GEN - General Capital Ltd

Started by Left Field, Aug 27, 2023, 09:31 AM

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Left Field

This small cap finance company has been flying under the radar but may be worth watching  (and doesn't seem to have a thread of its own?)

Years 2021 2022 2023
Revenue 4.84m 7.96m 13.71m
NPAT .08m 1.34m 2.26m
EPS 0 .01 .01

SP 52 week range $0.052 to $0.122

Market Cap 34.54m

FY23 result summary.....
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GEN/417009/401281.pdf

• 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
• Results include a $537k of goodwill write off

"The difficulty lies not in new ideas... but in escaping from old ideas." (J M Keynes.)

winner (n)

Strange nobody has started a thread in GEN before now ....has quite a following in other places

Anyway welcome aboard Leftie ....you prob do well with GEN

lorraina

Quote from: Left Field on Aug 27, 2023, 09:31 AMThis small cap finance company has been flying under the radar but may be worth watching  (and doesn't seem to have a thread of its own?)

Years 2021 2022 2023
Revenue 4.84m 7.96m 13.71m
NPAT .08m 1.34m 2.26m
EPS 0 .01 .01

SP 52 week range $0.052 to $0.122

Market Cap 34.54m

FY23 result summary.....
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GEN/417009/401281.pdf

• 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
• Results include a $537k of goodwill write off


The following is from the Chairman's [Rewi Bugo] agm speech.:::
in 2024, after three years of profitability and subject to shareholder
approval, the group should contemplate a dividend payment to properly reward
our shareholders for their support and loyalty.

Left Field

Still doing very well in tough conditions......impressive.

https://www.nzx.com/announcements/422456

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."
"The difficulty lies not in new ideas... but in escaping from old ideas." (J M Keynes.)

lorraina

#4
Yes a strong interim result.
When they announce their final result next May I expect they will start paying dividends.
I may have been a bit optimistic  expecting a divie before Christmas.....lol.

Left Field

"The difficulty lies not in new ideas... but in escaping from old ideas." (J M Keynes.)

lorraina

I note their capital ratio is extremely high at 22.97%.
This high ratio will support a lot further lending growth.
 http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GEN/425317/411582.pdf

Left Field

GEN has been doing well.

https://www.nzx.com/announcements/430013

General Capital Limited advises that its subsidiary General Finance Limited, a licensed Non-bank Deposit Taker, has uploaded its quarterly unaudited report for the quarter ended 31 March 2024 to the Disclose Register.

The unaudited quarterly report shows that General Finance's business has continued to grow with total assets of $155m, up by 6.7% from 31 December 2023 and a quarterly NPAT of $884k up 35.6% from the previous quarter.
"The difficulty lies not in new ideas... but in escaping from old ideas." (J M Keynes.)

lorraina

Tracking well.
When they announce their result at the end of May I would not be surprised should they announce a dividend.
Current equity ratio is 22.26%.

lorraina

#9
Fair Result.Strong Outlook.
Pleasing seeing the big % reduction in credit losses and arrears.
Did think they would announce a divie,but that has not happened.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/GEN/431750/419426.pdf


lorraina

Consolidation
After due consideration the Board has also decided to implement a share consolidation on a
one-for-four basis. Whilst this is a purely technical change it will have the effect of moving the
share price from the current approximately 8c to approximately 32c based on today's share
price. The Board feels that this better positions the share price as we move forward in the next
stage of our growth. The consolidation should be completed by 2 August 2024 with updated
share statements going out in the week of 12 August 2024. At the end of the consolidation the
total number of issued shares will be reduced from 363,574,975 to 90,893,743.

lorraina

#11
General Capital's dividend policy is to declare dividends at a
rate of at least 40% (interim and final) of its net profit after tax,
subject to maintaining a prudent level of capital for its needs.
Capital needs will vary from time to time depending on a range
of factors (including regulatory and credit rating requirements,
general economic conditions and current and expected
growth). The Directors reserve the right to amend the dividend
policy at any time.
As signalled last year, and given the consistent and strong profitability of the Group, the Board
has been actively discussing the payment of a dividend in the near term. The Board has adopted
a Dividend Policy which is on the screen. [read dividend policy]. Whilst no decision has been
made on the specific actual payment of a dividend the Board will give consideration to this, in
accordance with the policy, prior to releasing the half-year results in November.

Be great receiving a divie before Christmas.

Left Field

Share consolidation a bit of a surprise.....??
"The difficulty lies not in new ideas... but in escaping from old ideas." (J M Keynes.)

lorraina

Yes and no.
I think financial/finance companies think they have more credibility when their share price is  over the 10 cent Penny Dreadful level.
May also give lenders a better sense of security.?
Makes no difference to me.

lorraina

General Capital Completes Share Consolidation
Further to the announcement at the General Capital Annual Shareholders Meeting
and the subsequent NZX announcement on 29 July 2024, General Capital (NZX:
GEN) advises that the consolidation of every 4 General Capital shares held at 5:00
p.m. on 2 August 2024 into 1 share has now been completed.
The total issued capital of shares after the consolidation is 90,893,813 shares as set
out in the attached capital change notice.
General Capital's share registry, Computershare, will be sending out notices to
shareholders on Monday 12 August regarding their new shareholdings.
General Capital's shares commenced trading on a post consolidation basis today.
ENDS