General Capital Limited Analysis

Overview

General Capital was previously the listed shell Mykco.

General Capital purchased 2 financial services businesses ( General Finance Ltd, a licensed Non Bank Deposit taker established in 2001 and Investment Research Group Ltd.( IRG) , an NZX sponsor). The purchase was in August 2018 via the acquisition of a holding company Corporate Holdings Ltd.

Performance

The following information was extracted from General Capital Limited's Half Year report, released 22 November 2024:

The Directors of General Capital are pleased to report a strong financial performance for the six months ended 30 September 2024. During this period, General Capital achieved a 39% increase in revenue compared to the prior six-month period in 2023, resulting in a net profit after tax of $1,572k—our strongest half-year result since listing in 2018.

Total assets rose by 15% since 31 March 2024, reflecting sustained growth across the Group. This outcome is particularly significant given the headwinds faced by the New Zealand economy during 2024

General Finance Limited (GFL), a licensed non-bank deposit taker and wholly owned subsidiary of General Capital, delivered strong financial results for the six months ended 30 September 2024, with a 41% year-on year increase in revenue, driving a 35% rise in Net Profit Before Tax (NPBT) and a 34% increase in Net Profit After Tax (NPAT), reflecting robust business activity, effective cost management, and enhanced operational efficiency.

GFL has experienced strong growth in secured term deposits of 17% during the period, contributing to the Group’s healthy asset growth. Additionally, GFL’s reach expanded beyond Auckland, with notable growth in non-Auckland regions and greater demographic diversity in its investor base.

Total loans rose by 7% during the 6-month period as GFL’s management adopted a conservative lending strategy, balancing asset growth with a focus on liquidity. This approach was particularly prudent in the face of New Zealand’s challenging economic environment in 2024, aiming to protect the Group’s financial health while ensuring long-term stability.

Overall, GFL’s performance has positively contributed to General Capital’s growth in revenue and profitability, affirming the Group's strategic direction and highlighting its resilience in navigating market challenges.

Please refer to the attached financial information for detailed segmental result