The Australian share market may have posted a strong gain on Monday, but not all shares were able to follow suit.
One of the worst performers today was the Silver Chef Limited (ASX: SIV) share price. It finished the day down almost 7% to $7.03.
Why did its shares sink lower?
This morning the equipment financier provided the market with a trading update. Although its core business is performing largely in line with expectations, it is having a few issues with its back book.
The back book relates to the aged portion of the GoGetta asset base, which largely constitutes poor performing customer contracts in the now discontinued Light Commercial channel.
According to the release, customer credit performance in the channel has been poor and collection of arrears and repossession of assets has been challenging. This has led to the recovery of arrears lagging against internal targets.
Silver Chef's shares are now down almost 21% since the start of the year.
