General Capital Announces Record Full Year Result

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 Record result for the year ended 31 March 2024
The Directors of General Capital Limited (GEN), the NZX listed Financial Services Group, are pleased to
present another record financial result for the year ended 31 March 2024. This year, we have achieved
significant milestones and delivered a strong financial performance, with a 25% increase in revenue
to $17.17 million and a 17% rise in Net Profit After Tax to $2.63 million. These results reflect our
dedicated efforts and strategic initiatives in a challenging and dynamic market environment.

Our total assets have grown by 20%, reaching $163.33 million, underscoring our solid financial
foundation. Despite the prevailing headwinds faced by the New Zealand economy, our commitment
to prudent financial management has enabled us to maintain stability and foster growth. We recognise
the vital role of our stakeholders, whose unwavering support and trust have been instrumental in
achieving these results.

As previously announced, Equifax reaffirmed the credit rating of General Finance Limited, a wholly
owned subsidiary of General Capital, as BB with a Stable Outlook on 6 December 2023. This
reaffirmation reflects our robust financial health and our ability to navigate through regulatory and
market changes effectively.

Key Financial Highlights

FY24 (31 Mar 2024) FY23 (31 Mar 2023) Change
Revenue $17,171,443 $13,709,253 +25%
Net Profit After Tax $2,633,161 $2,258,243 +17%
Total Assets $163,330,631 $136,087,859 +20%
Total Equity $26,811,417 $24,252,770 +11%
Net Tangible Assets (NTA) per
Share
6.65 cps 5.94 cps +12%

Strong Management of Arrears, Net Interest Margin and Costs
The wholly owned subsidiary General Finance, through prudent financial management, was able to
successfully navigate a challenging economic environment to effectively manage and reduce both its
credit losses and arrears, whilst maintaining a stable cost to income ratio and a healthy Net Interest
Margin (NIM).
FY24 (31 Mar 2024) FY23 (31 Mar 2023) Change
NIM (%) 2.90% 4.48% -35%
Credit Losses (%) 0.35% 0.70% -50%
Arrears (%) 0.74% 11.61% -94%
Cost to Income Ratio (%) 56.25% 56.57% -1%

Rewi Bugo, Chairman, said “This is an outstanding result for the business in light of the economic
environment. The General Capital management team continues to focus on growing the business

organically whilst navigating the economic headwinds and regulatory changes. We are also in a
position to leverage any suitable inorganic opportunities as they present themselves.”
Regulatory Update
The significant regulatory changes being driven by the Deposit Takers Act 2023 and the Deposit
Compensation Scheme (“DCS”) have been a focus of both the Board and Management due to its
impact on General Finance.

As a RBNZ-regulated non-bank deposit taker General Finance is eligible to apply to be included in the
DCS and it is our intention to do so. The Board and Management believe that, whilst General Finance
will be required to pay a levy to be part of the scheme and be subject to enhanced prudential
regulation by the RBNZ, the benefits of having a guarantee for the first $100,000 of deposits will likely
result in a significant net benefit for General Finance that will drive a significant increase in term
deposits once it comes into force in mid-2025 impacting the 2026 financial year and beyond.

Outlook
Looking ahead to 2025 financial year, we anticipate a continuation of the growth and profitability
trends driven by our strategic initiatives and market conditions. Our priorities include expanding our
loan book, enhancing our research and advisory services, and maintaining strong liquidity. We expect
to see further growth in secured term deposits and a continued focus on sustainable value creation
for our shareholders.
About General Capital
General Capital Limited is a financial services group listed on the NZX Main Board (NZSX). Our core
activities include financial services and research and advisory services. Adopting a strategy of secured
lending via conservative Loan-to-Value Ratio (LVR) loans, General Capital protects itself from
significant risks of bad debts.
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

27 May 2024

---

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 2024
12 months to 31 March 2023
Amount (000s)
$17,171
General Capital Limited
New Zealand Dollars ($)
Percentage change
$17,171
+25%
+25%
+17%$2,633
$0.0594
$2,633
+17%
Interim/Final Dividend
It is not proposed to pay dividends at this point.
Not applicable
Not applicable
27/05/2024
Brent.King@gencap.co.nz
Nick Pimenov
Chief Financial Officer
Not applicable
Current periodPrior comparable period
$0.0665
+64 21 632 660
Brent King
Managing Director
Please refer to Directors' Report and Results Announcement
Authority for this announcement

DIRECTORS' REPORT
BACKGROUND
FINANCIAL PERFORMANCE
Year ended Year ended
31 Mar 2024 31 Mar 2023Variance% Change
Revenue
$17,171,443 $13,709,253 $3,462,190
+25%
Net profit / (loss) after tax
$2,633,161 $2,258,243$374,918
+17%
Earnings / (loss) per share*
0.72 cps0.98 cps-0.26 cps
-27%
* Calculated as Net Profit after income tax expense divided by the weighted average number of ordinary shares.
Year ended Year ended
31 Mar 2024 31 Mar 2023Variance% Change
Total assets
$163,330,631 $136,087,859 $27,242,772
+20%
Total liabilities
$136,519,214 $111,835,089 $24,684,125
+22%
Total equity
$26,811,417 $24,252,770 $2,558,647
+11%
Net tangible assets (NTA) per share*6.65 cps5.94 cps0.71 cps
+12%
Net assets (NA) per share**7.37 cps6.67 cps0.70 cps
+11%
Year ended Year ended
31 Mar 2024 31 Mar 2023Variance% Change
Finance Segment
$2,883,091 $3,245,321 ($362,230)
-11%
Other Segments
($253,739) $1,635,888 ($1,889,627)
-116%
Group Eliminations
$3,809 ($2,622,966) $2,626,775
+ 100%
Group$2,633,161 $2,258,243$374,918
17%
Refer to the attached financial information for detailed segmental results.
* Calculated as Net Assets less deferred tax , goodwill and other intangible assets divided by the total shares on issue
as at balance date.
The Directors of General Capital Limited ("the Company") are pleased to present another record result for the year
ended 31 March 2024. The consolidated revenue was 25% higher than the previous year resulting in Net Profit After
Tax of $2,633,161 for the year ended 31 March 2024, marking it the strongest result since the Company was listed in
2018. The Company's total assets increased by a further 20% since March 2023. On 6 December 2023, Equifax
reaffirmed the credit rating of General Finance Limited as BB with a Stable Outlook.
The General Capital Group Net Profit after tax was $2,633,161 for the year ended 31 March 2024 (2023: $2,258,243).
The segment breakdown is as follows:
** Calculated as Net Assets divided by the total shares on issue as at balance date.

DIRECTORS' REPORT (CONTINUED)
Finance Segment
Other Segments
DIVIDEND POLICY
AUDIT
The Finance Segment has performed well this year. Secured term deposits grew by 23% between 31 March 2023 and
31 March 2024. The growth in term deposit funding allowed both an increase in the loan book by 22% and retain
strong liquidity and cash available as at 31 March 2024, resulting in a 6% increase in the net revenue for the year.
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 2024 is in the process of being completed and audited.
Other Segments comprise The Research and Advisory Segment, and the overheads of running the listed parent
company. Research and Advisory has completed 2 brokerage engagements during the year ended 31 March 2024 in
line with the December 2023's forecast. During the fiscal year the workforce was increased by four in order to better
support the Group's growth and expansion endeavors.
The Company does not propose to pay dividends at this point.

20242023
$$
Interest income
13,679,143 10,618,423
Interest expense
(8,096,442) (5,223,799)
Net interest income
5,582,701 5,394,624
Fee and commission income
3,327,444 2,980,148
Fee and commission expense
(862,307) (781,120)
Net fee and commission income
2,465,137 2,199,028
Revenue from contracts with customers
138,466 65,626
Cost of sales
(17,426) (4,006)
Gross profit from contracts with customers
121,040 61,620
Other income
26,390 45,056
Net revenue
8,195,268 7,700,328
Increase in allowance for expected credit losses
(59,087) (573,970)
Personnel expenses
(1,791,560) (1,218,362)
Occupancy expenses
(105,378) -
Depreciation
(11,313) (125,797)
Amortisation and impairment of intangible assets
(21,334) (537,779)
Other operating expenses
(2,620,994) (1,900,329)
(4,609,666) (4,356,237)
Profit before income tax expense
3,585,602 3,344,091
Income tax expense (952,441) (1,085,848)
Net profit after income tax expense
2,633,161 2,258,243
Other comprehensive income
Items that will not be reclassified to profit or loss
(31,240) (73,713)
Income tax on these items
(43,273) -
Other comprehensive loss for the year, net of tax (74,513) (73,713)
Total comprehensive income
2,558,648 2,184,530
Earnings per share (cents per share) * 0.72 0.98
Diluted earnings per share (cents per share) 0.72 0.98
GENERAL CAPITAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
Changes in the fair value of equity investments at fair value
through other comprehensive income
*The Earnings Per Share (EPS) decreased year-on-year due to the issuance of shares in late January 2023. Despite the number of shares
remaining the same at the end of each period, the weighted average number of shares outstanding during the reporting period used for the
FY23 EPS calculation was 230,023,343, whereas the actual number of shares at the end of each reporting period was 365,574,975. This
resulted in a decrease in EPS for FY24 despite the Group recording higher profits.
If the EPS were recalculated using the actual number of shares at the end of each reporting period, the FY23 adjusted EPS would have been
0.62 cps, indicating a 17% increase between the two reporting periods.

GENERAL CAPITAL LIMITED
20242023
$$
Equity
Share capital 21,561,120 21,561,120
Accumulated earnings 5,381,065 3,011,160
Reserves (130,768) (319,510)
Total equity
26,811,417 24,252,770

Assets
Cash and cash equivalents 15,303,073 14,072,194
Accounts receivables 4,850 46,213
Related party receivables 235 725
Other current assets 334,828 347,467
Bank deposits 12,714,591 9,937,974
Loan receivables 132,163,725 108,771,965
Property, plant and equipment 31,907 33,732
126,624
214,730
Deferred tax asset 182,173 313,454
Intangible assets and goodwill 2,468,625 2,349,405
Total assets
163,330,631 136,087,859
Liabilities
Accounts payable and other payables 1,033,694 816,766
Related party payables 6,366 117,410
Term deposits 135,118,547 109,886,032
Income tax payable 360,607 1,014,881
Total liabilities
136,519,214 111,835,089
Net assets
26,811,417 24,252,770
Net tangible assets (NTA) per share (cents per share) 6.65 5.94
Net assets (NA) per share (cents per share) 7.37 6.67
Investments
AS AT 31 MARCH 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

GENERAL CAPITAL LIMITED
$$$$
13,025,575 (245,799) 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 (319,511) 3,011,160 24,252,769
- - 2,633,161 2,633,161
- (74,513) - (74,513)
- (74,513) 2,633,161 2,558,648
-
263,256 (263,256)
-
21,561,120 (130,768) 5,381,065 26,811,417
*Fair Value Through Other Comprehensive Income
Balance at 31 March 2024
Total transactions with owners in
their capacity as owners
Balance at 31 March 2023
Profit for the year
Other comprehensive income for
the year
Total comprehensive income for
the year
Transfer fair value reserve to
retained earning for FVTOCI*
equity investment
Balance at 1 April 2022
Profit for the year
Other comprehensive income for
the year
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Contributions of equity net of
transaction costs
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Share capital Reserves
Accumulated
earnings
Total equity

GENERAL CAPITAL LIMITED
20242023
$$
Cash flow from operating activities
Interest received
13,795,341 10,647,402
Receipts from customers
3,312,918 2,457,853
Other income
3,190 4,755
Payments to suppliers and employees
(5,419,578) (3,753,310)
Interest paid
(7,377,800) (5,898,226)
Income tax paid
(1,475,434) (772,829)
2,838,637 2,685,645
Term deposits (net receipts)
24,485,709 22,534,413
Finance receivables (net advances)
(23,144,390) (28,665,673)
Net cash provided by / (used in) operating activities
4,179,956 (3,445,615)
Cash flow from investing activities
Purchase of property, plant and equipment
(9,488) (11,960)
Purchase of intangibles
(213,346) -
Investment in bank deposits
(2,776,617) (7,487,974)
Investment in equities
50,374 -
Net cash used in investing activities
(2,949,077) (7,499,934)
Cash flow from financing activities
Issue of ordinary shares
- 8,535,545
Lease payments
- (179,372)
Net cash provided by financing activities
- 8,356,173
Reconciliation of cash and cash equivalents
14,072,194 16,661,570
1,230,879 (2,589,376)
15,303,073 14,072,194

Cash and cash equivalents at the end of the reporting year
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE YEAR ENDED 31 MARCH 2024
Net cash flows from operating activities before changes in
operating assets and liabilities
Cash and cash equivalents at the beginning of the reporting
year
Net increase / (decrease) in cash and cash equivalents held
during the reporting year

SEGMENT REPORTING
$$$$$$
13,399,355 16,118 266,945 13,682,418 (3,276) 13,679,142
3,327,444 - - 3,327,444 - 3,327,444
- 135,695 - 135,695 2,361 138,056
- 409 - 409 - 409
3,190 4,000 681,468 688,658 (662,268) 26,390
- - - - - -
16,729,989 156,222 948,413 17,834,624 (663,183) 17,171,441
(8,096,442) - (3,276) (8,099,718) 3,276 (8,096,442)
(862,307) - - (862,307) - (862,307)
- (20,354) - (20,354) 2,929 (17,425)
7,771,240 135,868 945,137 8,852,245 (656,978) 8,195,267
(59,087) - - (59,087) - (59,087)
(1,530,721) (21,956) (238,883) (1,791,560) - (1,791,560)
(23,825) - (8,823) (32,648) - (32,648)
- - - - - -
(2,336,156) (54,373) (998,109) (3,388,638) 662,268 (2,726,370)
(938,360) - (12,600) (950,960) (1,481) (952,441)
2,883,091 59,539 (313,278) 2,629,352 3,809 2,633,161
156,967,691 955,791 5,940,759 163,864,241 (533,609) 163,330,631
136,525,549 3,796 482,404 137,011,749 (492,534) 136,519,214
Acquisition of property, plant and equipment, intangible assets, and other non-current assets (excluding non-current finance receivables):
$$$$$$
219,219 - 3,593 222,812 - 222,812
219,219 - 3,593 222,812 - 222,812
Consolidated
Other
Year ended 31 Mar 2024Finance
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.
Dividend income
Total Revenue
Interest Expense
Fee and commission
Cost of sales
Net Revenue
Increase in allowance for
expected credit losses
Personnel expenses
Depreciation and
Amortisation
Research and Advisory
Corporate and
Other Total Segments Eliminations Consolidated
Revenue from contracts
with customers
- Advisory fee revenue
- Yearbook and research
Research and Advisory
Corporate and
Other Total Segments Eliminations
Finance
Other income
Total Assets
Total Liabilities
Impairment Expense -
intangible assets
Other expenses
Income Tax Expense
Net profit / (loss) after tax
Year ended 31 Mar 2024
Revenue - fee income
(finance receivables)
Revenue - interest income

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

---

$ 17.2m
Revenue
FY 23
$13.7m
+ 25%
$ 163.3m
Total Assets
FY 23
$136.1m
+ 20%
$ 26.8m
Total Equity
FY 23
$24.3m
+ 11%
$ 2.63m
Net Profit After Tax
FY 23
$2.26m
+ 17%
0.35 %
Credit Losses %
FY 23
0.70%
-50%
0.74 %
Arrears %
FY 23
11.61%
-94%
Key Result Highlights