net profit after income tax	4,212	3,058	1,154	37.74%

2.4 Dividends

Final dividend

The Directors declared a fully franked final dividend of 11 cents per share which was paid on 30 September 2011.

Interim dividend

The Directors have declared a fully franked interim dividend of 9.5 cents per share (2011: 9 cents) payable on 5 April 2012.

2.5 Record date for payment of dividend

The record date for the payment of the dividend will be for those shareholders registered as at 7.00pm on 2 March 2012.

2.6 Commentary on Results for the Half-year

Please refer to the accompanying interim financial statements.

Please refer to the accompanying interim financial statements.
	31-Dec-2011	31-Dec-2010
3.0 Net tangible assets per share	139.1 cents	122.3 cents

1. Details of entities over which control has been gained or lost during the period – Not applicable.

2. The 2011 final dividend of $2.553 million was paid on 30 September 2011.

3. Details of any dividend or distribution reinvestment plans in operation – Not applicable

7. Details of Associates

Refer to note 14 in the accompanying interim financial statements.

8 . Foreign entities – accounting standards

IFRS have been used in the preparation of the financial statements of all entities.

9. Review Status

This report is based on financial statements that have been reviewed. A Copy of the Auditor’s Independence Declaration is attached to the accompanying Directors’ Report. A copy of the independent auditor’s review report is attached to the accompanying consolidated interim Financial Statements.

By order of the Board

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Don Mackenzie Company Secretary

22[nd] February 2012

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SILVER CHEF LIMITED AND CONTROLLED ENTITIES ABN 28 011 045 828

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CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED

31 December 2011

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Silver Chef Limited and its controlled entities Directors’ Report

The Directors present their report together with the condensed consolidated half-year financial report of Silver Chef Limited (“the Company”) and its controlled entities for the half-year ended 31 December 2011 and the independent auditor’s review report thereon.

Directors

The Directors of the Company at any time during or since the end of the half-year are:

Name	Position	Period of appointment
Allan English	Non-Executive Chairman	Appointed 31 July 1990
Andrew Kemp	Non-Executive Director	Appointed 24 February 2005
Bede King	Non-Executive Director	Appointed 7 March 2005
Sophie Mitchell	Non-Executive Director	Appointed 14 September 2011
Karen Penrose	Non-Executive Director	Appointed 14 September 2011
Donald Mackenzie	Alternate Director	Appointed alternate Director
		21 October 2005

Result of Operations

The consolidated profit for the half-year after providing for income tax was $4.212 million (2010: $3.058 million).

The 2011 final dividend of $2.553 million was paid on 30 September 2011.

Review of Operations

The Company’s pretax profit from operations for the six months to December 2011 was $5.939 million. This compared to the result for the previous corresponding half-year of $4.231 million.

Rental revenue grew from $30.037 million for the six months ended 31 December 2010 to $39.133 million for the half-year under review.

The business model’s strong recurring annuity style income stream contributed significantly to the rental revenue increase and profit performance.

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor’s independence declaration is set out on page 4 and forms part of the Directors’ report for the half-year ended 31 December 2011.

Rounding off

The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the financial report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the Directors

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Allan English Chairman 22[nd] February 2012

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ABCD

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of Silver Chef Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2011 there have been:

• a. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• b. no contraventions of any applicable code of professional conduct in relation to the review.

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KPMG

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Simon Crane Partner

Brisbane 22 February 2012

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KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Silver Chef Limited Condensed consolidated statement of comprehensive income For the six months ended 31 December 2011

Silver Chef Limited Condensed consolidated statement of comprehensive income For the six months ended 31 December 2011
Note Revenue Expenses from ordinary activities Finance costs Change in fair value of derivative financial.instruments Change in fair value of investment properties Loss on sale of plant and equipment Profit before income tax Income tax expense Profit attributable to members of the Company Other comprehensive income Foreign currency translation reserve – foreign operations Total comprehensive income attributable to members of the Company Earnings per share Basic earnings per share 11 Diluted earnings per share 11	31-Dec-11 $000’s 31-Dec-10 $000’s 39,234 30,155 (28,212) (22,288) (2,418) (2,142) (396) (57) 26 (248) (2,295) (1,189)
	5,939 4,231 (1,727) (1,173)
	4,212 3,058
	(19) -
	4,193 3,058
	18.17 cents 13.80 cents 18.02 cents 13.72 cents

The condensed consolidated statement of comprehensive income is to be read in conjunction with the attached notes.

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Silver Chef Limited Condensed consolidated statement of changes in equity For the six months ended 31 December 2011

Balanceat 1 July 2010(Restated) Total comprehensive income for the half-year Profit for the period Total comprehensive income for the period Transactions with owners recorded directly in equity Shares issued exercise of options Shares issued under dividend reinvestment plan Shares issued under shortfall agreement Dividends to equity holders Share issue costs Total contributions by and distributions to owners of the Company Balance at31 December 2010 Balanceat 1 January 2011 Total comprehensive income for the half-year Profit for the period Total comprehensive income for the period Transactions with owners recorded directly in equity Shares issued under dividend reinvestment plan Shares issued under shortfall agreement Share issue costs Dividends to equity holders Total contributions by and distributions to owners of the Company Balance at30 June 2011 Balanceat 1 July 2011 Total comprehensive income for the half-year Profit for the period Foreign currency translation reserve Total comprehensive income for the period Transactions with owners recorded directly in equity Shares issued on exercise of options Shares issued under employee share scheme Dividends to equity holders Total contributions by and distributions to owners of the Company Balance at31 December 2011*	Number of shares on issue 000’s Share capital $000’s Retained earnings $000’s Translation reserve $000’s Total equity $000’s 21,757 16,940 7,470 - 24,410
	- - 3,058 - 3,058
	- - 3,058 - 3,058
	40 76 - - 76 160 460 - - 460 599 1,717 - - 1,717 - - (2,177) - (2,177) - (34) - - (34)
	799 2,219 (2,177) - 42
	22,556 19,159 8,351 - 27,510
	22,556 19,159 8,351 - 27,510
	- - 3,633 - 3,633
	- - 3,633 - 3,633
	112 379 - - 379 489 1,656 - - 1,656 - (37) - - (37) - - (2,030) - (2,030)
	601 1,998 (2,030) - (32)
	23,157 21,157 9,954 - 31,111
	23,157 21,157 9,954 - 31,111
	- - 4,212 - 4,212 - - - (19) (19)
	- - 4,212 (19) 4,193
	25 72 - - 72 25 71 - - 71 - - (2,553) - (2,553)
	50 143 (2,553) - (2,410)
	23,207 21,300 11,613 (19) 32,894

*Refer note 4 correction of error

The condensed consolidated statement of changes in equity is to be read in conjunction with the attached notes.

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Silver Chef Limited Condensed consolidated statement of financial position As at 31 December 2011

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Investment properties held for sale Derivative financial instruments Other assets Total current assets NON-CURRENT ASSETS Property, plant and equipment 9 Investment properties Intangibles Deferred tax assets Total non-current assets TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Loans and borrowings 10 Tax liabilities Derivative financial instruments Employee benefits Total current liabilities NON-CURRENT LIABILITIES Loans and borrowings 10 Derivative financial instruments Employee benefits Total non-current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Share capital 12 Retained earnings Foreign currency translation reserve TOTAL EQUITY	31-Dec-11 $000’s 30-Jun-11 $000’s 3,828 1,523 3,109 3,384 1,035 1,464 - 10 609 290
	8,581 6,671
	116,630 95,750 1,515 1,590 605 384 2,955 2,277
	121,705 100,001
	130,286 106,672
	24,333 21,066 1,412 1,777 1,357 1,825 465 77 481 561
	28,048 25,306
	69,120 50,062 112 113 112 80
	69,344 50,255
	97,392 75,561
	32,894 31,111
	21,300 21,157 11,613 9,954 (19) -
	32,894 31,111

The condensed consolidated statement of financial position is to be read in conjunction with the attached notes.

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Silver Chef Limited Condensed consolidated cash flow statement For the six months ended 31 December 2011

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Finance costs including interest and other costs paid Interest received GST recovered Income taxes paid Net cash flows from operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from sale of property plant and equipment Proceeds from sale of investment properties Net cash flows used in investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Proceeds from issue of ordinary shares Share issue costs Payment of dividends Net cash flows from financing activities Net increase (decrease) in cash held Cash and cash equivalents at 1 July Cash and cash equivalents at 31 December	31-Dec-11 $000’s 31-Dec-10 $000’s 48,536 37,057 (17,985) (13,514) (2,339) (1,807) 37 27 346 432 (2,873) (2,240)
	25,722 19,955
	(48,754) (36,794) 8,986 7,508 356 384
	(39,412) (28,902)
	19,000 52,800 (515) (43,101) 63 1,793 - (34) (2,553) (1,718)
	15,995 9,740
	2,305 793 1,523 1,446
	3,828 2,239

The condensed consolidated cash flow statement is to be read in conjunction with the attached notes.

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Silver Chef Limited

Notes to the condensed consolidated interim financial statements

1 Reporting entity

Silver Chef Limited (the “Company”) is a company domiciled in Australia. The condensed consolidated interim financial statements of the Company as at and for the six months ended 31 December 2011 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is involved in financing business critical assets in the hospitality and other select industries.

2 Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 June 2011.

These condensed consolidated interim financial statements were approved by the Board of Directors on 22 February 2012.

The consolidated annual financial report of the Group as at and for the year ended 30 June 2011 is available at www.silverchef.com.au.

3 Significant accounting policies

The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2011.

4 Correction of error in prior period

At 30 June 2010 the deferred tax asset balance incorrectly included deferred tax assets arising from the unrealised loss on the decline in value of properties recognised at fair value, the realised loss on sale of properties and the write-off of an investment in a joint venture. As per note 3 to the Group’s consolidated financial statements as at and for the year ended 30 June 2011, this error was corrected and the comparative information in these financial statements restated.

5 Current asset-current liability deficiency

At half-year end there existed a deficiency of current assets to current liabilities, which is summarised below.

Current assets Current liabilities	31-Dec-11 $000’s 8,581 (28,048) (19,467)	30-Jun-11 $000’s 6,671 (25,306)
		(18,635)

Included in the consolidated current liabilities at 31 December 2011 is an amount of $20.0 million of customer deposits (30 June 2011 $17.1 million). Due to the continual growth of the rental contract portfolio and the average length of each contract, there is not expected to be any net cash requirements to repay security bonds in the next twelve months.

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Silver Chef Limited

Notes to the condensed consolidated interim financial statements

5 Current asset-current liability deficiency (cont’d)

The Group is trading profitably with strong operating cash flows. Subsequent to 31 December 2011, the Group has negotiated an increase to its banking facilities with the CBA from $70.0m to $110.0m with an expiry date of 31 October 2013.

After considering the above and all available current information, the directors have concluded there are reasonable grounds to believe that the Group will be able to pay its debts as and when they fall due and payable and the basis of preparation of the financial report on a going concern basis is appropriate.

6 Estimates

The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2011.

7 Risk management

The Group’s risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 30 June 2011.

8 Operating segments

The principal activities of the Group comprised of the following operating segments. There were no changes in the nature of the principal activities during the period, however Silver Chef Rentals has commenced operating in New Zealand this financial year.

Silver Chef Rentals - operations comprise providing equipment rental finance predominantly to the hospitality industry.

GoGetta - operations comprise providing equipment rental finance to industries outside of the hospitality sector.

	Silver Chef
	Rentals	GoGetta	Total
31 December 2011	$’000	$’000	$’000
Revenue
External	27,927	10,468	38,395
Segment result
Reportable segment profit before tax	10,823	2,884	13,707
Segment assets	96,184	38,487	134,671
Property plant and equipment acquired during period	28,219	18,522	46,741

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Silver Chef Limited Notes to the condensed consolidated interim financial statements

	8 Operating segments (cont’d)	8 Operating segments (cont’d)
	31 December 2010 Silver Chef Rentals $’000 GoGetta $’000 Total $’000 Revenue External 23,519 5,850 29,369 Segment result Reportable segment profit before tax 9,081 1,162 10,243 30 June 2011 Segment assets 85,112 28,117 113,229 Property plant and equipment acquired during period 42,632 24,113 66,745 Reconciliation of reportable segment revenues and profits 31-Dec-11 $’000 31-Jun-10 $’000 Revenue Total revenue for reportable segments 38,395 29,369 Other revenue 839 786 Consolidated revenue 39,234 30,155 Profit or loss Total profit for reportable segments 13,707 10,243 Other profit or loss (7,768) (6,012) Consolidated profit before income tax 5,939 4,231
	9 Property plant and equipment
	Plant and equipment At cost Less accumulated depreciation Total Movements during the period: Plant & equipment Beginning of period Additions Depreciation expense Disposals End of the period Rental assets At cost Less accumulated depreciation Less provision for impairment Total	31-Dec-11 $000’s 30-Jun-11 $000’s 3,502 2,127 (1,297) (1,161) 2,205 966 6 months ended 31 Dec 11 12 months ended 30 Jun 11 966 705 1,376 550 (137) (244) - (45) 2,205 966 167,800 141,936 (52,170) (46,076) (1,205) (1,076) 114,425 94,784

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Silver Chef Limited

Notes to the condensed consolidated interim financial statements

9 Property plant and equipment (cont’d)

Movements during the period: Rental assets Beginning of period Additions Depreciation expense Disposals Impairment loss (i) End of the period Total property plant and equipment	6 months ended 31 Dec 11 12 months ended 30 Jun 11 94,784 73,382 46,741 66,743 (15,844) (26,159) (11,654) (18,218) 398 (964)
	114,425 94,784
	116,630 95,750

• (i) Impairment of rental assets.

Assessments are made monthly on the recoverable amount of idle rental assets. As a result impairment losses of $307,000 (2010: $347,000) were recognised throughout the half year.

10 Loans and borrowings

Current Liabilities Property bank loans Hire purchase liabilities Non-current Liabilities Hire purchase liabilities Secured bank loans	31-Dec-11 $000’s 30-Jun-11 $000’s 1,365 1,724 47 53
	1,412 1,777
	83 104 69,037 49,958
	69,120 50,062

The facility provided by CBA at reporting date has an approved limit of $70.0 million, excluding the property and other transactional facilities. Subsequent to 31 December 2011, the Group has renegotiated the terms of the CBA banking facilities which includes an increase in the facility limit to $110.0m. Refer Note 15 for further details.

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Silver Chef Limited

Notes to the condensed consolidated interim financial statements

11 Earnings per share

Details of basic and diluted EPS reported separately in accordance with AASB 133: Earnings per Share is as follows:

Earnings Reconciliation Basic earnings Diluted earnings Weighted average number of shares used as the denominator Number for basic earnings per share Number for diluted earnings per share Ordinary shares Effect of employee share option plan	31-Dec-11 $000’s 31-Dec-10 $000’s 4,212 3,058
	4,212 3,058
	No. ‘000 No. ‘000 23,186 22,165
	23,186 22,165 125 120
	23,311 22,285

12 Share capital

Issuance of ordinary shares

As part of the Employee Share Scheme, 24,708 ordinary shares were issued to employees at $2.87. In addition 25,000 ordinary shares were issued as a result of the exercise of options. Options were exercised at an average price of $1.26.

Dividends

The following dividends were declared and paid by the Company:

For the six months ended 31 December 2011 Final dividend - 11 cents fully franked paid 30 September 2011 2010 Final dividend - 10 cents fully franked paid 30 September 2010	2011 $000’s 2010 $000’s 2,553 - - 2,177 2,553 2,177
13 Commitments

At December 2011 the Group had the following commitments in relation to operating leases:

Rental of premises Minimum lease payments under non-cancelable operating leases according to the time expected to elapse to the expected date of payment: Not later than one year Later than one year not later than five years Later than five years	31-Dec-11 $000’s 30-Jun-11 $000’s 668 401 2,601 667 3,219 -
	6,488 1,068

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Silver Chef Limited Notes to the condensed consolidated interim financial statements

13 Commitments (cont’d)

Other (office equipment)

ther (office equipment)
Not later than one year Later than one year not later than five years	31-Dec-11 $000’s 30-Jun-11 $000’s 35 36 33 50
	68 86

The significant change in the Group’s commitments during the period relate to the Group entering into an operating lease for new office premises.

14 Associated entities

Medical Technology Financing Pty Ltd - holding 50% (2010: 50%). There was no contribution to the Group’s results for the period (2010: nil).

15 Subsequent events

A dividend of 9.5 cents per share, 100% fully franked has been declared by the directors. The dividend has not been provided for in the 31 December 2011 financial report.

On 21 February 2012, the Group completed renegotiation of its banking facilities with the CBA. Under the terms of the renegotiation, the facility limit has been increased from $70.0 million to $110.0 million and the maturity date has been extended to 31 October 2013.

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Silver Chef Limited Directors’ Declaration

In the opinion of the directors of Silver Chef Limited (“the Company”):

1. the financial statements and notes set out on pages 5 to 14, are in accordance with the Corporations Act 2001 including:

(a)

  - giving a true and fair view of the Group’s financial position as at 31 December 2011 and of its performance for the six month period ended on that date; and

• (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

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Allan English

Chairman

Dated at Brisbane this 22[nd] day of February 2012

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ABCD

Independent auditor’s review report to the members of Silver Chef Limited

We have reviewed the accompanying half-year financial report of Silver Chef Limited (the Company), which comprises the condensed consolidated statement of financial position as at 31 December 2011 and the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, notes 1 to 15 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Group comprising the Company and the entities it controlled at the half-year’s end or from time to time during the half-year period.

Directors’ responsibility for the half-year financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2011 and its performance for the half-year period ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As auditor of Silver Chef Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

ABCD

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Silver Chef Limited is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the Group’s financial position as at 31 December 2011 and of its performance for the half-year period ended on that date; and

• b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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KPMG

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Simon Crane Partner Brisbane 22 February 2011

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ASX ANNOUNCEMENT

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22 February 2012

Silver Chef delivers another solid profit result for the six months to 31 December 2011

Highlights

• Rental revenues for the six months to 31 December up 30% to $39.1 million

• Growth in rental assets (at cost) up 32% to $167.8 million

• EDITDA¹ up 30% to $24.9 million

• NPAT up 38% to $4.2 million

• Net operating cash flows up 29% to $25.7 million

• Basic EPS up 32% to 18.17 cents

• Interim fully franked dividend of 9.5 cents per share

• Full year guidance maintained.

Leading Australian business equipment financier Silver Chef Limited (ASX Code: SIV) has delivered a solid profit result as the underlying business continues to grow through funding small business in Australia and New Zealand.

Silver Chef’s Chief Executive Officer Charles Gregory said “Continued solid organic growth in equipment funding to small businesses had resulted in rental revenues increasing by 30% to $39.1 million from $30.0 million while NPAT increased by 38% to $4.2 million from $ 3.1 million over the same period last year.”

Operational Highlights

Franchise Sector

The franchise sector has performed well with rental asset purchases of more than $5.0 million (at cost) in the first six months of the financial year.

“Silver Chef’s accreditation of franchisors has helped many start-up and established franchisees get access to equipment funding,” said Mr Gregory.

“The franchise market is strong and our franchisee client base is growing as they become more aware of Silver Chef’s partnership with many well-known brands,” he said.

¹ EBITDA is a non-IFRS measure and it is unaudited/not reviewed, however it is derived from the Company’s interim financial statements which have been reviewed by the Company’s auditor in accordance with Australian Auditing Standards. EBITDA is defined as the Group’s consolidated profit before tax and before finance costs, depreciation and amortisation. The directors have disclosed this non-IFRS measure as they believe it assist s users in understanding the company’s profitability before the large depreciation charge on its rental and other fixed assets.

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New Zealand expansion

In November, Silver Chef launched its Rent-Try-Buy® product to the New Zealand hospitality industry.

“There has been good initial interest in the rental product,” said Mr Gregory.

GoGetta launches go.Own.plus

Silver Chef’s GoGetta division caters for a wide range of industries. In November, the business launched go.Own.plus, a product which was developed in response to strong feedback from business owners wanting greater flexibility and affordability in the rent-to-own equipment market. Unlike the original 12 month rental product, go.Own.plus gives customers a choice of switching from a 12 month rental contract to a 36 month rental contract at the end of the first year. go.Own.plus, along with a blend of other strategies, has resulted in lengthening the average GoGetta contract.

Credit Risk Management

Mr Gregory credited Silver Chef’s low bad debts of less than 1% of total revenue to the high importance the Company places on ongoing risk management improvement.

There are more than 12,900 rental agreements in place with a rental security bond held on every rental contract. All weekly rentals are debited in advance from the client’s bank account. In addition over the last 12 months the credit and recoveries area of the Company has been up-skilled and sufficiently resourced to manage the business through the current economic environment and growth phase.

“With these procedures in place and no client representing more than 1% of total assets under management, the Company is well positioned to manage credit risk in the current economic environment,” said Mr Gregory.

“Good risk management has played a very important part in the Silver Chef success story,” he said. “The lessons learned are those we can share with the small business community that we support.”

“Helping small businesses be successful is the reason for our ongoing success,” he said.

Hospitality

Silver Chef’s hospitality division is Australia’s leading supplier of Rent-Try-Buy® equipment finance to the hospitality sector.

Hospitality achieved a 19% increase in first-half revenues of $27.9 million compared with $23.5 million in the previous corresponding period.

Assets under management were $122.5 million (at cost), up from $99.5 million at 31 December 2010.

GoGetta

The GoGetta equipment funding division achieved further strong growth. GoGetta continues to expand its product offering into the Australian SME equipment financing market utilising the skills, systems and disciplines developed over many years in the hospitality sector.

The division’s revenues increased 79% to $10.5 million in December 2011 from $5.9 million in December 2010.

Assets under management were $45.3 million (at cost) up from $19.1 million at 31 December 2010.

Dividend

The Board has declared a dividend of 9.5 cents per share payable on Monday 5 April 2012. The board intends to maintain a 60% to 70% of NPAT payout ratio for the full year. The record date for the dividend will be 7.00pm on Friday, 2 March 2012.

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Results summary for the half year ended 31 December 2011

Item	31 December 2011	31 December 2010	Change
Rental revenue	$39.1m	$30.0m	+30%
Rental assets (at cost)	$167.8m	$127.2m	+32%
EBITDA	$24.9m	$19.1m	+30%
NPBT	$5.9m	$4.2m	+40%
NPAT	$4.2m	$3.1m	+38%
Net operating cash flows	$25.7m	$20.0m	+29%
Basic EPS	18.17cps	13.80cps	+32%
Dividend (fully franked)	9.5 cps	9.0cps	+6%

Outlook

Mr Gregory said Silver Chef was maintaining its full-year guidance of earnings per share of approximately 35 cents for the full financial year which equates to a net profit after tax of $8.3 million. This represents a 24% improvement on the prior year.

Silver Chef intends to continue to maintain appropriate levels of debt and equity capital funding to support ongoing EPS growth. The limit of its CBA facility has recently been increased to $110 million.

“Silver Chef and GoGetta are well positioned for the second half of the year. We have strong operating cash flows, a demonstrated capacity to access capital markets, an excellent growth strategy which has the Company investigating new markets in Australia and growth opportunities in New Zealand,” he said.

“We recognise the need for continuous improvement, to identify efficiencies, improve our market position and meet the growing needs and expectations of our customers.”

For more information please visit our website www.silverchef.com.au or contact:

Charles Gregory

Chief Executive Officer

Silver Chef Limited

Tel 07 3335 3347

Mobile 0488 006 981

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About Silver Chef

Silver Chef was established in 1986 to help businesses fund their equipment needs through our Rent-TryBuy® and Rent-Grow-Own® Solutions. This keeps their options open and preserves their cash to grow their business.

Silver Chef Limited is an Australian Securities Exchange-listed company (ASX Code: SIV) focused on long term rentals of commercial equipment to small-to-medium enterprise.

The Company has nation-wide operations and operates under two brands: Silver Chef – hospitality assets and GoGetta – broader commercial equipment.

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