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Investor Newsletter - June 2016

Welcome to our June 2016 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
Our annual result was down slightly on the previous year. Total revenue was down by 4.28% to $1,457,749, from $1,522,993 in the previous year. Profit before tax was $321,008 compared with $432,586 in the previous year. The reason for this was higher interest expenses and that we were holding more cash than we normally do. This was due to the lending market for us being quieter for several months, in the latter half of the year.  This has since recovered and we are now receiving more lending applications. 

Identification Difficulties
We are noting that many investors are frustrated by the impost that the Government has implemented, in requiring such strict identification procedures.  Few people like getting copies of their passports certified.  We have seem elderly clients, that no longer have passports, as they do not want to travel internationally any more. The same group do not have a drivers licence as they have given up driving.  Those using a trust now have to give details about the trustees and the beneficiaries, as well providing a certified copy of the trust deed. This identification has gone too far, when by far the majority of investors are honest people, and those who are not, simply find ways around it. 

New Bank Notes
In October last year the Reserve Bank first released its new bank notes for the $5 and $10 denominations. From late May, the new $20, $50 and $100 notes were issued. They are bright in colour, just like the new $5 and $10 notes. It is likely to be some time before you start seeing these new notes. But do we really need a $5 note. When decimal currency came in 1967, a new fifty cent coin was released. This is now worth between $8 and $9 in today’s money. The five dollar note could be replaced by a coin. In 1967 the rare $100 note was also released, but nearly fifty years later, the denomination has not been increased.

Cheques Will Go
The majority of people are now using internet banking. Regular trips to your local bank branch are becoming a thing of the past. As banks appear to be continuing to move their staff around, particularly in the larger cities, in many cases you do not even know your local bank officers.  The next change we expect to see is the gradual phasing out of cheques. It is unlikely that the banks will say on such and such day they will not accept any more cheques, but they will probably impose a handling fee (such as $25) on each cheque presented.  This will soon stop their use.
This will be difficult for elderly people, who do not own a computer, or do not have internet skills, as many are not used to internet banking and have always paid their bills using cheques. 

Next Interest Payment
Our next quarterly interest payment will be made on Thursday 30 June 2016. Direct credits will be processed that evening, with cheques (if applicable) and paperwork being forwarded during the week.

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.