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Investor Newsletter - June 2013

Welcome to our June 2013 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 audited accounts for 31 March 2013 are now available.  The company has made an audited net profit before tax of $260,409, down from $303,618 on the previous year. This was due to slightly higher costs and lower margins. Total assets have grown by 32.8% to $9,648,311 from $7,267,633. Cash balances or liquidity were at a satisfactory level of $1,487,880.  We are seeing both a renewed interest in investors coming to us, which is pleasing, as well as an increasing level of enquiries for new loans. We are looking at growing our business over the coming year, but in a controlled and incremental basis.   Our accounts are available at

New Prospectus
In about six weeks we will be releasing our new prospectus. Each year, due to increasing regulation, the document takes longer to produce, has more pages and has a greater degree of complexity. We try and write it in a way so that our investors, many who are unfamiliar with these types of documents, can read it. We also include our investment statement with our prospectus, so our investors receive only one document. We urge investors to review this document.

New Insurance Requirements
For many home owners, from May onwards, general house insurance (building insurance) rules are changing. Insurers, who have previously provided full replacement policies, will no longer be offering this option.  Home owners will have to provide an exact dollar amount for the insurance they require. You can either use your insurer’s online calculator or seek an independent valuation.  This is a significant change and we suggest that when your renewal time comes, you speak with your insurance broker or company to ascertain exactly how the changes will affect you.

Housing Markets
We follow the national housing market closely here at General Finance. The securities we take for our loans are charges over residential property, throughout the country. Currently, 96% of our loans are secured by registered first mortgages. An increasing housing market, both in prices and turnover, is important to us. Last year the average house in New Zealand was $431,967. House prices rose, on average, in the past twelve months by 7.1%. Since 2007, when the global financial crisis started, house prices are up nationally, on average, by 4%.  We are aware of regional differences.  Auckland has seen strong growth and in some smaller provincial areas, the growth has been more muted.

Next Interest Payment
Our next quarterly interest payment will be made on the evening of Friday 28 June 2013. 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  Our website is    

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).