Results for the NZX-listed General Capital Limited, the owner of General Finance, show the parent group made a $51,000 loss after tax, an improvement on the $633,000 lost in the first half of 2018.
Yet there were bright spots for the lender, which took a backdoor listing on to the stock exchange in 2017. Total assets have grown by 47% since March this year, and were recorded at over $35 million.
Meanwhile, revenues were up from $818,000 in the first half of 2018 to $1.4 million, a 74% increase.
The group said its finance business holds "significant cash reserves", and is "well positioned for further growth in the loan receivables book whilst continuing to have conservative buffers above the minimum ratios required in its trust deed. In addition deposit liability growth is forecast to continue into the second half of the March 2020 financial year, driving further asset and profit growth," the company said.
Brent King, managing director of General Capital Limited, added: "This is a pleasing and positive result for General Capital and we are working hard for an even more positive result for the full year.”
The group is keen to capitalise on an opportunity for non-bank lenders in New Zealand, amid tightening conditions for borrowers. King told TMM in July advisers would be central to building its deposit taking and lending business.
General Capital plans to increase total assets to $50 million next year, increase deposits to $38 million and will consider an acquisition in the second half of the financial year to March, according to previous statements to the stock exchange.