General Capital continues on its strong growth path

General Capital Limited
Level 8, General Capital House,
115 Queen Street, Auckland CBD
PO Box 1314, Shortland Street,
Auckland, New Zealand. 1140.
Phone +64 9 304 0145
Fax +64 9 358 3858

General Capital (GEN:NZ) continues on its strong growth path

General Capital Limited (GEN), the NZX listed financial services group has announced its financial
results to 31 March 2021.

Mr. Rewi Bugo, Chairman said, “We are pleased with the achievements made by the Group in an
uncertain and challenging year. We started the financial year in the early stages of the global Covid-19
pandemic and with New Zealand just beginning its Level Four lockdown. At that time, it was difficult
to predict where we would be now, but we are pleased that the Group has navigated well through
the headwinds.”

Key Points for the 31 March 2021 Group financial statements are:

 Total Assets Up 33% to $68.2m
 Revenue Up 34% to $4.9m
 Term Deposits Up 40% to $57.9m
 Net Profit after tax Down 37% to $82k

Mr. Brent King, Managing Director said, “As highlighted in our annual meeting in September 2020, the
initial conservative responses that the Group made, in particular holding higher cash reserves in our
finance business, General Finance Limited, were costly to both revenue and profitability but did allow
us to manage our risks effectively. At its peak, cash reserves represented approximately 50% of
General Finance Limited’s total assets. We actively grew our lending book in the third quarter of the
March 2021 financial year, returning us to a more profitable base.

The advisory business, Investment Research Group Limited (IRG), had a good year with significant
revenue from advisory engagements. The listing application that IRG is engaged to prepare for
Greenfern Industries Limited (Greenfern) has faced delays but is expected to result in revenue for the
Group prior to 30 September 2021.

The Group expects to release its 2021 Annual Report in the last week of June 2021 and to hold its
annual shareholders meeting in late July 2021.

General Finance has grown very strongly since 31 March 2021 and we are finding solid investor support
and profitable lending opportunities”, said Mr. King.


For further information contact:

Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz

31 May 2021

---

Results announcement
Name of issuer
Reporting Period
Previous Reporting Period
Currency
Revenue from continuing
operations
Total Revenue
Net profit/(loss) from continuing
operations
Total net profit/(loss)
Amount per Quoted Equity
Security
Imputed amount per Quoted
Equity Security
Record Date
Dividend Payment Date
Net tangible assets per Quoted
Equity Security
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
Name of person authorised to
make this announcement
Contact person for this
announcement
Contact phone number
Contact email address
Date of release through MAP
Brent.King@gencap.co.nz
+64 21 632 660
Brent King
Managing Director
$82
Refer to Directors' Report
Authority for this announcement
Jonathan Clark
Chief Financial Officer
31/05/2021
Not applicable
Current periodPrior comparable period
$0.0397 $0.0386
Interim/Final Dividend
It is not proposed to pay dividends.
Results for announcement to the market
12 months to 31 March 2021
12 months to 31 March 2020
Amount (000s)
$4,880
General Capital Limited
New Zealand Dollars ($)
Not applicable
Not applicable
$82
Percentage change
34%
-37%
-37%
$4,880 34%

DIRECTORS' REPORT
BACKGROUND
AUDIT
FINANCIAL PERFORMANCE
Year ended Year ended
31 Mar 2021 31 Mar 2020Var% Change
Revenue
$4,880,304 $3,640,601 $1,239,703
34%
Net profit / (loss) after tax
$81,766$129,556($47,790)
-37%
Earnings / (loss) per share
0.05 0.08 (0.03)
-38%
31 Mar31 Mar
20212020Var% Change
Total assets
$68,164,239 $51,163,507 $17,000,732
33%
Total liabilities
$58,638,946 $41,781,500 $16,857,446
40%
Total equity
$9,525,293 $9,382,007$143,286
2%
Net tangible assets (NTA) per share
(cents per share) 3.97 3.86 0.11
3%
Net assets (NA) per share
(cents per share) 5.85 5.80 0.04
1%
TheDirectorsarepleasedtopresentastrongresultfortheyearended31March2021despitethechallengesfacedin
theeconomicenvironmentwhichwasimpactedbytheCovid-19pandemic.GeneralCapital'stotalassetshavegrown
by a further 33% since 31 March 2020 and revenue has grown by 34% compared to the year ended 31 March 2020.
Asexplainedtoshareholdersduringthe annualmeeting inSeptember2020,revenue,profitabilityandbalancesheet
growth were all impacted by Covid-19 and the conservative responses made by the Group which included holding
very high cash reserves. Further commentary on segment performance is included below.
The attached financial information has been audited and has been qualified by the auditor (Baker Tilly Staples
Rodway) with respect to the following item:
-Thecarryingvalueofgoodwillandotherindefinitelifeintangibleassetsallocatedtotheresearchandadvisorycash
generating unit totalling $1.1 million at 31 March 2021.
Baker Tilly StaplesRodway wasunable to obtain sufficient evidence to support the forecasted cash flowsand other
assumptions that underly the impairment testing done by the Group for the research and advisory CGU.
The Group’s Annual Report for the year ended 31 March 2021 is in the process of being completed and audited.

DIRECTORS' REPORT (CONTINUED)
31 Mar31 Mar
20212020Var% Change
Finance Segment
$223,429$441,716 ($218,287)
-49%
Research and Advisory Segment
$191,879($15,903)$207,782
1307%
Corporate and Other Segment
($284,738) ($296,257)$11,519
4%
Group Eliminations
1
($48,804)$0($48,804)
100%
Group$81,766$129,556($47,790)
-37%
1
Refer to notes on consolidation adjustments in the Research and Advisory Segment section below.
Refer to the attached financial information for detailed segmental results.
Finance Segment
Ithasbeenagoodyearinthefinancesegmentwithayearonyeargrowthof54%inloanreceivablesand40%interm
deposit funding despite the headwinds from the Covid-19 pandemic and lockdowns. The interest income and net
interestincomewereimpactedduringtheyearduetoariskmanagementresponsemadebyGeneralFinanceLimited
to move a higher proportion of its total assets into bank deposits ("cash"). As illustrated in figure 1 below, General
Finance'scashholdingreacheditsmaximumpointof$24.2mattheendofJuly2020,representingapproximately50%
of its total assets at that time. In addition to this, due to a falling interest rate environment, General Finance
diversified its liquid assets into longer term fixed interest investments, including $4.7m in listed bonds. When
worldwide inflation expectations and long term interest rates started to turn (increase), General Finance then
determinedtodivestfromtheseinvestments.Alossof$161,687wasrealisedfromthebonds(netofinterestincome)
during the 2021 Financial Year due to the bond value movements. The bonds were all sold by 31 March 2021.
Toillustratetheimpactofthehighcashandbondholding,managementhaveestimatedthatanadditional$667,000
revenue($480,000netprofitaftertax)wouldhavebeenmadebyGeneralFinanceifithadheldonly13%ofitstotal
assetsincashandbonds(a3%bufferaboveitsoptimumholdingof10%oftotalassets),and theexcesswasinstead
invested in loan receivables in the normal course of General Finance's business, all other factors being equal.
The Group made a profit before tax of $81,766 for the year ended 31 March 2021. This can be broken down as
follows:
47.664
48.288
64.527
35.19
23.999
54.459
41.52
57.929
12.472
24.244
10.248
4.814
0
0
10
20
30
40
50
60
70
Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21
NZD $million
Month Ending
Figure 1 -General Finance Limited Balance Sheet Movements
Total AssetsGross LoansTerm Deposits (funding)Bank DepositsBonds

DIRECTORS' REPORT (CONTINUED)
Research and Advisory Segment
Corporate and Other Segment
The corporateand other segment comprisesthe overheadsof running the listed parent company.There have been
no significant movements in the segment compared to the year ended 31 March 2020.
Theresearchandadvisorysegmenthashadagoodyearwithnetprofitaftertaxof$191,879comparedtoanetloss
aftertaxof$15,903intheprioryear. Revenueof$441,324wasupfrom$165,098intheprioryearandwasthekey
reason for the increase in profitability. Advisory fees of $256,485 were earned in relation to structuring of General
FinanceLimitedloans.Atthegrouplevelaconsolidationadjustmentismadetorecognisetheincomeontheseloans
(includingfeesearnedbytheresearchandadvisorysegment)inaccordancewithNZIFRS9.Theimpactonthegroup
consolidation is a reduction in net profit after tax of $48,804 for the year ended 31 March 2021 which will be
recognised in the Group results for the year ending 31 March 2022. Additional advisory fees of $95,920 were also
recognised in relation to the two mandates that were in place at 31 March 2020. There have been some progress
delaysinrelationtothosemandatesduringthe2021financialyear,inpartduetotheCovid-19lockdowns.Progressis
beingmadeononeofthesemandatesandtheprojectmilestonesareexpectedtobecompletedinthefirsthalfofthe
31 March 2022 financial year.

20212020
Note$$
Interest income
3,533,401 2,846,439
Interest expense
(2,246,097) (1,441,213)
Net interest income
1,287,304 1,405,226
Fee and commission income
933,176 553,686
Fee and commission expense
(247,997) (128,699)
Net fee and commission income
685,179 424,987
Revenue from contracts with customers
279,045 227,715
Cost of sales
(37,696) (32,545)
Gross profit from contracts with customers
241,349 195,170
Modification gain on loan receivables
86,489 -
Other income
48,193 12,761
Net revenue
2,348,514 2,038,144
Release / (increase) in allowance for expected credit losses
(27,372) (54,999)
Personnel expenses
(781,919) (746,680)
Occupancy expenses
(89,485) (117,373)
Depreciation
(17,085) (4,444)
Amortisation of intangible assets
(23,431) (22,793)
Realised losses on bonds sold
(190,085) -
Other expenses
(1,098,404) (901,392)
(2,227,781) (1,847,681)
Profit before income tax expense
120,733 190,463
Income tax (expense) / benefit
(38,967) (60,907)
Net profit after income tax expense
81,766 129,556
Other comprehensive income
Items that will not be reclassified to profit or loss
(11,487) (153,094)
Income tax on these items
- 43,273
Other comprehensive income / (loss) for the year, net of tax
(11,487) (109,821)
Total comprehensive income
70,279 19,735
Earnings per share (cents per share)
0.05 0.08
Diluted earnings per share (cents per share)
0.05 0.08
The accompanying notes are an integral part of these financial statements.
GENERAL CAPITAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
Changes in the fair value of equity investments at fair value
through other comprehensive income

GENERAL CAPITAL LIMITED
20212020
Note$$
Equity
Share capital
10,249,211 10,176,204
Accumulated losses
(594,651) (676,417)
Reserves
(129,267) (117,780)
Total equity
9,525,293 9,382,007

Assets
Cash and cash equivalents
7,292,267 12,562,241
Accounts receivables
194,727 10,859
Related party receivables
110,868 79,823
Other current assets
94,215 266,523
Bank deposits
3,000,000 -
Loan receivables
53,710,781 34,855,849
Deferred tax asset
126,922 96,004
Property, plant and equipment
13,508 8,008
Right of use assets
293,500 -
401,086
237,389
Intangible assets and goodwill
2,926,365 3,046,811
Total assets
68,164,239 51,163,507
Liabilities
Accounts payable and other payables
402,750 319,381
Related party payables
10,229 2,925
Income tax payable
55,576 8,697
Lease liability
307,207 -
Term deposits
57,863,184 41,450,497
Total liabilities
58,638,946 41,781,500
Net assets
9,525,293 9,382,007
Net tangible assets (NTA) per share (cents per share)
3.97 3.86
Net assets (NA) per share (cents per share)
5.85 5.80
Investments
AS AT 31 MARCH 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

GENERAL CAPITAL LIMITED
Note$$$$
9,573,495 (14,862) (805,973) 8,752,660
- - 129,556 129,556
- (109,821) - (109,821)
- (109,821) 129,556 19,735
602,709 - - 602,709
- 6,903 - 6,903
602,709 6,903 - 609,612
10,176,204 (117,780) (676,417) 9,382,007
- - 81,766 81,766
- (11,487) - (11,487)
- (11,487) 81,766 70,279
73,007 - - 73,007
73,007 - - 73,007
10,249,211 (129,267) (594,651) 9,525,293

Total comprehensive income for
the year
Accumulated
losses
Share capital
Total transactions with owners in
their capacity as owners
Transactions with owners in their
capacity as owners:
Contributions of equity net of
transaction costs
Balance at 31 March 2020
Profit for the year
Other comprehensive income for
the year
Contributions of equity net of
transaction costs
Issue of warrants to directors and
senior managers
Total equity
Profit for the year
Other comprehensive income for
the year
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Reserves
Balance at 1 April 2019
Total transactions with owners in
their capacity as owners
Balance at 31 March 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021

GENERAL CAPITAL LIMITED
20212020
Note
$$
Cash flow from operating activities
Interest received
3,329,027 2,520,543
Receipts from customers
1,055,068 491,332
Other income
7,961 12,761
Payments to suppliers and employees
(2,046,491) (2,041,737)
Interest paid
(2,155,363) (1,242,655)
Income tax paid
(23,006) (21,083)
Finance receivables (net advances)
(18,407,676) (17,091,608)
Net cash (used in) / provided by operating activities
(18,240,480) (17,372,447)
Cash flow from investing activities
Proceeds from the sale of bonds
4,334,514 -
Purchase of property, plant and equipment
(10,356) (6,276)
Purchase of software
- (4,444)
Investment in bank deposits
(3,000,000) -
Investment in bonds
(4,718,617) -
Investment in equities
(28,184) -
Net cash provided by / (used in) investing activities
(3,422,643) (10,720)
Cash flow from financing activities
Issue of ordinary shares
73,007 602,709
Term deposits (net receipts)
16,320,142 26,393,382
Net cash provided by financing activities
16,393,149 26,996,091
Reconciliation of cash and cash equivalents
12,562,241 2,949,317
(5,269,974) 9,612,924
7,292,267 12,562,241

Cash and cash equivalents at end of the reporting period
Net (decrease) / increase in cash and cash equivalents held
during the reporting period
Cash and cash equivalents at beginning of the reporting
period
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31 MARCH 2021

SEGMENT REPORTING
$$$$$$
3,535,620 3 3 3,535,626 (2,225) 3,533,401
933,176 - - 933,176 - 933,176
- 357,642 - 357,642 (119,894) 237,748
- 41,297 - 41,297 - 41,297
- - - - - -
49,770 - - 49,770 36,719 86,489
39,996 42,382 107,819 190,197 (142,004) 48,193
4,558,562 441,324 107,822 5,107,708 (227,404) 4,880,304
(2,245,554) - (543) (2,246,097) - (2,246,097)
(257,997) - - (257,997) 10,000 (247,997)
- (48,686) - (48,686) 10,989 (37,697)
2,055,011 392,638 107,279 2,554,928 (206,415) 2,348,513
(27,372) - - (27,372) - (27,372)
(190,085) - - (190,085) - (190,085)
(649,118) (57,519) (75,282) (781,919) - (781,919)
(33,529) - (6,987) (40,516) - (40,516)
(59,587) 105 4,910 (54,572) 15,605 (38,967)
223,429 191,879 (284,738) 130,570 (48,804) 81,766
66,073,514 1,318,154 1,030,284 68,421,952 (257,713) 68,164,239
58,446,662 132,059 269,134 58,847,855 (208,909) 58,638,946
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- 107,762 - 107,762 - 107,762
193,535 - 112,194 305,729 - 305,729
- - 85,356 85,356 - 85,356
- (107,762) 107,762 - - -
193,535 - 305,312 498,847 - 498,847
Modification gain on loan
receivables
Realised losses on bonds sold
Transfers / reallocations
between segments
Year ended 31 Mar 2021
Recognition of right of use
assets on new leases
Acquired through settlement
of transactions / balances
Other
Income tax (expense) /
benefit
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
- Advisory fee revenue
- Yearbook and research sales
- Other fee income
Other income
Total revenue
Finance
Research and
Advisory
Corporate and
Other Total Segments Eliminations
Corporate and
Other Total Segments Eliminations Consolidated
Cost of sales
Net revenue
Release / (increase) in
allowance for expected credit
losses
Personnel expenses
Depreciation and
amortisation
Total Assets
Total Liabilities
Year ended 31 Mar 2021Finance
Research and
Advisory
GENERAL CAPITAL LIMITED
ManagementhasdeterminedtheoperatingsegmentsbasedonthecomponentsoftheGroupthatengageinbusinessactivities,whichhave
discretefinancialinformationavailableandwhoseoperatingresultsareregularlyreviewedbytheGroup'schiefoperatingdecisionmaker.
The chief operating decision maker has been identified as the Board of Directors. The Board of Directors makes decisions about how
resources are allocated to the segments and assesses their performance.
Three reportable segments have been identified as follows:
- Finance
Deposit taking and short term property mortgage lending.
- Research and Advisory
Provides investment advisory services and produces and sells investment research and publications.
- Corporate and Other
Corporate function and investment activities.
Consolidated
Net Profit After Tax
Revenue - interest income
Interest expense
Fee and commission expense
(finance receivables)

GENERAL CAPITAL LIMITED
SEGMENT REPORTING (CONTINUED)
$$$$$$
2,842,352 4,025 62 2,846,439 - 2,846,439
552,225 1,461 - 553,686 - 553,686
- 91,151 - 91,151 - 91,151
- 50,633 - 50,633 - 50,633
85,931 15,579 - 101,510 (15,579) 85,931
12,761 2,249 111,091 126,101 (113,340) 12,761
3,493,269 165,098 111,153 3,769,520 (128,919) 3,640,601
(1,440,704) (491) (18) (1,441,213) - (1,441,213)
(128,699) - - (128,699) - (128,699)
- (32,545) - (32,545) - (32,545)
1,923,866 132,062 111,135 2,167,063 (128,919) 2,038,144
(54,999) - - (54,999) - (54,999)
(603,058) (71,444) (72,178) (746,680) - (746,680)
(26,303) - (934) (27,237) - (27,237)
(60,892) 2,372 (2,387) (60,907) - (60,907)
441,716 (15,903) (296,257) 129,556 - 129,556
49,138,302 1,301,131 989,136 51,428,569 (265,062) 51,163,507
41,734,879 199,152 112,531 42,046,562 (265,062) 41,781,500
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- 13,108 - 13,108 - 13,108
4,444 - 206,276 210,720 - 210,720
- (13,108) 13,108 - - -
4,444 - 219,384 223,828 - 223,828
- Other fee income
Year ended 31 Mar 2020Finance
Research and
Advisory
Corporate and
Other Total Segments Eliminations Consolidated
Revenue - interest income
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
- Advisory fee revenue
- Yearbook and research sales
Total Assets
Other income
Total revenue
Interest expense
Fee and commission expense
(finance receivables)
Cost of sales
Net revenue
Release / (increase) in
allowance for expected credit
Personnel expenses
Depreciation and
amortisation
Income tax (expense) /
benefit
Net Profit After Tax
Total Liabilities
Year ended 31 Mar 2020Finance
Research and
AdvisoryEliminations Consolidated
Acquired through settlement
of transactions / balances
Other
Transfers / reallocations
between segments
Corporate and
Other Total Segments