t
Manx Financial Group PLC announced its unaudited interim results for the six months ended 30 June 2025, reporting Profit Before Tax increased by 16% to £4.1 million and profit attributable to owners rose by 54.6% to £3.7 million. During the period, the Group's net loan book grew by £19.8 million to £392.6 million, total equity increased by £3.9 million to £41.2 million since 31 December 2024, and it completed the acquisition of CAM Wealth Group Holdings on 22 January 2025 and an additional 5% interest in Ninkasi Rentals & Finance Limited on 28 March 2025.
| Date | 22 Sept 2025 |
| Time | 07:00:11 |
| Category | Results |
| ID | 1454A |
FOR IMMEDIATE RELEASE
22 September 2025
Manx Financial Group PLC (the 'Company' or the 'Group')
Unaudited Interim Results for the 6 months to 30 June 2025
Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited, Conister Finance & Leasing Ltd, MFX Limited, Payment Assist Limited, Blue Star Business Solutions Limited, Edgewater Associates Limited, Ninkasi Rentals & Finance Limited and The Business Lending Exchange Limited, presents its Interim results for the six months ended 30 June 2025.
Jim Mellon, Executive Chair, commented: "I am pleased to report a commendable Interim financial performance amidst challenging economic conditions. We have realised a 16% increase in Profit Before Tax, amounting to £4.1 million."
Copies of the Interim Report will shortly be available on our website www.mfg.im.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.For further information, please contact:
|
Manx Financial Group PLC |
Beaumont Cornish Limited |
Tavistock Communications Limited |
Greentarget Limited |
|
Denham Eke |
Roland Cornish/ James Biddle |
Simon Hudson/ Adam Baynes |
Jamie Brownlee |
|
Tel: +44 (0) 1624 694694 |
Tel: +44 (0) 20 7628 3396 |
Tel: +44 207 920 3150 [email protected] |
Tel: +44 (0) 20 3307 5726 |
Nominated Adviser
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Dear Shareholders
I am pleased to report a commendable Interim financial performance amidst challenging economic conditions. We have realised a 16% increase in Profit Before Tax, amounting to £4.1 million (30 June 2024: £3.5 million), and a significant improvement in earnings per share.
Our strategic initiatives have been centered on growth, simplification, and technological enhancement, resulting in record profits and loan book growth while maintaining robust liquidity and capital positions. Despite persistent high inflation and interest rates, the outlook for the economies of the Isle of Man and UK remain more favorable compared to other jurisdictions.
Financial results include a 0.5% rise in Net Interest Income margin to 62.4% (30 June 2024: 61.9%), net loan book growth of £19.8 million to £392.6 million since the year-end (31 December 2024: £372.8 million), and an improved net yield of 7.6% (30 June 2024: 7.3%). Operating income has increased by £0.8 million to £18.4 million (30 June 2024: £17.6 million), and profit attributable to owners has risen by 54.6% to £3.7 million (30 June 2024: £2.4 million).
The balance sheet reflects an increase in the loan book of £19.8 million to £392.6 million (31 December 2024: £372.8 million), supported by deposits of £406.5 million (31 December 2024: £405.2 million), improving the loan deposit efficiency ratio to 96.6% (31 December 2024: 91.9%). We hold £82.4 million (31 December 2024: £95.3 million) in liquidity via cash and short dated gilts and have increased total equity by £3.9 million to £41.2 million since the year-end (31 December 2024: £37.3 million).
Our market valuation has improved from a substantial discount to a slight premium over Net Asset Value, although it remains undervalued with an earnings-to-market capitalisation ratio of 6.0. Efforts to enhance investor engagement are ongoing.
We continue to make satisfactory progress against our strategic priorities by taking decisive action to grow and simplify our business and to manage our liquidity, capital, and costs more efficiently in compliance with our regulatory and ESG requirements. In this regard, we will continue to:
• Optimise our cost of liquidity through our two deposit-taking licences, providing liquidity to our lending businesses to maximize their profitability.
• Increase our shareholder engagement, including the provision of a new website for the Group.
• Simplify the Group's structure to deliver cost efficiencies through supplier reviews and technological enhancements.
• Enhance our customers' experience through the deployment of technology where it adds value, including
• introducing self-service functionality for our lending and deposit customers.
· Expand our product offering in resilient markets and seek to increase our market share through accretive acquisitions.
· Constantly review the markets in which we operate.
· Deploy our capital in the most sustainable markets and products that produce the best outcomes for our customers.
· Develop and use technology to reduce our carbon footprint and encourage the Group and its stakeholders to better understand the consequences of their actions or inactions.
It is the Board's view that no additional provision is required at this time beyond £0.2 million for potential liabilities related to the FCA review of discretionary commission arrangements in motor finance.
Our key profit drivers include Conister Bank Limited, Payment Assist Limited, and Manx Ventures Limited:
• Conister Bank Limited's net loan book grew by £16.7 million to £382.9 million (31 December 2024: £366.1 million) supported by deposits increasing to £406.5 million (31 December 2024: £405.2 million) with the Bank's Loan to Deposit ratio improving to 94.2%. We remain in an excellent liquidity position with a surplus of £74.0 million (31 December 2024: £91.1 million). In terms of regulatory capital, the Bank continues to enjoy a robust CET1 of 12.2% (31 December 2024: 12.5%) leaving us well positioned to meet our partners' borrowing requirements.
• Payment Assist Limited, one of the UK's leading automotive repair point-of-sale finance providers, increased advances by £3.3 million to £97.6 million (30 June 2024: £94.3 million) and now has in excess of 1,000,000 unique customers and serves over 7,000 garages. This customer base will function as a starting point from which to grow our recently acquired insurance and wealth management business, CAM Wealth Limited.
• Manx Ventures Limited holds shareholdings and options in 13 companies and is the acquisition vehicle for businesses which fall outside the banking licence regime. Many of its shareholdings are in companies that our structured finance division lend to on an arms-length basis. This mix of debt and equity allows the Group as a whole to maximise its return as business opportunities arise. Manx Ventures balance sheet grew by £0.4 million to £16.1 million (31 December 2024: £15.7 million) and generated dividends to Group of £0.7 million (30 June 2024: £0.7 million).
• Other subsidiaries include MFX Limited, our successful FX advisory, and our Isle of Man based wealth management business, Edgewater Associates Limited, both of which continue to perform well.
Looking ahead, we plan cautious expansion into the EU via an Irish consumer credit licence without compromising financial discipline, while focusing on the Isle of Man and UK markets.
New fintech offerings including, subject to regulatory approval, the adoption of Fiinu's overdraft product which we have just announced. Other accretive acquisitions are planned and are expected to support resilience amid economic headwinds.
We are well-positioned to capitalise on growth opportunities in short-term lending sectors including Buy Now Pay Later.
Despite not being able to replicate the one-off £1.8 million of Group impairment reversal in 2024, I remain confident regarding the outlook for the Group for the remainder of the year. I would also like to thank all our customers, staff and the Board for their continued support, and it would be remiss of me not to mention that our longest serving Non-Executive Director, Alan Clarke, who has been a steadfast supporter and friend to both me and the Group, decided to retire after this year's Annual General Meeting, and I am sure you will join me in thanking Alan for his many years of service.
Jim Mellon
Executive Chair
19 September 2025
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
|
|
Notes |
|
For the six months ended 30 June 2025 £'000 (unaudited) |
|
For the six months ended 30 June 2024 £'000 (unaudited) |
|
For the year ended 31 December 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
Interest revenue calculated using the effective interest method |
6 |
|
28,388 |
|
28,009 |
|
55,930 |
|
Interest expense |
|
|
(10,687) |
|
(10,684) |
|
(23,139) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
17,701 |
|
17,325 |
|
32,791 |
|
|
|
|
|
|
|
|
|
|
Fee and commission income |
|
|
2,224 |
|
2,178 |
|
3,923 |
|
Fee and commission expense |
|
|
(3,081) |
|
(3,851) |
|
(7,181) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net trading income |
|
|
16,844 |
|
15,652 |
|
29,533 |
|
|
|
|
|
|
|
|
|
|
Other operating income |
|
|
170 |
|
275 |
|
585 |
|
Gain on financial instruments |
|
|
- |
|
- |
|
18 |
|
Realised gain on debt securities |
9 |
|
1,398 |
|
1,671 |
|
4,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
18,412 |
|
17,598 |
|
34,402 |
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
(6,463) |
|
(6,211) |
|
(12,495) |
|
Other expenses |
|
|
(4,684) |
|
(3,938) |
|
(9,053) |
|
Provision for impairment on loans and advances to customers |
|
|
(2,474) |
|
(3,304) |
|
(1,752) |
|
Depreciation |
|
|
(463) |
|
(444) |
|
(949) |
|
Amortisation and impairment of intangibles |
|
|
(299) |
|
(217) |
|
(340) |
|
Share of profit of equity accounted investees, net of tax |
|
|
51 |
|
37 |
|
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax payable |
|
|
4,080 |
|
3,521 |
|
9,932 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(352) |
|
(739) |
|
(1,384) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period / year |
|
|
3,728 |
|
2,782 |
|
8,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
For the six months ended 30 June 20245 £'000 (unaudited) |
|
For the six months ended 30 June 2024 £'000 (unaudited) |
|
For the year ended 31 December 2024 £'000 (audited) |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Profit for the period / year |
|
|
3,728 |
|
2,782 |
|
8,548 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Other comprehensive income: |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Items that will be reclassified to profit or loss |
|
|
|
|
|
|
|
||||||
|
Unrealised gain / (loss) on debt securities |
|
|
53 |
|
- |
|
(395) |
||||||
|
Related tax |
|
|
(5) |
|
- |
|
40 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Items that will never be reclassified to profit or loss |
|
|
|
|
|
|
|
||||||
|
Actuarial gain on defined benefit pension scheme taken to equity |
|
|
- |
|
- |
|
67 |
||||||
|
Related tax |
|
|
- |
|
- |
|
(7) |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Other comprehensive income, net of tax |
|
|
48 |
|
- |
|
(295) |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Total comprehensive income for the period / year |
|
|
3,776 |
|
2,782 |
|
8,253 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Profit attributable to: |
|
|
|
|
|
|
|
||||||
|
Owners of the Company |
|
|
3,727 |
|
2,410 |
|
8,102 |
||||||
|
Non-controlling interest |
|
|
1 |
|
372 |
|
446 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
3,728 |
|
2,782 |
|
8,548 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
||||||
|
Owners of the Company |
|
|
3,775 |
|
2,410 |
|
7,807 |
||||||
|
Non-controlling interest |
|
|
1 |
|
372 |
|
446 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
3,776 |
|
2,782 |
|
8,253 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Earnings per share - profit for the period / year |
|
|
|
|
|
|
|
||||||
|
Basic earnings per share (pence) |
8 |
|
3.11 |
|
2.07 |
|
6.87 |
||||||
|
Diluted earnings per share (pence) |
8 |
|
2.43 |
|
1.59 |
|
5.39 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
Earnings per share - total comprehensive income for the period / year |
|
|
|
|
|
|
|
||||||
|
Basic earnings per share (pence) |
8 |
|
3.15 |
|
2.07 |
|
6.62 |
||||||
|
Diluted earnings per share (pence) |
8 |
|
2.46 |
|
1.59 |
|
5.20 |
||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
As at |
Notes |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 December 2024 £'000 (audited) |
|
Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
24,275 |
|
18,651 |
|
16,199 |
|
Debt securities |
9 |
|
58,115 |
|
77,257 |
|
79,140 |
|
Equity held at Fair Value Through Profit or Loss |
|
|
154 |
|
185 |
|
154 |
|
Loans and advances to customers |
5,10 |
|
392,558 |
|
372,775 |
|
372,358 |
|
Trade and other receivables |
11 |
|
10,015 |
|
11,623 |
|
7,312 |
|
Property, plant and equipment |
|
|
5,513 |
|
6,072 |
|
6,433 |
|
Intangible assets |
|
|
5,175 |
|
4,905 |
|
5,301 |
|
Investment in associates |
|
|
366 |
|
186 |
|
317 |
|
Goodwill |
12 |
|
11,144 |
|
10,576 |
|
10,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
507,315 |
|
502,230 |
|
497,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Deposits from customers |
|
|
406,504 |
|
409,284 |
|
405,166 |
|
Creditors and accrued charges |
13 |
|
13,408 |
|
14,357 |
|
9,679 |
|
Contingent consideration |
16 |
|
568 |
|
5 |
|
- |
|
Loan notes |
14 |
|
45,295 |
|
41,407 |
|
45,292 |
|
Pension liability |
|
|
43 |
|
105 |
|
46 |
|
Deferred tax liability |
|
|
294 |
|
377 |
|
294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
466,112 |
|
465,535 |
|
460,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Called up share capital |
15 |
|
19,626 |
|
19,626 |
|
19,626 |
|
Profit and loss account |
|
|
21,548 |
|
17,425 |
|
17,632 |
|
Revaluation reserve |
|
|
- |
|
15 |
|
- |
|
Non-controlling interest |
|
|
29 |
|
(371) |
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
41,203 |
|
36,695 |
|
37,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
|
507,315 |
|
502,230 |
|
497,790 |
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
Attributable to owners of the Company |
|
||||||||||||||||
|
For the six months ended 30 June 2024 |
Share capital £'000 |
|
Profit and loss account £'000
|
|
Revaluation reserve £'000
|
|
Total £'000 |
|
Non-controlling interest £'000 |
|
Total equity £'000 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 1 January 2024 |
19,384 |
|
15,544 |
|
15 |
|
34,943 |
|
1,041 |
|
35,984 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Profit for the period |
- |
|
2,410 |
|
- |
|
2,410 |
|
372 |
|
2,782 |
|||||||
|
Other comprehensive income |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period |
- |
|
2,410 |
|
- |
|
2,410 |
|
372 |
|
2,782 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Changes in ownership interests: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Dividend declared |
- |
|
(336) |
|
- |
|
(336) |
|
(1,784) |
|
(2,120) |
|||||||
|
Scrip dividend shares |
193 |
|
(193) |
|
- |
|
- |
|
- |
|
- |
|||||||
|
Share issue |
49 |
|
- |
|
- |
|
49 |
|
- |
|
49 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total changes in ownership interests |
242 |
|
(529) |
|
- |
|
(287) |
|
(1,784) |
|
(2,071) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 30 June 2024 |
19,626 |
|
17,425 |
|
15 |
|
37,066 |
|
(371) |
|
36,695 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 1 July 2024 |
19,626 |
|
17,425 |
|
15 |
|
37,066 |
|
(371) |
|
36,695 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Profit for the period |
- |
|
5,691 |
|
- |
|
5,691 |
|
41 |
|
5,732 |
|||||||
|
Other comprehensive income |
- |
|
(295) |
|
- |
|
(295) |
|
- |
|
(295) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period |
- |
|
5,396 |
|
- |
|
5,396 |
|
41 |
|
5,437 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Changes in ownership interests: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Share-based payment expense |
- |
|
196 |
|
- |
|
196 |
|
- |
|
196 |
|||||||
|
Revaluation loss |
- |
|
- |
|
(15) |
|
(15) |
|
- |
|
(15) |
|||||||
|
Acquisition of NCI net without change of control |
- |
|
(5,385) |
|
- |
|
(5,385) |
|
385 |
|
(5,000) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total changes in ownership interests |
- |
|
(5,189) |
|
- |
|
(5,204) |
|
385 |
|
(4,819) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 31 December 2024 |
19,626 |
|
17,632 |
|
- |
|
37,258 |
|
55 |
|
37,313 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 1 January 2025 |
19,626 |
|
17,632 |
|
- |
|
37,258 |
|
55 |
|
37,313 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Profit for the period |
- |
|
3,727 |
|
- |
|
3,727 |
|
1 |
|
3,728 |
|||||||
|
Other comprehensive income |
- |
|
48 |
|
- |
|
48 |
|
- |
|
48 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total comprehensive income for the period |
- |
|
3,775 |
|
- |
|
3,775 |
|
1 |
|
3,776 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Changes in ownership interests: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Acquisition of NCI net without change of control (see Note 18) |
- |
|
(177) |
|
- |
|
(177) |
|
(27) |
|
(204) |
|||||||
|
Share-based payment expense |
- |
|
318 |
|
- |
|
318 |
|
- |
|
318 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total changes in ownership interests |
- |
|
141 |
|
- |
|
141 |
|
(27) |
|
(114) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Balance at 30 June 2025 |
19,626 |
|
21,548 |
|
- |
|
41,174 |
|
29 |
|
41,203 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
Notes |
|
For the six months ended 30 June 2025 £'000 (unaudited) |
|
For the six months ended 30 June 2024 £'000 (unaudited) |
|
For the year ended 31 December 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROFIT BEFORE TAXATION TO OPERATING CASH FLOWS
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
4,080 |
|
3,521 |
|
9,932 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
463 |
|
444 |
|
949 |
|
Amortisation of intangibles |
|
|
299 |
|
217 |
|
340 |
|
Impairment of loans and advances to customers |
|
|
2,474 |
|
3,304 |
|
1,752 |
|
Net interest income |
|
|
(19,028) |
|
(18,646) |
|
(35,614) |
|
Realised gains on debt securities |
|
|
(1,398) |
|
(1,671) |
|
(4,266) |
|
Share of profit of equity accounted investees |
|
|
(51) |
|
(37) |
|
(119) |
|
Lease interest |
|
|
- |
|
- |
|
132 |
|
Pension charge included in personnel expenses |
|
|
(3) |
|
- |
|
8 |
|
Gain on asset disposal |
|
|
(33) |
|
- |
|
- |
|
Gain on financial instruments |
|
|
- |
|
- |
|
(18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,197) |
|
(12,868) |
|
(26,904) |
|
Changes in: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(2,703) |
|
(3,396) |
|
915 |
|
Creditors and accrued charges |
|
|
5,658 |
|
(379) |
|
(5,432) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in trading activities |
|
|
(10,242) |
|
(16,643) |
|
(31,421) |
|
Changes in: |
|
|
|
|
|
|
|
|
Loans and advances to customers |
|
|
(22,674) |
|
(13,748) |
|
(13,691) |
|
Deposits from customers |
|
|
1,338 |
|
19,838 |
|
16,818 |
|
Pension contribution |
|
|
- |
|
(57) |
|
(57) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in operating activities |
|
|
(31,578) |
|
(10,610) |
|
(28,351) |
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
For the six months ended 30 June 2025 £'000 (unaudited) |
|
For the six months ended 30 June 2024 £'000 (unaudited) |
|
For the year ended 31 December 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
CASH FLOW STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operating activities |
|
|
|
|
|
|
|
|
Cash outflow from operating activities |
|
|
(31,578) |
|
(10,610) |
|
(28,351) |
|
Interest received |
|
|
28,388 |
|
28,331 |
|
58,164 |
|
Interest paid |
|
|
(11,164) |
|
(10,338) |
|
(22,389) |
|
Income taxes paid |
|
|
- |
|
(91) |
|
(1,095) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) / from operating activities |
|
|
(14,354) |
|
7,292 |
|
6,329 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(114) |
|
(106) |
|
(228) |
|
Purchase of intangible assets |
|
|
(173) |
|
(853) |
|
(1,373) |
|
Sale of property, plant and equipment |
|
|
571 |
|
- |
|
- |
|
Net sale of debt securities |
9 |
|
22,476 |
|
543 |
|
(860) |
|
Acquisition of non-controlling interest |
18 |
|
(204) |
|
- |
|
(5,000) |
|
Acquisition of CAM Wealth Limited, net of cash acquired |
16 |
|
(129) |
|
- |
|
- |
|
Contingent consideration |
|
|
- |
|
(15) |
|
(20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from / (used in) investing activities |
|
|
22,427 |
|
(431) |
|
(7,481) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Receipt of loan notes |
14 |
|
3 |
|
2,090 |
|
5,975 |
|
Payment of lease liabilities (capital) |
|
|
- |
|
(336) |
|
(443) |
|
Dividend paid |
|
|
- |
|
(2,120) |
|
(337) |
|
Share issue |
|
|
- |
|
49 |
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from / (used in) financing activities |
|
|
3 |
|
(317) |
|
5,244 |
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
8,076 |
|
6,544 |
|
4,092 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - opening |
|
|
16,199 |
|
12,107 |
|
12,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents - closing |
|
|
24,275 |
|
18,651 |
|
16,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NOTES
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Manx Financial Group PLC (the "Company" or "MFG") is a company incorporated in the Isle of Man. These condensed consolidated interim financial statements ("interim financial statements") are as at and for the six months ended 30 June 2025 and comprise the Company and its subsidiaries ("Group").
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended 31 December 2024 ("Annual Financial Statements 2024"). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
These financial statements are presented in pounds sterling, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated. All subsidiaries of the Group have pounds sterling as their functional currency.
In preparing these interim financial statements, management make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty are the same as those described in the last annual financial statements.
A summary of the Group's current policies and practices for the management of credit risk is set out in Note 7 - Financial risk review and Note 43 - Financial risk management on pages 67 and 99 respectively of the Annual Financial Statements 2024.
An explanation of the terms Stage 1, Stage 2 and Stage 3 is included in Note 45 (G)(vi) on page 108 of the Annual Financial Statements 2024.
|
|
2025 |
|
2024 |
||||||
|
30 June (unaudited) |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Grade A |
345,579 |
- |
- |
345,579 |
|
352,431 |
- |
- |
352,431 |
|
Grade B |
- |
25,116 |
- |
25,116 |
|
- |
9,251 |
4,538 |
13,789 |
|
Grade C |
- |
- |
43,765 |
43,765 |
|
- |
5 |
28,732 |
28,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross value |
345,579 |
25,116 |
43,765 |
414,460 |
|
352,431 |
9,256 |
33,270 |
394,957 |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for impairment |
(1,183) |
(620) |
(20,099) |
(21,902) |
|
(279) |
(8) |
(21,895) |
(22,182) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying value |
344,396 |
24,496 |
23,666 |
392,558 |
|
352,152 |
9,248 |
11,375 |
372,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
||||||
|
31 December (audited) |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Grade A |
327,561 |
3,968 |
- |
331,529 |
|
341,953 |
- |
- |
341,953 |
|
Grade B |
- |
19,836 |
5,932 |
25,768 |
|
- |
7,822 |
3,700 |
11,522 |
|
Grade C |
- |
5 |
35,268 |
35,273 |
|
- |
2 |
28,791 |
28,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross value |
327,561 |
23,809 |
41,200 |
392,570 |
|
341,953 |
7,824 |
32,491 |
382,268 |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for impairment |
(688) |
(36) |
(19,488) |
(20,212) |
|
(184) |
(6) |
(19,425) |
(19,615) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying value |
326,873 |
23,773 |
21,712 |
372,358 |
|
341,769 |
7,818 |
13,066 |
362,653 |
|
|
|
|
|
|
|
|
|
|
|
Loans are graded A to C depending on the level of risk. Grade C relates to agreements with the highest of risk, Grade B with medium risk and Grade A relates to agreements with the lowest risk.
|
|
2025 |
|
2024 |
||||||
|
31 December (unaudited) |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
345,579 |
- |
- |
345,579 |
|
340,658 |
- |
- |
340,658 |
|
Overdue < 30 days |
- |
25,116 |
- |
25,116 |
|
11,773 |
- |
- |
11,773 |
|
Overdue > 30 days |
- |
- |
43,765 |
43,765 |
|
- |
9,256 |
33,270 |
42,526 |
|
|
345,579 |
25,116 |
43,765 |
414,460 |
|
352,431 |
9,256 |
33,270 |
394,957 |
|
|
2024 |
|
2023 |
||||||
|
31 December (audited) |
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
Stage 1 £'000 |
Stage 2 £'000 |
Stage 3 £'000 |
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Current |
314,542 |
- |
- |
314,542 |
|
333,740 |
- |
- |
333,740 |
|
Overdue < 30 days |
13,019 |
- |
- |
13,019 |
|
8,213 |
- |
- |
8,213 |
|
Overdue > 30 days |
- |
19,851 |
45,158 |
65,009 |
|
- |
7,825 |
32,490 |
40,315 |
|
|
327,561 |
19,851 |
45,158 |
392,570 |
|
341,953 |
7,825 |
32,490 |
382,268 |
Interest revenue and other interest income represents charges and interest on finance and leasing agreements attributable to the period or year after adjusting for early settlements and interest on bank balances.
Segmental information is presented in respect of the Group's business segments. The Directors consider that the Group currently operates in one geographic segment comprising of the Isle of Man, UK and Channel Islands. The primary format for business segments is based on the Group's management and internal reporting structure. The Directors consider that the Group operates in three (2023: three) product orientated segments in addition to its financial activities to allocate the Group's capital (investing activities): (i) Asset and Personal Finance (including provision of HP contracts, finance leases, personal loans, commercial loans, block discounting, vehicle stocking plans and wholesale funding agreements); (ii) Edgewater Associates Limited (provision of financial advice), and (iii) MFX Limited (provision of foreign currency transaction services).
|
For the 6 months ended 30 June 2025 (unaudited) |
Asset and Personal Finance £'000 |
|
Edgewater Associates £'000 |
|
MFX Limited £'000 |
|
Investing Activities £'000 |
|
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest revenue calculated using the effective interest method |
28,388 |
|
- |
|
- |
|
- |
|
28,388 |
|
Interest expense |
(10,687) |
|
- |
|
- |
|
- |
|
(10,687) |
|
Net interest income |
17,701 |
|
- |
|
- |
|
- |
|
17,701 |
|
Components of Net Trading Income |
(2,541) |
|
1,035 |
|
649 |
|
- |
|
(857) |
|
Net trading income |
15,160 |
|
1,035 |
|
649 |
|
- |
|
16,844 |
|
Components of Operating Income |
1,030 |
|
4 |
|
4 |
|
530 |
|
1,568 |
|
Operating Income |
16,190 |
|
1,039 |
|
653 |
|
530 |
|
18,412 |
|
Depreciation |
(381) |
|
(9) |
|
- |
|
(73) |
|
(463) |
|
Amortisation and impairment of intangibles |
(149) |
|
(37) |
|
(2) |
|
(111) |
|
(299) |
|
All other expenses |
(12,460) |
|
(791) |
|
(114) |
|
(256) |
|
(13,621) |
|
Share of profit of equity accounted investees, net of tax |
51 |
|
- |
|
- |
|
- |
|
51 |
|
Profit before tax payable |
3,251 |
|
202 |
|
537 |
|
90 |
|
4,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
287 |
|
- |
|
- |
|
- |
|
287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
441,357 |
|
1,759 |
|
377 |
|
63,725 |
|
507,218 |
|
Total liabilities |
420,332 |
|
322 |
|
39 |
|
45,322 |
|
466,015 |
|
|
|
|
|
|
|
|
|
|
|
|
For the 6 months ended 30 June 2024 (unaudited) |
Asset and Personal Finance £'000 |
|
Edgewater Associates £'000 |
|
MFX Limited £'000 |
|
Investing Activities £'000 |
|
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest revenue calculated using the effective interest method |
28,009 |
|
- |
|
- |
|
- |
|
28,009 |
|
Interest expense |
(10,684) |
|
- |
|
- |
|
- |
|
(10,684) |
|
Net interest income |
17,325 |
|
- |
|
- |
|
- |
|
17,325 |
|
Components of Net Trading Income |
(3,405) |
|
1,077 |
|
655 |
|
- |
|
(1,673) |
|
Net trading income |
13,920 |
|
1,077 |
|
655 |
|
- |
|
15,652 |
|
Components of Operating Income |
1,927 |
|
- |
|
1 |
|
18 |
|
1,946 |
|
Operating Income |
15,847 |
|
1,077 |
|
656 |
|
18 |
|
17,598 |
|
Depreciation |
(371) |
|
(12) |
|
(1) |
|
(60) |
|
(444) |
|
Amortisation and impairment of intangibles |
(89) |
|
(39) |
|
(2) |
|
(87) |
|
(217) |
|
All other expenses |
(12,435) |
|
(732) |
|
(148) |
|
(138) |
|
(13,453) |
|
Share of profit of equity accounted investees, net of tax |
37 |
|
- |
|
- |
|
- |
|
37 |
|
Profit / (loss) before tax payable |
2,989 |
|
294 |
|
505 |
|
(267) |
|
3,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
959 |
|
- |
|
- |
|
- |
|
959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
457,023 |
|
1,890 |
|
419 |
|
42,898 |
|
502,230 |
|
Total liabilities |
437,350 |
|
297 |
|
7 |
|
27,881 |
|
465,535 |
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2024 (audited) |
Asset and Personal Finance £'000 |
|
Edgewater Associates £'000 |
|
MFX Limited £'000 |
|
Investing Activities £'000 |
|
Total £'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest revenue calculated using the effective interest method |
55,930 |
|
- |
|
- |
|
- |
|
55,930 |
|
Interest expense |
(23,044) |
|
- |
|
- |
|
(95) |
|
(23,139) |
|
Net interest income |
32,886 |
|
- |
|
- |
|
(95) |
|
32,791 |
|
Components of Net Trading Income |
(6,341) |
|
2,048 |
|
1,035 |
|
- |
|
(3,258) |
|
Net trading income |
26,545 |
|
2,048 |
|
1,035 |
|
(95) |
|
29,533 |
|
Components of Operating Income |
4,818 |
|
11 |
|
5 |
|
35 |
|
4,869 |
|
Operating Income |
31,363 |
|
2,059 |
|
1,040 |
|
(60) |
|
34,402 |
|
Depreciation |
(715) |
|
(23) |
|
(1) |
|
(210) |
|
(949) |
|
Amortisation and impairment of intangibles |
(256) |
|
(78) |
|
(4) |
|
(2) |
|
(340) |
|
All other expenses |
(20,586) |
|
(1,570) |
|
(1,020) |
|
(124) |
|
(23,300) |
|
Share of profit of equity accounted investees, net of tax |
119 |
|
- |
|
- |
|
- |
|
119 |
|
Profit / (loss) before tax payable |
9,925 |
|
388 |
|
15 |
|
(396) |
|
9,932 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
401 |
|
1 |
|
- |
|
1,199 |
|
1,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
446,771 |
|
1,614 |
|
310 |
|
49,095 |
|
497,790 |
|
Total liabilities |
428,540 |
|
377 |
|
9 |
|
31,551 |
|
460,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the 6 months ended 30 June 2025 (unaudited) |
|
For the 6 months ended 30 June 2024 (unaudited) |
|
For the year ended 31 Dec 2024 (audited) |
|
|
|
|
|
|
|
|
|
Profit for the period / year attributable to owners of the Company |
|
£3,727,000 |
|
£2,410,000 |
|
£8,101,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares in issue (basic) |
|
119,715,757 |
|
116,378,211 |
|
117,923,558 |
|
Basic earnings per share (pence) |
|
3.11 |
|
2.07 |
|
6.87 |
|
Diluted earnings per share (pence) |
|
2.43 |
|
1.59 |
|
5.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period / year attributable to owners of the Company |
|
£3,775,000 |
|
£2,410,000 |
|
£7,807,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares in issue (basic) |
|
119,715,757 |
|
116,378,211 |
|
117,923,558 |
|
Basic earnings per share (pence) |
|
3.15 |
|
2.07 |
|
6.62 |
|
Diluted earnings per share (pence) |
|
2.46 |
|
1.59 |
|
5.20 |
|
|
|
|
|
|
|
|
The basic earnings per share calculation is based upon the profit for the period / year after taxation and the weighted average of the number of shares in issue throughout the period / year.
|
As at |
|
30 June 2025 (unaudited) |
|
30 June 2024 (unaudited) |
|
31 Dec 2024 (audited) |
|
|
|
|
|
|
|
|
|
Reconciliation of weighted average number of ordinary shares in issue between basic and diluted |
|
|
|
|
|
|
|
Weighted average number of ordinary shares (basic) |
|
119,715,757 |
|
116,378,211 |
|
117,923,558 |
|
Number of shares issued if all convertible loan notes were exchanged for equity |
|
35,138,889 |
|
37,916,667 |
|
35,138,889 |
|
Dilutive element of RSUs if exercised |
|
2,466,470 |
|
2,922,088 |
|
399,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares (diluted) |
|
160,098,894 |
|
157,216,966 |
|
153,461,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of profit for the period / year between basic and diluted |
|
|
|
|
|
|
|
Profit for the period / year (basic) |
|
£3,727,000 |
|
£2,410,000 |
|
£8,101,700 |
|
Interest expense saved if all convertible loan notes were exchanged for equity |
|
£97,500 |
|
£97,500 |
|
£171,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period / year (diluted) |
|
£3,824,500 |
|
£2,507,500 |
|
£8,273,115 |
|
|
|
|
|
|
|
|
The diluted earnings per share calculation assumes that all convertible loan notes have been converted / exercised at the beginning of the period in which they are dilutive.
|
As at |
|
30 June 2025 (unaudited) |
|
30 June 2024 (unaudited) |
|
31 Dec 2024 (audited) |
|
|
|
|
|
|
|
|
|
Reconciliation of total comprehensive income for the period / year between basic and diluted |
|
|
|
|
|
|
|
Total comprehensive income for the period / year (basic) |
|
£3,775,000 |
|
£2,410,000 |
|
£7,807,000 |
|
Interest expense saved if all convertible loan notes were exchanged for equity |
|
£97,500 |
|
£97,500 |
|
£171,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period / year (diluted) |
|
£3,872,500 |
|
£2,507,500 |
|
£7,978,415 |
|
|
|
|
|
|
|
|
|
As at |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
Financial assets at fair value through other comprehensive income: |
|
|
|
|
|
|
|
UK Government treasury bills |
|
58,115 |
|
77,257 |
|
79,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58,115 |
|
77,257 |
|
79,140 |
|
|
|
|
|
|
|
|
UK Government Treasury Bills are stated at fair value and unrealised changes in the fair value are reflected in other comprehensive income. There were realised gains of £1,398,000 (30 June 2024: £1,671,000 and 31 December 2024: £4,266,000) and unrealised gains of £53,000 (30 June 2024: £nil and 31 December 2024: £395,000 loss) for the period.
|
As at |
Gross Amount £'000 |
|
Impairment Allowance £'000 |
|
30 June 2025 Carrying Value £'000 (unaudited) |
|
30 June 2024 Carrying Value £'000 (unaudited) |
|
31 Dec 2024 Carrying Value £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
HP balances |
106,772 |
|
(4,732) |
|
102,040 |
|
117,189 |
|
110,900 |
|
Finance lease balances |
18,962 |
|
(2,763) |
|
16,199 |
|
23,290 |
|
20,130 |
|
Unsecured personal loans |
146,591 |
|
(12,112) |
|
134,479 |
|
108,734 |
|
108,273 |
|
Vehicle stocking plans |
1,663 |
|
- |
|
1,663 |
|
1,537 |
|
1,714 |
|
Wholesale funding arrangements |
14,312 |
|
- |
|
14,312 |
|
11,812 |
|
23,851 |
|
Block discounting |
40,654 |
|
- |
|
40,654 |
|
37,823 |
|
40,845 |
|
Secured commercial loans |
29,665 |
|
(556) |
|
29,109 |
|
31,035 |
|
30,365 |
|
Secured personal loans |
34,229 |
|
- |
|
34,229 |
|
905 |
|
901 |
|
Government backed loans |
20,692 |
|
(1,739) |
|
18,953 |
|
30,869 |
|
24,595 |
|
Property secured |
920 |
|
- |
|
920 |
|
9,581 |
|
10,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
414,460 |
|
(21,902) |
|
392,558 |
|
372,775 |
|
372,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments |
|
675 |
|
613 |
|
663 |
|
Other debtors |
|
9,340 |
|
11,010 |
|
6,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,015 |
|
11,623 |
|
7,312 |
|
|
|
|
|
|
|
|
|
As at |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAL |
|
4,456 |
|
4,456 |
|
4,456 |
|
EAL |
|
1,649 |
|
1,649 |
|
1,649 |
|
BLX |
|
1,908 |
|
1,908 |
|
1,908 |
|
BBSL |
|
1,390 |
|
1,390 |
|
1,390 |
|
CAM Wealth |
|
568 |
|
- |
|
- |
|
NRFL |
|
678 |
|
678 |
|
678 |
|
Manx Collections Limited ("MCL") |
|
454 |
|
454 |
|
454 |
|
Three Spires Insurance Services Limited ("Three Spires") |
|
41 |
|
41 |
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,144 |
|
10,576 |
|
10,576 |
|
|
|
|
|
|
|
|
|
As at |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commission creditors |
|
436 |
|
171 |
|
333 |
|
Other creditors and accruals |
|
10,795 |
|
11,809 |
|
7,032 |
|
Lease liability |
|
1,622 |
|
1,022 |
|
1,792 |
|
Taxation creditors |
|
555 |
|
1,355 |
|
522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,408 |
|
14,357 |
|
9,679 |
|
|
|
|
|
|
|
|
|
As at |
Notes |
|
30 June 2025 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related parties |
|
|
|
|
|
|
|
|
J Mellon |
JM |
|
1,750 |
|
1,750 |
|
1,750 |
|
Burnbrae Limited |
BL |
|
3,200 |
|
3,200 |
|
3,200 |
|
Culminant Reinsurance Ltd |
CR |
|
1,000 |
|
1,000 |
|
1,000 |
|
John Spellman |
JS |
|
400 |
|
400 |
|
400 |
|
Ian Morley |
IM |
|
250 |
|
250 |
|
250 |
|
Alan Clarke |
AC |
|
150 |
|
100 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,750 |
|
6,700 |
|
6,700 |
|
Unrelated parties |
UP |
|
38,545 |
|
34,707 |
|
38,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,295 |
|
41,407 |
|
45,292 |
|
|
|
|
|
|
|
|
|
JM - Two loans, one of £1,250,000 maturing on 26 February 2030, with interest payable of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 9.0 pence, one of £500,000 maturing on 31 July 2027, paying interest of 7.5% per annum and convertible to ordinary shares of the Company at a rate of 8.0 pence.
BL - Three loans, one of £1,200,000 maturing on 31 July 2027, paying interest of 7.5% per annum, convertible to ordinary shares of the Company at a rate of 8.0 pence, one of £1,000,000 maturing 25 February 2030, paying interest of 7.5% per annum, and one of £1,000,000 maturing 28 September 2025 paying interest of 6% per annum. Jim Mellon is the beneficial owner of BL and Denham Eke is also a director.
CR - One loan consisting of £1,000,000 maturing on 12 October 2025, paying interest of 6.0% per annum. Greg Bailey, a Director, is the beneficial owner of CR.
JS - One loan consisting of £400,000 maturing on 3 May 2029, paying interest of 8.5% per annum. John Spellman is a Director of the Group.
IM - One loan consisting of £250,000 maturing on 3 June 2026, paying interest of 8.0% per annum. Ian Morley is a Director of the Conister Bank Limited, a subsidiary of the Group.
AC - Two loans, one of £50,000 and one of £100,000, both maturing on 6 May 2026, paying interest of 7.80% per annum. Alan Clarke was a Director of the Group.
UP - Fifty-six loans (2024: Forty-six), the earliest maturity date is 18 July 2025, and the latest maturity is 30 April 2030. The average interest payable is 6.79% (2023: 6.36%). The cause for the increase is due to the rising interest environment increasing the cost of loan notes seen particularly in the first six months. With respect to the convertible loans, the interest rate applied was deemed by the Directors to be equivalent to the market rate at the time with no conversion option.
|
Ordinary Shares of no-par value available for issue |
Number |
|
|
At 30 June 2025, 30 June 2024, 31 December 2024* |
200,200,000 |
|
|
Issued and fully paid ordinary Shares of no par value |
Number |
|
£'000 |
|
|
|
|
|
|
Balance at 30 June 2025 |
119,715,757 |
|
19,626 |
|
Balance at 30 June 2024 |
117,555,757 |
|
19,626 |
|
Balance at 31 December 2024 |
119,715,757 |
|
19,626 |
|
|
|
|
|
* Authorised share capital of the Group was identified as being 233,388,000 shares in the annual financial statements for the year ended 31 December 2024. This disclosure has therefore been restated in these interim financial statements to correct the authorised share capital stated as that date. This adjustment relates exclusively to this disclosure and does not impact any financial statement captions or other disclosures.
Convertible loans
There are three convertible loans totalling £2,950,000 (30 June and 31 December 2024: three convertible loans totalling £2,950,000).
Restricted Stock Units
i. Issued during the financial year ended 31 December 2022 and 2023
On 5 July 2022, 27 October 2022,29 November 2023, 16 December 2024 and 25 June 2025, MFG granted Restricted Stock Units ("RSUs") under its 2022 RSU Plan. The Group issued, in total, RSUs over 5,087,500 ordinary shares representing 4.2% of the issued share capital of the Group, including 2,400,000 to certain Directors and 2,687,500 to certain employees. The RSUs have a 2-year or 3-year term and are subject to certain vesting conditions based upon an overall growth in profitability. Any RSUs granted will fall away should the recipient leave employment before the 2-year or 3 year term expires. Should the individual vesting conditions be satisfied at the end of the term, the stock can be exercised at nil cost.
The Group directors who received RSUs are as follows:
§ Douglas Grant, Group Chief Executive Officer, was issued 1,925,000 RSUs. On 14 November 2024, he transferred 1,631,138 Ordinary Shares of no par value in the Company held in his own name to the Doonhamer Personal Pension Scheme at 15.0p per share. The Doonhamer Personal Pension Scheme is a Self-Invested Personal Pension of which Douglas Grant is the sole member and beneficiary. Following this transfer, the total number of Ordinary Shares held by Mr Grant remains at 2,347,904, representing 1.96% of the issued ordinary share capital of the Company; and
§ James Smeed, Group Finance Director, was issued 475,000 RSUs.
On 16 July 2024, Douglas Grant and James Smeed exercised their RSUs and were issued with 925,000 and 175,000 New Ordinary Shares of no par value respectively at nil cost.
The terms and conditions of the grants are as follows: and will be settled by the physical delivery of shares.
|
Grant date / employees entitled |
Number of Units |
|
Vesting period |
|
|
|
|
|
|
|
|
|
|
|
RSUs grant to key employees at 5 July 2022 |
1,020,000 |
|
2 years |
|
RSUs grant to Directors at 5 July 2022 |
1,100,000 |
|
2 years |
|
RSUs grant to key employees at 27 October 2022 |
165,000 |
|
2 years |
|
RSUs grant to Directors at 27 October 2022 |
150,000 |
|
2 years |
|
RSUs grant to key employees at 29 November 2023 |
1,102,500 |
|
2 years |
|
RSUs grant to Directors at 29 November 2023 |
1,150,000 |
|
2 years |
|
RSUs grant to key employees at 16 December 2024 |
200,000 |
|
3 years |
|
RSUs grant to key employees at 25 June 2025 |
200,000 |
|
3 years |
|
|
|
|
|
|
Total RSUs |
5,087,500 |
|
|
|
Lapsed |
(425,000) |
|
|
|
Exercised |
(2,160,000) |
|
|
|
Remaining |
2,502,500 |
|
|
The fair value of employee services received in return for RSUs granted is based on the fair value of them measured using the Black-Scholes formula. Service related and non-market performance conditions were not taken into account in measuring fair value. The inputs used in measuring the fair values at the grant of the equity-settled restricted stock unit payment plans were as follows.
|
Fair value of restricted stock units and assumptions |
Grant at 16 December 2024 |
Grant at 29 November 2023 |
Grant at 27 October 2022 |
|
Grant at 5 July 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share price at grant date |
14.75 pence |
17.5 pence |
14.0 pence |
|
8.5 pence |
|
Exercise price |
nil |
nil |
nil |
|
nil |
|
Expected volatility *^ |
638.12% |
638.12% |
107.71% |
|
55.14% |
|
Expected life (weighted average) |
2 years |
2 years |
2 years |
|
2 years |
|
Risk-free interest rate (based on government bonds)*^ |
4.43% |
4.43% |
3.15% |
|
1.65% |
|
|
|
|
|
|
|
|
Fair value at grant date |
14.75 pence |
17.5 pence |
14.0 pence |
|
8.5 pence |
|
|
|
|
|
|
|
^ Based on past 3 years
* Annual rates
The expected volatility is based on both historical average share price volatility and implied volatility derived from traded options over the Group's ordinary shares of maturity similar to those of the employees.
The fair value of the liability is remeasured at each reporting date and at settlement date.
The charge for the period for the RSUs granted was £42,000 (30 June 2024: £153,000 and 31 December 2024: £163,000) which is included in personnel expenses.
On 22 January 2025, the Group announced the acquisition of the UK FCA licenced Wealth Management business, CAM Wealth Group Holdings and its subsidiary CAM Wealth Group Limited, (together "Cam Wealth" trading as CAM Wealth).
This acquisition links to the Group's growth strategy of accretive acquisition to continue developing a robust and diversified financial services group to support the ongoing objective of continuously enhancing shareholder value.
In the five months to 30 June 2025, CAM Wealth contributed revenue of £12,838 and loss of £102,767 to the Group's results. If the acquisition had happened on 01 January 2025, management estimates that the impact on the consolidated income would have been £15,402 and the impact on the consolidated profit for the period would have been a loss of £123,318.
A. Consideration transferred
The following table summarises the acquisition date fair value of each major class of consideration transferred:
|
|
|
£'000 |
|
|
|
|
|
Cash |
|
135 |
|
Contingent consideration (Note 17) |
|
568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
703 |
|
|
|
|
B. Identifiable assets acquired, and liabilities assumed
The following table summarises the recognised amounts of assets acquired, and liabilities assumed at the date of acquisition:
|
|
|
£'000 |
|
|
|
|
|
Intangible asset acquired |
|
100 |
|
Cash and cash equivalents |
|
6 |
|
Trade and other receivables |
|
35 |
|
Creditors and accrued charges |
|
(6) |
|
|
|
|
|
|
|
|
|
Total identifiable net assets acquired |
|
135 |
|
|
|
|
The trade and other receivables comprise gross contractual amounts due of £35,000, of which £nil was expected to be uncollectable at the date of acquisition.
Fair values measured on a provisional basis
The following fair vales have been determined on a provisional basis pending completion of the valuation of the assumptions used:
· The fair value of the intangible asset acquired (FCA licence)
· The fair values of the contingent consideration (Note 17)
C. Goodwill
The goodwill arising from the acquisition has been recognised as follows:
|
|
|
£'000 |
|
|
|
|
|
Total consideration transferred |
|
703 |
|
Fair value of identifiable net assets |
|
(135) |
|
|
|
|
|
|
|
|
|
Goodwill |
|
568 |
|
|
|
|
On 21 January 2025, CAM Wealth was acquired for a total cash consideration of £135,000. In the third year, the Group has agreed to pay 5 times the relevant profits for the UK IFA business for the year ended 21 January 2028 should certain performance conditions be met.
Based on the forecasts when the Company was acquired, the Group estimates an additional contingent consideration of £640,000 payable in the final year. The Group has included £568,000 as contingent consideration related to the additional consideration, which represents its fair value at the date of acquisition determined through a discounted cash flow valuation technique.
|
As at |
|
30 June 2024 £'000 (unaudited) |
|
30 June 2024 £'000 (unaudited) |
|
31 Dec 2024 £'000 (audited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAM Wealth |
|
568 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
568 |
|
- |
|
- |
|
|
|
|
|
|
|
|
On 28 March 2025, the Group acquired an additional 5% interest in Ninkasi Rentals & Finance Limited ("NRFL"), increasing its ownership from 90% to 95%. The carrying amount of NRFL's net assts in the Group's consolidated financial statements on the date of acquisition was £580,049.
The following table summarises the effect of changes in the Company's ownership interest in NRFL.
|
|
|
£'000 |
|
|
|
|
|
Carrying amount of NCI acquired (£580,409 * 5%) |
|
27 |
|
Consideration paid to NCI in cash |
|
(204) |
|
|
|
|
|
|
|
|
|
A decrease in equity attributable to owners of the Company |
|
(177) |
The decrease in equity attributable to owners of the Company includes a decrease in retained earnings of £177,255.
Certain Group subsidiaries are regulated by the Isle of Man Financial Services Authority ("FSA") and the United Kingdom Financial Conduct Authority ("FCA") as detailed below.
The Bank and EAL are regulated by the FSA under a Class 1(1) - Deposit Taking licence, and a Class 2 - Investment Business licence respectively. The Bank is also regulated by the UK's Prudential Regulatory Authority ("PRA") and the UK's FCA.
The Bank is required to be a member of the Isle of Man Government Depositors' Compensation Scheme which was introduced by the Isle of Man Government under the Banking Business (Compensation of Depositors) Regulations 1991. This creates a liability on the Bank to participate in the compensation of depositors should it be activated.
The possibility of an outflow of resources embodying economic benefits for all other contingent liabilities of the Group are considered remote and thus do not require separate disclosure.
Following the Financial Conduct Authority's (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, the Group received a small number of complaints in respect of motor finance. On 1 August 2025, the UK Supreme Court ruled reversing various aspects the decision made by the Court of Appeal on the same matter. The Supreme Court ruling has therefore reduced the scope for the claims but there will still be some compensation to be awarded. The FCA will be consulting on an industry wide compensation scheme with a launch date expected to be in 2026. The Group believes that its historical practices were compliant with the law and regulations in place at the time and is willing to cooperate with FCA through its industry review. However, the Group recognises that there will be costs to be incurred or compensation awarded to car buyers affected and has therefore continued to carry a provision of £202,920 as best estimate of the expenditure required as at 30 June 2025. In establishing the provision estimate, the Group made various considerations to address uncertainties around a number of key assumptions. The assumptions include commission models, potential levels of complaints, validity of the complaints and uphold rate of similar cases by the Financial Ombudsman Service. The ultimate financial impact could be materially different as a result of uncertainty surrounding the assumptions and will therefore be monitored and updated as new information becomes available.
On 1 July 2025, Burnbrae Limited issued a loan note to MFG of £1,000,000 paying interest at a rate of 7.50% per annum. The loan note maturity date is 1 July 2026. There were no other significant subsequent events identified after 30 June 2025.
The interim financial statements were approved by the Board on 19 September 2025. The interim report will be available from that date at the Group's website - www.mfg.im and at the Registered Office: Clarendon House, Victoria Street, Douglas, Isle of Man, IM1 2LN. The Group's nominated adviser and broker is Beaumont Cornish Limited, 5-10 Bolton Street, London, W1J 8BA. The interim and annual financial statements along with other supplementary information of interest to shareholders, are included on the Group's website. The website includes investor relations information, including corporate governance observance and contact details.