Investor Newsletter - June 2012

Welcome to our June 2012 General Finance quarterly newsletter. We appreciate your support. The purpose of this newsletter is to keep you informed about the company and various financial matters that may interest you.

End of year result
General Finance Limited has recently released its final audited accounts to 31 March 2012. The company made a net profit before tax of $303,618, up from $189,488 on the previous year. Total assets have increased by 15.08% to $7.26 million from $6.31 million. Liquidity or cash balances remain robust at $1.61 million, up from $1.47 million on the previous year. We are continuing to see an increase in investors with us, which is positive news. We are looking at growing our business - this will be on an incremental basis as business permits. 

New Prospectus Available Shortly
In about a month we will be releasing our new prospectus.  This is a large task as it encompasses a number of new requirements that have become mandatory over the past few years. As a result, each year more pages are added to this document. We have written it in a style which we hope makes it easier for our investors to follow and understand.  We urge investors to review this important document. The company has weathered the finance company debacle over the past years and we are proud of this. 

Interest Rates
Over the past year, several commentators have stated that interest rates will rise. We believe that interest rates will remain at the current levels for some time yet. Interest rates can only rise when we start to see growth returning to our economy, declining unemployment or inflation.  Inflation is not really an issue currently as we are still in a recession - there is no doubt about this and unemployment is slowly increasing. Overseas economies are certainly not improving, Europe’s position may well get worse, the turn around in the USA is slow in coming plus things are slowing in Australia. Interest rates will not go up under these circumstances.  Currently our finance company debentures offering around 8% are attractive in this market.

Next Interest Payment
Our next quarterly interest payment will be made on the evening of Friday 29 June 2012. Direct credits will be processed that evening, with cheques (if applicable) and paperwork being forwarded during the week.

If you have any questions about your investment please do not hesitate to contact William Cairns on 09 526 7801 or by email to wcairns@general.co.nz.  Our website is www.general.co.nz.    

If you want to invest more funds, you can obtain an investment statement and application form from our securities registrar.  Their number is 0800 500 602.

Your continued support is noted and appreciated.

In accordance with the Financial Advisers Act 2008 (“the Act”) this Newsletter is “Class Advice” and any advice or recommendations contained in it or on the General Finance website is not “Personalised Advice” as defined by the Act. This means the Newsletter does not take into account an investor’s particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor’s who require “Personalised Advice” should contact an Authorised Financial Adviser (AFA).