General Capital Posts 18% Revenue Growth and Raises Dividend in FY26

Robust Asset Expansion Amid Challenging Conditions

General Capital Limited (NZX:GEN) has posted a standout financial year for FY26, with consolidated revenue climbing 18% to $26.76 million, marking another record year since its 2018 listing. This top-line surge was fuelled largely by a 63% leap in loan receivables, which reached $246.4 million, and a 34% increase in term deposits to $248 million. Total assets swelled 30% to $283.7 million, underscoring the group’s growing scale and resilience despite ongoing economic headwinds.

Net profit after tax (NPAT) held firm at $2.72 million, just 3% shy of the previous year’s $2.81 million, a slight dip partly attributed to a $379,000 goodwill impairment charge in the research and advisory segment. Earnings per share dipped marginally to 2.97 cents from 3.09 cents, reflecting the company’s expanded share base following a 1-for-4 consolidation in August 2024 and modest share issuance.

Dividend Policy and Shareholder Returns

In line with a dividend policy introduced in July 2025, which allows payout of up to 40% of NPAT, General Capital declared a final dividend of 0.85 cents per share. This supplements a 0.33 cents interim dividend, bringing total dividends for FY26 to 1.18 cents per share, fully imputed. The Board’s dividend decision signals confidence in the group’s financial strength and commitment to shareholder value amid a cautious economic backdrop.

Credit Rating Upgrade Bolsters Finance Subsidiary

General Finance Limited, the group’s wholly owned non-bank deposit taker and mortgage lender, maintained its BB credit rating with Equifax but saw its outlook upgraded from Stable to Positive in December 2025. This near-prime rating reflects low to moderate risk and endorses the subsidiary’s operational performance, including a 15% increase in net revenue and a 10% rise in NPAT. The subsidiary’s loan book growth of 63% was supported by disciplined credit management and expanding geographic reach beyond Auckland into Wellington and Christchurch.

Governance and Leadership Stability

The group’s governance framework remains robust, with no changes to the Board during the year. The Board comprises four directors, including two independent non-executives and a non-independent chairman holding significant shareholdings. The executive team was strengthened with the appointment of Vik Singh as Chief Financial Officer in May 2025, bringing global finance experience from Deloitte, HSBC, and PwC. The Board continues to adhere to NZX Corporate Governance Code recommendations and maintains transparent disclosure and risk management practices.

Impairment and Risk Management

A key challenge during the year was a $379,000 impairment in goodwill related to the research and advisory segment, driven by a conservative outlook on revenue forecasts amid economic uncertainties. The finance segment’s goodwill and licences showed no impairment, supported by strong asset growth and credit discipline. The group maintains a comprehensive risk management framework, with ongoing monitoring of credit risk, liquidity, and market risks, including interest rate sensitivities. Expected credit losses on loan receivables remain prudently provisioned at 0.25% of the gross loan balance, reflecting a cautious stance amid property market volatility.

What to Watch Next

General Capital’s growth story is anchored in its expanding loan book and stable deposit base, but the balance between asset growth and credit quality will be critical to monitor, especially under the evolving regulatory landscape of the Deposit Takers Act 2023. The Board’s commitment to a sustainable dividend policy and the recent credit rating upgrade provide positive signals, yet the impact of geopolitical tensions and economic uncertainty on lending demand and asset valuations remains an open question. Investors will be keen to see how the group navigates these headwinds while pursuing further operational efficiencies and potential capital management initiatives.