Friday 14th June 2019
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General Capital Ltd, (GEN) the financial services group, which listed in August 2018 by way of a Reverse Acquisition using the listed shell Mykco Ltd has announced its Preliminary Results to 31-03-19.
Mr. Rewi Bugo, the Chairman of Directors of General Capital advised as follows:
• GEN released its Interim Report for the 6 months to 30-09-18 on 17-12-18.
Mykco had purchased the Financial Services Businesses 7 weeks before 30-09-18.
We wrote off the costs of listing and acquisition totaling in excess of $500,000 (including the costs of acquiring the shell) in the period to 30-09-18.
• The Group has made a profit of $91,213 for the second 6 months resulting in a reduced loss of $458,088 for the full year (Down from $549,301).
• Revenue has increased by 214% to $2,136,267 year on year.
• Total Assets have increased by 46% to $23,907,684 year on year.
Mr. Bugo said “The listing and acquisition process disrupted the normal workflow for a significant period the financial year. All of those matters are behind us now and we are pleased to advise that we are experiencing strong growth. The growth started early into the 2nd six months and the trend has continued into the new financial year. We are seeing strong growth on a monthly basis now and we will give a detailed presentation at our Annual Meeting.”.
Mr. Brent King, Managing Director said “This has been a very solid result. We have built on the assets of the Group and introduced new branding, promotion and capital. We now have a very solid base and we are seeing consistent demand for our Secured Deposits and hence we have strong cash inflow. This is allowing us to increase our loan book. The increase in market awareness of General Finance is resulting in growth in demands for loans and as a result growth in interest and fee income”.
Mr. King said “The major impact of the year is of course the expenses relating to listing. If we had not written these off clearly we would have had a positive result. Further the majority of the expenses ($405,280 being the cost of acquiring the shell) was a non-cash item. The accounting standards are complex for Reverse Acquisitions. I strongly recommend that all current and potential investors review the full Preliminary Announcement paying special attention to the notes including the Key Drivers of Variance.
We want to ensure that investors understand that the post acquisition period has shown strong growth and profits and that they do not get confused by accounting rules relating to the Reverse Acquisition.”
For Further Information contact
Mr. Brent King
+64 21 632 660
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