General Capital Announces Another Profit Record

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 another profit record

General Capital, the NZSX listed financial services group, has had another strong result for
the six months to 30 September 2023. The Chairman of General Capital, Mr. Rewi Bugo
said, “The Group’s financial performance has shown growth over the past six months,
delivering record revenue, profit and total assets for the period. The point our directors are
most proud of is that we continue to grow and produce increasing profits particularly during
a flat property cycle.”
Mr. Brent King, Managing Director advised, “The details of the accounts for six months to
30 September 2023 are very positive compared to 6 months ended 30 September 2022:
Revenue Up 30%; NPAT Up 16%; Assets Up 12%; Net Assets Up 75% This is a great
performance for the Group considering the adverse market conditions.”
Mr. King further advised, “Looking forward, we are expecting the remainder of the financial
year to be strong and profitable with continued balance sheet growth. The Group is in a
strong position to take advantage of acquisition opportunities in the market as they arise.”
Authorised by the General Capital Board of Directors
ENDS

For further information contact:
Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz
28 November 2023

---

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.
Authority for this announcement
28 November 2023
Brent.King@gencap.co.nz
+64 21 632 660
Brent King
Managing Director
Brent King
Managing Director
$7,821
It is not proposed to pay a dividend for this period.
Refer to Directors' Report
$0.0547
Prior comparable period
Not applicable
Not applicable
Not applicable
Current period
$0.0625
Results for announcement to the market
Percentage change
30%
30%
16%
General Capital Limited
New Zealand Dollars ($)
6 months to 30 September 2022
6 months to 30 September 2023
$7,821
Amount (000s)
Interim/Final Dividend
16%$1,203
$1,203

Directors’ Report

The Directors of General Capital Limited (“General Capital”) are pleased to present a record result for the six
months ended 30 September 2023. General Capital's revenue was 30% higher than the prior 6-month period
ended 30 September 2022 which resulted in net profit after tax of $1,202,779 for the 6-month period ended 30
September 2023, the strongest half year results since the group listed in 2018. Total assets of General Capital
and its subsidiaries (“the Group”) grew by a further 4% since 31 March 2023. The Group is especially pleased
with the outcome considering the challenges faced by the market during the period.

1.0 Financial Performance



6 month 6 month



period ended period ended



30 Sep 30 Sep



2023 2022 Movement %
Revenue

$7,820,720 $6,029,400 30%
Net profit / (loss) after tax

$1,202,779 $1,038,687 16%
Earnings / (loss) per share*

0.33 cps 0.49 cps -33%

* Calculated as Net Profit after income tax expense divided by the weighted average number of
ordinary shares 363,574,975 for September 2023 and 212,657,496 for September 2022.





30 Sep 31 Mar 30 Sep 6-monthly 12-monthly

2023 2023 2022 increase increase
Total assets
$141,542,941 $136,087,859 $126,336,125 4% 12%
Total liabilities
$116,144,562 $111,835,089 $111,810,149 4% 4%
Net assets
$25,398,379 $24,252,770 $14,525,976 5% 75%






30 Sep 31 Mar 30 Sep 6-monthly 12-monthly

2023 2023 2022 increase increase
Net tangible assets
(NTA) per share* 6.25 cps 5.94 cps 5.47 cps 5% 14%
Net assets (NA) per
share** 6.99 cps 6.67 cps 6.83 cps 5% 2%

* 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 Group made a profit after tax of $1,202,779 for the six-month period ended 30 September 2023. This can
be broken down as follows:



30-Sep 30-Sep



2023 2022 Var % Change

Finance Segment
$1,225,132 $1,457,647 ($232,515)
-16%

Research and Advisory Segment
$93,884 ($247,504) $341,388
138%

Corporate and Other Segment
($137,094) ($113,453) ($23,641)
-21%

Group Eliminations
$20,857 ($58,003) $78,860
136%

Group $1,202,779 $1,038,687 $164,092
16%

2.0 Segment Performance and Outlook

Finance Segment
General Finance Limited (“General Finance”), a wholly owned subsidiary of General Capital and a non-bank
deposit taker licensed by the Reserve Bank of New Zealand, had a healthy six months despite market
challenges. Secured term deposits grew by 4% during the period. This growth is partially attributed to the
Group’s active investing in advertising & marketing as well as updated Product Disclosure Statement in August
2023 introducing shorter term deposits, starting at 3 months. During the period General Finance also saw
growth in investors from non-Auckland regions, as well as increasing diversity of the age of the investors.

New lending was stagnant throughout most of the period in a depressed property market environment, which
together with repayments on loan maturities reduced the loan book size from 31 March 2023, however
General Finance experienced strong growth in the month of September 2023 as the property market
stabilised. General Finance is pleased with the current confidence of the market and will carry on focusing on
quality lending with prudent loan-to-value ratios to limit loan write off risk.

General Finance found it difficult to pass on increasing costs, driven by inflation and the higher Official Cash
Rate, to borrowers in a competitive market. As a result, General Finance experienced pressure on net interest
margin which required active management of overheads to sustain earnings.

Research and Advisory Segment (“IRG”)
During the six months ended 30 September 2023 IRG outperformed the prior comparative period primarily
due to the inclusion of goodwill impairment expense of $250,154 in the September 2022 period which pushed
the segment into a loss.

IRG cash generating unit exceeded its forecast cashflows for the six months ended 30 September 2023. The
General Capital Board (“the Board”) has reviewed the assumptions made for the 31 March 2023 Annual Report
1.0
0.1
1.1
8.8
15.2
23.9
9.4
41.8
51.2
9.5
58.6
68.2
13.5
89.4
102.9
24.3
111.8
136.1
25.4
116.1
141.5
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Equity ($mil)Total Liabilities ($mil)Total Assets ($mil)
General Capital Consolidated Balance Sheet
Mykco - 31 March 2018GCL - 31 March 2019GCL - 31 March 2020
GCL - 31 March 2021GCL - 31 March 2022GCL - 31 March 2023
GCL - 30 September 2023 (unaudited)

impairment analysis and have compared it with the segment performance to date and any expected changes
to the forecast cashflows or discount rate. The Board's assessment is that the recoverable amount continues
to support the existing carrying value of goodwill.

Corporate and Other Segment
The corporate and other segment comprises the overheads of running the listed parent company. The increase
in overheads is primarily driven by the Group's growth and inflation.

A material amount of funding has been retained at the parent company level from the last capital raise
completed on 17 February 2023. These funds remain available for any potential acquisitions. This contributes
towards lower earnings per share in September 2023 compared to the September 2022 period.

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). General Finance has maintained
its credit rating of BB with a Stable Outlook during the period. According to Equifax's criteria, this rating is
classified as "Near Prime” and has a low to moderate risk level. General Finance is pleased to maintain its rating
while the sector overall was downgraded. This is a strong endorsement of General Finance's performance.

4.0 Staff and Directors
During the six months ended 30 September 2023 two Directors resigned. Huei Min (Lyn) Lim as a non-
executive director of the General Capital Board effective 31 May 2023 and Simon McArley as a non-executive
director of General Capital Board effective 17 July 2023. Both Lyn and Simon have made significant
contribution over the years. The Board is in the process of reviewing the Board composition and considering
possible candidates.

The Group has increased staff numbers and experience in line with its growth requirements. Staff have
performed well, and the Board is very pleased with the progress and outcomes.

5.0 Deposit Taker Act (“the Act”)
The Act was given Royal assent in July 2023. This has the potential to be very positive for General Finance, our
100% owned RBNZ licenced Non-Bank Deposit Taker. This may include being part of the Deposit Compensation
Scheme. There is considerable work to be completed, however we are focused on this legislation and
opportunities that it offers. We will update investors as matters develop.

6.0 Summary
We have had another record 6-month period for the Group. We currently expect the remainder of the financial
year to be strong and profitable with continued balance sheet growth. The Group is in a strong position to take
advantage of opportunities in the market as they arise, including acquisitions.

The Directors thank General Capital's shareholders and General Finance's secured term deposit investors for
their support of the Group. We also thank our staff for their significant contributions. We look forward to the
opportunities that this market will offer.





Rewi Hamid Bugo Brent Douglas King
Chairman Managing Director

Unaudited Unaudited
SepSep
20232022
$$
Interest income
6,279,766 4,604,177
Interest expense
(3,594,408) (2,235,129)
Net interest income
2,685,358 2,369,048
Fee and commission income
1,427,927 1,407,775
Fee and commission expense
(372,795) (343,309)
Net fee and commission income
1,055,132 1,064,466
Revenue from contracts with customers
92,682 2,234
Cost of sales
(11,321) (185)
Gross profit from contracts with customers
81,361 2,049
Other income
20,345 15,214
Net revenue
3,842,196 3,450,777
(Increase) / release in allowance for expected credit losses
11,977 (183,658)
Personnel expenses
(789,685) (550,406)
Occupancy expenses
(60,000) -
Depreciation
(5,249) (77,107)
Amortisation and Impairment of intangible assets
- (250,663)
Other expenses
(1,435,382) (849,040)
(2,278,339) (1,910,874)
Net profit before income tax expense
1,563,857 1,539,903
Income tax (expense) / benefit (361,078) (501,216)
Net profit after income tax expense
1,202,779 1,038,687
Other comprehensive income
Items that will not be reclassified to profit or loss
(14,227) (37,205)
(43,273) -
Other comprehensive income for the period (net of tax)
(57,500) (37,205)
Total comprehensive income
1,145,279 1,001,482
Earnings per share (cents per share) 0.33 0.49
Diluted earnings per share (cents per share) 0.33 0.49
The accompanying notes are an integral part of these financial statements.
GENERAL CAPITAL LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Changes in the fair value of equity investments at fair value through
other comprehensive income
Income tax on these items

GENERAL CAPITAL LIMITED
Unaudited Audited Unaudited
SepMarSep
202320232022
$$$
Equity
Share capital 21,561,120 21,561,120 13,017,376
Accumulated (losses) / earnings 3,951,014 3,011,160 1,791,603
Reserves (113,755) (319,510) (283,003)
Total equity
25,398,379 24,252,770 14,525,976

Assets
Cash and cash equivalents 21,491,409 14,072,194 17,239,983
Accounts receivables 7,171 46,213 382
Related party receivables 17,464 725 68
Other current assets 487,419 347,467 338,674
Bank deposits 12,373,503 9,937,974 4,356,210
Loan receivables 104,272,597 108,771,965 101,156,540
Property, plant and equipment 40,209 33,732 24,174
Right of use assets - - 73,375
Investments
143,637
214,730
250,909
Income tax receivable
40,330
-
-
Deferred tax asset 168,444 313,454 249,193
Intangible assets and goodwill 2,500,758 2,349,405 2,646,617
Total assets
141,542,941 136,087,859 126,336,125
Liabilities
Accounts payable and other payables 1,187,109 816,766 585,849
Related party payables 219,965 117,410 37,448
Term deposits 114,737,488 109,886,032 110,470,674
Lease liability - - 104,608
Income tax payable - 1,014,881 611,570
Total liabilities
116,144,562 111,835,089 111,810,149
Net assets
25,398,379 24,252,770 14,525,976
6.25 5.94 5.47
6.99 6.67 6.83
The accompanying notes are an integral part of these financial statements.
AS AT 30 SEPTEMBER 2023
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Net assets (NA) per share (cents per share)
Net tangible assets (NTA) per share (cents per share)

GENERAL CAPITAL LIMITED
Note$$$$
13,025,575 (245,798) 752,916 13,532,693
- - 1,038,687 1,038,687
- (37,205) - (37,205)
- (37,205) 1,038,687 1,001,482
(8,199) - - (8,199)
(8,199) - - (8,199)
13,017,376 (283,003) 1,791,603 14,525,976
21,561,120 (319,510) 3,011,160 24,252,770
- - 1,202,779 1,202,779
- (57,500) - (57,500)
- (57,500) 1,202,779 1,145,279
- (16,908) 17,238 330
- (16,908) 17,238 330
- 280,163 (280,163) -
21,561,120 (113,755) 3,951,014 25,398,379
The accompanying notes are an integral part of these financial statements.
Total transactions with owners in
their capacity as owners
Balance at 30 September 2023
(Unaudited)
Share based payments
Fair Value of Equity Investments
Released to Retained Earnings
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 2022
(Unaudited)
Profit for the period
Accumulated
(losses) /
earnings
Share capital ReservesTotal equity
Total equity as at 1 April 2023
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Total equity as at 1 April 2022
Profit for the period
Contributions of equity net of
transaction costs
Other comprehensive income for
the period
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

GENERAL CAPITAL LIMITED
Unaudited Unaudited
SepSep
20232022
$$
Cash flows from operating activities
Interest received
6,624,594 4,377,840
Receipts from customers
1,789,954 920,201
Other income
2,345 1,910
Payments to suppliers and employees
(2,595,723) (1,876,578)
Interest paid
(3,154,218) (2,005,584)
Interest paid - lease
- (3,647)
Income tax paid
(1,271,279) (527,247)
Net cash flows from operating activities before changes in
1,395,673 886,895
operating assets and liabilities
Term deposits (net receipts)
4,427,467 22,212,584
Finance receivables (net advances) / net repayments
4,035,737 (20,538,426)
Net cash flows from operating activities
9,858,877 2,561,053
Cash flows from investing activities
Purchase of intangible assets
(6,000) -
Investments in bank deposits
(2,435,529) (1,906,210)
Proceeds from the sale of equity investments
13,593 -
Purchase of property, plant and equipment
(11,726) 1,525
Net cash flows from / (applied to) investing activities
(2,439,662) (1,904,685)
Cash flows from financing activities
Issue of ordinary shares/ (Capital raising costs)
- (8,199)
Lease payments
- (69,756)
Net cash flows from financing activities
- (77,955)
Reconciliation of cash and cash equivalents
14,072,194 16,661,570
7,419,215 578,413
21,491,409 17,239,983

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
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023

NOTE 1: ABOUT THESE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS
2.2 Applicability of the going concern basis of accounting
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.
Thefinancialstatementshavebeenpreparedonthesamebasisandshouldbereadinconjunctionwiththeconsolidatedfinancialstatements
for the year ended 31 March 2023.
GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
There are a number of significant accounting treatments which include complex or subjective judgments and estimates that may affect the
reported amounts of assets in these interim condensed consolidated financial statements. Estimates and judgments are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.
2.1 Increased level of inherent uncertainty
International economies are being strongly influenced by significant geopolitical events including conflicts between Russia and Ukraine and in
the Middle East as well as uncertainty in the South China sea. These events have caused impacts on markets, particularly commodities
including oil, grain etc. These pressures have contributed to cost tensions and an increase in inflation. The New Zealand market has been
affected by inflation in costs and the RBNZ’s response was to increase interest rates. High interest rates played a significant part in a slowing
down of the New Zealand property market. In September 2023 there were signs of a property market recovery, however the future of
property values is still uncertain. There are continuing signs that the level of economic activity is under pressure, and it is likely that some
sectors will face business failure and staff will face layoffs. As a result of international and domestic economic environments there has been
an increase of inherent uncertainty in the critical accounting estimates and judgements applied by management in the preparation of these
financial statements
All reasonably known and available information with respect to the current adverse macro and micro economic conditions and adverse global
events has been taken into consideration in the critical accounting estimates and judgements applied by Management, and all reasonably
determinable adjustments have been made in preparing these financial statements.
As a result of the above, the Group anticipates that lower levels of economic activity and confidence will continue for at least the short to
medium term and may result in increased business failures and unemployment levels in New Zealand.
Consequently, the Group has concluded that there has been an increase in the level of inherent uncertainty in the significant accounting
estimates and judgements applied by Management in the preparation of these financial statements (refer note 2.2 and 2.3).
These financial statements have been prepared based upon conditions existing as at 30 September 2023 and consider those events occurring
subsequent to that date that provide evidence of conditions that existed at the end of the reporting period. As the above events occurred
before 30 September 2023, its impacts are considered an event that is indicative of conditions that arose prior to reporting period.
Accordingly, as at the date of the release of these financial statements with the six monthly announcement, all reasonably known and
available information with respect to the current adverse macro and micro economic conditions, adverse global events, recovery of the
property market, high interest rates have been taken into consideration in the critical accounting estimates and judgements applied by
Management (refer note 2.2 and 2.3 below) and all reasonably determinable adjustments have been made in preparing these financial
statements.
Whilsttheabove-statedfactorshaveloweredoveralleconomicactivityandconfidence,Managementhaveassessedanddeterminedthatthe
Group’s application of the going concern basis of accounting remains appropriate.
The Group has responded to the above economic conditions in the following ways:
-UndertookananalysisofitsforecastcashflowstoevaluateoftheappropriatenessoftheGroup’scontinuedapplicationofthegoingconcern
basisofaccounting.ThisforecastcashflowstookintoconsiderationtheGroup’sexpectationoftheimpactoftheabove-statedfactorsonits
earnings, cash flow and financial position.
- Assessed the direct and indirect financial impacts on the carrying value of reported amounts of assets, liabilities, revenues and expenses.
- Implemented and enacted appropriate health and safety responses.

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTE 2: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
Cashflow forecast and going concern
2.3 Allowance for expected credit losses
6) The Group expected the research and advisory cash generating unit ("CGU") to continue generating positive cash flows. For the six months
ended 30 September 2023 the research and advisory CGU has generated positive cash flows.
Significant increase in credit risk
Expected creditlosses (‘ECL’)are measuredas anallowance equal to 12-monthECL, or lifetime ECL for assets with a significant increase in
credit risk or in default or otherwise credit impaired. In assessing whether the credit risk of an asset has increased significantly, the Group
considersitshistoricallossexperienceandadjustthisforcurrentobservabledata.Thisdataincludesanypaymentdefaultsbytheborrower,
known or expected defaults by the borrower on similar obligations (other loans), uninsured deterioration of the security property and any
changesintheborrowerscircumstanceswhichcouldimpactontheirabilityto repayeitherinterestor principal amounts ontheirduedate.
The Group also considers changes or forecast changes to macroeconomic factors including property prices, unemployment, interest rates,
gross domestic product and inflation.
Based on the current economic conditions in New Zealand, the Group currently expects the following trends:
1. Term deposit reinvestment rates to improve to an average rate of 70-80%.
2. Total term deposits to continue growing.
3. Property values to remain stable.Management will continue to consider loans up to historic loan to valuation ratios. Managementhave
performed a sensitivity analysis, factoring in a 25% drop in property values described further in note 2.3.
4.A gradual reduction of the netinterest margin(the differencebetween loanand depositinterest rates) plateauing inthe firsthalf of the
2024 calendar year.
5. The research and advisory CGU to continue generating positive cashflows.
During the reporting period General Finance Limited (the subsidiary of the Company) has maintained its Credit Rating for BB with a stable
outlook.
Accordingly,Managementhaveassessedanddeterminedbasedonforecastspreparedforgreaterthan12monthsfromthedateofsigning,
that the Group’s application of the going concern basis of accounting remains appropriate.
The Group has performed consistently with the expected trends assumed in preparing the 31 March 2023 financial statements going concern
consideration. These are detailed further below:
1) The Group expected term deposit reinvestment rates to be at a rate of 65-75%. The actual average reinvestment rate was marginally
higher, at 76% for the six months ended 30 September 2023.
2) The Group expected total term deposit investments to continue growing. Total term deposits increased by $4.9m during the period. Actual
new term deposit investments were at an average of $2.4m per month for the six months ended 30 September 2023 (March 23 full year:
$4.2m per month).
3) The Group expected that some loans would take longer to collect. Management have increased default penalty interest rates and will
target loans with lower loan to valuation ratios.
Loans in arrears decreased to $6.5m as at 30 September 2023 from $13.5m as at 31 March 2023. These loan arrears include $2.7m of loans
past due greater than 90 days (March 2023: $4.1m). A total of $2.5m of arrears has been cleared after 30 September 2023. There was one
loan write-off of $330k in the 6 months ended 30 September 2023 (March 2023: $Nil), recovery actions are continuing to collect some or all
of the write off.
4) The Group expected property values to continue to reduce. The September 2023 monthly property report dated 11 October 2023
published by the Real Estate Institute of New Zealand (REINZ) showed that the median price for residential property had reduced by 3.1%
nationally from September 2022 to September 2023, and the REINZ House Price Index dropped by 3.3% nationally year on year. As at 30
September 2023 Management have performed sensitivity analysis, factoring in a 25% drop in property values (as described further in the
note).
5) The Group expected gradual reduction of the net interest margin (the difference between loan and deposit interest rates) plateauing in the
second half the financial year ended 31 March 2024. For the six months ended 30 September 2023 the company experienced a gradual
decrease in the net interest margin due to a higher level of increases in interest rates paid on term deposits compared to the interest rates
earned from loans.

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTE 2: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
Calculation of loss allowance
When measuring ECL the Group uses reasonable and supportable forward looking information, which is based on assumptions for the future
movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on
default. It is based on the difference between the contractual cash flows due and those that the Group would expect to receive, taking into
account cash flows from collateral and integral credit enhancements. Probability of default is an estimate of the likelihood of default over a
given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.
The ECL is calculated on an individual loan basis though a combination of the assessed lifetime credit default and probability default (referred
to as expected loss factor) to the loan balance. The expected loss factor is determined from the Group historical loss experience data.
Historical loss experience data is reviewed by management and adjustments made to reflect current and forward looking economic and credit
conditions. In addition, management recognise that a certain level of imprecision exists in any model used to generate risk grading and
provisioning levels. As such an adjustment is applied for model risk.
Ininstances where theprobability of defaulthasincreasedsignificantly(a significantincrease increditrisk),or wherethe loanis indefault,
theexpectedcreditloss(orlossgivendefault)maynotincreasesignificantlyduetotheGroup’slendingcriteriawhichprohibitslendingwhen
the loanto valuation ratio (LVR) exceeds 75%.This means ingeneral thatthe Groupexpects thatthe presentvalue ofexpected cashflows
fromaloanindefaultto approximatethecarryingvalueoftheloanpriortothedefaultevent,exceptincaseswheretheLVRhasincreased
considerably due to a reduction in the security property valuation or a significant increase in the loan balance.
Management regularly reviews and adjusts its ECL estimates, judgements, assumptions, and methodologies as data becomes available.
Changes in these estimates, judgements, assumptions, and methodologies could have a direct impact on the level of credit provision and
credit impairment charge recorded in the financial statements.
If the 12-month ECL rate for loans without a significant increase in credit risk increased/(decreased) by 0.2% higher/(lower) as at 30
September 2023, the loss allowance on loan receivables would have been $198,529 higher/(lower) (March 2023: $202,057 higher/(lower)).
If the lifetime ECL rate for loans with a significant increase in credit risk and credit impaired loans increased/(decreased) by 1.0%
higher/(lower) as at 30 September 2023, the loss allowance on loan receivables would have been $64,508 higher/(lower) (March 2023:
$94,777 higher/(lower)).
The events described in note 2.1 have impacted negatively on some borrowers’ ability to make their payments as they fell due, this included:

1) Lending insƟtuƟons increasing their processing Ɵmes

2) DifficulƟes in markeƟng properƟes

3) DifficulƟes in proving borrowers future income

4) Delays in supply chains

5) Delays in the council approvals

6) DifficulƟes in transferring funds from overseas jurisdicƟons to New Zealand (primarily China)

7) The availability of funding for potenƟal purchasers of the properƟes the Group has security over
Thehighestloantovaluationratio(LVR)oftheGroup'sloanbookasat30September2023was66.1%(March2023:67.2%)andtheweighted
averageLVRoftheloanbookwas53.3%(March2023:54.2%),basedonloansecurityvaluationsonoriginationoftheloan(the30September
2023 LVR calculation excludes 1 loan for $235,257 secured by caveat).
AccordingtoasensitivityanalysisperformedonthepropertysecurityvaluationsunderlyingtheGroup’sloanreceivablesasat30September
2023 (factoring in selling costs and time value of money):
1) A 25% drop in residential property values would result in losses of $0 – $50,000 (March 2023: $Nil).
2) A 25% drop in commercial property values would result in no loan losses (March 2023: $Nil).
Theabovesensitivityanalysisfactorsintheexpectedsellingcostsofthepropertyaswellasthetimevalueofmoneyovertheexpectedtime
to sell (or to refinance)the property (expected to be no greater thansix-months basedon theGroup’s experience).The sensitivityanalysis
doesnotfactorinpotentialincreasesinunderlyingsecurityvaluesincetheoriginationoftheloan(Thesensitivityanalysiscalculationfor30
September 2023 excludes 1 loan secured by caveat).

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTE 2: SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
2.4 Impairment analysis of goodwill and other indefinite life intangible assets
Impact of increased level of inherent uncertainty, as described in note 2.1, on impairment analysis of goodwill and other indefinite life
intangible assets
Whencompleting the impairmentanalysis of goodwill andother indefinite lifeintangible assets, the Grouphas taken into consideration all
reasonably known and available information with respect to the increased level of inherent uncertainty (as described in notes 2.1 and 2.2).
Expected impact on cash-generating units ("CGU")
1.FinanceCGU-TheforecastedcashflowsusedintheimpairmentanalysisdoneonCGUasat31March2023factoredineventsthatgave
riseto anincreasedlevelofinherentuncertainty.Theresultsofthemodelshowedthattherewasstillsignificantheadroomintheunit.The
Group believes that this remains true for Finance CGU as it performed materially inline with the forecast for the six months ended 30
September 2023 and therefore the Group can rely on the result and does not need to impairment test as at 30 September 2023.
2.ResearchandAdvisoryCGU-Fortheyearended31March2023theGrouphasnotachieveditsforecastcashflows.Thistogetherwiththe
increasedlevelofinherentuncertaintyhasresultedintheGroupperforminganimpairmenttestasat30September2022and31March2023
which has resulted in a total impairment of $537,141 for the year ended 31 March 2023.
Forthesixmonthsended30September2023ResearchandAdvisoryCGUhasachieveditsforecastcashflowsusedintheimpairmentanalysis
doneonCGUasat31March2023.TheGrouphasreviewedtheforecastsandbelievesittobeappropriate.TheGrouphasfurtherupdated
the model for an increase in interest rate. The model showed that there is still headroom in the unit.
Expected credit losses:
1)BasedonthehistoryoftheGroup’sloanbookoverthelastthreeyears,theaverageannualwrite-offsasapercentageoftheaverageloan
receivable balance over the same period was 0.15%. This would be an appropriate basis for 12-month expected credit losses in normal
economic conditions.
2) The Group recognises that New Zealand’s economic forecast for the next 12 months is uncertain due to the impacts of the events
describedinnote2.1above.Asaresult,theGrouphasconcludedthattheprobabilityofdefaulthasincreased.However,duetotheGroup’s
well-securedloanbook(asdescribedabove),theexpectedcreditlosseshaveincreasedbutnotbyamaterialamount.Assuch,theGrouphas
determinedthat0.25%(March2023:0.25%)ofthegrossloanbalanceisamoreappropriateexpectationoflossesthan0.15%forthenext12
months.
3) Lifetime ECL’s for loans with a significant increase in credit risk and for loans in default have been calculated based on the Group’s
expectations for discounted net cash flows from the respective loan receivables over the expected remaining life of the loans in light of
ongoing events as described in note 2.1.
The carrying value ofgoodwill andindefinite life intangible assets (including licences) are assessedat leastannually to ensure that it is not
impaired.WithregardtoGoodwillandLicences,performingthisanalysisrequiresmanagementtoestimatefuturecashflowstobegenerated
by the cash-generating unit, which entails making judgements, including the expected rate of growth of revenues and expenditures, assets
and liabilities, and the resulting cashflows. Judgements also need to be made about the appropriate discount rate to apply when valuing
future cash flows.
A sensitivity analysis performed by the Group has highlighted that the carrying value of the Goodwill and other assets in the research and
advisory Cash Generating Unit are highly reliant on the achievement of revenue forecasts projects.

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTE 3: SEGMENT REPORTING
$$$$$$
6,134,723 8,109 136,934 6,279,766 - 6,279,766
1,427,927 - - 1,427,927 - 1,427,927
- 61,395 - 61,395 31,081 92,476
- 206 - 206 - 206
2,345 - 345,834 348,179 (327,834) 20,345
7,564,995 69,710 482,768 8,117,473 (296,753) 7,820,720
(3,594,408) - - (3,594,408) - (3,594,408)
(372,795) - - (372,795) - (372,795)
- (9,209) - (9,209) (2,112) (11,321)
3,597,792 60,501 482,768 4,141,061 (298,865) 3,842,196
11,977 - - 11,977 - 11,977
(687,408) (10,937) (105,118) (803,463) 13,778 (789,685)
(44,417) (1,800) (60,000) (106,217) 46,217 (60,000)
(968) - (4,281) (5,249) - (5,249)
(1,174,713) (26,240) (502,267) (1,703,220) 267,838 (1,435,382)
(477,131) 72,360 51,804 (352,967) (8,111) (361,078)
1,225,132 93,884 (137,094) 1,181,922 20,857 1,202,779
134,788,486 1,039,827 5,807,666 141,635,979 (93,038) 141,542,941
116,004,303 57,164 176,300 116,237,767 (93,205) 116,144,562
Fee and commission expense
(finance receivables)
Net profit / (loss) after tax
Total Assets
Cost of sales
Net revenue
(Increase) / release in
allowance for expected credit
losses
Personnel expenses
Depreciation and amortisation
Occupancy expenses
Other expenses
Income tax (expense) / benefit
- Advisory fee revenue
- Yearbook and research sales
Other income
Total revenue
Interest expense
Eliminations
Research and
Advisory
Corporate and
Other Total Segments
ManagementhasdeterminedtheoperatingsegmentsbasedonthecomponentsoftheGroupthatengageinbusinessactivities,whichhave
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 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
Revenue - interest income
Revenue - fee income (finance
receivables)
Revenue from contracts with
customers
6 month period ended 30
September 2023Finance
Total Liabilities

GENERAL CAPITAL LIMITED
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTE 3: SEGMENT REPORTING (CONTINUED)
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
213,913 - 3,813 217,726 - 217,726
$$$$$$
4,603,120 38 1,019 4,604,177 - 4,604,177
1,407,775 - - 1,407,775 - 1,407,775
- 45,000 - 45,000 (43,151) 1,849
- 385 - 385 - 385
4,414 - 251,101 255,515 (240,301) 15,214
6,015,309 45,423 252,120 6,312,852 (283,452) 6,029,400
(2,233,808) - (1,321) (2,235,129) - (2,235,129)
(343,309) - - (343,309) - (343,309)
- (4,500) - (4,500) 4,315 (185)
3,438,192 40,923 250,799 3,729,914 (279,137) 3,450,777
(183,658) - - (183,658) - (183,658)
(467,145) - (83,261) (550,406) - (550,406)
(46,958) - (30,658) (77,616) - (77,616)
- (250,154) - (250,154) - (250,154)
(715,921) (37,243) (295,350) (1,048,514) 199,474 (849,040)
(566,863) (1,030) 45,018 (522,875) 21,659 (501,216)
1,457,647 (247,504) (113,452) 1,096,691 (58,004) 1,038,687
124,439,496 1,057,886 1,007,109 126,504,491 (168,366) 126,336,125
111,668,118 3,569 282,359 111,954,046 (143,897) 111,810,149
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
- - - - - -
NOTE 4: EVENTS SUBSEQUENT TO REPORTING DATE
Consolidated
Acquisitions
Impairment Expense -
intangible assets
Corporate and
Other
Other income
Total revenue
Net profit / (loss) after tax
Cost of sales
Net revenue
Income tax (expense) / benefit
Interest expense
Fee and commission expense
(finance receivables)
(Increase) / release in
allowance for expected credit
Eliminations
Total Assets
Other expenses
Eliminations
Revenue - interest income
Eliminations
Revenue - fee income (finance
receivables)
Revenue from contracts with
customers
- Advisory fee revenue
Total Segments
6 month period ended 30
September 2022Finance
Research and
AdvisoryConsolidated
Corporate and
Other Total Segments
$1,032,712 of the Term deposits held by related parties have been approved for early withdrawal on 2 October 2023 in compliance with the
General Finance ‘early repayment’ terms of offer criteria included in the General Finance Product Disclosure Statement.
Robert Hart resigned as a Director of General Finance Limited effective 31 October 2023.
Anton Douglas resigned as a Director of General Finance Limited effective 8 November 2023.
Consolidated
Acquisitions
6 month period ended 30
September 2023Finance
Research and
Advisory
Corporate and
Other
- Yearbook and research sales
Research and
Advisory
Personnel expenses
Depreciation and amortisation
Total Segments
Total Liabilities
6 month period ended 30
September 2022Finance