This cash flow covers all of the interest payable on loans, depreciation of assets, dividend payments and retained earnings. There is no "gap".
Banks are also covered on the asset side because the written down value of assets exceeds the value of outstanding loans.
Admittedly, there's not much fat to grow the business after that. If there were zero new borrowings going forward, the growth would almost come to a screeching halt (and the stock price would tumble to a low P/E).
Yet the markets that Silver Chef and GoGetta serve are very deep and very long. It would appear that there's a fair amount of growth ahead - and so long as that potential growth in the market is being satisfied by SIV's model (which has shown to be durable), the more banks are willing to support that growth.
If the share market thought the growth would soon be coming to end, we would see a significantly lower stock price (demonstrated a couple of years ago when GoGetta had a growth hiccup). But the problem with the market is this: it still doesn't understand that this potential growth is not something that should be measured in years; it should be measured in decades - hence the reason why I believe it is still very much undervalued.
If you were to believe that only self-sustaining growth warrants a high multiple, then that's fine. You might want to compare it to a property developer who leverages its net worth through ever-increasing debt until the inevitable cyclical property crunch. Then it's in trouble.
