GEN announces very strong result for the year

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
Results for announcement to the market
12 months to 31 March 2023
12 months to 31 March 2022
Amount (000s)
$13,709
General Capital Limited
New Zealand Dollars ($)
$2,258
Percentage change
$13,709
+71%
+71%
+68%
+68%
$2,258
Interim/Final Dividend
It is not proposed to pay dividends.
Not applicable
Not applicable
+64 21 632 660
Brent King
Managing Director
Refer to Directors' Report
Authority for this announcement
Brent.King@gencap.co.nz
Victor Pliev
Chief Financial Officer
29/05/2023
Not applicable
Current periodPrior comparable period
$0.0594 $0.0493

Directors’ Report
The Directors of General Capital Limited ("the Company") are pleased to present a very strong result for the year
ended 31 March 2023. This has been an outstanding year. The General Capital Group (“Group”) revenue was
71% higher than the previous year which resulted in net profit after tax of $2,258,243 for the year ended 31
March 2023, the strongest result since the Group was listed in 2018. This is also after a Goodwill Impairment of
$537,141 recognised in the year. The Group's total assets increased a further 32% since March 2022. The
Group completed a capital raise of $8,677,755. General Finance Limited Credit Rating was upgraded twice
during the year from BB- with stable outlook to BB stable.
1.0 Financial Performance
Year ended Year ended
31 Mar 2023 31 Mar 2022 Variance % Change
Revenue
$13,709,253 $8,018,249 $5,691,004
+71%
Net profit / (loss) after tax
$2,258,243 $1,340,663 $917,580
+68%
Earnings / (loss) per share*
0.98 cps 0.78 cps 0.2 cps
+26%
* Calculated as Net Profit after income tax expense divided by the weighted average number of
ordinary shares
Year ended Year ended
31 Mar 2023 31 Mar 2022 Variance % Change
Total assets
$136,087,859 $102,904,694 $33,183,165
+32%
Total liabilities
$111,835,089 $89,372,001 $22,463,088
+25%
Total equity
$24,252,770 $13,532,693 $10,720,077
+79%
Net tangible assets (NTA) per share* 5.94 cps 4.93 cps 1.01 cps +20%
Net assets (NA) per share** 6.67 cps 6.36 cps 0.31 cps +5%
* 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.
The General Capital Group Net Profit after tax was $2,258,243 for the year ended 31 March 2023. The segment
breakdown is as follows:
Year ended Year ended
31 Mar 2023 31 Mar 2022 Var % Change
Finance Segment
$3,245,321 $1,536,879 $1,708,442
+111%
Research and Advisory Segment
($473,627) $177,643 ($651,270)
-367%
Corporate and Other Segment
$2,109,515 ($332,807) $2,442,322
734%
Group Eliminations
($2,622,966) ($41,052) ($2,581,914)
-6289%
Group $2,258,243 $1,340,663 $917,580
68%
Refer to the attached financial information for detailed segmental results.

Directo rs’ Report (continued)
2.0 Segment Performance and Outlook
Finance Segment
The Finance Segment has performed very well this year. Secured term deposits grew by 25% between 31
March 2022 and 31 March 2023.The growth in term deposit funding allowed for an increase in the loan book
by 36% while still retaining strong liquidity and cash available as at 31 March 2023. The growth in loan book,
combined with an increase in the net interest margin across the year, resulted in the 88% increase in net
revenue and the segment achieving a record profit.
Research and Advisory Segment
The Research and Advisory Segment has been successful in completing 4 debt structuring and
brokerage engagements during the year ended 31 March 2023 in line with the previous year's forecast. The
anticipated brokerage works from the mandate signed in April 2022 did not eventuate. This, together with
the current economic environment, has contributed towards the downwards reforecast of the future works of
the segment. The goodwill allocated to the Research and Advisory Cash Generating Unit ("CGU") was
tested for impairment in the year ended 31 March 2023. This resulted in an impairment of $537,141 which
caused the segment to incur a loss. It is important to note that this impairment is a non-cash expense.
Corporate and Other Segment
The Corporate and Other Segment comprises the overheads of running the listed parent company. The following
were significant items in the segment for the year ended 31 March 2023.
On 19 December 2022 General Finance Limited issued a Taxable Bonus Issue to its parent Corporate Holdings
Limited for the net value of $2,474,234 - this has been eliminated on the Group level.
On 17 February 2023 the Company issued 150,917,479 shares raising $8,677,755. To date $3,000,000 has been
utilised fo r the growth of the finance segment.
Refer to the attached financial information for detailed segmental results.
3.0 General Finance Credit Rating
General Finance has a credit rating from Equifax Australasia Credit Rating 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 upgrade twice during the year from BB- Stable outlook to BB- positive outlook and BB
stable outlook. According to Equifax's criteria, this rating is classified as "Near Prime". General Finance is very
pleased with this rating as a number of participants in the financial services sector have been downgraded due
to the impacts of Pandemic, rising interest rates and reducing property values. This is a strong endorsement of
General Finance's performance.
4.0 Dividend Policy
The Company’s policy is currently not to pay dividends and accordingly no dividends have been declared for the
period. Our dividend policy is reviewed annually. Our focus has been on retaining capital to fund growth. We
will consider this again at the next full year announcement.

Directors’ Report (continued)
5.0 Audit
The attached financial information is in the process of being audited by Grant Thornton New Zealand Audit
Limited. The Group’s Annual Report for the year ended 31 March 2023 is in the process of being completed and
audited.
6.0 Summary
It has been a strong year for the Group and we have continued to focus on profitable trends and growth.
The Directors thank General Capital's shareholders and General Finance's secured term deposit investors for
their support and staff for their significant contributions, particularly during this difficult period dominated by
the impacts of economic instablility and the post pandemic economy.

20232022
Note$$
Interest income
10,618,423 5,574,439
Interest expense
(5,223,799) (2,976,011)
Net interest income
5,394,624 2,598,428
Fee and commission income
2,980,148 1,894,291
Fee and commission expense
(781,120) (500,302)
Net fee and commission income
2,199,028 1,393,989
Revenue from contracts with customers
65,626 512,588
Cost of sales
(4,006) (57,290)
Gross profit from contracts with customers
61,620 455,298
Other income
45,056 36,931
Net revenue
7,700,328 4,484,646
Increase in allowance for expected credit losses
(573,970) (66,266)
Personnel expenses
(1,218,362) (1,010,670)
Depreciation
(125,797) (150,996)
Amortisation and impairment of intangible assets
(537,779) (5,230)
Other operating expenses
(1,900,329) (1,362,869)
(4,356,237) (2,596,031)
Profit before income tax expense
3,344,091 1,888,615
Income tax (expense) / benefit (1,085,848) (547,952)
Net profit after income tax expense
2,258,243 1,340,663
Other comprehensive income
Items that will not be reclassified to profit or loss
(73,713) (144,144)
Income tax on these items
- -
Other comprehensive income / (loss) for the year, net of tax (73,713) (144,144)
Total comprehensive income
2,184,530 1,196,519
Earnings per share (cents per share) 0.98 0.78
Diluted earnings per share (cents per share) 0.98 0.78
GENERAL CAPITAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
Changes in the fair value of equity investments at fair value
through other comprehensive income

GENERAL CAPITAL LIMITED
20232022
Note$$
Equity
Share capital 21,561,120 13,025,575
Accumulated (losses) / earnings 3,011,160 752,916
Reserves (319,510) (245,798)
Total equity
24,252,770 13,532,693

Assets
Cash and cash equivalents 14,072,194 16,661,570
Accounts receivables 46,213 17,350
Related party receivables 725 -
Other current assets 347,467 229,725
Bank deposits 9,937,974 2,450,000
Loan receivables 108,771,965 80,027,661
Property, plant and equipment 33,732 29,431
Right of use assets - 146,750
214,730 288,442
Deferred tax asset 313,454 135,049
Intangible assets and goodwill 2,349,405 2,918,716
Total assets
136,087,859 102,904,694
Liabilities
Accounts payable and other payables 816,766 613,770
Related party payables 117,410 13,191
Term deposits 109,886,032 88,047,219
Lease liability - 174,364
Income tax payable 1,014,881 523,457
Total liabilities
111,835,089 89,372,001
Net assets
24,252,770 13,532,693
Net tangible assets (NTA) per share (cents per share) 5.94 4.93
Net assets (NA) per share (cents per share) 6.67 6.36
AS AT 31 MARCH 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Investments

GENERAL CAPITAL LIMITED
Note$$$$
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 -
- 34,516 - 34,516
2,776,364 27,613 6,903 2,810,880
13,025,575 (245,798) 752,916 13,532,693
- - 2,258,243 2,258,243
- (73,713) - (73,713)
- (73,713) 2,258,243 2,184,530
8,535,545 - - 8,535,545
8,535,545 - - 8,535,545
21,561,120 (319,510) 3,011,160 24,252,770
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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 2021
Total transactions with owners in
their capacity as owners
Balance at 31 March 2023
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 2022
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
Share based payments

GENERAL CAPITAL LIMITED
20232022
Note
$$
Cash flow from operating activities
Interest received
10,647,402 5,629,044
Receipts from customers
2,457,853 2,049,602
Other income
4,755 5,690
Payments to suppliers and employees
(3,753,310) (2,849,016)
Interest paid
(5,898,226) (2,710,853)
Income tax paid
(772,829) (88,198)
2,685,645 2,036,269
Term deposits (net receipts)
22,534,413 29,953,748
Finance receivables (net advances)
(28,665,673) (25,995,057)
Net cash (used in) / provided by operating activities
(3,445,615) 5,994,960
Cash flow from investing activities
Proceeds from the sale of bonds
- 194,018
Purchase of property, plant and equipment
(11,960) (20,169)
Investment in bank deposits
(7,487,974) 550,000
Investment in equities
- 20,800
Net cash (used in) / provided by investing activities
(7,499,934) 744,649
Cash flow from financing activities
Issue of ordinary shares
8,535,545 2,776,364
Lease payments
(179,372) (146,670)
Net cash provided by financing activities
8,356,173 2,629,694
Reconciliation of cash and cash equivalents
16,661,570 7,292,267
(2,589,376) 9,369,303
14,072,194 16,661,570

Net cash flows from operating activities before changes in
operating assets and liabilities
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 2023

SEGMENT REPORTING
$$$$$$
10,580,049
6,573 37,757
10,624,379
(5,956)
10,618,423
2,980,148 - - 2,980,148 -2,980,148
-134,256-134,256
(69,266)64,990
-
636
-636 -636
23,456 -502,506 525,962 (480,906)
45,056
-
-
2,474,234
2,474,234 (2,474,234)
-
13,583,653 141,465
3,014,497 16,739,615 (3,030,362) 13,709,253
(5,224,192)
-(5,563)
(5,229,755) 5,956 (5,223,799)
(781,120)
-
- (781,120)
-(781,120)
-(10,932)-(10,932)
6,926 (4,006)
7,578,341 130,533
3,008,934 10,717,808 (3,017,480) 7,700,328
(573,970)
-
- (573,970)
-(573,970)
(1,032,028)-(186,334)
(1,218,362)
-(1,218,362)
(93,683)-(32,752)
(126,435)
-(126,435)
-(537,141)-(537,141)-(537,141)
(1,526,579)(67,019)
(681,626)
(2,275,224)
374,895
(1,900,329)
(1,106,760)-1,293(1,105,467) 19,619 (1,085,848)
3,245,321 (473,627)
2,109,515 4,881,209 (2,622,966) 2,258,243
129,256,532
854,324
6,097,813 136,208,669 (120,810) 136,087,859
111,697,481 19,105 203,208 111,919,794 (84,705) 111,835,089
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
-
-
10,476 10,476 -10,476
-
-
10,476 10,476 -10,476
Total Segments
Other
Eliminations
ConsolidatedResearch and Advisory
Corporate and
Other
Total Assets
Total Liabilities
Year ended 31 Mar 2023Finance
Net profit / (loss) after tax
Impairment Expense -
intangible assets
Other expenses
Interest expense
Fee and commission expense
Cost of sales
Net revenue
Increase in allowance for
expected credit losses
Income tax (expense) /
benefit
Total revenue
EliminationsConsolidated
Revenue - interest income
Revenue - fee income
(finance receivables)
Revenue from contracts with
customers
- Advisory fee revenue
- Yearbook and research
Other income
Dividend income
Personnel expenses
Depreciation and
amortisation
Management has determined the operating segments based on the components of the Group that engage in business activities, which have
discrete financial information available and whose operating results are regularly reviewed by the Group's chief operating decision maker. 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.
Year ended 31 Mar 2023FinanceResearch and Advisory
Corporate and
OtherTotal Segments

SEGMENT REPORTING (CONTINUED)
$$$$$$
5,608,931 2 1 5,608,934 (34,495) 5,574,439
1,894,291 - - 1,894,291 - 1,894,291
- 394,900 - 394,900 112,769 507,669
- 4,919 - 4,919 - 4,919
5,690 2,875 281,854 290,419 (253,488) 36,931
7,508,912 402,696 281,855 8,193,463 (175,214) 8,018,249
(2,970,937) - (5,074) (2,976,011) - (2,976,011)
(500,302) - - (500,302) - (500,302)
- (46,301) - (46,301) (10,989) (57,290)
4,037,673 356,395 276,781 4,670,849 (186,203) 4,484,646
(66,266) - - (66,266) - (66,266)
(811,571) (73,018) (126,081) (1,010,670) - (1,010,670)
(98,435) - (57,791) (156,226) - (156,226)
(998,934) (103,076) (429,576) (1,531,586) 168,717 (1,362,869)
(525,588) (2,658) 3,860 (524,386) (23,566) (547,952)
1,536,879 177,643 (332,807) 1,381,715 (41,052) 1,340,663
100,708,611 1,354,605 1,086,776 103,149,992 (245,298) 102,904,694
89,394,880 49,493 172,926 89,617,299 (245,298) 89,372,001
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- 109,426 - 109,426 - 109,426
- - 46,088 46,088 - 46,088
- (109,426) 109,426 - - -
- - 155,514 155,514 - 155,514
Consolidated
Acquired through settlement
of transactions / balances
Interest expense
Fee and commission expense
Cost of sales
Net revenue
Increase in allowance for
expected credit losses
- Advisory fee revenue
- Yearbook and research
Other income
Corporate and
OtherTotal SegmentsEliminations
Personnel expenses
Depreciation and
amortisation
Income tax (expense) /
benefit
Net profit / (loss) after tax
Total Assets
Total Liabilities
Other expenses
Transfers / reallocations
between segments
Year ended 31 Mar 2022FinanceResearch and Advisory
Other
Total revenue
Total SegmentsEliminationsConsolidated
Revenue - interest income
Revenue - fee income
(finance receivables)
Research and Advisory
Corporate and
Other
Revenue from contracts with
customers
Year ended 31 Mar 2022Finance

---

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 result for the year ended 31 March 2023.
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 2023. Despite the
challenges faced in the economic environment which was impacted by the soft housing market,
increasing interest rates and global economic instability, all of the financial measures have
experienced significant growth. The results are mainly influenced by the strong growth in the
Company’s finance segment activities, and future results are likely to be driven by the
performance of this sector.
General Finance Limited, the wholly owned subsidiary of General Capital, which is a RBNZ
licensed Non-bank Deposit Taker, has had another very strong year.
There are 2 other significant matters to consider when reviewing the performance:
• There has been a write-off of $537,141 of goodwill. This is a non-cash expense.
• We have spent considerable time and energy completing two share placements which
settled in late February 2023. The proceeds of those placements had limited time to
impact the profitability of the Group in the year ended 31 March 2023.
The raising of additional capital has significantly strengthened the Balance Sheet for the future.
Key Points for the 31 March 2023 Group Financial Statements are:
Total Assets Up 32% To $136.1m
Total Equity Up 79% To $24.3m
Revenue Up 71% To $13.7m
Net Profit Before Tax Up 77% To $3.3m
Net Profit After Tax Up 68% To $2.3m
This announcement was approved by the Directors of General Capital Limited
ENDS
For further information contact:
Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz
29 May 2023