# SIV - SIV Capital



## silence (29 May 2005)

Well I've taken the plunge and decided to get some silver chef convertible notes (10% p.a.)

The company looks quite solid in terms of profits and low debt based on the annual report.

(Is now going public, from private company)

Has anyone else done any research into the company (or even heard of it)?

I'm thinking of just selling a day or two into trading if the price jumps enough.


----------



## silence (1 June 2005)

*Re: SIV - Thoughts?*

Well, looks like I should have got the shares instead - up 60% on the issue price so far...


----------



## System (11 August 2010)

Silver Chef Limited (SIV) provides equipment rental finance to the food service sector (restaurant and fast food), as well as investment in residential and commercial properties. SIV focuses on long term rentals of commercial equipment to small-to-medium enterprises. SIV has nation-wide operations in Australia through a Rent-Try-Buy Solution and operates under two brands: Silver Chef - hospitality assets; and GoGetta - broader commercial equipment.

http://www.silverchef.com.au


----------



## catfish (4 May 2012)

I thought I would bring up SIV as there has been no mention of the forum. SIV has been on my watch list for a while and is a great business in my opinion and seems cheap.  Earnings guidance of 35c at the current share price puts it under a PE of 10 and a yield of around 6% ff. Management has used debt well in the past and is certainly not afraid of leverage. Founder and Chairman Allan English holds a large interest in the company as do most directors.  Bad debts were below 1% due to risk management initiatives such as weekly payments made in advance, if the customer does not pay the good are simply returned. And also no customer represents over 1% of asset under management. I believe the company presents a good value proposition to customers in the industry, where there are huge start-up costs and no cash flow in the beginning, customers purchase the items once the business has proven successful. I would be interested if there are any holders out there with an opinion on the stock.


----------



## silence (7 May 2012)

I bought the convertible notes when the company first floated, but sold them off for a small profit. I kicked myself for not getting the actual shares though at $1!

I've been watching it too but haven't had the capital spare to put any into it, though I would like to.


----------



## chops_a_must (20 March 2013)

In at 6.50 today.

Breaking out of a pennant, after retracing from all time highs, and has gone on to set a new high again.

Great fundamentals: improving cash flow, eps, dividencs and low P/E.

And still has a decent yield.

After not dipping much at all after going ex-dividend a few days ago, it opened my eyes a bit. Obviously a bullish sign that the stock is so tightly held.


----------



## chops_a_must (27 March 2013)

Am I the only one in this?

Up over 7% on average volume.

Although that is because the sellers are not there.

A very nice breakout run, after clearing highs last week.


----------



## Knobby22 (27 March 2013)

A great company. I was told to get on board but didn't. Sudden run today was a bit suss.


----------



## galumay (27 March 2013)

I had a look a while ago, the high debt level frightened me off.


----------



## tinhat (28 March 2013)

I was looking seriously at SIV then the Queensland floods hit a couple of years ago and it just fell off my watchlist because I invested in TGA instead. TGA seemed to have a stronger balance sheet. Ah well - well done to those that hopped on.


----------



## chops_a_must (28 March 2013)

tinhat said:


> I was looking seriously at SIV then the Queensland floods hit a couple of years ago and it just fell off my watchlist because I invested in TGA instead. TGA seemed to have a stronger balance sheet. Ah well - well done to those that hopped on.




They both look good.

I'd be surprised if tga doesn't follow.


----------



## 56gsa (24 April 2013)

Last two days has posted record high on close...  and intraday high of $8 yesterday ...  volumes not above average although does seem to be tightly held as noted above


----------



## McLovin (24 April 2013)

I don't like this company. Lots of debt, basically a finance company, and they use their customer deposits to create basically fund the business. The problem is that someone like TGA's Thorn Equipment require no deposit. If they were to get into SIV's business, the cushy free finance (provided by their customers, who they really screw on price they run their business on would disappear. These guys are juicing their returns by using debt + wc leverage.


----------



## chops_a_must (29 April 2013)

Still going parabolic.

Where she stops, no-one knows...


----------



## Ves (29 April 2013)

chops_a_must said:


> Still going parabolic.
> 
> Where she stops, no-one knows...



A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.

It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
.


----------



## chops_a_must (29 April 2013)

Ves said:


> A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.
> 
> It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
> .




Yes.

I have my sell order in. It will be enough to free carry enough to make it worthwhile.

But it's not something I would want to be exposed to, especially when there is a much more fairly valued company in this space.

For the moment, it is a good trade.


----------



## MaZed (29 April 2013)

Is it too late to buy? Will it continue to grow?


----------



## Intrinsic Value (30 April 2013)

Ves said:


> A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.
> 
> It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
> .




Another pump prime by RM me thinks. Of course if it crashes he will have already sold out.


----------



## chops_a_must (1 May 2013)

Out today.

The high volume sell off yesterday to me suggests there is supply above.


----------



## robusta (12 July 2014)

Ves said:


> A lot of the popular fundamental newsletters have been really talking this up over the last twelve months.
> 
> It will be a very, very good short for those disposed to that style at some point when the "hype" wears off and the trendies head for the bleachers again
> .




You were right Ves, the ride lasted until December then reality stepped in and the price fell from $8.00 to $5.00. Nice 10% spike yesterday when they announced profit will be at the upper end of guidance. I can never find a compelling enough reason to buy this one however.


----------



## helpme (21 July 2016)

*Why did Silver Chef Ltd SIV crash >15% in the closing hour?*

Silver Chef Ltd SIV crash >15% today 21Jul16 during the closing hour today. What happened?


----------



## Gringotts Bank (21 July 2016)

*Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?*

Dunno.  There was a market update this afternon - did you read that?


----------



## helpme (21 July 2016)

*Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?*



Gringotts Bank said:


> Dunno.  There was a market update this afternon - did you read that?




I did. Strange thing is that I find the market announcement to be positive.


----------



## skc (21 July 2016)

*Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?*



helpme said:


> I did. Strange thing is that I find the market announcement to be positive.




Here's Macquarie's quick take on SIV's announcement.



> Underlying FY16 guidance unchanged: SIV continues to expect FY16 NPAT $23-24m (before one-off loan note break costs and after deferring costs associated with originating new rental contacts). This compares to MQe $23.3m and Factset consensus $23.7m.







> Preliminary FY17 guidance below MQe: SIV are guiding to FY17 NPAT $23-25m vs. MQe $28m and Factset consensus $28.5m i.e. *a ~16.5% miss relative to our expectations at the midpoint.* The FY17 guidance miss was due to (1) likely growth rate of GoGetta originations following a very strong FY16, (2) profile of upfront costs and origination budgets, (3) changes to bonus arrangements for sales and customer service staff for over-budget performance, (4) more conservative provisioning for bad debts within GoGetta due to immaturity of the book, and (5) increased investment in people and other overheads to accelerate expansion into eastern Canada and exploit future growth opportunities


----------



## helpme (22 July 2016)

*Re: Why did Silver Chef Ltd SIV crash >15% in the closing hour?*



skc said:


> Here's Macquarie's quick take on SIV's announcement.




I guess the expectations of analyst to be on the high side. Easier to miss high expectations.

http://www.asx.com.au/asxpdf/20160721/pdf/438q8k01429tgm.pdf

The highlights do not look bad. Looks good to me. Restricted by pdf from copying and pasting here


----------



## TJK87 (1 March 2018)

HI there,
I've been following Silverchef for a while and am wondering why its share price has fallen so much recently?


----------



## TJK87 (1 March 2018)

I guess it's their decision to exit the gogetta business.


----------



## greggles (1 March 2018)

TJK87 said:


> I guess it's their decision to exit the gogetta business.



Yes, that seems to be the reason for the share price decline as it happened on the same day as the announcement, 26 February.


----------



## peter2 (14 May 2018)

The GoGetta business was a huge drag on SIV. Now that management realise that they can't manage two businesses at the same time, there's hope that they refocus on the business they built up successfully. The restucture will take some time as they've still to exit some GoGetta contracts.

I've put this chart in my reversal watch list.


----------



## The Triangle (5 August 2018)

I'm not convinced they can recover quickly.  I was reading their latest update this morning and noticed that they are also in trouble with the ASIC for potential lending issues.  Presumably that will result in either a fine and/or legal fees.   Combine that with what appears to be a hidden downgrade in their core business and that the runoff is facing higher than expected arrears....  Well you get where I'm going.


----------



## peter2 (30 September 2018)

@The Triangle you were correct in that SIV wouldn't recover quickly. They're still struggling to recover assets and capital from the GoGetta business. What a mess. Are they at the bottom now? 

From $12 down to $2. Management qualify for the $2 reject shop. Just don't ask them to manage it.


----------



## greggles (1 October 2018)

SIV is looking like it may have bottomed out at around $1.75 in early September, unless there is more bad news to come after this morning's FY18 financial results announcement which reported a statutory net loss after tax of $48.8 million.

The share price has barely moved this morning and is currently down 1.4% to $2.06. Has all the selling down finished?


----------



## aus_trader (24 December 2018)

Could be due for a short-term bounce perhaps helped by a Santa rally ?


----------



## aus_trader (2 January 2019)

Looks like a small rally is in play here with Silver Chef Ltd (*SIV*)…


----------



## System (28 November 2019)

On November 27th, 2019, Silver Chef Limited changed its name to SIV Capital Limited.


----------



## Dona Ferentes (19 April 2020)

One company drastically affected by lockdown







> Phillip Godkin, chief executive of SilverChef, the equipment brokerage [ ... ] is contracted to, says his company has “around $300m” in equipment it owns in restaurants around the country right now. “A large number of our customers can’t pay, they have no cashflow,” Godkin says. “It has a very material flow-on effect in terms of our own cashflow … I wouldn’t describe it as a disaster, but it’s a crisis."




I haven't looked at SIV but I'd imagine they're struggling


----------



## Dona Ferentes (19 April 2020)

*SIV Capital Limited* (SIV, formerly Silver Chef Limited) is focused on long term rentals of commercial equipment to small-to-medium enterprise in the hospitality space. The company has a significant presence in Australia and growing exposure to the New Zealand and North American markets.

_- an unholy mess. Renting out kitchens and cafe fittings; so 2019._


----------



## Dona Ferentes (20 June 2020)

Dona Ferentes said:


> *SIV Capital Limited* (SIV, formerly Silver Chef Limited) is focused on long term rentals of commercial equipment to small-to-medium enterprise in the hospitality space. The company has a significant presence in Australia and growing exposure to the New Zealand and North American markets.
> 
> _- an unholy mess. Renting out kitchens and cafe fittings; so 2019._



.... and I am surprised. Maybe _lock-down _has led to _fit-out _heaven, because SIV is hanging in. I thought it was a gonner, breach of covenants, even their debentures were on the nose, but somehow the restructure, sale of hospitality business, has kept it afloat.


> On a personal note, after 33 years since founding the business and with many stellar performances as a listed company in prior years, the past two years has been extremely disappointing with significant loss in shareholder value.  Many of the decisions made were on assumptions of very different outcomes.
> As the founder and largest shareholder I share your pain and disappointment



- _last year's AGM

Now having sold Hospitality Business, now looking at a Return of Capital (of some form) (after which the shell will be sold??)



_


----------



## The Triangle (29 November 2020)

Quite surprised SIV managed to stay listed after all this mess.  Market cap is now ~$13 million with no significant debt.  

"_Based on budgeted remediation and related costs which are expected to be paid by April /May 2021, the Group will have approximately $11 million of cash on hand at 30 June 2021_" - Ok intersting they will be roughly valued at their cash backing.  But let's consider the SIV track record of budgets and forecasts...

"_Our expectation for gross cash on hand at 30 June 2021 to be $18 million (pre remediation and related costs) which is around $4 million lower than the $22 million we advised in the Annual Report. This has in part been caused by new rental contracts each month (total $1.7 million actual to date and forecast), re-estimating our own legal costs in respect to the ASIC matter and taking a more conservative view of other costs/contingencies and to a lesser extent revenue items for the balance of the year_."

Being 4 million off within a few weeks/months is pretty poor.  SIV could be an interesting buy at 30 cents - but they really need to show that they have a handle on things.  Also, with the ASIC still involved I would only take a punt at around 25+ cents.

On a site note - even if SIV never had any issues - I would think this covid mess would have absolutely decimated them anyways.


----------



## The Triangle (13 February 2021)

Had another look at SIV this week after it strangely fell from 33/34 cents to 29/30 cents.   Volume picked up making it possible to get shares at 30 cents without pushing the price up to 35/36.

Cash balance (13.5m) is greater than market cap (12m).  
Enterprise value is negative
Current business (err - what's left of it) is cash-flow positive and forecast to generate ~ $3 million per year after costs
Potential for an insurance payout
Potential for major tax/franking credits to be used.

Still have to deal with the ASIC (Good to see ASIC spending their time going after the little guys....) which is a huge risk.  
Still have to assume they will maintain their current business and have no more surprises. 

Although thinly traded - I'm in and will stick it out for a while.  Essentially the shell of SIV is worth nothing in the eyes of the market.  Someone will come up with a way to use the tax assets and I believe that will lead to capital gains by this time next year.    I could see this going lower by next quarter as cash should drop a little more with more legal costs.


----------



## The Triangle (14 October 2021)

SIV has been an epic fail and the board have been silent and generally atrocious at forecasting to the market.  At least they slashed their fees...

The ASIC issues are now behind them and they are currently sitting with essentially a shell company with NTA of 22 cents vs 25 cent SP.  They still have a business to run down and after that I can't see how the ASX will allow them to stay listed without operations.

They have $56 million in tax losses + $23 million in franking credits for an enterprise value of about 3 million....    I'm not a tax specialist - but surely there is some major value there in buying SIV for it's tax assets?


----------



## The Triangle (10 June 2022)

$8 million cash balance @ march 31st (up 200k)
$8.5 million market cap.
$0 debt  

Given how shaky the market is looking right now I'd definitely like to be a business with a pile of cash in the bank and very few outgoings.  

Not sure the plan once they finish up remaining accounts - I can't imagine the ASX is going to allow them to stay listed if they don't have a business?


----------



## The Triangle (23 August 2022)

For all the money I made on this dog nearly 10 years ago, it serves me right to lose a little since reinvesting last year! 

Annual report out.  Nothing interesting at all.  Still $8.2 million cash, no debts, barely any business operations left for a market cap of $9 million...  As far as I'm concerned this is the cheapest stock listed on the ASX.  The EV is about $800k....  Ridiculous.  May as well get some leases and call themselves a junior explorer and the SP will double tomorrow.   I don't see a dividend announcement but I see a dividend mentioned in the annual report...  Not sure what the go is there!   Don't think anyone is actually going to notice this before it goes ex-divi in a few days.  Anyways, i'll keep holding on.  Only have to get back to 28 cents.

_The Board has declared a *6 cent fully franked dividend.* The dividend reinvestment plan will be operational for shareholders and Board members advise that they will participate for the majority of their holdings.

The GoGetta book continues to generate positive cash flows each month. The Company continues to pursue its insurers and *expects to receive an amount in excess of $2 million *in respect of an insurance claim dating back to events pre 2020 (which has not been recognised in the accounts as a receivable). As previously advised, there are uncertainties in respect to this, including the timing and extent of recovery of the claim

For completeness, as at 30 June 2022 the Company has *carry forward revenue tax losses of $66.3 million and capital losses of $24.5 million*. No deferred tax asset is carried on the balance sheet in respect to these tax losses. *The franking account balance is $22.4 million.* _


----------

