General Capital (GEN:NZ) Announces very strong growth

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


General Capital (GEN:NZ) Announces very strong growth

General Capital, the listed financial services group, has had another very strong result over the 6
months to 30 September 2021.

The Chairman of General Capital, Mr. Rewi Bugo said, “All aspects of our financial performance have
shown strong growth over the 6 months. The last 2 months of the period were dominated by the
Delta variant of Covid-19, however we continued the strong growth we had in the first 4 months of
the period. It is pleasing to see the strong support we have received from our depositors with growth
in deposit funding of over 23% in the 6 months. This has allowed us to increase our loan book and
our assets. Total assets increased from $68 million at 31 March 2021 to almost $83 million as at 30
September 2021. The point our directors are most proud of is that we have continued our growth
and the Group is now producing strong and increasing profits. We have said we will continue to focus
on profitable growth. This result shows our strategy is working.”

Mr. Brent King, Managing Director advised, “At our Shareholder meeting in September we noted that
the expected to have a full year profit of $650,000 to $850,000. The result shows that we are half-
way towards the lower number. We are “on track” and reaffirm this expectation. We will advise any
updates as and when appropriate.

The details of the accounts are all positive:

Revenue Up 61%
NPAT Up 1143%
EPS Up 1200%
Assets Up 21.4%
Net Assets Up 9.1%

This is a strong performance for the Group.

Looking forward, we are expecting a stronger performance as the increased asset base will deliver
increased income plus the Group subsidiary, Investment Research Group (IRG), has completed the
management of the successful Greenfern Industries Limited (GFI:NZ) listing.

We are in exciting times. There is significant opportunity in the market currently. We are seeking to
take advantage of this without taking additional risk.”


For further information contact:

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

25 November 2021

---

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
Unaudited financial statements accompany this announcement.
Results for announcement to the market
Percentage change
61%
61%
1143%
General Capital Limited
New Zealand Dollars ($)
6 months to 30 September 2020
6 months to 30 September 2021
$3,306
Amount (000s)
Interim/Final Dividend
1143%$357
$357
$3,306
It is not proposed to pay a dividend for this period.
Refer to Directors' Report
$0.0369
Prior comparable period
25 November 2021
Brent.King@gencap.co.nz
+64 21 632 660
Brent King
Managing Director
Jonathan Clark
Chief Financial Officer
Not applicable
Not applicable
Not applicable
Current period
$0.0430
Authority for this announcement

DIRECTORS' REPORT
BACKGROUND
FINANCIAL PERFORMANCE
6 month 6 month
period ended period ended
30 Sep30 Sep
20212020 Movement %
Revenue$3,306,236 $2,050,46161.0%
Net profit / (loss) after tax$357,436($34,283)1143%
Earnings / (loss) per share0.22 cps(0.02) cps1200%
30 Sep31 Mar 6-monthly
20212021increase
Total assets
$82,718,207 $68,164,23921.4%
Total liabilities
$72,327,308 $58,638,94623.3%
Net assets
$10,390,899 $9,525,2939.1%
30 Sep31 Mar 6-monthly
20212021increase
Net tangible assets per share
4.30 cps3.97 cps8.3%
Net assets per share
6.07 cps5.85 cps3.8%
30-Sep30-Sep
20212020Var% Change
Finance Segment
$541,588$100,130$441,458
441%
Research and Advisory Segment
$51,204$95,391($44,187)
-46%
Corporate and Other Segment
($263,062) ($148,856) ($114,206)
-77%
Group Eliminations
$27,706($80,948)$108,655
100%
Group$357,436($34,283)$391,719
1143%
SEGMENT PERFORMANCE AND OUTLOOK
Refer to note 2 of the financial statements for segmental results.
Finance - profit after tax of $541,588 (2020: $100,130 profit after tax)
TheDirectorsarepleasedtopresentastrongresultforthesixmonthsended30September2021. GeneralCapital's
revenuewas61%higherthantheprior6-monthperiod ended30September2020whichresultedinnetprofitafter
tax of $357,436 for the 6-month period ended 30 September 2021, the strongest half year results since the group
listed in 2018. The Group's total assets grew by a further 21.4% since 31 March 2021.
The Group made a profit after tax of $357,436 for the six-month period ended 30 September 2021. This can be
broken down as follows:
General Finance Limited, wholly owned subsidiary and non-bank deposit taker (NBDT) licensed by the RBNZ, had a
strong six months.Secured termdepositsgrewby 23%from $57.9 million to $71.4million between 31 March 2021
and 30 September 2021 which showed continued strong support from existing and new term deposit investors.

DIRECTORS' REPORT (CONTINUED)
Research and advisory - profit after tax of $51,204 (2020: $95,391 profit after tax)
Corporate and other - loss after tax of ($263,062) (2019: ($146,856) loss after tax)
Group eliminations - profit after tax of $27,706 (2020: ($80,948) loss after tax)
Expensesinthecorporateandothersegmentinthe6monthperiodto30September2021werehighercomparedto
the same period the prior year due to higher employee benefit costs (including $69,524 non-cash share based
payments expense for warrants issued to senior managers), consultancy costs and premises lease costs.
Asnotedabove,aportionoftheadvisoryrevenue($124,920)andassociatedcostsintheperiodended30September
2020relatedtoloanstructuringadvicegiventoacustomerthatultimatelyborrowedfromtheGroup subsequentto
30September2020.Intheresearchandadvisorysegment,therevenueandassociatedcostswererecognisedinthe
periodended30September2020astheperformanceobligationsinthecontracthadbeencompletedinaccordance
with NZ IFRS 15 Revenue from contracts with customers.
FromaGroupperspectivehowever,astheadvicegivenrelatedtoaloanoftheGroup(inthefinancesegment),the
revenueand associatedcostsarerecognisedastransactioncostsinaccordancewithNZIFRS9Financial Instruments.
Thismeansthattherevenueandcostsareessentiallyrecognisedovertheexpectedlifeoftheloanusingtheeffective
interest method. The impact of the group consolidation adjustment is a reduction in Group net profit after tax and
net assets by $80,948 in the six month period ended 30 September 2020. In the six months ended 30 September
2021, the $27,706 increase in profit on consolidation relates to the recognition of net income that was similarly
previously deferred over the life of loans at a consolidated Group level.
The research and advisory segment had a net profit after tax of $51,204 in the 6 month period to 30 September 2021
compared with $95,391 in the comparative 6-month period.
Investment Research Group (IRG, wholly owned Group subsidiary) was engaged as a NZX sponsor to provide advice in
relation to the listing of Greenfern Industries Limited. The listing was expected to be completed prior to 30 September
2021, however due to delays encountered, Greenfern industries Limited was successfully listed on the NZX during
October 2021. This has meant that revenue of $139,200 has been recogised in September 2021 for milestones
completed up to that date, with the remainder of the revenue, a further $238,200, being recognised in October 2021.
A large portion of the advisory revenue ($124,920) and associated costs in the prior period ended 30 September 2020
related to loan structuring advice given to a customer who ultimately borrowed from the Group subsequent to 30
September 2020. The revenue and associated costs were accordingly accounted for differently from a segment
perspective than from a group consolidated perspective. Refer to Group elimination below for further explanation.
Goodwill Impairment
The 31 March 2020 and 31 March 2021 Annual Reports included a qualification from the auditors on the carrying
value of intangible assets (including goodwill and licences) in the Research and Advisory cash generating unit.
The Board has reviewed the assumptions made for the 31 March 2021 Annual Report impairment analysis and have
compared it with the segment performance to date, and any expected changes to forecast cashflows. The Board's
assessment is that the recoverable amount continues to support the existing carrying value of goodwill. Directors
have considered the following in coming to this conclusion:
- Profitability in the segment was behind forecast at 30 September 2021, but due to the completion of the Greenfern
Industries Limited listing mandate in October was ahead of forecast by 25% by the end of October.
- Expectations for future new mandates, profitability and timing of cashflows.
The growth in term deposit funding combined with the growth in capital during the 6 month period allowed General
Finance to increase its loan book by 17% from $53.7 million to $62.7 million and still have strong liquidity and cash
available to lend at 30 September 2021. The growth in the loan book combined with an increase in the net interest
margin across the period resulted in General Finance's strongest half-yearly profit since it was purchased by the
Group in 2017. The business is poised for further growth in total assets and profitability.

DIRECTORS' REPORT (CONTINUED)
Group Outlook for Financial Year ending 31 March 2022
SUMMARY
Rewi Bugo Brent King
ChairmanManaging Director
The Directors thank General Capital's shareholders and General Finance's secured term deposit investors for their
supportoftheGroupandstafffortheirsignificantcontributions,particularlyduringthisdifficultperioddominatedby
the impacts of Covid-19.
Ithasbeenarecord6-monthperiodfortheGroupandwecurrentlyexpecttheremainderofthefinancialyeartobe
more profitable with continued balance sheet growth. We continue to seek opportunities for growth of the Group.
Asatthedateofthisreleaseon25November2021,termdepositfundinginthefinancesegmenthadgrowntoover
$76 million and loan receivables to over $73 million. Growth in the balance sheet is expected to continue with a
stable net interest margin for the rest of the 31 March 2022 financial year.
The research and advisory segment is also expected to generate a profit in the second half of the 31 March 2022
financial year, with the remaining $238,200 revenue from the Greenfern Industries Limited listing mandate already
recognised and received since September 2021, and further prospects currently being considered.
The Group is projecting a more profitable 6 months to 31 March 2022. Currently we reaffirm the expectations
announcedinthe2021annualmeetingofnetprofitaftertaxinarange$650,000-$850,000forthefullyearending
31March2022.TheBoardhighlightsthatthefinancialmarketscontinuetobevolatileduetouncertaininternational
events including the Covid-19 pandemic, which makes forecasting more difficult.

UnauditedUnaudited
SepSep
20212020
$$
Interest income
2,323,644 1,566,896
Interest expense
(1,317,154) (1,050,878)
Net interest income
1,006,490 516,018
Fee and commission income
757,224 420,113
Fee and commission expense
(196,024) (81,292)
Net fee and commission income
561,200 338,821
Revenue from contracts with customers
206,823 19,791
Cost of sales
(20,456) (917)
Gross profit from contracts with customers
186,367 18,874
Other income
18,545 43,661
Net revenue
1,772,602 917,374
(Increase) / release in allowance for expected credit losses
(22,401) 8,623
Personnel expenses
(511,611) (354,749)
Occupancy expenses
2,475 (51,418)
Depreciation
(75,282) (2,706)
Amortisation of intangible assets
(3,879) (11,715)
Other expenses
(632,251) (551,230)
(1,242,949) (963,195)
Loss before income tax expense
529,653 (45,821)
Income tax (expense) / benefit
(172,217) 11,538
Net loss after income tax expense
357,436 (34,283)
Other comprehensive income
Items that may be reclassified to profit or loss
- 91,158
Income tax relating to these items
- (25,524)
Items that will not be reclassified to profit or loss
- 6,753
Other comprehensive income for the period (net of tax)
- 72,387
Total comprehensive income
357,436 38,104
Earnings per share (cents per share)
0.22 (0.02)
Diluted earnings per share (cents per share)
0.22 (0.02)
The accompanying notes are an integral part of these financial statements.
GENERAL CAPITAL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2021
Changes in the fair value of equity investments at fair value through
other comprehensive income
Changes in the fair value of debt investments at fair value through other
comprehensive income
1

GENERAL CAPITAL LIMITED
UnauditedAudited
SepMar
20212021
$$
Equity
Share capital
10,687,857 10,249,211
Accumulated losses
(237,215) (594,651)
Other reserves
(59,743) (129,267)
Total equity
10,390,899 9,525,293

Assets
Cash and cash equivalents
15,059,386 7,292,267
Accounts receivables
54,036 194,727
Related party receivables
- 110,868
Other current assets
258,993 94,215
Bank deposits
950,000 3,000,000
Loan receivables
62,732,808 53,710,781
Deferred tax asset
119,598 126,922
Property, plant and equipment
19,975 13,508
Right of use assets
220,125 293,500
Investments
401,086 401,086
Intangible assets and goodwill
2,902,200 2,926,365
Total assets
82,718,207 68,164,239
Liabilities
Accounts payable and other payables
471,517 402,750
Related party payables
7,178 10,229
Income tax payable
168,985 55,576
Lease liability
241,831 307,207
Term deposits
71,437,797 57,863,184
Total liabilities
72,327,308 58,638,946
Net assets
10,390,899 9,525,293
4.30 3.97
6.07 5.85
The accompanying notes are an integral part of these financial statements.
AS AT 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Net tangible assets (NTA) per share (cents
per share)
Net assets (NA) per share (cents per share)
2

GENERAL CAPITAL LIMITED
Note$$$$
10,176,204 (117,780) (676,417) 9,382,007
- - (34,283) (34,283)
- 72,387 - 72,387
- 72,387 (34,283) 38,104
- - - -
10,176,204 (45,393) (710,700) 9,420,111
10,249,211 (129,267) (594,651) 9,525,293
- - 357,436 357,436
- - - -
- - 357,436 357,436
438,646 - - 438,646
- 69,524 - 69,524
438,646 69,524 - 508,170
10,687,857 (59,743) (237,215) 10,390,899
The accompanying notes are an integral part of these financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2021
Accumulated
losses
Share capital ReservesTotal equity
Total equity as at 1 April 2021
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Total equity as at 1 April 2020
Loss for the period
Other comprehensive income for
the period
Contributions of equity net of
transaction costs
Issue of warrants to senior
managers
Total transactions with owners in
their capacity as owners
Balance at 30 September 2020
(Unaudited)
Profit for the period
Other comprehensive income for
the period
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Total transactions with owners in
their capacity as owners
Balance at 30 September 2021
(Unaudited)
3

GENERAL CAPITAL LIMITED
UnauditedUnaudited
SepSep
20212020
$$
Cash flows from operating activities
Interest received
2,148,381 1,552,848
Receipts from customers
966,627 592,877
Other income
2,345 4,180
Payments to suppliers and employees
(1,387,464) (939,621)
Interest paid
(1,183,667) (1,004,519)
Interest paid - lease
(7,959) -
Income tax paid
(51,484) (18,139)
Net cash flows from operating activities before changes in
operating assets and liabilities
486,779 187,626
Term deposits (net receipts)
13,457,059 3,508,239
Finance receivables (net advances) / net repayments
(8,785,633) 2,700,963
Net cash flows from operating activities
5,158,205 6,396,828
Cash flows from investing activities
Proceeds from the sale of bonds
194,018 -
Maturity of bank deposits
3,000,000 -
Investments in bank deposits
(950,000) (3,000,000)
Investments in listed bonds
- (4,718,617)
Purchase of property, plant and equipment
(8,374) (2,372)
Net cash flows from / (applied to) investing activities
2,235,644 (7,720,989)
Cash flows from financing activities
Issue of ordinary shares
438,646 -
Lease payments
(65,376) -
Net cash flows from financing activities
373,270 -
Reconciliation of cash and cash equivalents
7,292,267 12,562,241
7,767,119 (1,324,161)
15,059,386 11,238,080

The accompanying notes are an integral part of these financial statements.
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
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2021
4

NOTE 1: ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SEGMENT REPORTING
$$$$$$
2,348,353 2 1 2,348,356 (24,712) 2,323,644
757,224 - - 757,224 - 757,224
- 146,700 - 146,700 57,860 204,560
- 2,263 - 2,263 - 2,263
2,345 - 62,951 65,296 (46,751) 18,545
3,107,922 148,965 62,952 3,319,839 (13,603) 3,306,236
(1,314,233) - (7,959) (1,322,192) 5,038 (1,317,154)
(196,024) - - (196,024) - (196,024)
- (14,670) - (14,670) (5,786) (20,456)
1,597,665 134,295 54,993 1,786,953 (14,351) 1,772,602
(22,401) - - (22,401) - (22,401)
(365,038) (34,717) (111,857) (511,612) - (511,612)
(50,636) - (74,973) (125,609) 46,448 (79,161)
(210,617) (20,475) 69,650 (161,442) (10,775) (172,217)
541,588 51,204 (263,062) 329,730 27,706 357,436
80,567,015 1,330,455 1,205,486 83,102,956 (384,749) 82,718,207
72,098,576 49,617 551,442 72,699,635 (372,327) 72,327,308 Total Liabilities
Consolidated
Revenue - interest income
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
6 month period ended 30
September 2021Finance
Research and
Advisory
Corporate and
Other Total Segments
GENERAL CAPITAL LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2021
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 residential 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 .
The notes to the financial statements include information that is considered relevant and material to assist the reader in understanding
changes in General Capital Limited ('the Company') and its subsidiaries (together "the Group") financial position or performance.
The financial statements have been prepared on the same basis and should be read in conjunction with the consolidated financial
statements for the year ended 31 March 2021.
- Advisory fee revenue
- Yearbook and research sales
Other income
Total revenue
Interest expense
Eliminations
Fee and commission expense
(finance receivables)
Cost of sales
Net revenue
(Increase) / release in
allowance for expected credit
Personnel expenses
Depreciation and
amortisation
Income tax (expense) /
benefit
Net profit / (loss) after tax
Total Assets
5

GENERAL CAPITAL LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2021
NOTE 2: SEGMENT REPORTING (CONTINUED)
Acquisition of property, plant and equipment, intangible assets, and other non-current assets*:
$$$$$$
- - 8,374 8,374 - 8,374
*excludes non-current financial instruments
$$$$$$
1,566,895 - 1 1,566,896 - 1,566,896
420,113 - - 420,113 - 420,113
- 185,565 - 185,565 (171,158) 14,407
- 5,384 - 5,384 - 5,384
36,216 4,355 3,090 43,661 - 43,661
2,023,224 195,304 3,091 2,221,619 (171,158) 2,050,461
(1,050,878) - - (1,050,878) - (1,050,878)
(91,292) - - (91,292) 10,000 (81,292)
- (13,409) - (13,409) 12,492 (917)
881,054 181,895 3,091 1,066,040 (148,666) 917,374
8,623 - - 8,623 - 8,623
(298,626) (21,434) (34,689) (354,749) - (354,749)
(13,471) - (950) (14,421) - (14,421)
(39,289) (37,255) 56,602 (19,942) 31,480 11,538
100,130 95,391 (148,856) 46,665 (80,948) (34,283)
52,808,972 1,452,237 833,639 55,094,848 (107,519) 54,987,329
45,239,788 209,434 144,567 45,593,789 (26,571) 45,567,218
Acquisition of property, plant and equipment, intangible assets, and other non-current assets*:
$$$$$$
- - 77,372 77,372 - 77,372
*excludes non-current financial instruments
NOTE 3: EVENTS SUBSEQUENT TO REPORTING DATE
-the operations, in financial years subsequent to reporting date, of the Group, or
-the results of those operations, or
-the state of affairs, in financial years subsequent to reporting date, of the Group.
Total Segments Eliminations Consolidated
Acquisitions
6 month period ended 30
September 2021Finance
Research and
Advisory
Corporate and
Other
6 month period ended 30
September 2020Finance
Research and
AdvisoryConsolidated
Corporate and
Other Total Segments
There has been no matter or circumstance which has arisen since reporting date that has significantly affected or may significantly affect:
Eliminations
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
- Advisory fee revenue
- Yearbook and research sales
Research and
Advisory
Personnel expenses
Depreciation and
amortisation
Eliminations Consolidated
Acquisitions
Cost of sales
Net revenue
Total Segments
Total Liabilities
6 month period ended 30
September 2020Finance
Interest expense
Fee and commission expense
(finance receivables)
(Increase) / release in
allowance for expected credit
Income tax (expense) /
benefit
Net profit / (loss) after tax
Total Assets
Corporate and
Other
Other income
Total revenue
Revenue - interest income
6