Investor Newsdletter #3 - September 2012

Welcome to our September 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.

New Prospectus
You should have received by now a copy of our new prospectus, registered in July 2012. Our prospectus shows that we are growing again and that it is business as usual.  Our total assets, over the past year, have increased from $6.31 million to $7.27 million. Profit before tax is up from $189,488 to $303,618 for the 31 March 2012 year. So far this year, we have been receiving regular enquiries for loans. Our number of investors is increasing as well, which is positive.

Business as Usual
As outlined above, it is business as usual for us. Things are quieter than we would like, but that is the way things are when a country is in recession.  We are continuing with our conservative lending policy.  We are concentrating on short term and bridging proposals, where we have a market advantage. Our lending is confined to residential securities (including houses, flats and apartments). We will lend on residential sections but we avoid residential subdivisions and commercial property applications.  Our strategy for the next few years is to continue to grow our business on an incremental basis.

Low Inflation
Officially our inflation rate is around 1%. Most people looking at their utility, rates and insurance bills would think that inflation is a lot higher. Whatever your view, this low figure will have an impact on interest rates. One of the main reasons that the Reserve Bank increases interest rates is to control inflation. Inflation is currently firmly under control.  What this means is that the currently bank interest rates will remain at the current low levels longer. This means that General Finance rates are as attractive as ever.

Next Interest Payment
Our next quarterly interest payment will be made on the evening of Friday 28 September 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 me on 09 526 7801 or by email to wcairns@general.co.nz  Our website is a 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 appreciated.