GEN - General Capital Ltd

[Left Field]

Results out.....encouraging for holders??

https://www.nzx.com/announcements/473141

The Directors of General Capital Limited (GEN), the NZX listed Financial Services Group, are pleased to present another record year of growth for the year ended 31 March 2026. Consolidated Revenue was 18% higher than the previous year, increasing to $26.8m, whilst Net Profit After Tax (NPAT) of $2.7m was broadly in line with the prior year; Total Comprehensive Income was slightly higher at $2.8m when taking into account Other Comprehensive Income from a financial reporting perspective. This reflects continued balance sheet growth, partly offset by higher operating costs, expected credit loss provisioning and the IRG Goodwill impairment. On a normalised basis, the result would have been higher after adjusting for one-off items, including a goodwill impairment of $379k in subsidiary Investment Research Group (IRG), which was absorbed during a challenging global economic environment.
 


Call me old fashioned, but I get a tab concerned when I read about goodwill impairment on related company dealings...$379,000 ??

Disc-  don't hold. Watching with interest.

[lorraina]

Very generous DRP
Dividend Reinvestment Plan Strike Price
General Capital Limited (NZX:GEN) hereby advises that the strike price for the Dividend
Reinvestment Plan (DRP), operating in respect of the dividend payable on 2 July 2026, has
been set at NZ$0.261 per share.
The strike price has been determined in accordance with the General Capital DRP terms, as
the volume weighted average sale price in New Zealand for General Capital shares, calculated
on all trades of General Capital shares which took place through the NZX Main Board over the
period of five trading days starting on 11 June 2026 less a 5% discount.
ENDS
This announcement was authorised by Brent King, Managing Director

[lorraina]

Credit Rating Upgrade.
https://www.nzx.com/announcements/477275

[Dolcile]

Over the last couple of days I've picked up a very small portion in General Capital.  Very illiquid but the 5% discount on the DRIP is nice and hopefully we'll see continued profit growth.

[lorraina]

AGM
General Capital held its Annual Shareholder Meeting in Auckland at 2pm on 20 August 2026. At the
meeting shareholders were asked to vote on three resolutions which were unanimously supported by
the Board.
Yet Brent King was voted off the board,18,780,733 for,against 32,133,645
I take it The Chairman Rewi Bugo changed his mind.
Rather an extraordinary situation.?

[Dolcile]

That's quite strange given Brent is the CEO

[lorraina]

Even stranger in GEN's latest announcement they state the resolution was not carried,
yet only 18,780,733 voted for it while 32,133,645 were against it.

[Plata]

So what is the end result? CEO+Director -> Just CEO? Nice to see some drama for once.

[lorraina]

The only criticism I have had of Brent King's running of GEN is he has been to careful/conservative.
However there appears to have been a big fall out between him and the chairman, who happens to be the largest shareholder.
Going from the latest annual report, and the recent credit upgrade, I think the business is in very good shape.

Disc.During the past year I have gone from a large shareholding to a very modest holding.

[Dolcile]

Hey Lorraina, just wondering why you've shrunk your position ?

[lorraina]

GEN.When a director resigned and moved to Australia his family's holding was dumped on to the market,and I loaded up at prices around and under 20cents.
2CC.When there was a fall out between David Sena and Eugene Williams I loaded up on 2CC shares around and under 25 cents.When things settled down I added to wife's and my holdings.
GFL Geneva Finance.When they moved from NZX to Unlisted I loaded up on their shares around 20 cents.
So the long and short of it was I ended up with 3 very large holdings in illiquid stocks.
With GEN and GFL I was miles overweighted in the finance sector.
I therefore sold well down on GEN and sold some GFL.I retained a higher % in GFL and their PE ratio was a lot lower than GEN's and their dividends a lot higher.
Wife and I retained our 2CC holding as I see used car business in NZ as a solid stable sector long term..2CC are on modest ratios and paying a high dividend.Currently there is a "low Ball" offer in the market by major shareholder David Sena which is looking to fail.
The GEN and GFL proceeds were recycled into AFT,BLT,GNE and SPN.giving us a much better spread of stocks.


 

[Ferg]

Nice situational buying lorraina.  Reminds me of the quote "be greedy when others are fearful".

Do we know much more about the apparent conflict and why the motion was not carried?  If the other Directors did not support the major shareholder, are there also issues at the Board level and not just between the Chair & CEO?

[lorraina]

No.
I sent emails to The Chairman Rewi Bugo and Brent King.
There was an amended Annual Shareholders Meeting 2026 Results., .
2 — Re-election of Director 18,780,733 32,133,645 1,993,721 50,914,378 Not Carried
Not Carried.? Extraordinary.
I had a polite reply from Brent King who just stated more shareholders voted against his reappointment as a director than for it.
This was after  in the notice of meeting the directors stated they supported all resolutions.I note The Chairman through his Borneo Capital Ltd holds 31,730,479 shares.
So far no reply from The Chairman.
Like all shareholders I would like to know what, and why, and werefore.
The big surprised to me is there has been no adverse reaction in the share price.