These are tough days for Allan English and his Silver Chef hospitality group in Brisbane

Silver Chef, a Brisbane outfit which leases out kitchen equipment, just unveiled its biggest full-year net loss since it was launched in 1986.

Allan English from Silver Chef Group.

SILVER CHEF MESS

These are tough days for Allan English and his Silver Chef hospitality group.

The Brisbane outfit, which leases out kitchen equipment, just unveiled its biggest full-year net loss since it was launched in 1986.

The expected $48 million in red ink announced on Monday comes as the company continues to roll out a “transformation strategy’’ that has included ditching one of its key brands.

English, who launched the group and still serves as chairman, has already labelled FY18 as “the most significant year of change the group has experienced in our 32-year history’’.

But the flow-on effects go way beyond him.

Silver Chef’s share price has fallen from a high of more than $11 in late 2016 to yesterday’s close of $2.44.

That’s not just bad news for investors but for the people on the receiving end of English’s well-known philanthropic efforts.

Back in 2014, he transferred more than half his stake in the business, about 4.4 million shares, to his family’s foundation.

Once worth more than $49 million, the holding is now valued at about $10.7 million.

That means the foundation’s major effort in providing $200 microfinancing loans for female entrepreneurs overseas won’t go as far.

SOURCE OF THE DRAMA

The source of most of the financial angst is Silver Chef’s decision back in February to exit its GoGetta business division, which flogged sedan, wagons and SUVs.

Complicating that move has been ongoing negotiations with ASIC, which alleges the GoGetta engaged in consumer lending without appropriate licensing.

In a worrying sign, Silver Chef said yesterday it had started talks with its lenders over financial covenants and a capital management plan.

The company stressed that it “continues to enjoy the support of its lenders and expects appropriate waivers will be granted as required’’.

Putting aside the GoGetta mess, Silver Chef said that its underlying pre-tax profit would be consistent with prior guidance of between $17 million and $18 million.

It also intends to press on with an overhaul that will result in a single brand focused on hospitality, a simpler national structure, growth in North America and a greater investment in digital operations over the next five years.

English acknowledged the changes amount to “some short-term pain’’ but he has vowed to return to the group to the growth and profitability it once enjoyed.

POLO LITE

Former Yellow Cabs boss Neill Ford dug deep at the weekend to put on his annual Alsace Polo event near Beaudesert, which drew the usual crowd of well-dressed onlookers for a long lunch.

But there was a different vibe on Sunday and not just because Ford opted against taking to the field for the first time in 28 years.

Past sponsors such as Mercedes-Benz and Infiniti were absent following Ford’s move last year to offload his taxi business to CabCharge for $20 million. There was also no fashion parade.

Regardless, Ford is planning to keep on throwing the polo party he loves each year. “If you’ve got a beautiful polo field like that, you’ve got to use it,’’ he told us yesterday.

Spied on the day quaffing down the Veuve Clicquot were the likes of former Premier Campbell Newman and embattled bizoid Wayne Myers.

Myers has refused to go to ground even though he is in the midst of fighting a corruption charge stemming from the drama engulfing the Ipswich City Council.

A former company director turned lobbyist and consultant, Myers has focused his attention overseas since he was charged last November.

He’s now working on an e-banking initiative in the UK and a food exporting scheme for Syria, Oman and Dubai.