Share in hospitality equipment funding business Silver Chef Limited (ASX: SIV) have leapt around 10% on Tuesday after the group presented a strong set of interim financial results.
The stock has now recorded a gain of almost 30% in the past 12 months compared with a near 16% fall in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
Here's what made investors push the share price higher today:
- Revenue jumped 21% to $101 million
- Net profit after tax leapt 45% to $10.3 million
- Earnings per share increased 37% to 32.8 cents per share (cps)
- A fully franked interim dividend of 17 cps, up 6% was declared
- The GoGetta business achieved excellent growth over the six months to December 31, with the asset base up 42% and record acquisitions of $75 million during the half
- The Canadian business grew strongly, in line with expectations
- Silver Chef provided guidance for the full year ending June 30 of an underlying profit between $23 million and $24 million
Despite the strong share price performance, Silver Chef still trades on less than a market multiple which could suggest further upside, however, it's not the only stock in the leasing sector which could be appealing to investors…
FlexiGroup Limited (ASX: FXL) and Thorn Group Ltd (ASX: TGA) are two peers that operate some business lines in a similar space to Silver Chef. Unlike Silver Chef, neither firm currently has exposure to the growth potential which Canada offers. However, both stocks are trading near their respective 52-week lows and on lower multiples which could suggest value investment opportunities are present.
