General Capital (GEN) H2 2024 earnings summary

Executive summary

• Achieved record financial results for FY24, with revenue up 25% to $17.17 million and net profit after tax rising 17% to $2.63 million compared to FY23.

• Total assets increased 20% to $163.33 million, and total equity rose 11% to $26.81 million year-over-year.

• General Finance's BB credit rating with Stable Outlook was reaffirmed by Equifax in December 2023.

• Strong management of arrears, credit losses, and cost-to-income ratio despite a challenging economic environment.

Financial highlights

• Revenue: $17.17 million (+25% YoY); Net profit after tax: $2.63 million (+17% YoY).

• Net tangible assets per share: 6.65 cps (+12% YoY); Total assets: $163.33 million (+20% YoY).

• Net interest margin declined to 2.90% (from 4.48%); credit losses reduced to 0.35% (from 0.70%).

• Arrears dropped sharply to 0.74% (from 11.61%); cost-to-income ratio stable at 56.25%.

• Earnings per share: 0.72 cents (down from 0.98 cps in FY23).

Outlook and guidance

• Anticipates continued growth and profitability in FY25, focusing on loan book expansion, research and advisory services, and strong liquidity.

• Expects further growth in secured term deposits and sustainable value creation for shareholders.

• Regulatory changes (Deposit Takers Act 2023, Deposit Compensation Scheme) expected to drive term deposit growth from mid-2025.