General Capital (GEN:NZ) subsidiary General Finance update
General Capital Limited
Level 7, 12-26 Swanson Street,
PO Box 1314, Shortland Street,
Auckland, New Zealand. 1140.
Phone +64 9 304 0145
Fax +64 9 358 3858
General Capital (GEN:NZ) subsidiary General Finance update.
General Capital Limited advises that its subsidiary General Finance Limited, a licensed Non-bank
Deposit Taker, has uploaded its quarterly report for the quarter ended 30 September 2020 to the
Disclose Register today.
The unaudited quarterly report shows that General Finance’s assets have continued to grow and that
it has remained profitable during a challenging economic period (due to the Covid-19 pandemic).
General Capital is expecting to report on the unaudited consolidated Group results for the half year
ended 30 September 2020 by 30 November 2020.
Mr. Brent King, Managing Director, explained that this report is required as General Finance Limited
holds a Non-bank Deposit Taker licence and the reporting is a requirement of the Financial Markets
Conduct Act 2013.
“We will continue to advise the market each time General Finance Limited uploads a document to the
Disclose Register”, said Mr. King.
The information can be found at www.disclose-register.companiesoffice.govt.nz.
For further information contact:
Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz
30 October 2020
---
Issue 20 29 October 2020
GENERAL FINANCE LIMITED
Quarterly report as at 30 September 2020
KEY RATIOS
Capital
30 September 2020
Our capital ratio calculated in accordance
with the 2010 Regulations*
22.26%
Minimum capital ratio required by our
Trust Deed
8% if we have a credit rating**, or
15% if we do not have a credit rating
Minimum capital ratio that must be
included in the trust deed under reg 8(2) of
the 2010 Regulations*
8% if we have a credit rating**, or
10% if we do not have a credit rating
The capital ratio is a measure of the extent to which General Finance is able to absorb losses without becoming
insolvent. The lower the capital ratio, the fewer financial assets General Finance has to absorb unexpected losses
arising out of its business activities.
* Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010
** General Finance has been rated by Equifax Australasia Credit Ratings Pty Ltd (“Equifax”). Equifax gives ratings
from AAA through to C (excluding ratings attaching to entities in default).
Equifax has issued General Finance a credit rating of BB- with a Stable Outlook. According to Equifax’s criteria, this
rating is classified as “Near Prime” and has “Low to Moderate” risk level. Equifax’s credit rating report for General
Finance can be accessed at www.business.govt.nz/disclose.
Issue 20 29 October 2020
Related Party Exposures
30 September 2020
Our aggregate exposures to related
parties as calculated in accordance with
the 2010 Regulations*
2.28%
Maximum limit on aggregate exposures to
related parties that we must not exceed
that is included in our Trust Deed
10% of capital
Maximum limit on aggregate exposures to
related parties that we must not exceed
that must be included in our Trust Deed
under reg 23(3)(b) of the 2010
Regulations*
15% of capital
Related party exposures are financial exposures that General Finance has to related parties. A related party is an
entity that is related to General Finance through common control or some other connection that may give the party
influence over General Finance (or General Finance over the related party).
* Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010
Issue 20 29 October 2020
Liquidity
30 September 2020
Our liquidity calculated in accordance with
the quantitative liquidity requirements
included in our Trust Deed
7.54 times
The minimum liquidity requirements
required by our Trust Deed
A liquidity cover ratio of 1.25 times
Liquidity requirements help to ensure that General Finance has sufficient realisable assets on hand to pay its debts
as they become due in the ordinary course of business. Failure to comply with liquidity requirements may mean that
General Finance is unable to repay investors on time and may indicate other financial problems in its business.
Issue 20 29 October 2020
SELECTED FINANCIAL INFORMATION
Quarter to
30 September
2020
Total Assets 51,373,781
Total Liabilities 45,374,668
Net Profit After Tax 29,866
Net Cash Flows from Operating Activities (6,666,970)
Cash and Cash Equivalents 11,191,511
Term Deposits
1
Capital (per 2010 Regulations)
3,000,000
5,920,224
1
New Zealand Registered Bank deposits with original term of greater than 180 days.
Issue 20 29 October 2020
HOW THE RATIOS HAVE BEEN CALCULATED
CAPITAL RATIO
Position at 30 September 2020
Capital
Gross capital 5,999,113
Less deductions 78,889
Total capital 5,920,224
Risk
Risk Weighted
Exposures Exposure Weight Exposures
NZ Registered Bank Deposits 14,191,511 20% 2,838,302
Investments in Bonds (rated long term claims):
with a rating grade of 1
1
3,519,165 20% 703,833
with a rating grade of 3
1
1,295,181 100% 1,295,181
Residential mortgages:
LVR 70% and under 28,406,715 35% 9,942,350
LVR 70% - 80% 1,660,181 50% 830,090
Second mortgages 104,889 150% 157,334
Property development loans:
LVR 60% - 100% 1,903,004 200% 3,806,008
Other assets 214,246 350% 749,861
Deductions from capital 78,889
-
Total credit risk weighted exposures (A)
20,322,959
Total assets (B) 51,373,781
Operational and Market Exposures (A+B)/2x0.175
6,273,465
Total Exposures
26,596,424
Capital Ratio
22.26%
(being Total Capital/Total Exposures)
1
Refer to Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010, Schedule
Table 3.
Issue 20 29 October 2020
AGGREGATE EXPOSURE TO RELATED PARTIES
Loans and other on balance sheet exposures to related
parties (A) 134,976
Other related party exposures (B) Nil
Capital 5,920,224
(A + B) / C 2.28%
*Related party exposures are calculated by dividing total related party exposures by Capital
(per 2010 Regulations).
LIQUIDITY
Liquidity (A) 21,459,871
3 month expected loan receivables (B) 11,469,616
3 month expected gross deposit redemptions (C) 5,232,550
(A + B) / C 6.29 times
*The Liquidity Cover Ratio is calculated by dividing Liquidity plus the 3 month expected loan
receivables, by the 3-month expected gross deposit redemptions.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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