General Capital Releases A Very Strong Result for the Year

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) – General Capital releases a very strong result for the year ended 31
March 2022 despite the challenges faced in the economic environment

The Directors of General Capital Limited (GEN), the NZX listed financial Services Group, are
pleased to present a very strong result for the year ended 31 March 2022. Despite the challenges
faced in the economic environment which was impacted by the Covid-19 pandemic. All of the
financial items have experienced significant growth. The results mostly reflect the strong growth in
the Company’s finance segment activities, and future results are likely to be driven by the
performance of this sector.

Key Points for the 31 March 2022 Group financial statements are:

• Total Assets Up 51% to $102.9m
• Revenue Up 64% to $8.0m
• Net Profit after tax UP 1540% to $1.3m

For further information

Please contact

Brent King
Managing Director
General Capital
+64-21-632-660
Brent.King@GenCap.co.nz


30 May 2022

---

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
Not applicable
Not applicable
$1,341
Percentage change
$8,018
+64%
+64%
+1540%
+1540%
+64 21 632 660
Brent King
Managing Director
$1,341
Refer to Directors' Report
Authority for this announcement
Results for announcement to the market
12 months to 31 March 2022
12 months to 31 March 2021
Amount (000s)
$8,018
General Capital Limited
New Zealand Dollars ($)
Interim/Final Dividend
It is not proposed to pay dividends.
Brent.King@gencap.co.nz
Victor Pliev
Chief Financial Officer
30/05/2022
Not applicable
Current periodPrior comparable period
$0.0493 $0.0397

DIRECTORS' REPORT
BACKGROUND
FINANCIAL PERFORMANCE
Year endedYear ended
31 Mar 202231 Mar 2021Var% Change
Revenue
$8,018,249$4,880,304$3,137,945
+64%
Net profit / (loss) after tax
$1,340,663$81,766$1,258,897
+1540%
Earnings / (loss) per share*
0.78 cps0.05 cps0.73 cps
+1460%
* Calculated as Net Profit after income tax expense divided by the weighted average number of ordinary shares
31 Mar31 Mar
20222021Var% Change
Total assets
$102,904,694$68,164,239$34,740,455
+51%
Total liabilities
$89,371,673$58,638,946$30,732,727
+52%
Total equity
$13,533,021$9,525,293$4,007,728
+42%
Net tangible assets (NTA) per share*4.93 cps3.97 cps0.95 cps
+24%
Net assets (NA) per share**6.36 cps5.85 cps0.52 cps
+9%
31 Mar31 Mar
20222021Var% Change
Finance Segment
$1,536,878$223,429$1,313,450
+588%
Research and Advisory Segment
$177,643$191,879($14,236)
-7%
Corporate and Other Segment
($332,806)($284,738)($48,069)
-17%
Group Eliminations
($41,050)($48,804)$7,754
+16%
Group$1,340,665$81,766$1,258,899
1540%
Refer to the attached financial information for detailed segmental results.
Finance Segment
TheDirectorsofGeneralCapitalLimitedarepleasedtopresentaverystrongresultfortheyearended31March2022.
DespitethechallengesfacedintheeconomicenvironmentwhichwasimpactedbytheCovid-19pandemicallofthe
financialitemshaveexperiencedsignificantgrowth.TheresultsmostlyreflectthestronggrowthintheCompany’s
finance segment activities, and future results are likely to be driven by the performance of this sector.
TheFinanceSegmenthasperformedverywellthisyear.Allfinancialindicatorsimproved.TotalAssetsandDeposit
Liabilityup52%.Cash&BankDepositsup84%,revenueup65%andNetProfitAfterTaxup588%.Thegrowthhas
allowedtheFinancesegmenttospreaditsfixedcostsoveralargerassetbase,thisbodeswellforthefuture.Figure1
below illustrates the movements in significant items on General Finance Balance Sheet during the year.
The General Capital Group Net Profit after tax was $1,340,665 for the year ended 31 March 2022. The segment
breakdown is as follows:
* Calculated as Net Assets less deferred tax , goodwill and other intangible assets divided by the total shares on issue
as at balance date.
** Calculated as Net Assets divided by the total shares on issue as at balance date.

DIRECTORS' REPORT (CONTINUED)
Research and Advisory Segment
Corporate and Other Segment
DIVIDEND POLICY
AUDIT
The Company’s policy is currently not to pay dividends and accordingly no dividends have been declared for the
period.
TheattachedfinancialinformationisintheprocessofbeingauditedbyBakerTillyStaplesRodway.Theyhave
reviewedthisrelease.Theyadvisethatasperlastyeartheyareunabletoobtainsufficientevidencetosupportthe
forecastedcashflowsandtheotherassumptionsthatunderlytheimpairmenttestingundertakenbytheGroupfor
theResearchandAdvisoryCashGenerationUnit(“CGU”).Assuchtheircurrentviewisthattheywillqualifytheaudit
onthispointalone.Thecarryingvalueofthegoodwillandotherindefinitelifeintangibleassetsallocatedtothe
ResearchandAdvisoryCGUtotalled$1.1millionasat31March2022.TheGroup’sAnnualReportfortheyearended
31 March 2022 is in the process of being completed and audited.
Thecorporateandothersegmentcomprisestheoverheadsofrunningthelistedparentcompany.Anadditional
managementfeehasbeenintroducedinthefinancialperiodtorecoverthegreatercorporateoverheadscausedby
the growth of the finance segment.
InvestmentResearchGroup("IRG")completedthelistingofGreenfernIndustriesLimitedinOctober2021.Thiswasa
significantstepforIRG.Thecannabissectorisafast-growingindustryaroundtheworld.AsaresultofthelistingIRG
hasgainedanumberofpotentialprojectopportunities.ResourcesavailabletoIRGarecurrentlylimited,howeverwe
are planning to have more availability of resource later in FY 23.
64513
99151
54459
80918
57929
88135
10248
18844
0
20000
40000
60000
80000
100000
120000
Mar 21Apr 21May 21June 21July 21Aug 21Sep 21Oct 21Nov 21Dec 21Jan 22Feb 22March
22
NZD $ 000
Month Ending
Figure 1 -General Finance Balance Sheet Movements
Total AssetsGross LoansDepositsCash - Overall

20222021
$$
Interest income
5,574,439 3,533,401
Interest expense
(2,976,011) (2,246,097)
Net interest income
2,598,428 1,287,304
Fee and commission income
1,894,291 933,176
Fee and commission expense
(500,302) (247,997)
Net fee and commission income
1,393,989 685,179
Revenue from contracts with customers
512,588 279,045
Cost of sales
(57,290) (37,696)
Gross profit from contracts with customers
455,298 241,349
Modification gain on loan receivables
- 86,489
Other income
36,931 48,193
Net revenue
4,484,646 2,348,514
Increase in allowance for expected credit losses
(66,266) (27,372)
Personnel expenses
(1,010,670) (781,919)
Occupancy expenses
1,041 (89,485)
Depreciation
(150,996) (17,085)
Amortisation of intangible assets
(5,230) (23,431)
Realised losses on bonds sold
- (190,085)
Other operating expenses
(1,363,910) (1,098,404)
(2,596,031) (2,227,781)
Profit before income tax expense
1,888,615 120,733
Income tax (expense) / benefit
(547,952) (38,967)
Net profit after income tax expense
1,340,663 81,766
Other comprehensive income
Items that will not be reclassified to profit or loss
(144,144) (11,487)
Income tax on these items
- -
Other comprehensive income / (loss) for the year, net of tax
(144,144) (11,487)
Total comprehensive income
1,196,519 70,279
Earnings per share (cents per share)*
0.78 0.05
Diluted earnings per share (cents per share)*
0.78 0.05
* Calculated as Net Profit after income tax expense divided by the weighted average number of ordinary shares
GENERAL CAPITAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
Changes in the fair value of equity investments at fair value
through other comprehensive income

GENERAL CAPITAL LIMITED
20222021
$$
Equity
Share capital
13,025,575 10,249,211
Accumulated (losses) / earnings
752,916 (594,651)
Reserves
(245,470) (129,267)
Total equity
13,533,021 9,525,293

Assets
Cash and cash equivalents
16,661,570 7,292,267
Accounts receivables
17,350 194,727
Related party receivables
- 110,868
Other current assets
229,725 94,215
Bank deposits
2,450,000 3,000,000
Loan receivables
80,027,661 53,710,781
Deferred tax asset
135,049 126,922
Property, plant and equipment
29,431 13,508
Right of use assets
146,750 293,500
288,442
401,086
Intangible assets and goodwill
2,918,716 2,926,365
Total assets
102,904,694 68,164,239
Liabilities
Accounts payable and other payables
613,442 402,750
Related party payables
13,191 10,229
Income tax payable
523,457 55,576
Lease liability
174,364 307,207
Term deposits
88,047,219 57,863,184
Total liabilities
89,371,673 58,638,946
Net assets
13,533,021 9,525,293
Net tangible assets (NTA) per share (cents per share)*
4.93 3.97
Net assets (NA) per share (cents per share)**
6.36 5.85
*Calculated as Net Assets less Intangible assets and goodwill less Deferred tax asset divided by the total shares on
issue as at balance date.
** Calculated as Net Assets divided by the total shares on issue as at balance date.
Investments
AS AT 31 MARCH 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

GENERAL CAPITAL LIMITED
$$$$
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
- - 1,340,663 1,340,663
- (144,144) - (144,144)
- (144,144) 1,340,663 1,196,519
2,776,364 - - 2,776,364
- (6,903) 6,903 0
34,844 34,844
2,776,364 27,941 6,903 2,811,208
13,025,575 (245,470) 752,916 13,533,021

Total comprehensive income for
the year
Accumulated
(losses) /
earnings
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 2021
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 2020
Share based payments
Issue of warrants to directors and
senior managers
Total transactions with owners in
their capacity as owners
Balance at 31 March 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022

GENERAL CAPITAL LIMITED
20222021
$$
Cash flow from operating activities
Interest received
5,629,044 3,329,027
Receipts from customers
2,049,602 1,055,068
Other income
5,690 7,961
Payments to suppliers and employees
(2,924,416) (2,046,491)
Interest paid
(2,710,853) (2,155,363)
Income tax paid
(88,198) (23,006)
Finance receivables (net advances)
(25,995,057) (18,407,676)
Net cash (used in) / provided by operating activities
(24,034,188) (18,240,480)
Cash flow from investing activities
Proceeds from the sale of bonds
194,018 4,334,514
Purchase of property, plant and equipment
(20,169) (10,356)
Purchase of software
- -
Investment in bank deposits
550,000 (3,000,000)
Investment in bonds
- (4,718,617)
Investment in equities
96,200 (28,184)
Net cash provided by / (used in) investing activities
820,049 (3,422,643)
Cash flow from financing activities
Issue of ordinary shares
2,776,364 73,007
Lease Payments
(146,670) -
Term deposits (net receipts)
29,953,748 16,320,142
Net cash provided by financing activities
32,583,442 16,393,149
Reconciliation of cash and cash equivalents
7,292,267 12,562,241
9,369,303 (5,269,974)
16,661,570 7,292,267

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 2022

SEGMENT REPORTING
$$$$$$
5,608,931 2 1 5,608,934 (34,495) 5,574,439
1,894,291 - - 1,894,291 - 1,894,291
- 394,900 - 394,900 112,769 507,669
- 4,919 - 4,919 - 4,919
- - - - - -
- - - - - -
5,690 2,875 281,854 290,419 (253,488) 36,931
7,508,912 402,696 281,855 8,193,463 (175,214) 8,018,249
(2,970,937) - (5,074) (2,976,011) - (2,976,011)
(500,302) - - (500,302) - (500,302)
- (46,301) - (46,301) (10,989) (57,290)
4,037,673 356,395 276,781 4,670,849 (186,203) 4,484,646
(66,266) - - (66,266) - (66,266)
- - - - - -
(811,571) (73,018) (126,081) (1,010,670) - (1,010,670)
(98,435) - (57,791) (156,226) - (156,226)
(525,588) (2,658) 3,860 (524,386) (23,566) (547,952)
1,536,878 177,643 (332,806) 1,381,715 (41,050) 1,340,663
100,708,611 1,354,605 1,086,776 103,149,992 (245,298) 102,904,694
89,394,880 49,493 172,598 89,616,971 (245,298) 89,371,673
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- 109,426 - 109,426 - 109,426
- - - - - -
- - 46,088 46,088 - 46,088
- (109,426) 109,426 - - -
- - 155,514 155,514 - 155,514
Revenue - interest income
Interest expense
Fee and commission expense
(finance receivables)
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
Corporate and
Other Total Segments Eliminations Consolidated
Cost of sales
Net revenue
Increase in allowance for
expected credit losses
Personnel expenses
Depreciation and
amortisation
Total Assets
Total Liabilities
Year ended 31 Mar 2022Finance
Research and
Advisory
Finance
Research and
Advisory
Corporate and
Other Total Segments Eliminations
Modification gain on loan
receivables
Realised losses on bonds sold
Transfers / reallocations
between segments
Year ended 31 Mar 2022
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

GENERAL CAPITAL LIMITED
SEGMENT REPORTING (CONTINUED)
$$$$$$
3,535,620 3 3 3,535,626 (2,225) 3,533,401
933,176 - - 933,176 - 933,176
- 357,642 - 357,642 (119,894) 237,748
- 41,297 - 41,297 - 41,297
- - - - - -
49,770 - - 49,770 36,719 86,489
39,996 42,382 107,819 190,197 (142,004) 48,193
4,558,562 441,324 107,822 5,107,708 (227,404) 4,880,304
(2,245,554) - (543) (2,246,097) - (2,246,097)
(257,997) - - (257,997) 10,000 (247,997)
- (48,686) - (48,686) 10,990 (37,696)
2,055,011 392,638 107,279 2,554,928 (206,414) 2,348,514
(27,372) - - (27,372) - (27,372)
(190,085) - - (190,085) - (190,085)
(649,118) (57,519) (75,282) (781,919) - (781,919)
(33,529) - (6,987) (40,516) - (40,516)
(59,587) 105 4,910 (54,572) 15,605 (38,967)
223,429 191,879 (284,738) 130,570 (48,804) 81,766
66,073,514 1,318,154 1,030,284 68,421,952 (257,713) 68,164,239
58,446,662 132,059 269,134 58,847,855 (208,909) 58,638,946
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- 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
Recognition of right of use
assets on new leases
Eliminations Consolidated
Acquired through settlement
of transactions / balances
Total Liabilities
Other
Transfers / reallocations
between segments
Corporate and
Other Total SegmentsYear ended 31 Mar 2021Finance
Research and
Advisory
- Yearbook and research
sales
Total Assets
Other income
Total revenue
Interest expense
Fee and commission expense
(finance receivables)
Cost of sales
Net revenue
Increase in allowance for
expected credit losses
Personnel expenses
Depreciation and
amortisation
Income tax (expense) /
benefit
Net Profit After Tax
- Other fee income
Year ended 31 Mar 2021Finance
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