Investor Newsletter - June 2017
Welcome to our June 2017 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.
Annual Result for 2016/17
This year’s annual result was a pleasing increase on last year’s. Net revenue was up by 3.3% to $822,135, from $796,188 last year. Profit before tax was up by 34.6% to $431,980, compared with $321,008 last year. This was due to a higher demand for our type of loans, compared with the corresponding period last year. Bad debts were lower, with a net gain of $78,725 being written back into our accounts. The Board commented that this was a most satisfactory result, noting that the current financial year has already started on a positive note.
Councils and Flooding
One of the core functions of a city or regional council is to protect its citizens against natural disasters, such as floods and fires. If an area is low lying or has slumped lower due to seismic activity, and is now more prone to flooding, then it is a council’s core responsibility to ensure its citizens do not get flooded out. This can involve increasing the size or number of stop banks, creating more drainage canals and the building of pumping stations. In the worse areas, it could be assisting people to raise their dwellings. Saying that a flood is a one in five hundred year event, and yet it happens every ten years, is just not good enough. Councils should refocus on their core functions.
Losing Fertile Land
As Auckland City continues to grow rapidly, there is a dilemma that the town planners have to consider. The area around Pukekohe has near perfectly fertile volcanic soils, plus a climate which makes it ideal for market gardening. We need more land for housing, but it will be a real shame (and there are economic consequences) if we turn this highly productive land into housing developments. As a country we need to protect our most valuable agricultural lands.
An Auckland Loading?
Government workers, such as nurses, school teachers and policemen get paid a standard rate, regardless of whereabouts in New Zealand they work. We all know that it costs more to live in Auckland, as housing is more expensive than in a provincial city. We are seeing people, in these professions, reluctant to move to Auckland and a number are leaving. Over the next few years, we are going to see real shortages in these professions within the Auckland area. The solution is for a remuneration loading, if you work in Auckland. The private sector is already doing this. And it happens in other countries. Certain workers in the United Kingdom get paid more, if they work in London.
Next Interest Payment
Our next quarterly interest payment will be made on Friday 30 June 2017. 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 Computershare Investor Services, our securities registrar. Their freephone number is 0800 500 602.
Your continued support is appreciated.