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Investor Newsletter #4 - December 2006 

Welcome to our seventh General Finance quarterly investor 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. 


Welcome to our eighth General Finance quarterly investor 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.

Our 6 Month Result to 30 September 2006.

General Finance Limited had a satisfactory six monthly result to 30 September 2006. Profit before tax was $373,778 which compares favourably with the full year to 31 March 2006 of $473,555. Total assets have grown to $8.98 million up from $8.34 million in March. There have been two other positive developments: paid up capital has increased to $1.5 million from $1.0 million and total shareholders funds are $2.13 million, up from $1.88 million in the previous period. The demand for loans remains reasonably firm but a bit slower than this time last year. All loans are secured by registered mortgages over residential properties. If any investor would like a full copy of our six monthly accounts please feel free to contact us or you can download one from in the Prospectus Section.

Our 2007 Crystal Ball

Last year many were expecting a slowdown during 2006. This has not occurred. There are a number of trends that are likely to give us an indication of what 2007 will have in store. Unemployment remains low, which will continue to allow first home buyers to enter the property market. Immigration will continue - this is not only positive for the economy, it is good for the residential property market as well. During the whole of 2006, interest rates remained essentially unchanged and they appear to have peaked. The housing market remains firm but is expected to slow a little next year. We believe 2007 will be similar to this year with a steady demand for well located properties. The economy will be similar to this year, but more subdued than in 2004 and 2005.

An Example of the Lending That We Are Doing

As discussed in previous newsletters, one of our main types of lending is short term bridging finance. By way of example - we had a couple who owned a lifestyle block just out of Auckland, and who wanted to purchase the vacant neighbouring land. They wanted to subdivide it into two, sell one portion and keep the other. They believed that this transaction would significantly enhance their existing property. Due to the nature of this transaction, its short term duration, as well as the applicants being recently self-employed, it did not fit into normal bank lending criteria. It was ideal for General Finance Limited as we have obtained a first mortgage over the land being purchased and a second mortgage over their residence.

December Payment Date

Our December quarterly interest payment will be made on Friday evening, 29 December. Direct credits will go in that evening, with cheques and paperwork being forwarded the following week. Our cut off date for this payment was 15 December. Those investors who made new or additional deposits between 15 and 29 December, will have interest accrued and paid out at the end of the following quarter.

If you have any questions about your investment please do not hesitate to contact me on 09 526 7801. Our website is at

If you want to invest more funds or obtain statements and the like, our securities registrar’s number is 0800 500 602.

We wish you and your families a very Merry Christmas and all the best for the new year. 

Your continued support is much appreciated.